2021 Annual Report
Stock Code: 600438 Short Name: Tongwei Co., Ltd.
Tongwei Co., Ltd.
Annual Report 2021
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2021 Annual Report
Important Notice
I. The board of directors, board of supervisors 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 presented in the board meeting.
III. Sichuan Huaxin (Group) CPA (Special General Partnership) has issued a standard unqualified
opinion on the Company.
IV. Xie Yi, Head of the Company, Zhou Bin, Head of accounting affairs and Lei Jiaowen, Head 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 the year of 2021 resolved in the board meeting
Given the funds and investments of the Company in 2022, based on the total 4,501,548,184 shares of
the Company, a cash dividend of 9.12 yuan (including tax) per ten shares would be distributed to all
shareholders for a total distribution of 4,105,411,943.81 yuan. This proposal has been approved in the 28th
session of the seventh board of directors, and has not been submitted to the shareholder meeting for
approval.
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 the
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 guarantee the authenticity, accuracy and
completeness of this Annual Report?
No
X. Note on significant risks
The Company had detailed possible risks in this Report. Please refer to VI Discussion and Analysis
on the Company's Future Development in Section III Management Discussion and Analysis for more
information on possible risks and actions.
XI. Others
"□ Applicable" "√ Not applicable"
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2021 Annual Report
Contents
Section I. Definitions........................................................................................................................... 4
Section II. Company Profile and Major Financial Indicators ............................................................... 6
Section III. Management Discussion and Analysis ................................................................................ 9
Section IV. Company Governance ....................................................................................................... 37
Section V. Environmental and Social Responsibility ......................................................................... 54
Section VI. Important Matters .............................................................................................................. 67
Section VII. Share Changes and Shareholders ...................................................................................... 82
Section VIII. Preference Shares .............................................................................................................. 95
Section IX. Bonds ................................................................................................................................ 95
Section X. Financial Report ................................................................................................................ 98
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 for
CPAs.
Review
Formal copies of all Company documents and the original announcements publicly
disclosed in websites designated by the CSRC.
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Section I. Definitions
I. Definitions
Unless otherwise indicated in the context, the following terms shall have the following meanings in this
Report:
Description of common terms
Tongwei, Company, We, or Us refers to Tongwei Co., Ltd.
Tongwei Group refers to Tongwei Group Co., Ltd.
Yongxiang refers to Yongxiang Co., Ltd.
Yongxiang Polysilicon refers to Sichuan Yongxiang Polysilicon Co., Ltd.
Yongxiang New Energy refers to Sichuan Yongxiang New Energy Co., Ltd.
Inner Mongolia Hongwei High-purity Crystalline
Inner Mongolia Tongwei refers to
Silicon Company
Yunnan Tongwei High-purity Crystalline Silicon
Yunnan Tongwei refers to
Company
Tongwei New Energy refers to Tongwei New Energy Co., Ltd.
Hefei Solar refers to Tongwei Solar (Hefei) Co., Ltd.
Anhui Solar refers to Tongwei Solar (Anhui) Co., Ltd.
Chengdu Solar refers to Tongwei Solar (Chengdu) Co., Ltd.
Meishan Solar refers to Tongwei Solar (Meishan) Co., Ltd.
Tongyu Property refers to Chengdu Tongyu Property Management Co., Ltd.
Phase II 50,000-ton High- Technical renovation project on PV silicon material
purity Polysilicon Project in refers to manufacturing (Phase II High-purity Polysilicon
Leshan Project)
Phase I 50,000-ton High-purity High-purity Polysilicon green energy project (Phase I
refers to
Polysilicon Project in Baoshan 50,000-ton High-purity Polysilicon Project)
Phase II 50,000-ton High-
PV silicon material manufacturing project (Phase II
purity Polysilicon Project in refers to
50,000 -ton High-purity Polysilicon Project)
Baotou
Project on the application of homemade intelligent
Phase I 7.5 GW High-
equipment (system) powered by high-efficiency silicon-
efficiency Solar Cell Project in refers to
based solar cells with an annual capacity of 7.5 GW
Meishan
(Meishan Phase I)
Phase II 7.5 GW High- Project on the application of intelligent factory powered
efficiency Solar Cell Project in refers to by high-efficiency silicon-based solar cells with an
Meishan annual capacity of 7.5 GW (Meishan Phase II)
Project on the application of intelligent connected
Phase I 7.5 GW High-
factory powered by high-efficiency silicon-based solar
efficiency Solar Cell Project in refers to
cells with an annual capacity of 7.5 GW (Jintang Phase
Jintang
I)
A high-efficiency silicon-based cell project with an
Tonghe Project refers to annual capacity of 15 GW by Tongwei Solar and Trina
Solar
Leshan Monocrystalline Rod 15 GW monocrystalline Rod Pulling and Cutting
refers to
Pulling and Cutting Project Project
Tongwei Media refers to Chengdu Tongwei Culture Media Co., Ltd.
CSRC refers to China Securities Regulatory Commission
SSE refers to Shanghai Stock Exchange
China Securities Journal, Shanghai Securities News,
Designated Disclosure Media refers to
Securities Daily, and STCN
LONGi refers to LONGi Green Energy Technology Co., Ltd.
Zhonghuan Semiconductor refers to Tianjin Zhonghuan Semiconductor Co., Ltd.
Trina Solar refers to Trina Solar Co., Ltd.
Jinko Solar refers to Jinko Solar Co., Ltd.
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Sichuan Jinko refers to Sichuan Jinko Solar Co., Ltd.
Metco Silicon Energy refers to Baotou Metco Silicon Energy Co., Ltd.
Sichuan Huaxin (Group) CPA (Special General
Sichuan Huaxin refers to
Partnership)
A measure that indicates the ability of solar cells to
Energy conversion efficiency refers to
convert light energy into electrical energy
Convertible bonds refers to Convertible corporate bonds
W refers to Watt, the unit of power
Units of power, 1 KW = 1,000 W, 1 MW = 1,000 KW,
KW, MW, and GW refers to
and 1 GW = 1,000 MW
High-purity metal silicon with purity greater than
High-purity polysilicon refers to
99.9999999%
a cell produced with M6 silicon wafer (with a length of
166 mm), whose area is 12.21% larger than that of a cell
166 mm cell refers to
produced by the conventional M2 silicon wafer (with a
length of 156.75 mm).
a cell produced with M10 silicon wafer (with a length
of 182 mm), whose area is 35.34% larger than that of a
182 mm cell refers to
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) whose area is 80.5% larger than that of a
210 mm cell refers to
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 SiNx is added on the back
side of the cell to deal with the high carrier
PERC cell refers to
recombination on the back side of all aluminum back
surface field solar cells, and then the film will be opened
to make the aluminum back surface field effectively
contact with the silicon substrate.
Interdigitated Back Contact, a high-efficiency solar cell
structure. The front side only has a passivation and anti-
reflection coating without any grating electrodes with
both positive and negative poles crossed on the back
side. The biggest feature of an IBC cell is that both the
IBC cell refers to
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 of the cell to form a
TOPCon cell refers to
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-
HJT cell refers to
doped (intrinsic) hydrogenated amorphous silicon thin
film between P-type hydrogenated amorphous silicon
and N-type hydrogenated amorphous silicon and N-type
silicon substrate. HJT cells are welcomed due to their
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low process temperature, good passivation effect, high
open-circuit voltage and double-sided power
generation.
The percentage of the total output power of the module
to the cell power shows the degree of module power
CTM value refers to
loss. A higher CTM value indicates a smaller degree of
module package power loss.
Reporting period refers to The period from January 1, 2021 to December 31, 2021
CPIA refers to China Photovoltaic Industry Association
IRENA refers to International Renewable Energy Agency
Section II. Company Profile and Major Financial Indicators
I. Company information
Full Chinese name 通威股份有限公司
Short Chinese name 通威股份
Full English name TONGWEI CO., LTD.
Short English name TONGWEI CO., LTD.
Legal representative Xie Yi
II. Contacts and contact details
Secretary of the Board of Directors Representative of Securities Affairs
Name Yan Ke Li Huayu
Address Tongwei International Center (TIC), No. Tongwei International Center (TIC), No.
588, Middle Section Tianfu Avenue, High- 588, Middle Section Tianfu Avenue, High-
Tech Zone, Chengdu Tech Zone, Chengdu
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 Interim Shareholder Meeting held on November 16, 2016, the
Company discussed and resolved the Tongwei Co., Ltd Proposal on Changing its
Changes of the Registered Address and Modifying its Articles of Association by agreeing to change
registered address the registered address from No. 11, Forth Section of South 2nd Ring Road, High-
tech Zone, Chengdu” to “No. 588, Middle Section Tianfu Avenue, High-Tech Zone,
Chengdu”
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
Media names and websites where the Company China Securities Journal, Shanghai Securities
disclose its annual reports News, Securities Daily, and STCN
Stock exchange websites where the Company
www.sse.com.cn
disclose its annual reports
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2021 Annual Report
Location where the Company stores its annual report Securities Department
V. Stock information
Stock Information
Stock type Stock exchange Stock name Stock code Previous stock
name
A - share Shanghai Stock Exchange 通威股份 600438
VI. Other information
Sichuan Huaxin (Group) CPA (Special General
Name
Partnership)
Accountant firm
28th Floor, Jinmao Lidu South, No. 18, Ximianqiao
engaged by the Office address
Street, Chengdu
Company (domestic)
Signatory
Li Wulin, Tang Fangmo, and Xia Hongbo
accountants
Name China Securities Co., Ltd.
Building B and E, Kaiheng Center, No. 2 Chaonei Street,
Office address
Sponsor that performs Dongcheng District, Beijing
continuous Signatory
Li Puhai and Pu Fei
supervision duties in representatives
the reporting period Period of
Continuous supervision period of non-public offering:
continuous
from December 10, 2020 to December 31, 2021
supervision
VII. Major accounting data and financial indicators within the latest three years
(I). Major accounting data
Unit: Yuan Currency: CNY
Increase/decrease
Major accounting data 2021 2020
PoP (%)
2019
Operating revenue 63,491,070,520.12 44,200,270,334.23 43.64 37,555,118,255.70
Net profit attributable to
shareholders of the listed 8,207,920,822.18 3,607,923,359.56 127.50 2,634,568,828.17
company
Net profit net of non-recurring
gain and loss attributable to
8,486,488,644.67 2,408,554,229.37 252.35 2,314,484,711.22
shareholders of the listed
company
Net cash flows generated from
7,618,273,876.72 3,024,927,931.94 151.85 2,357,465,207.68
operating activities
Increase/decrease
2021 close 2020 close 2019 close
PoP (%)
Net assets attributable to
shareholders of the listed 37,502,570,958.36 30,541,405,029.73 22.79 17,577,046,993.09
company
Total assets 88,249,992,122.16 64,251,948,070.91 37.35 46,820,950,745.60
(II). Major financial indicators
Unit: Yuan Currency: CNY
Increase/decrease
Major financial indicators 2021 2020 2019
PoP (%)
Basic earnings per share (yuan/share) 1.8234 0.8581 112.49 0.6786
Diluted earnings per share (yuan/share) 1.8234 0.8466 115.38 0.6558
Basic earnings per share net of non-recurring gain and loss
1.8852 0.5729 229.06 0.5961
(yuan/share)
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Weighted average return on net assets (%) 24.24 16.13 + 8.11 ppts 16.14
Weighted average return on net assets excluding of non-
25.07 10.77 + 14.30 ppts 14.18
recurring gain and loss (%)
Note on major accounting data and financial indicators within the latest three years by the end of reporting
period
"□ Applicable" "√ Not applicable"
VIII. Differences between accounting data under domestic and foreign accounting standards
(I). Difference in net profit and net assets attributable to shareholders of the listed company
contained in the financial statements disclosed simultaneously under International 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. 2021 major financial data by quarters
Unit: Yuan Currency: CNY
Q1 Q2 Q3 Q4
(Jan - Mar) (Apr - Jun) (Jul - Sept) (Oct - Dec)
Operating revenue 10,617,725,141.89 15,944,454,470.63 20,137,556,711.57 16,791,334,196.03
Net profit attributable to
shareholders of the listed 847,369,394.06 2,118,360,648.46 2,978,968,358.78 2,263,222,420.88
company
Net profit net of non-recurring
gain and loss attributable to
796,171,272.56 2,198,386,343.02 2,936,172,012.51 2,555,759,016.58
shareholders of the listed
company
Net cash flows generated from
1,685,293,387.04 1,394,946,325.19 481,542,263.35 4,056,491,901.14
operating 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: 元 Currency: CNY
Non-recurring gain and loss Notes
2021 amount 2020 amount 2019 amount
items (if applicable)
Profit and loss on disposal
-77,844,159.34 1,541,869,733.03 149,118,467.74
of non-current assets
Government subsidies
included in current profit
and loss, but excluding
ration or quota-based on-
gonging government
345,025,134.17 296,657,874.92 204,753,562.81
subsidies closely related to
the normal operating
businesses of the Company,
complying with national
policies
Profit or loss from debt -1,162,174.00
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restructuring
In addition to the effective
hedging business related to
the normal business
operations of the Company,
the fair value gain and loss
from held-for-trading
financial assets, derivative
financial assets, held-for-
trading financial liabilities,
and derivative financial 54,403,941.63 14,385,110.27
liabilities, as well as
investment returns from
disposal of held-for-trading
financial assets, derivative
financial assets, held-for-
trading financial liabilities,
derivative financial
liabilities, and other debt
investments
Non-operating revenue and
expenses other than -444,426,951.82 -439,396,332.17 29,661,420.53
aforementioned items
Less: Effects of income tax 163,036,399.95 209,491,363.52 60,600,017.60
Effects of minority interest
-7,310,612.82 4,655,892.34 1,687,142.53
(after tax)
Total -278,567,822.49 1,199,369,130.19 320,084,116.95
Note on listing the non-recurring gain and loss items mentioned in the Explanatory Announcement on
Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-Recurring Gain
and Loss Items as recurring gain and loss items
"□ Applicable" "√ Not applicable"
XI. Items measured at fair value
"□ Applicable" "√ Not applicable"
XII. Others
"□ Applicable" "√ Not applicable"
Section III. Management Discussion and Analysis
I. Operation discussion and analysis
In 2021, the global economy recovery encountered rounds of the coronavirus pandemic outbreaks.
Stimulated by eased money policies and fiscal policies, major economies have rebounded clearly. With
the demand recovery faster than supply recovery, adequate liquidities and international tensions, the prices
of commodities like energy and raw materials surged due to short supply, which significantly increased
the global inflation. In China, supported by the robust pandemic control and measures for stabilizing the
prices and supplies of commodities, the GDP grew by 8.1% (from the National Bureau of Statistics) and
kept its leading position in the world. However, in the context of global supply chain crisis and global
inflation, businesses still experienced unprecedented pressures and challenges in production and operation.
In the reporting period, with firm adherence to the operation policy of “focus, execution and
efficiency” as a response to the complicated economic environment, the Company conducted businesses
in a stable manner with great performance. In the reporting period, the Company recorded a revenue of
63.491 billion yuan for a year-on-year growth of 43.64%; net profit attributable to shareholders of the
listed company of 8.208 billion yuan for a year-on-year growth of 127.50%; net profit excluding non-
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recurring gain and loss attributable to shareholders of the listed company of 8.486 billion yuan for a year-
on-year growth of 252.35%.
(I) Feed and industry chain
Boosted by the accelerated recovery of swine production and the continued growth of aquatic and
ruminant production, China's feed industry kept a great growth in 2021. According to China Feed Industry
Association, the total feed production reached 293,443,000 tons for a year-on-year growth of 16.1%. By
feed type, the swine feed production was 130,765,000 tons for a year-on-year growth of 46.6%, egg-
producing poultry feed production was 32,314,000 tons for a year-on-year growth of -3.6%; meat
producing poultry feed production was 89,096,000 tons for a year-on-year growth of -2.9%, ruminant feed
production was 14,803,000 tons for a year-on-year growth of 12.2%, and aquatic feed production was
22,930,000 tons for a year-on-year growth of 8.0%. With the rise of feed demand, prices of raw materials
were up. In the reporting period, main raw materials for feed production surged due to factors including
decreased production of major raw materials, pandemic-caused supply chain disruptions and inflations.
Specifically, the spot prices of corn and soybean meal increased by 27.2% and 19.5% from the previous
year (Wind). Feed companies experienced increased costs and operation difficulties.
Facing increasingly competitive markets and rising prices of raw materials, with the intention of
“maximizing the farming benefit to users”, the Company imposed strict measures on product quality to
supply premium products and provide the comprehensive “product + model + service” farming solutions
to farmers, in order to sustain the stable development of its agriculture and husbandry business. In the
reporting period, the feed and industry chain business of the Company received a revenue of 22.379 billion
yuan for a year-on-year growth of 18.60%, with 5,515,900 tons of feed sold for a year-on-year growth of
5.08%.
In the reporting period, the Company mainly performed the following tasks:
1. Three special programs under the quality first framework
Quality is the foundation and precondition of market share and benefit and the fundamental for a
business to survive and develop. In 2021, the Company kept exercising the quality policy with a focus on
three tasks: standardization, marketing transformation, and product appeal development.
In the reporting period, the Company started field standardization to eliminate gas and fluid leak,
regulate VI marks and perform list-base management so that the field management was refreshed and
changed the traditionally perceived feed industry. Its benchmark companies greatly increased the
production per person and reduced production costs. With great progress in field standardization, the
Company also started standardizing operation activities through measures including control of key energy
consumption indicators, optimization of management procedures, upgrading of equipment and facilities,
so that the pilot companies gained higher per capita efficiency, lower variable production costs, and stable
product quality assured by full process controls.
Regarding marketing activities, the Company shifted from the top-down model “company to
distributors to farmers” and directly focused on end farmers. To maximize the farming benefit, the
Company used new marketing approaches around product quality like event marketing and base marketing,
and boosted the effective combination of high-quality products and end farmers and increased the effective
implementation of Company's quality policy in end users, by having its market teams guide customers,
technical teams provide deep services and serving the pain points of users, to achieve the win-win effect
for the Company and farmers.
Additionally, the Company continued sending technical teams to end farmers to perform all-around
product tracking from market positioning, processing quality and ultimate effect and to conclude a product
appeal report. These teams worked together with market teams so that feedback and corrections were made
in a timely manner to ensure the market competitiveness of its products. In 2021, the Company rolled out
the integrated product development (IPD) with a focus on the product appeal expression in end farmers,
which greatly enhanced the benefits for farmers and received the high recognition from markets and
customers. In the reporting period, the Company released a high-end “Kaikoule” feed series for fish fry,
which significantly lowered the feed conversion ratio and increased the fry survival rate by over 25 ppts,
the best-in-class level, and consistently welcomed by farmers.
2. Moderate expansion for higher market share
While keeping the stable endogenous development, the Company actively looked for external
expansion opportunities. The Company signed the Strategic Framework Agreement with Tech-Bank Food
in July 2021 based on the division of businesses, complementary development and cooperation, which
indicated that the two reached an agreement on the Company's purchase of all the aquaculture feed assets
and a portion of the swine feed assets from Tech-Bank Food, and on their cooperation on swine feed
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supply. As of the end of the reporting period, the share purchase and business integration had completed,
and the long-term supply of swine feed was under execution. This acquisition and deep strategic
cooperation helped strengthen the Company's professionalism and scale in feed business, increase its
market share and secure its market leading position.
3. Industry chain strategy for building a comprehensive competitiveness
While focusing on its feed business, the Company moderately extended its industry chain in order to
build a comprehensive competitiveness for the agriculture and husbandry business. Adhering to the vision
of "For Better Life" the Company strictly followed food safety standards for providing safe, healthy and
delicious aquatic food for consumers. In the reporting period, the Company recorded sales of 1.135 billion
yuan for a year-on-year growth of 20% from the processing and circulation of aquatic products. Despite
of the overseas pandemic, the export income from aquatic products grew rapidly by 29%; the quality of
Tongwei Fish, a fresh fish brand, was further improved; its farming bases got Organic and ANTIBIOTIC
FREE certifications. The fish barcode mode helped with the full-cycle tracking from source to dinner table.
In terms of fish fry business, the Company exerted R&D efforts to the pain points and difficulties of
farmers. In the reporting period, the high synergy of shrimp seed business and feed business contributed
to the outstanding prawn farming effect. Prawn seeds recorded great increase in both volume and profit.
The giant tiger prawn seeds were highly accepted by farmers for excellent growth indicators and good
farming benefits, with the sale volume growing by up to 272% and a market share of about 80% in the
region.
(II) PV business
The global PV industry kept its high-speed development in 2021. According to CPIA, the new
installed capacity over the world was 31% higher than the previous year, reaching the new high of 170
GW. China newly installed 54.88 GW which secured its number one place, followed by the US (26.8 GW),
EU (25.9 GW) and India (11.89 GW) all of which received rapid year-on-year growths; the growth rate
of new installed capacity in India was as high as 218%. Regarding the industry chain, China continued its
leading position in the globe. The outputs of polysilicon, silicon wafers, cells, and modules were 505,000
tons, 227 GW, 198 GW and 182 GW, for year-on-year growths of 27.5%, 40.6%, 46.9% and 46.1%.
Regarding overseas market, the total export of PV products from China was about 28.43 billion US dollars
with a year-on-year growth of 43.9%; the total export of modules was about 98.5 GW with a year-on-year
growth of 25.1%, both the export volume and amount reached new highs. Driven by expected rapid growth
of demand, the whole industry chain actively expanded the capacity. Due to high technological barriers,
large investments and long construction period, as well as the long-term weakness of prices from 2018 to
2020, businesses engaged in upstream silicon material were far less willing to expand than downstream
businesses, which resulted in the mismatch between upstream and downstream businesses in 2021. This
mismatch and the rising prices of commodities, energy consumption control and pandemic outbreaks led
to high volatility of prices in the industry chain and pressures on businesses.
1. High-purity polysilicon
In the reporting period, the Company still placed work safety and stable operation as the first priority.
By implementing the standardized management for work safety, advancing the IT-based safety
development, and highlighting safety management accountability, the Company achieved the “Four Zero”
target, i.e., zero work injury, zero accident, zero wrong operation and zero unplanned downtime with the
production facilities running smoothly throughout the year, and received great rating in the work safety
check organized by the Ministry of Emergency Management. Also, the Company continued increased
efforts into research and development, improved the delicacy management, optimized technical indicators
and lowered production costs. In the reporting period, the mono-grade rate of high-purity polysilicon
produced by the Company was over 99%; the mass delivery of N type silicon was realized, and N-type
silicon customers covered mainstream silicon wafer manufacturers. The average comprehensive electricity
consumption and steam consumption per unit were lowered by 12% and 55% from the previous year, with
other core indicators optimized to different extents, which helped enhance the Company's core
competitiveness.
In 2021, affected by the mismatch of the industry chain, high-purity polysilicon products were in
short supply and lead to rising prices, which allowed the great improvement of profitability of high-purity
polysilicon business. In the reporting period, production bases were running at full capacity with all
products sold for 107,700 tons for a year-on-year growth of 24.30%. Thanks to the correct timing of the
earlier capacity development and the efficient operation, as of the end of the reporting period, the Company
had recovered the investment costs for Yongxiang Polysilicon (old capacity), Leshan Phase I Project and
Baotou Phase I Project for a total capacity of 80,000 tons.
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In the reporting period, the new Leshan Phase II 50,000 - ton Project and Baoshan Phase I 50,000 -
ton Project were put into production, with the quality indicators of the first batches meeting Special Solar-
Grade, the leading level in the industry. According to the investment and construction schedule, the
capacity of projects in construction totals 170,000 tons including the Baotou Phase II 50,000 - ton Project
expected to be in service in 2022 and the Leshan Phase III 120,000 - ton Project expected to be in service
in 2023. By that time, the capacity of the Company would be 350,000 tons. Leshan Phase III is the
Company's first project that can provide over 100,000 tons per year. Lowered investment per unit,
optimized processes and higher intelligence of the project will further strengthen the Company's advantage
in quality and cost.
2. Solar cells
In the reporting period, short supply of silicon wafers with rising prices pushed the costs of
manufacturers of solar cells. According to PVInfoLink, the prices of main silicon wafers, i.e., 166 mm,
182 mm and 210 mm as of the end of 2021 were increased by 55%, 46% and 46% from the early 2021
while the prices of corresponding cells were only increased by 22%, 19% and 16%. This resulted in the
sharp decrease in profitability and therefore the capacity utilization. Benefited by the deep strategic
partnerships with upstream and downstream businesses, and its leading advantage in quality and cost
control, the Company still secured a capacity utilization of 99.47% in the reporting period when the
capacity utilization across the industry was significantly lowered, with its sales growth rapidly, and
recorded a positive profit, which evidenced the Company's strong resistance to risks. Cells and modules
sold in 2021 reached 34.93 GW, for a year-on-year growth of 57.61%, the gross margin from
monocrystalline silicon cells was 8.28%, a decrease from the previous year. The Company continued its
global number one place in delivery of solar cells in 2021, according to PVInfoLink.
Following the market trends closely, the Company invested into the construction of Meishan Phase
II Project, Jintang Phase I Project and Tonghe Project. The existing capacity for silicon cells of 182 mm
and onwards account for over 70%, which can effectively meet the demand for large size products from
downstream customers. At the same time, with increased efforts into internal and external alignment, the
Company continued lowering its costs with improved quality. Throughout the year, key process indicators
like grade A ratio, energy conversion efficiency and scrap ratio remained the best-in-class level. The
average non-silicon cost for monocrystalline PERC cells was lowered to less than 0.18 yuan/w, a reduction
of 11% from the previous year, the non-silicon costs for large-sized products were lowered more
significantly. Regarding research and development, in addition to optimizing the prevalent PERC cell
techniques, the Company attempted to lower the costs and improve the efficiency for the next generation
cells from a technological perspective after the mass production was ensured. Apart from the 400 MW
HJT trial line invested in 2019, the Company newly constructed a 1 GW HJT pilot line. The R&D and
mass production efficiencies for HJT cells have been increased, with the uses of main auxiliary materials
and consumables further lowered, and the development of silver paste alternatives made some progress.
What is more, putting efforts for developing the TOPCon technology, the Company took the lead in the
pilot run for 210 mm - based TOPCon cells; the 1 GW TOPCon Project has been put into production. The
energy conversion efficiency of mass production products is leading the industry.
3. PV power generation
In the reporting period, by following the country's green development strategy, the Company
continued the focus on the development, construction, operation and maintenance of Aquaculture-
Photovoltaic Integration projects, based on which, a moderate development of the tertiary sector including
tourism, sightseeing and popular science, to create the organic combination of the first, second and tertiary
sectors. This is the Tongwei solution in line with the new fishery, new energy and new village development
for effectively increasing the added value of the industry. As of the end of the reporting period, the
Company constructed 48 PV stations with Aquaculture-Photovoltaic Integration as the core, the
accumulated installed capacity connected to the grid was 2.7 GW, and the electricity settlement amount
in a year was 3.09 billion kWh. With the on-going upgrading of technologies in the PV industry, the
Company will further improve the economic benefits of the Aquaculture-Photovoltaic Integration model
on the basis of the systematic construction and operation, via the use of high-efficiency modules, flexible
brackets and automatic construction. By adhering to the scale, cluster and benefit principle, the Company
will advance the implementation of more Aquaculture-Photovoltaic Integration projects for driving the
fishery transformation, and producing clean energy, thereby making its own contribution to the green
development of the country while achieving its economic benefits.
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II. Industries where the Company operated in the reporting period
(I) Feed industry
The feed industry provides materials for the modern husbandry and relates closely to the safe and
stable supply of animal products, being one of the significant pillars of the national economy. Since the
Reform and Opening up, the feed industry in China has been growing rapidly, with China's feed output
gaining the first place in the world from 2011. This industry has helped with the modern development of
the husbandry in China, and met the growing demand from Chinese residents for premium proteins from
swine, chickens, ducks and fishes. In 2021, the total feed production in China recorded 293,443,000 tons,
the 8.5 times of that in 2000, with a rapid growth. From the perspective of the growth trend, the industry
has come into a mature stage after the high-speed growth. According to the National Bureau of Statistics,
the CAGR of feed output in China was 16.6% from 2000 to 2010, and lowered to 5.2% from 2011 to 2021,
which indicates that the industry started a stable stage with the growth rate declining clearly.
By the target animals, feeds are categorized into swine feed, poultry feed, aquatic feed, and ruminant
feed. Data from the China Feed Industry Association shows that the above feed types accounted for 45%,
41%, 8% and 5% of the total feed output in 2021, meaning that livestock and poultry feeds are the
dominant forces the entire Chinese feed industry. With a long-term view, the total feed output in China
keeps growing without clear cycles. From a short and middle-term perspective, however, different types
of feeds may have cycles due to the farming cycles of animals and the different impacts of diseases and
disasters. Overall, the cyclic changes of livestock and poultry farming show a greater impact on the total
feed production. For example, the African swine fever virus (ASFV) starting in the second half of 2018
had a profound influence on the swine production in China: the swine feed production in 2018 and 2019
has lowered by 0.9% and 26.2% year-on-year. Dragged by the swine farming, the total feed production
recorded a year-on-year growth of only 2.8% in 2018 and of even a drop of 3.7% in 2019.
In recent years, the industry has been increasingly mature with heightened homogeneous competition;
strong businesses become stronger and weak ones weaker. Large-size feed companies expand their market
presence and improve their market positions through new constructions and acquisitions by leveraging
their advantages in funds, costs, technologies, brands, risk controls and other areas. According to China
Feed Industry Association, China had 957 feed producers of capacity greater than 100,000 tons in 2021,
with an increase of 208 from the previous year; the feed output from these producers reached 177,077,000
tons for a year-on-year increase of 24.4%, accounting for 60.3% of the total feed output for a year-on-year
growth of 7.5 ppts. In the same year, China had 39 feed groups of capacity greater than 1 million tons,
with an increase of 6 from the previous year; and 6 feed groups of capacity greater than 10 million tons
with an increase of 3 from the previous year.
Chinese feed industry is subject to increased and stricter regulations in quality and environmental
production, evidenced by the amendments of laws and regulations including the Regulation on the
Administration of Feeds and Feed Additives, and the Environmental Protection Law of the People's
Republic of China as well as the releases of sector policies like Notice on the 13th Five Year Plan for the
National Feed Industry Development, National Strategic Plan for Agricultural Revitalization through
Quality Enhancement (2018-2022) and No.194 Announcement of the Ministry of Agriculture and Rural
Affairs. This pushes the industry to be more procedure-based, standard and green for the transition from
quantity-focused to quality-focused development. In addition, the husbandry industry has started the
modern journey for factory-based development with economies of scale and lower environmental impact,
which raise higher requirements for feed companies in capabilities of technological development, bio-
safety and quality control. In this context, large feed companies with stronger technological capabilities,
better regional presences and standardized processes secure clear advantages while SMEs will be under
long-term pressure due to their lack of market competitiveness and weak expansion ability.
(II) PV industry
As one of the strategic emerging industries in China, PV is also an important guard for the country’s
energy security and sustainability. In early 2000, pulled by the rapid growth of overseas demand for
renewable energy sources, China's PV industry started from scratch and experienced speedy growth, but
still challenged by the external pressures because of top technologies, advanced equipment, raw materials
and markets are not from China. Since the 18th CPC National Congress, China has clarified the all-around
effort to reform the energy consumption, building a clean and diversified energy supply system, leveraging
the role of Innovation as the primary driver of development, deeper reform of the energy system in all
areas, and strengthening international energy cooperation across the board with a new energy security
strategy featuring Four Reforms and One Cooperation, which points out the direction for the quality
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growth of the energy industry in the new era. Boosted by Several Opinions on Promoting the Healthy
Development of the PV Industry released by the State Council in 2013 and a raft of supporting policies,
the PV industry in China has gradually stepped on the quality-based development path. First, the scales of
stages of the industry chain have been increasing with on-going technological upgrading for gradual
independent from overseas technologies, equipment and raw materials, which has created a PV
manufacturing chain with all-around competitiveness. Second, the continuous progress in technologies
coupled with scale effect and supply chain competition have been driving the on-going cost reduction in
the PV industry; with the rising economic efficiency of the PV power generation is on the rise and the grid
parity available in most countries and regions, the Chinese PV industry has been getting rid of the subsidies
for self-driven growth. Third, the rapid expansion has made Chinese PV market a core driver for global
PV installation investments, and greatly improved the country's energy structure. According to the
National Energy Administration, the new installed PV capacity increased from 12.92 GW in 2013 to 54.88
GW in 2021 for a CAGR of 20%; China has secured the top one in the world for seven consecutive years
in terms of the cumulative installed capacity. In the same period, the ratio of new installed PV capacity to
the total new installed capacity was increased from 12% to 31%.
The costs of PV generation are low enough for grid parity in most countries and regions, even lower
than the costs of fuel-fired generation, which means that PV generation is highly potential in economic
efficiency and market space and the influence of a single country and/or region on the industry
development has been hugely reduced. But given that China has the largest PV industry in the world with
more than half number of its modules exported, the combination of different policies, financial
environments, political policies, trade frictions and repeated pandemic outbreaks may impact the industry's
growth from time to time.
Most countries and regions across the world have started actions for energy saving and emission
reduction by putting enormous efforts into energy consumption transformation to actively address the
climate governance for sustainable development. By now, 177 countries including Germany, the US, the
UK, Japan and South Korea have announced or are discussing their net zero emission goals with plans for
development of renewable energies represented by PV generation. China has made a firm commitment
that the country strives to reach carbon peak by 2030 and carbon neutral by 2060 in the 75th session of
the UN General Assembly on September 22, 2020. Around the dual carbon goal, the State Council released
the Action Plan for Carbon Dioxide Peaking Before 2030 in 2021 and started accelerating work on 1+N
policies for peaking carbon emissions and achieving carbon neutrality. According to the Action Plan,
China will spur large-scale, high-quality development of wind and solar power generation across the board,
continue to promote both concentrated and distributed systems, and accelerate the construction of wind
and solar farms; by 2030, total installed generation capacity of wind and solar power will reach above 1.2
billion KW. The global green transformation has entered a new stage. As the leading actor among
renewable energies, PV generation will embrace a huge market space. Driven by the expectation of high-
speed demand growth, companies in and out of the industry have announced relevant plans to investment
and increase capacities, which has given rise to a new round of capacity expansion of the PV industry. It
is expected that by the end of 2022, the global capacities of silicon materials, silicon wafers, cells and
modules will reach 1,190,000 tons, 477 GW, 560 GW and 580 GW respectively according to PVInfoLink.
Also, novel cell technologies that have the potential to further improve the quality and efficiency of PV
generation are in development. PV companies have made investments into new cell technologies including
TOPCon and HJT, expecting a new wave of development dividend brought by the technological upgrading.
III. Businesses of the Company in the reporting period
Adhering to the vision of "For Better Life" and the corporate purpose of "Striving for Excellence,
Contributing to Society", the Company mainly focuses on agriculture and new energy, thus forming 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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Agricultural chain
Aquatic
husbandry
Aquatic feed
Aquatic seedlings Aquatic husbandry Aquatic processing
Livestock babies Livestock husbandry Livestock processing
Livestock feed
PV chain Aquaculture-Photovoltaic
Integration
PV power
Monocrystalline Monocrystalline Monocrystalline Monocrystalline generation
silicon rods silicon wafer cell module
PV
Polysilicon
powerplant
Multicrystalline Multicrystalline Multicrystalline Multicrystalline
silicon ingots silicon wafer cell module
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. 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 enriched the products
and enhance 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 180,000 tons
for high-purity polysilicon, and an annual capacity of 45 GW for solar cells. 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 these silicon wafer manufacturers
where a fixed quantity of silicon materials will be delivered at the market price, an approach that for long-
term stable sales. Regarding solar cells, the manufacturing sites in Shuangliu, Jintang, Meishan and Hefei
have their production plans arranged directly according to the market demand with the products directly
sold to the downstream 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.
On the comprehensive application, the Company focuses on the development and construction of
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 production
and sales network covering much of China and Southeast Asian countries such as Vietnam, Bangladesh,
and Indonesia. These make it a leading aquatic feed producer and an important livestock feed producer in
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the world. 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 Demonstration
Enterprise for Technological Innovations, the Company has a National Enterprise Technology Center and
received honors like the Second Prize of National Science and Technology Progress Award, China Well-
Known Trade Mark and China Quality Award Nomination Prize. With high-quality products and efficient
services, the Company is well recognized in the industry.
In terms of PV business, the Company is an important participant and driver of the global PV industry
for its advantages in scale, technologies, costs and quality. In 2021, the Company was global number one
in terms of high-purity polysilicon production, had a domestic market share of nearly 22% (CPIA), and
reached the fifth consecutive year for its largest quantity of cell delivery in the world (PVInfoLink). Given
the promising outlook of the PV industry, the Company announced its 2020-2023 Development Plan for
High-purity Polysilicon and Solar Cell Businesses for further strengthening its market position. With the
current investment schedule into account, it is expected that the Company's annual capacity will reach
350,000 tons for high-purity polysilicon and 80 - 100 GW for solar cells in 2023.
IV. Analysis of the core competitiveness in the reporting period
"√ Applicable""□ Not applicable"
(I) Clear strategic planning and positioning
The Company focuses on technological innovation and intelligent manufacturing in the main 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 technology 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, it has built a R&D team led by
subject matter experts and supported by increased investments, with plenty of achievements applied in the
market. This has helped the Company gained a differentiated advantage for additional value.
1. Agriculture and animal husbandry
The Company has a National Enterprise Technology Center approved by five ministries 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 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. The Center was again rated “outstanding” among over 1,700 National
Enterprise Technology Centers in the annual assessment, as described in the Notice on 2021 Result of
Annual Assessment of National Enterprise Technology Centers issued by the General Office of the
National Development and Reform Commission.
In the reporting period, the Center implemented the Company's policy for development of a three-
level R&D system consisting of forward-looking research, fundamental research and applied research.
Regarding forward-looking research, it focused on the research of production and application of single-
cell proteins used as raw proteins for fish feed, such as promoting the industrialization of bacteria-based
single cell proteins, and studying the integration of feed-grade Spirulina and solar energy. Regarding
applied research, considering the operation needs, the Center applied research achievements into
development of new products, such as the freshwater high-end Kaikoule feed for fish fry, and Yukang
No.1 feed for better immunology, and special Yudongjian feed for winter feeding, and developed the
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unattended and intelligent workshop for prawn farming and circulation water processing system designed
for intelligent monitoring of water quality, precise feeding and efficient control and prevention of diseases.
As of the end of the reporting period, 840 new patent applications were submitted with 616 patents
authorized.
In 2021, the Company set up the Working Group on Feed Test Standardization as authorized by the
TC76, which is responsible for the development of test standards for nutrients and non-nutrients,
prohibited additives, feed efficacy and safety assessment relating to feed industry. In the reporting period,
the Company participated in the revision of Feed Materials: Fish Meal (GB/T 19164－2021) which has
been released and implemented, the development and revision of Formula Feed for Crayfish
(Procambarus Clarkii) and Formula Feed for Blunt Snout Bream (Megalobrama Amblycephala), two
industrial standards to be issued, and received the task for revising ten national standards. Also, the
General Technical Specification for Construction of Aquaculture-Photovoltaic Integration System, a
project started by the China Fisheries Association and led by the Company has been issued for
implementation.
Over the years, the Company has established a young, high-quality R&D team, which continuously
consolidates the Company's R&D capabilities and improves its product competitiveness under the
leadership of the experts with special government allowances from the State Council.
2. PV
To strengthen its independence in R&D and catch development opportunities in core technologies,
products and applications, enhance its core competitiveness, the Company has formed a PV Technology
Center based on the original scientific research system for the PV business, and set up a scientific research
and technical team mainly composed of well-known experts in the industry for advancing the development
and integration of technologies across different stages of the PV industry chain in a coordinated manner.
In 2021, the PV Technology Center was mainly tasked with the cross-business link and integration in the
introduction of new technologies and new products (such as TOPCON, HJT), with increased efforts into
the university-industry cooperation with domestic and foreign universities, research institutes and other
scientific research institutions, and strengthened the follow-up, research and development of cross-
generation technology and cutting-edge technology (including HBC, perovskite, laminated cell/module,
PV + storage) in the industry.
In terms of high-purity polysilicon, after years of development, the Company has made a number 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. In
the reporting period, the mono-grade rate of high-purity polysilicon produced by the Company was over
99%; the mass delivery of N type silicon was realized. As of the end of the reporting period, 493 new
patent applications were submitted by Yongxiang with 342 patents authorized.
In terms of solar cells, the Company has gained a number of technological achievements with
independent intellectual property rights in the core technology fields such as atomic layer deposition back
passivation, selective emitter technology, double-sided cells, multi-grid, TOPCon cells, and HJT cells. On
the one hand, the Company focuses on the current mainstream PERC technology, by improving and
optimizing the technology through the applications of other process technologies (such as multi-grid, high-
resistance dense grid, and alkali polishing) to improve the energy conversion efficiency and reduce
production cost. On the other hand, the Company continues to increase the investment in tracking and
developing new cell technologies. The energy conversion efficiencies of its HJT and TOPCon cells in
mass production are high-ranking in the industry.
(III) Scale and cost advantage
1. Agriculture and animal husbandry
The Company is a national key leading enterprise in agricultural industrialization, with 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.
2. PV
The Company has an annual capacity of 180,000 tons for high-purity polysilicon and of over 170,000
tons in construction, with all consumptions and costs declining. With the on-going improvements of
technological processes and the expansion of capacity, the Company will have its costs further optimized
after the projects in construction are put into service.
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Regarding solar cells, at the end of the reporting period, the Company had an annual capacity of 45
GW and the non-silicon cost of monocrystalline PERC cells was below 0.18 yuan/w. With the new projects
for larger size products in service, the scale effect will be greater, leading to higher cost advantage.
(IV) Quality and brand advantages
1. Agriculture and animal husbandry
Since its inception in 1992, the Company has developed a series of formula feeds that can meet 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 Sichuan and Hainan 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.
2. PV
Relying on the Sichuan Polysilicon Engineering Technology Research Center, the Company has
explored the automatic reduction process, multiphase flow technology, cascade utilization of reduction
heat, technology for removal of boron/phosphorus/carbon and other impurities to continuously improve
the quality of high-purity polysilicon, reduce emission and increase energy efficiency, and keep its leading
position in relevant technologies. In 2021, the high-purity polysilicon business of the Company created a
branch for the National Enterprise Technology Center upon approval, and received national and provincial
honors including National Green Factory, National Premium Engineering Award, Chinese Outstanding
Patent Award, Sichuan Second Prize of Science and Technology Progress Award and Sichuan Quality
Benchmarking Award, which fully present the brand value and awareness of the Company.
The Company is high-ranking in the industry regarding solar cell indicators like energy conversion
efficiency, first pass yield, scrap rate and CTM value, with its quality widely accepted by customers and
professional certifications at home and abroad. The Company has received the Excellent Quality Award
from LONGi, Excellent Quality Supplier from Jinko Solar., Best Quality Supplier from GCL System
Integration Technology, Excellent Supplier and Quality Inspection-Exempt Supplier from Canadian Solar,
Excellent Supplier from Trina Solar and Strategic Supplier from Risen New Energy. In 2021, the Company
won national, provincial and industrial awards including the National High-tech Enterprise, High-tech
Enterprise Certificate, Anhui Enterprise Technology Center, Anhui Top 100 Manufacturers, Anhui Digital
Workshop, Sichuan Science and Technology Progress Award, and Hefei Top 30 Manufacturers.
(V) Unique Aquaculture-Photovoltaic Integration model
Supported by the unique advantage of resource integration at the end customers, the Company 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
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with our business targets and daily work, guides the benchmarking of all businesses, branches and
subsidiaries, continuously and deeply advances the fine-tuning of management and constantly boosts the
high-quality development of various business activities.
V. Main operating activities in the reporting period
Refer to the Section Operation Discussion and Analysis for details.
(I). Analysis of main businesses
1. Analysis of changes in related items of the income statement and cash flow statement
Unit: Yuan Currency: CNY
GL Account Current amount Prior amount Change (%)
Operating revenue 63,491,070,520.12 44,200,270,334.23 43.64
Operating cost 45,918,101,338.17 36,648,405,064.38 25.29
Sales expense 918,970,450.73 778,030,640.18 18.11
Management expense 2,947,649,906.71 1,808,578,103.39 62.98
Financial expense 637,160,688.38 676,326,528.79 -5.79
R&D expenses 2,035,847,045.43 1,035,331,434.68 96.64
Net cash flows generated from operating activities 7,618,273,876.72 3,024,927,931.94 151.85
Net cash flow generated from investing activities -13,591,029,353.32 -4,740,250,322.93 -186.72
Net cash flow generated from financing activities 2,901,644,427.08 5,795,372,325.96 -49.93
Note on the reasons for operating revenue change: mainly attributed to the expansion of PV operation size
and rise of product prices.
Note on the reasons for operating cost change: mainly attributed to the expansion of PV operation size and
rise of raw material costs.
Note on the reasons for change in sales expense: mainly attributed to the business expansion and increase
in the advertising and marketing expense.
Note on the reasons for change in management expense: mainly attributed to increase in employee payrolls.
Note on the reasons for change in financial expense: mainly attributed to the interest increase caused by
the private placement performed by the Company.
Note on the reasons for change in R&D expenses: mainly attributed to the preparation for new projects
with increased R&D investments into silicon materials and solar cells.
Note on the reasons for change in net cash flows generated from operating activities: mainly attributed to
the expanded operating size and improved profitability.
Note on the reasons for change in net cash flows generated from investing activities: mainly attributed to
the increase investments into PV business.
Note on the reasons for change in net cash flows generated from financing activities: mainly attributed to
the funds raised by private placement in the previous year.
Detailed note on any significant change in the business type, profit structure or profit source of the
Company
"□ Applicable" "√ Not applicable"
2. Revenue and cost analysis
"□ Applicable" "√ Not applicable"
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(1). Main businesses by industry, product, region and sale model
Unit: Yuan Currency: CNY
Main businesses by industry
Gross profit margin YoY change of YoY change of YoY change of gross
Industry Operating revenue Operating cost
(%) operating revenue (%) operating cost (%) profit margin (%)
Agriculture and animal husbandry 24,590,256,728.92 22,258,698,101.39 9.48 17.46 19.03 - 1.2 ppts
PV 38,184,020,831.78 22,984,446,347.90 39.81 69.69 32.98 + 16.62 ppts
Offset from consolidation -3,308,475.76
Total 62,770,969,084.94 45,243,144,449.29 27.92 44.52 25.74 + 10.77 ppts
Main businesses by product
Gross profit margin YoY change of YoY change of YoY change of gross
Product Operating revenue Operating cost
(%) operating revenue (%) operating cost (%) profit margin (%)
Feed, food and relevant activities 24,590,256,728.92 22,258,698,101.39 9.48 17.46 19.03 - 1.2 ppts
Solar cells, modules and relevant activities 24,934,677,377.18 22,738,716,766.81 8.81 60.87 71.66 - 5.73 ppts
High-purity polysilicon and chemical engineering 18,760,753,572.81 6,249,238,622.80 66.69 186.89 46.34 + 31.99 ppts
PV power 1,602,572,317.70 595,820,555.39 62.82 36.85 26.05 + 3.18 ppts
Offset for internal transactions in the PV business -7,113,982,435.91 -6,599,329,597.10
Offset from consolidation -3,308,475.76
Total 62,770,969,084.94 45,243,144,449.29 27.92 44.52 25.74 + 10.77 ppts
Main businesses by region
Gross profit margin YoY change of YoY change of YoY change of gross
Region Operating revenue Operating cost
(%) operating revenue (%) operating cost (%) profit margin (%)
East China 23,200,958,755.41 19,933,517,798.49 14.08 55.66 59.74 - 2.19 ppts
South China 8,140,607,000.57 7,374,491,656.45 9.41 15.34 18.40 - 2.34 ppts
West China 25,719,026,992.30 15,858,381,212.62 38.34 121.25 66.77 + 20.14 ppts
North China 10,555,878,160.30 6,935,607,964.24 34.30 81.68 47.46 + 15.25 ppts
Middle China 5,618,189,936.60 5,304,592,406.78 5.58 58.55 59.81 - 0.74 ppts
Overseas 7,988,788,037.26 7,350,095,911.20 7.99 43.69 55.17 - 6.81 ppts
Total 81,223,448,882.44 62,756,686,949.78 22.74 67.47 53.15 + 7.22 ppts
Internal offsets -18,452,479,797.50 -17,513,542,500.49
Total after offset 62,770,969,084.94 45,243,144,449.29 27.92 44.52 25.74 + 10.77 ppts
Main businesses by sale model
Gross profit margin YoY change of YoY change of YoY change of gross
Sale model Operating revenue Operating cost
(%) operating revenue (%) operating cost (%) profit margin (%)
Direct sale 47,083,684,450.80 30,903,915,101.22 34.36 62.84 34.25 + 13.98 ppts
Franchised dealership 15,687,284,634.14 14,339,229,348.07 8.59 8.04 10.63 - 2.14 ppts
Note on main businesses by industry, product, region and sale model:
None.
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(2). Production and sale analysis
"√ Applicable" "□ Not applicable"
YoY change of YoY change of YoY change of
Main products Unit Production Sale Inventory
production (%) sale (%) inventory (%)
Feed 10,000 tons 537.69 551.59 10.48 2.41 5.08 34.70
High-purity polysilicon Ton 109,340.50 107,700.32 2,012.38 26.85 24.30 299.12
Solar cells and modules MW 35,450.57 34,931.58 1,185.78 56.91 57.61 63.17
PV generation 10,000 kWh 317,664.71 308,982.99 / 42.60 42.72
Note on production and sale:
The production and sale data contain these caused by the trial production; capacity refers to the capacity in mass production (excluding trial production), therefore,
capacity utilization = production in mass production / capacity in mass production.
(3). Fulfillment of major purchase contracts and sales contracts
"√ Applicable" "□ Not applicable"
Fulfillment of major existing sales contracts as of the end of the reporting period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Subject Amount fulfilled in Amount to be Fulfillment or Note on non-
Counterparty Total amount Amount fulfilled
matter the reporting period fulfilled not fulfillment
Polysilicon Jinko Solar, Sichuan Jinko / 3,483,111,758.89 3,306,479,678.89 / Yes
Polysilicon Trina Solar / 1,416,173,880.00 1,416,173,880.00 / Yes
Polysilicon Metco Silicon Energy / 1,780,033,717.38 1,780,033,717.38 / Yes
Polysilicon Zhonghuan Semiconductor / 2,593,519,170.00 1,459,207,680.00 / Yes
Note: quantities are agreed in the above major sales contracts where prices are determined according to the market prices.
Fulfillment of major existing purchase contracts as of the end of the reporting period
"□ Applicable" "√ Not applicable"
(4). Cost analysis
Unit: Yuan
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Cost by industry
Current Prior
amount amount to YoY amount
Industry Cost item Current amount Prior amount
to total total cost change (%) Notes
cost (%) (%)
Agriculture and animal husbandry Raw materials 20,912,211,007.71 93.95 17,512,872,870.27 93.65 19.41
Agriculture and animal husbandry Labor cost 367,104,377.22 1.65 335,736,535.67 1.80 9.34
Agriculture and animal husbandry Manufacturing expense 979,382,716.46 4.40 851,332,237.58 4.55 15.04
PV Raw materials 17,056,289,488.92 74.21 12,463,938,323.90 72.11 36.85
PV Labor cost 806,471,779.10 3.51 649,514,991.13 3.76 24.17
PV Manufacturing expense 5,121,685,079.88 22.28 4,171,222,480.84 24.13 22.79
Cost by product
Current Prior
amount amount to YoY amount
Product Cost item Current amount Prior amount
to total total cost change (%) Notes
cost (%) (%)
Feed, food and relevant activities Raw materials 20,912,211,007.71 93.95 17,512,872,870.27 93.65 19.41
Feed, food and relevant activities Labor cost 367,104,377.22 1.65 335,736,535.67 1.80 9.34
Feed, food and relevant activities Manufacturing expense 979,382,716.46 4.40 851,332,237.58 4.55 15.04
High-purity polysilicon and chemical Raw materials
3,072,125,706.97 49.16 1,601,517,823.84 37.50 91.83
engineering
High-purity polysilicon and chemical Labor cost
265,592,641.47 4.25 188,287,616.75 4.41 41.06
engineering
High-purity polysilicon and chemical Manufacturing expense
2,911,520,274.36 46.59 2,480,663,134.48 58.09 17.37
engineering
Solar cells, modules and relevant Raw materials
20,517,743,788.12 90.23 11,466,767,788.76 86.57 78.93
activities
Solar cells, modules and relevant Labor cost
540,879,137.63 2.38 487,871,096.69 3.68 10.87
activities
Solar cells, modules and relevant Manufacturing expense
1,680,093,841.06 7.39 1,291,756,441.16 9.75 30.06
activities
PV power Manufacturing expense 595,820,555.39 100.00 472,672,272.89 100.00 26.05
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(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
The sales amount from top five customers was 17,106,906,100 yuan, accounting for 26.94% of the total
sale amount; the sales amount from related parties (in the sales amount from top five customers) was 0,
accounting for 0 % of the total sale amount.
The sale amount from a single customer was over 50% of the total sale amount and/or the top five
customers include new customers or the Company was heavily dependent on a small number of customers
"□ Applicable" "√ Not applicable"
B. Major suppliers
The purchase amount to top five suppliers was 12,233,825,600 yuan, accounting for 39.53% of the total
purchase amount; the purchase amount to related parties (in the purchase amount to top five suppliers)
was 0, accounting for 0% of the total purchase amount. (The purchase amount excludes tax)
The purchase amount to a single supplier was over 50% of the total purchase amount and/or the top five
suppliers include new suppliers or the Company was heavily dependent on a small number of suppliers
"□ Applicable" "√ Not applicable"
3. Expenses
"□ Applicable" "√ Not applicable"
4. R&D cost
(1).R&D cost
"√ Applicable" "□ Not applicable"
Unit: Yuan
R&D cost expensed in current period 2,035,847,045.43
R&D cost capitalized in current period 0
Total R&D cost 2,035,847,045.43
Total R&D cost to operating revenue (%) 3.21
Percent of capitalized R&D cost (%) 0
(2).R&D personnel
"√ Applicable" "□ Not applicable"
Number of R&D employees 3,335
R&D employees to total employees (%) 10.35%
Education background of R&D employees
Education background Number of employees
Doctor degree 21
Master degree 287
Bachelor degree 2,011
Three-year college 760
High school or lower 256
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Age groups of R&D employees
Age group Number of employees
Less than 30 years 1,530
30 - 40 years 1,317
40 - 50 years 341
50 - 60 years 138
60 years or older 9
(3).Note
"√ Applicable""□ Not applicable"
Under the principle that science and technology constitute the foremost productive forces, the
Company attaches great importance to technology research and development. For each business, it has
built a R&D team led by subject matter experts and supported by increased investments, with plenty of
achievements applied in the market. This ensures the healthy development of the Company. The Company
has 3,335 R&D employees, or 10.35% of its total employees. Specifically, these holding bachelor or higher
degrees account for 69.54% of the R&D employees; 54.12% of the R&D employees are 30 years or older.
45.88% of the R&D employees are under 30 years.
(4).Reasons for material change in R&D personnel structure and its impact on the Company's
future development
"√ Applicable" "□ Not applicable"
As the end of the reporting period, the Company newly hired 757 R&D employees. This was mainly
due to the formation of PV Technology Center and increased investments into PV technologies in the
reporting period. The Company purchased the aquatic feed business and a part of the swine feed business
from TECH-BANK in the reporting period also led to an increase in the R&D employees.
The increase in R&D personnel not only helps with the efficient use of the Company's R&D resources,
but also further boost its R&D capability and level for improving its sustainability.
5. Cash flow
"√ Applicable" "□ Not applicable"
Refer to the analysis of changes in related items of the income statement and cash flow statement in this
Section
(II). Note on material change in profit caused by non-main operating activities
"□ Applicable" "√ Not applicable"
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2021 Annual Report
(III). Analysis of assets and liabilities
"√Applicable" "□Not applicable"
1.Assets and liabilities
Unit: Yuan
Opening Closing balance
Opening balance Closing balance of YoY
Item name balance to the to the total Notes
of current period last period balance (%)
total assets (%) assets (%)
Due to fund-raising for investments into project
Cash at bank and on hand 3,001,930,882.38 3.40 6,264,168,242.03 9.75 -52.08
constructions
Held-for-trading financial assets 10,617,668.58 0.01 1,531,863,068.12 2.38 -99.31 Due to redemption of wealth management products
Due to expansion of overseas business and increase
Notes receivable 1,576,925,682.02 1.79 530,962,356.27 0.83 196.99
in the L/Cs
Due to the cooperation with TECH-BANK, the
Accounts receivable 2,915,527,149.08 3.30 1,069,352,776.17 1.66 172.64 grant of a certain receivables collection period, and
the increase in PV power subsidies receivables
Due to business expansion and prerepayment
Prepayments 1,606,545,040.83 1.82 1,113,458,878.37 1.73 44.28
increase
Due to business expansion and rise of raw material
Inventories 5,682,791,568.04 6.44 2,773,077,527.98 4.32 104.93
costs
Other current assets 1,220,643,137.83 1.38 810,572,652.99 1.26 50.59 Due to the increase in VAT credit refund
Due to the increase in costs of constructions for solar
Construction in progress 10,636,400,885.06 12.05 2,997,901,620.59 4.67 254.79
cells and high-purity polysilicon projects
Due to the increase in intangible assets from the
Intangible assets 2,410,841,890.16 2.73 1,663,705,788.75 2.59 44.91
purchase of TECH-BANK business
Due to the increase in prepayments for engineering
Other non-current assets 2,440,626,665.32 2.76 1,547,022,743.45 2.41 57.76
equipment
Due to the optimization of financing period, and the
Short-term borrowings 1,375,230,141.70 1.56 2,349,154,525.77 3.66 -41.46
reduction of short-term borrowings
Due to the business expansion and investment
Accounts payable 8,151,270,076.21 9.23 3,917,320,980.64 6.10 108.08 increase, as well as the increase in accounts payable
and in prepayments for engineering equipment
Due to business expansion and increase in advances
Contract liabilities 3,112,027,804.79 3.53 2,302,728,492.73 3.58 35.15
from suppliers
Due to business expansion and the optimization of
Long-term borrowings 11,441,029,860.16 12.96 6,296,585,539.34 9.80 81.70
financing period
Other notes:
None.
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2021 Annual Report
2.Overseas assets
"√Applicable" "□Not applicable"
(1) Assets
The overseas assets were 1,955,956,342.20 (Unit: Yuan; Currency: CNY), accounting for 2.22% of 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"
Item Closing carrying Restriction reasons
value
98,852,162.75 Provide guarantees for financing and operations of
Cash at bank and on hand
the Company
10,084,007,955.24 Provides pledges for the bank acceptance bills
Receivables financing
issued by the Company
Accounts receivable 1,227,885,049.80 Provide collaterals for financing of the Company
Contract assets 660,365,599.48 Provide collaterals for financing of the Company
8,415,955,174.84 Provide securities for financing of the Company
Fixed assets
and financial lease
Construction in progress 1,849,680,205.51 Provide collaterals for financing of the Company
Intangible assets 425,887,607.93 Provide collaterals for financing of the Company
Investment properties 75,396,248.55 Provide collaterals for financing of the Company
Total 22,838,030,004.10
4.Other notes
"□ Applicable" "√ Not applicable"
(IV). Analysis of operational information in the industry
"√ Applicable" "□ Not applicable"
The Company is involved in PV, agriculture, forestry, livestock husbandry and fishery.
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2021 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-grade polysilicon: Output ratio of products at all levels Ratio of electricity cost to total product cost
Solar-grade polysilicon 100% 28.97%
Solar cells: Average energy conversion efficiency in mass production Maximum energy conversion efficiency in R&D stage
Monocrystalline silicon cells 23.53% 25.45%
Cell modules: Average module power in mass production Maximum module power in R&D stage
Crystalline silicon cells 454W 619W
Discussion and analysis of indicators: (1) Average energy conversion efficiency in mass production of solar cells means the ratio of the maximum output power of
solar cells when they are under sunlight to the incident ray power, an important parameter to measure the quality and technical level of cells. The higher the energy
conversion efficiency rate, the higher the output power of the single wafer of the cell, and the single wafer of the cell with high power can be packaged into high
power PV modules. (2) The maximum energy conversion efficiency rate in R&D stage refers to the highest average energy conversion efficiencies of all tested
cells in the R&D stage. The Company strictly follows the standard grade-one reference solar cell from Fraunhofer and focuses on the development of high-efficiency
cells. It further improves the conversion efficiency of cells and modules by adopting multi-grid, back passivation, SE process, high-resistance dense grid, alkali
polishing, stacked solar cells and HJT technologies, allowing the Company to be the industry leader in product quality with relevant indicators.
3.PV powerplants
"√ Applicable" "□ Not applicable"
Unit:10,000 yuan Currency: CNY
Development of PV powerplants
Number of powerplants 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
45 powerplants with 48 powerplants with
No powerplant was sold in the
grid connected installed 0 grid connected installed 2.7 GW 0
period
capacity of 2.1 GW capacity of 2.7 GW
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2021 Annual Report
"√ Applicable" "□ Not applicable"
Unit:10,000 yuan Currency: CNY
Operation of PV powerplants in the year:
Grid connected
Installed Power generation Settled power Price of grid connected Electricity
Region power Subsidies
capacity (MW) (10,000 kWh) (10,000 kWh) electricity (yuan/kWh) revenue
(10,000 kWh)
Centralized:
East China 928.02 116,215.27 113,985.55 112,393.89 0.53 34,357.91 25,085.81
South China 1,087.68 129,853.54 127,696.34 126,439.18 0.48 43,934.55 16,149.87
West China 244.41 20,491.13 20,122.53 19,866.46 0.62 7,483.22 4,917.61
North China 154.91 16,424.47 16,094.19 16,019.17 0.71 5,384.82 5,938.94
Middle China 221.66 26,961.44 26,769.98 26,797.95 0.44 10,085.74 1,633.85
Total 2,636.68 309,945.85 304,668.59 301,516.65 2.78 101,246.24 53,726.08
Distributed:
South China 22.20 2,695.74 2,643.12 2,643.19 0.65 955.61 760.23
North China 20.57 3,176.66 3,098.72 3,075.01 0.53 1,091.76 552.09
Middle China 15.04 1,846.46 1,778.35 1,748.14 0.91 592.40 1,002.23
Total 57.81 7,718.86 7,520.19 7,466.34 2.09 2,639.77 2,314.55
Note: Grid connected electricity price, electricity revenue and subsidies exclude taxes.
"□ Applicable" "√ Not applicable"
4.Recommended tables
(1).PV capacity in use and in construction
"√ Applicable" "□ Not applicable"
Unit:10,000 yuan Currency: CNY
Total
Current
investment
investment in (Expected)
Capacity Process route in in Designed Process route in
Product category Yield production completion
utilization operation production capacity construction
lines in time
lines in
construction
construction
Solar-grade 109,340.50 Modified Siemens 100,000 Modified
129.91% 499,229.10 497,279.05 2022
polysilicon tons process tons Siemens process
Silicon wafers:
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2021 Annual Report
Monocrystalline
/ / / 47,081.60 47,081.60 15 GW 2022 Monocrystalline
silicon wafers
Solar cells:
Multicrystalline
3.37 GW 112.58% / / / / / /
silicon cells
Monocrystalline PERC/
29.56 GW 98.33% PERC/TOPCON/HJT 228,542.38 228,542.38 15 GW 2022
silicon cells TOPCON
Cell modules:
Crystalline High-efficiency High-efficiency
2.51 GW 84.64% 921.99 921.99 3.6 GW 2022
silicon cell modules modules modules
(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-grade polysilicon 98.50 1,678,437.33 71.80
Solar cells:
Multicrystalline silicon cells 101.30 104,368.72 27,744.45 3.58 6.17
Monocrystalline silicon cells 98.35 1,656,356.00 289,042.81 8.91 4.66
Cell modules:
Crystalline silicon cells 96.95 162,528.02 234,498.67 9.52 11.14
PV products sold overseas should be listed by country or region
"√Applicable" "□Not applicable"
Unit:10,000 yuan Currency: CNY
Overseas sales of cell modules
Country/region Sales revenue Gross profit margin (%)
South Korea 147,066.61 13.21
Germany 40,708.83 9.64
Italy 19,403.47 8.32
Poland 7,195.92 4.99
Netherlands 8,399.53 2.18
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2021 Annual Report
France 8,884.27 5.58
Others 2,840.04 4.06
Unit:10,000 yuan Currency: CNY
Overseas sales of monocrystalline silicon cells
Country/region Sales revenue Gross profit margin (%)
Turkey 88,089.88 4.50
South Korea 69,381.22 4.15
Hong Kong SAR, China 21,586.36 9.47
Germany 26,905.88 8.35
Japan 19,015.20 3.15
India 12,459.18 1.85
Others 51,605.09 2.90
Unit: 10,000 yuan Currency: CNY
Overseas sales of multicrystalline silicon cells
Country/region Sales revenue Gross profit margin (%)
India 19,131.86 5.84
Brazil 3,531.31 7.56
Turkey 1,265.84 7.26
Hong Kong SAR, China 216.39 5.76
Others 3,599.06 6.25
(3).PV powerplant projects commissioned or developed
"□ Applicable" "√ Not applicable"
5.Other notes
"□ Applicable" "√ Not applicable"
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2021 Annual Report
(V). Investment analysis
Overall analysis on external equity investments
"√ Applicable" "□ Not applicable"
According to the strategic planning, the Company is committed to the coordinated integration of
agriculture and PV industries and the further expansion of each industry. By making full use of its existing
technology and cost advantages, the Company accelerates the business expansion, enhance the
competitiveness, and strives to consolidate its leading position in the core component of the industrial
chain.
1.Significant equity investments
"□ Applicable" "√ Not applicable"
2.Significant non-equity investments
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan
Return
Amount
Cumulative realized in
invested in Project
Project name Project budget investment the Sources of funds
the reporting progress
amount reporting
period
period
Phase II 50,000-ton High-purity Polysilicon Raising fund and
401,020.00 366,784.46 370,983.33 Completed 7056.44
Project in Leshan self-funding
Phase I 50,000-ton High-purity Polysilicon
409,203.75 406,333.02 408,225.27 In progress / Self-funding
Project in Baoshan
Phase II 50,000-ton High-purity Polysilicon Raising fund and
413,475.00 226,807.46 226,865.26 In progress /
Project in Baotou self-funding
15 GW monocrystalline Rod Pulling and Raising fund and
440,535.87 104,203.56 104,203.56 In progress /
Cutting Project self-funding
Phase II 7.5 GW High-efficiency Solar Cell
240,000.00 122,804.89 181,011.88 Completed 2,262.44 Raising fund
Project in Meishan
Phase I 7.5 GW High-efficiency Solar Cell Raising fund and
270,061.39 137,680.26 191,525.35 Completed -2,077.83
Project in Jintang self-funding
Tonghe Project 450,000.00 228,542.38 228,542.38 In progress / Self-funding
3.FVTPL financial assets
"□ Applicable" "√ Not applicable"
4.Progress of significant asset restructuring and integration in the reporting period
"□ Applicable" "√ Not applicable"
(VI). Significant asset and equity sales
"□ Applicable" "√ Not applicable"
(VII). Analysis of companies where the Company holds shares
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan
Business Registered Net
Full name of subsidiary Total assets Net assets
nature capital income
Yongxiang Co., Ltd. PV Industry 142,086.69 2,847,473.21 1,386,520.86 863,211.02
(VIII). Structure entities controlled by the Company
"□ Applicable" "√ Not applicable"
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2021 Annual Report
VI. Discussion and analysis on the Company's future development
(I). Industry pattern and trends
"√ Applicable" "□ Not applicable"
1. Feed industry
(1) Feed industry in stage with low-speed and steady growth
China's husbandry was stable but in an upward pattern in the 13th Five Year Plan period; despite of
the heavy hit from African swine fever virus, swine production recovered fully by the country's measures
to stabilize swine production and guarantee non-staple food supply. According to the Ministry of
Agriculture and Rural Affairs, pork output was 52,960,000 tons in 2021 or 28.8% higher than that in the
previous year, basically the general level before the pandemic; beef and mutton output was 4.1% higher
year-on-year; cow milk output 7.1% higher year-on-year and the output of aquatic products over 2% higher
year-on-year. Driven by the effective demand from husbandry, the total feed production in China
continued its steady growth although clearly slower in relative to the 12th Five Year Plan period. There is
little room for increasing the consumption of industrial feed because of the wide application of feed in
livestock and poultry farming. Despite of the less application of feed, aquaculture and ruminant farming
needs significantly less industrial feed than livestock and poultry due to the farming level, environment
and scale, and plays a limited role in increasing the total feed output. As such, the annual average growth
rate of feed consumption in China is expected to be low in a long term.
(2) Upgraded requirements on safety and environmental protection drive the high-quality
development of the feed industry
The Regulation on the Administration of Feeds and Feed Additives, amended in 2017 has further
enhanced the access threshold of feed industry with stricter punishments on violations and breaches for
the procedure-based and orderly development of the industry. In recent years, regulators have been
increasing the efforts into supervision and spot check on feed production and operation, companies in
violation of applicable regulations may be subject to a fine up to 10 times of the price of products
concerned, blacklisted and disclosed to the public. With the amendments, releases and implementations
of applicable regulations including the Environmental Protection Law of the People's Republic of China
and the Food Safety Law of the People’s Republic of China, feed companies are required to meet more
strict requirements for safety and quality, and comply with new requirements on food safety,
environmental protection and consumption upgrading, which have raised new challenges for poorly
funded SMEs with lower capabilities in technologies and production management, while top companies
can better adapt to and meet the industrial needs in the new circumstance due to their stronger strength so
as to drive the high-quality development of the industry.
(3) Heavy dependence on imports of raw materials weighs on companies in terms of production costs
in a long term
Main raw materials for feed production are corn and soybean meal, both of which are primarily
imported, a situation that is unlikely to change in a long run. According to China Customs data, 2021 corn
import was 28,350,000 tons, 2.5 times of the previous year; soybean import was 96,520,000 tons,
accounting for about 60% of the global soybean trading volume; in the same year, China only produced
16,400,000 tons of soybean, indicating a heavy import dependence of 83.7%. In the last two years, the
prices of corn and soybean have been rising with fluctuations in the context of extreme weathering
conditions, the coronavirus pandemic, geopolitical tensions, trade frictions and inflations; and are expected
to remain high for a while. To lower this heavy import dependence and relieve the supply chain risk, the
Ministry of Agriculture and Rural Affairs issued the Work Plan on Lowering the Use of Corn and Soybean
Meal and Recommending the Use of Alternative Ingredients in Feed and Technical Guidelines on
Lowering the Use of Corn and Soybean Meal in Swine and Chicken Feed through Use of Alternative
Ingredients, under which, companies are guided and encouraged to use raw materials like wheat, sorghum,
barley and rice instead of corn, and use rapeseed meal, cotton seed meal, peanut meal and sunflower seed
meal instead of soybean meal. Meanwhile, feed companies are actively testing new ingredients, striving
to stabilize and even reduce the costs of raw materials. That being said, from a short-term view, this high
import dependence will not be changed significantly, which keeps weighing on feed producers and impose
an impact on the profitability of end farmers.
(4) Accelerated scale-up of feed industry with intensive and integrated model
According to China Feed Industry Association, from the perspective of production, China had 957
feed producers of capacity greater than 100,000 tons in 2021, with an increase of 208 from the previous
year; the feed output from these producers reached about 0.177 billion tons, accounting for 60.3% of the
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total feed output for a year-on-year growth of 7.5 ppts. There were 39 feed groups of annual capacity of
over 1 million tons and their output accounted for 59.7% of the total output in China, a year-on-year
growth of 5.1 ppts. From the perspective of sales, bulk feed (for large-sized farms) output was 90,287,000
tons for a YoY growth of 53.1%, accounting for 33.4% of the total formula feed output, a YoY growth of
7.8 ppts. With the speedy concentration of the feed processing industry, top companies have their
advantages in efficiency, technology, management, capital and human resources boosted with the capacity
from small ones increasingly removed, resulting in clearly differentiated groups in the industry. In addition,
top companies are increasing their investments into farming, food processing and trade, leading to
increasingly integrated industry chain. As such, the competition on comprehensive strength across the
entire industry chain has become the mainstream.
2. PV
(1) With the carbon neutral consensus, PV industry will speed up its growth
On December 12, 2015, the 196 parties to the United Nations Framework Convention on Climate
Change passed the Paris Agreement at the Paris Climate Change Conference, with the purpose of making
arrangements for the global response to climate change after 2020. According to the Paris Agreement,
countries need to control the global average temperature rise within 2 degrees Celsius above the pre-
industrial level in this century, and strive to control it within 1.5 degrees Celsius. This means that the
world needs to achieve "carbon neutrality" before 2050. To this end, IRENA (International Renewable
Energy Agency) World Energy Transitions Outlook: 1.5 ℃ Pathway predicts that the renewable power
will take up 90% of the total power in the world (the PV and wind power will take up 63%), the total
installed capacity of PV power will exceed 14,000 GW, far higher than the current installed capacity across
the world, by 2050. At the same time, stimulated by the rapid rise of fuel energies, major economies
represented by the EU since 2022 have announced more aggressive renewable energy development plans
under which PV will get on an accelerating path. As predicted by CPIA, the average new installed capacity
of PV power from 2022 to 2025 will reach 232 - 286 GW including the 83 - 99 GW from China.
(2) On-going improvements of PV technologies and processed help lower the cost of PV electricity
Cost reduction is an eternal topic for the development of PV industry. According to IRENA, the cost
of solar power declined by 85% from 2010 to 2020 mainly due to improvements of technologies,
economics of scale, supply chain competitions and increased experience from developers. In 2021, the
awarding price for the Saudi Arabia PV project was as low as 1.04 US cents/kWh (0.067 yuan/kWh) and
the awarding price for Ganzi PV project 0.1476 yuan/kWh, respectively recording the new lows in China
and abroad, according to CPIA. This means that PV generation has shifted from heavy reliance on
subsidies to a high-speed development driven by the market. The cost of PV generation will be further
lowered, allowing it to keep the leading position among renewable energies, supported by increased
percent of large-size and double-side modules, the mass production of frontier technologies like HJT and
TOPCon, and the wide application of tracking brackets.
(3) Top players are more competitive with increased concentration in the industry
Several adjustments and reshuffles of the PV industry over the past two decades have gradually
remove outdated capacity with the industry concentration increasingly higher, and much of the new
capacity is in China. According to CPIA, in China, the top five polysilicon companies produced 86.7% of
the total polysilicon output, the top five silicon wafer companies produced 84.0% of the total silicon wafers,
the top five solar cell companies produced 53.9% of the total solar cells, and the top five module companies
produced 63.4% of the total modules. Supported by their growing scale, leading companies continue to
improve quality and reduce costs through on-going technological breakthroughs and delicacy management
to build stronger competitiveness.
(4) Accelerated capacity expansion along the industry chain with increased competition
Pulled by robust demand expectations in both China and broad, China's PV industry chain is exposed
to a new round of capacity expansion. The new capacity will be the result of more advanced technologies
and processes as well as more intelligent management systems to meet the objectives of better quality,
reduced cost, lowered energy consumption and decreased carbon footprint, driving the high-quality
development of China's PV industry chain and allowing it to remain a global leader. It should be noted
that since 2021, apart from many traditional PV manufacturers that have been speeding up their capacity
expansion, many companies outside of the industry are investing. This capacity expansion will inevitably
lead to short supply of capital, land, human resources and raw materials, and the expected competitions
will be fiercer. In this process, leading companies are more able to withstand risks thanks to their scale,
technologies, cost, human resources and management, while new comers will be exposed to larger
uncertainties and pressure.
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(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 new energy
segment and agriculture and animal husbandry segments, and optimizes and improves their respective
industrial chain, strives to promote the Company's sustainable and stable development by both endogenous
and extensional investment methods, promotes the continuous and stable development and realizes the
Company's vision of "For Better Life".
1. Agriculture and animal husbandry: a world-class safe food supplier
Feed industry: With a focus on the specialization and scale up of the feed business, the Company
tries to grow steadily by setting up facilities overseas as well as domestic and international M&As. While
focusing on the aquatic feed business, the Company makes the most of the season-based cycle of the
business by exploring the collaborative mode with large farming companies in livestock and poultry feed,
a way to increase its feed business size and market share.
Aquaculture: Based on the resources (aquaculture resources, channel resources) gained over the past
years, and making use of its unique Aquaculture-Photovoltaic Integration mode for efficiency
improvement, the Company puts great efforts into the new approach combining the Company with farmers,
and further explores and develops facility-based standard fishery where factory-based farming targeting
premium sea products represented by prawns 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 mode of “three-
fish, one-prawn, 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 many places in the future. At the same time, it is actively applying big data to the sale of aquatic products
by combining an 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: create a world-class clean energy operator
As one of the leading manufacturers in the PV industry, the Company will continue to enhance its
sizes in key processes of the PV manufacturing and accelerate the Aquaculture-Photovoltaic Integration
mode 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. It is accelerating the expansion
of high-purity polysilicon capacity by catching the window period in which import substitution and
removal of outdated capacity. Regarding the solar cells, size expansion and improvement of the cost
advantage in the context that the industry concentration is on the rise.
The Aquaculture-Photovoltaic Integration is under firm advancement in the field of PV generation.
Through organic combination of its resources in agriculture and PV, the Company is trying to create 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"
For 2022, 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 to
increase its value and return to shareholders.
1. Agriculture and animal husbandry
In 2022, the Company strives to increase the revenue of feed, food and associated businesses along
the industry chain by over 10% YoY to more than 27 billion yuan. Guided by the quality policy and aiming
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to maximize the farming benefit, the Company highlights focused products, marketing transformation and
standardization tasks, with further deepening the implementation of quality policy in production, sale and
use, for the win-win between the Company and end farmers.
2. PV
In 2022, the Company strives to produce and sell over 180,000 tons of high-purity polysilicon and
over 40 GW of solar cells, and to newly invest and construct 1 GW of Aquaculture-Photovoltaic
Integration projects. To this end, the Company has proposed the following actions:
(1) High-purity polysilicon
Through standard management of work safety, the Company ensures the safety and smoothness of
production and project construction. On-going efforts into technological development and optimization of
processes are used for ensuring product quality and cost reduction. Strategic partnerships are further
strengthened to ensure a stable supply and full capacity.
(2) Solar cells
Following the demand trend, the Company rapidly advances the newly completed projects to reach
their full capacity, increases the delivery of large-size products, and improve its profitability. With
continued efforts into cost reduction through technologies, production processes and management, the
Company is trying to boost its core competitiveness. Putting more efforts into breakthroughs of
technological bottlenecks of the trial lines of 1 GW TOPCon and 1 GW HJT projects, the Company intends
to improve the comprehensive cost efficiency of new technologies to provide sufficient verifications for
the subsequent mass production. In addition, improved cooperation with strategic suppliers and customers
will be applied for mutual benefits.
(3) PV power generation
In the context that China is advancing rural revitalization, the Company develops Aquaculture-
Photovoltaic Integration projects in areas abundant in water surfaces. High-efficiency modules, flexible
bracket 2.0 technology, and automatic construction are combined to lower the cost and improve the
efficient combination of resources and industries in the Aquaculture-Photovoltaic Integration model.
(IV). Possible risks
"√ Applicable" "□ Not applicable"
1. Feed industry
(1) Risk of raw material price volatility. The major component of feed cost is from raw materials.
The current prices of raw materials are highly susceptible to many factors such as the international political
and economic situation, changes in the output of the main producing areas, national collection and storage
and subsidies, exchange rate fluctuations, and changes in logistics costs. High volatility of raw material
prices may affect the gross profit margin of products.
Risk response measures: strengthen team training on business skills, closely track changes in
disturbance factors, predict the price trend of raw materials through systematic research and analysis;
combine supply, production, and sales requirements, rationally arranged purchasing plans, and implement
optimal inventory management; participant in the operation and management of the IPD product line
together with formula product managers and quality control; ensure continuous follow-up of research and
development, and meet the needs of raw material substitution under extreme conditions.
(2) Market volatility risk. Feed sales are directly affected by downstream aquaculture which is
adversely influenced by natural disasters, abnormal temperature and the spread of diseases, leading to
fluctuations in feed demand.
Risk response measures: pay close attention to the climate, natural disasters, and diseases, with
prevention first and remedy as the supplement, quickly develop response measures, and actively help
farmers to resume breeding activities; increase investment in disease prevention and control research,
promote proved aquaculture model according to the needs of aquaculture species and help farmers
maximize their benefits; the rich feed varieties of the Company and reasonable regional layout of branch
companies can effectively cope with systemic market fluctuation risks.
(3) Policy risk. With the implementation of the new Environmental Protection Law, green
aquaculture norms and policy-based subsidies, the aquaculture industry is developing towards antibiotic-
free, green, large-scale, and intelligent which raise high challenges to small farmers and new requirements
for the Company.
Risk response measures: according to the development trend of aquaculture, the Company rationally
adjusts the Company's business strategy and increases the development of large-scale farms; resolutely
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implementes antibiotic-free feeds, makes reasonable formulas according to the nutritional needs of
different aquaculture species at each growth stage, and launches high-quality feed products, enhances the
level of product profitability; guides the transformation and upgrading of small farmers with strong
operating capabilities, and actively seek for relevant subsidy policies to achieve large-scale development.
(4) Exchange rate volatility risk. With the growing demand for international raw material trade and
the expanded overseas feed business of the Company, frequent two-way fluctuations in the RMB exchange
rate will leave an obvious impact on business operations.
Risk response measures: the Company pays close attention to and study the development trends of
the international foreign exchange market, and selects favorable payment settlement currencies and
settlement methods accordingly; improves its research and forecast capabilities of the foreign exchange
market, strengthens the management of import and export business, and uses financial instruments such
as future foreign exchange settlement, change over and foreign exchange options business to lock the
exchange rate risks. The Company makes full use of its advantages of in scale, technology, and brand, and
actively seek for the initiative in the negotiation and negotiation mechanism for prices, currencies, and
settlement cycles.
(5) Other risks from force majeure. Despite of the effective control of the overall pandemic in China,
the spreading of variants such as omicron and the on-going influences of overseas pandemic, local virus
outbreaks still happen from time to time. The possibility that overseas pandemic will spread further
remains. As such, purchase of raw materials and international trade are still exposed to potential pandemic
risk.
Risk response measures: The Company will increase analysis and predications on the pandemic and
other force majeure risks with appropriate virus protection measures, and take necessary actions to cope
with the negative influence of long-term pandemic on purchase, production and sale activities.
2. PV industry
(1) Industry chain instability. Capacity mismatch of the PV industry chain has led to short supplies
in some stages and highly volatile product prices, which places supply chain management under pressure.
What is more, shipping cost has been significantly increase due to the pandemic impact and complicated
international trade environment.
Risk response measures: The Company will increase analysis and research of the industry chain, keep
improving its competitiveness in scale, technologies, quality and cost, and enhancing the cooperation with
upstream and downstream companies to ensure a stable supply chain.
(2) Adjustment of industry policies. The PV industry is benefited from the country's policies, any
significant change in the policies will have an impact on the industry. Also, some foreign countries still
have policies encouraging PV generation in place, any change in such policies will influence the demand
for PV installations.
Risk response measures: The Company will keep a close eye on changes in relevant policies with a
risk response plan in place, and continue lowering product cost with improved product competitiveness,
to hold its favorable position in competitions.
(3) Technology updates. Technologies and products are upgraded at a higher speed in the PV industry
than in some other industries. In recent years, breakthroughs in new generation silicon cells including
TOPCon, HJT and IBC have been made with on-going developments in non-silicon routes such as film
and perovskite. The new technologies raise higher requirements on silicon quality and the demand for N-
type products is expected to be higher. Inability to keep abreast of frontier technologies and market
changes is likely to weaken the Company's competitiveness.
Risk response measures: The Company will be actively engaged in the trial and mass production of
mainstream technologies of the next generation including HJT and TOPCon while keep an eye on forward-
looking technologies with R&D demonstrations to ensure it holds the leading technologies, and continue
increasing the percent of N-type silicon material supplied and cost reduction work to strengthen its core
competitiveness.
(4) International trade frictions. Over the development of past years, China has developed a strong
PV industry in terms of scale, cost and quality, with the number one market share across the world and a
growing export. In recent years, some countries have initiated AD and CVD investigations and imposed
other trade restriction on Chinese PV products, similar incidents will not be excluded, which once happen
will impact the country's PV industry.
Risk response measures: The Company only exports a small portion of its products directly, which
means it is less exposed to risks like this. With on-going attention to the trends and patterns of international
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2021 Annual Report
trade and given its own strategic development plan, the Company will improve its market competitiveness
such as polysilicon products and solar cells.
(5) Other risks from Force Majeure. The coronavirus pandemic overseas remains severe. Overseas
market contributes to about sixty percent of global demand for PV installation capacity. The possibility
that the demand for PV terminals will be lowered is not excluded if the pandemic remains out of effective
control.
Risk response measures: With increased analysis and predication of the pandemic and other force
majeure risks, the Company will give full play to its core competitiveness and put more efforts into
developing strategic customers to lower the negative impact from these risks.
(V). Others
"□ Applicable" "√ Not applicable"
VII. Note on the fact that the Company fails to disclose under standards due to inapplicability of the
standards due to inapplicability or national secrets and/or trade secrets and the reasons
"□ Applicable" "√ Not applicable"
Section IV. Company Governance
I. Note on the Company governance
"√ Applicable" "□ Not applicable"
In the reporting period, the Company further improved its company governance structure and various
internal systems given its actual conditions in strict accordance with the Company Law, Code of Corporate
Governance for Publicly Listed Companies and other legal requirements. The shareholders meeting, the
board of directors, the board of supervisors and the management of work under clear powers and
responsibilities, having formed a procedure-based governance structure for the legal entity to ensure its
smooth running in accordance with regulations. The board of directors believes that the governance
structure of the Company is in compliance with the Code of Corporate Governance for Publicly Listed
Companies and other legal requirements.
(I) Shareholders meeting, board of directors meeting and board of supervisors meeting
In the reporting period, the Company held one annual shareholders meeting and one interim
shareholders meeting. The procedures for shareholders meeting were in compliance with the Listing Rules
of the Shanghai Stock Exchange, Articles of Association of the Company, and Rules of Procedure for
Shareholders Meeting and safeguarded the legitimate interests of the Company and its shareholders. Seven
meetings of the board of directors were held in the reporting period. Directors attended board meetings in
accordance with the Articles of Association and the Rules of Procedures for the Board of Directors and
other policies, and discussed deeply on various proposals submitted for deliberation, fully considered the
interests and demands of small and medium shareholders when making decisions, which helped with the
stable and healthy development of the Company's production and operation. In the reporting period, seven
meetings of the board of supervisors were held. Supervisors attended the meetings in accordance with
regulations such as Company Law, Articles of Association and the Rules of Procedure for the Board of
Supervisors, and performed their duties independently under laws to improve the procedure-based
operation of the Company.
(II) 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 shareholders meeting. Board of directors, board of supervisors
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.
In the reporting period, every related-party transaction submitted to the board of directions for
discussion was approved via voting with the voting rights of related directors disabled. The related
transactions were priced fairly without any influence on the Company's independence or harm to the listed
company.
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2021 Annual Report
(III) Disclosure and transparency
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, board of directors, board of supervisors and management of the
Company prudentially signed written confirmations to ensure that the authenticity, accuracy, completeness,
timeliness and fairness of the disclosure. The Company received the best rating (Grade A) on information
disclosure 2020 - 2021 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.
(IV) Investor relations
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 shareholders 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 maintained the Company's image in the capital market. In 2021, the Company received
a lot of awards and honors, including the Sharp Board Secretary Award out of the Golden Quality
assessment of publicly listed companies issued by Shanghai Securities News, the Company of the Year
with the Highest Investment Value from China Fund, and the Golden Bull Award of the Highest Value
and the Golden Bull Award from China Securities Journal.
(V) Safeguard the rights and interests of shareholders
The Company takes the rights and interests of shareholders, in particular small and middle-sized ones,
seriously, seeks for sustainable returns to shareholders. In the reporting period, the Company completed
the 2020 profit distribution in accordance with the Three-year Distribution Plan (2018-2020), and
developed the new Three - Year Distribution Plan (2021-2023) which has been approved by the 2020
annual shareholders meeting.
Corporate governance is a long-term work. The Company will improve its operation and management,
optimize the decision-making mechanism, and enhance the functioning of the governance level,
supervision level and operation level for the healthy and stable development of the Company in accordance
with laws and regulations issued by regulators.
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
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 (general manager, deputy general managers, board secretary and financial director) serve the
Company on a full-time basis and receive renumeration from the Company. No controlling shareholder,
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2021 Annual Report
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 take 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 make tax returns and pay taxes under laws. The Company has its own
bank account and 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 shareholders meeting, board of
directors and board of supervisors 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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2021 Annual Report
III. Introduction to shareholders meeting
link to the designated website
Disclosure
Session No. Session date where the published Resolutions
date
resolutions are available
Proposals discussed and resolved: The Proposal on Tongwei Co., Ltd.
Employee Share Plan (Draft) 2021-2023 and its Summary, the Proposal
on the Management Procedures on Tongwei Co., Ltd. Employee Share
1st interim
Plan 2021-2023, the Proposal on Requesting the Shareholders Meeting
shareholders 2021-02-25 http://www.sse.com.cn/ 2021-02-26
to Authorize the Board of Directors to Deal with Issues Relating to
meeting 2021
Tongwei Co., Ltd. Employee Share Plan 2021-2023, and the Proposal on
the Modification of the Articles of Association and the Subsequent
Business Registration.
Proposals discussed and resolved: 2020 Work Report of the Board of
Directors, 2020 Work Report of the Board of Supervisors, 2020 Annual
Report and its Summary, 2020 Financial Close Report, 2020 Profit
Distribution Proposal, 2020 Working Report of Independent Directors,
the Proposal on Renewing the Engagement with the Accountant Firm, the
Proposal on 2021 Application for Comprehensive Credit Line, the
Proposal on the Company's Accepting Guarantees from and to
Subsidiaries in 2021, the Proposal on the Company's Providing
Guarantees to its Customers in 2021, the Proposal on Starting Bill Pool
Annual Service in 2021, the Shareholder Distribution Plan 2021-2023, the
shareholders 2021-05-07 http://www.sse.com.cn/ 2021-05-08 Proposal on Adjusting the Total Size of Some Projects Invested by the
meeting 2020 Raised Funds, the Proposal on the Company’s Compliance with the
Conditions for Issuing A-share Convertible Bonds, the Proposal on the
Feasibility Report on Use of Funds Raised via the Company’s Public
Issuing A-share Convertible Bonds, the Proposal on the Dilution on
Immediate Return via the Company's Public Issuing Convertible Bonds
and Remedial Measures, the Rules on Meeting of A-share Convertible
Bond Holders, the Proposal on Requesting the Shareholders Meeting to
Authorize the Board of Directors to Deal Issues relating to the Company's
Public Issuing Convertible Bonds, and the Proposal on the Use of Funds
Raised in the Previous Financing Activity.
Interim shareholders meetings requested by the preferred shareholders whose voting rights have been restored
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2021 Annual Report
"□ Applicable" "√ Not applicable"
Note on shareholders meetings
"□ Applicable" "√ Not applicable"
IV. Information of directors, supervisors and senior managers
(I). Shareholding changes and Renumeration of directors, supervisors and senior management currently in office and having left office in reporting period
"√ Applicable" "□ Not applicable"
Unit: share
Total before-tax Whether
compensation receiving
Closing Change in Reason for from the compensation
Name Position (note) Gender Age Start date End date Opening shares
shares shares change Company in the from related
reporting period parties of the
(10,000 yuan) Company
Liu Hanyuan Director Male 57 2019-05-08 2022-05-07 0 0 0 285.34 No
Chairman of the
Xie Yi Male 38 2019-05-08 2022-05-07 290,122 217,622 -72,500 Note: 434.29 No
Board of Directors
Vice Chairman of the
Yan Hu Male 58 2011-05-10 2022-05-07 836,650 836,650 0 297.49 No
Board of Directors
Duan Yong
Director Male 48 2016-05-03 2021-05-27 1,061,628 796,311 -265,317 Note: 436.16 No
(left)
Wang
Director Male 45 2019-05-08 2022-05-07 0 0 0 0 No
Xiaohui
Ding Yi Director Female 57 2020-05-12 2022-05-07 0 0 0 5 No
Du Kunlun Independent director Male 53 2016-01-15 2022-05-07 0 0 0 10 No
Wang Jin Independent director Male 55 2016-05-03 2022-05-07 0 0 0 10 No
Fu Daiguo Independent director Male 57 2019-05-08 2022-05-07 0 0 0 10 No
Chairman of the
Deng San Female 37 2017-05-05 2022-05-07 225,880 225,880 0 119.37 No
Board of Supervisors
Yang
Supervisor Male 49 2007-04-30 2022-05-07 210,800 158,100 -52,700 Note: 52.83 No
Shixian
Chen
Supervisor Male 52 2016-05-03 2022-05-07 0 0 0 3 No
Xiaohua
Guo
General Manager Male 51 2016-03-03 2022-05-07 500,450 500,450 0 331.06 No
Yizhong
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2021 Annual Report
Deputy General
Chen Pingfu Male 56 2010-04-27 2022-05-07 444,730 444,730 0 157.29 No
Manager
Wang Deputy General
Male 58 2013-05-07 2022-05-07 659,050 659,050 0 175.70 No
Shangwen Manager
Song Deputy General
Male 58 2013-05-07 2022-05-07 425,075 331,375 -93,700 Note: 86.54 No
Gangjie Manager
Deputy General
Shen Jinzhu Male 56 2016-05-09 2022-05-07 280,400 210,300 -70,100 Note: 119.90 No
Manager
Deputy General
Zhang Lu Male 43 2017-03-12 2022-05-07 281,600 281,600 0 154.79 No
Manager
Zhou Bin Financial Director Male 53 2019-05-08 2022-05-07 55,211 55,211 0 193.91 No
Secretary of the
Yan Ke Male 37 2019-05-08 2022-05-07 0 0 0 129.38 No
Board of Directors
Total / / / / / 5,271,596 4,717,279 -554,317 / 3,012.05 /
Note: In 2015, the A-share market experienced irrational drops, leading to dramatic fluctuation of Company's share price, making the market cap was severely deviated
from the Company's value. With confidence in China's economy, China's capital market and the Company's development prospects, the management increased their
shares in the Company to stabilize the share price and drive the market cap to be normal. In the reporting period, for gaining benefits and due to personal needs, some
management members reduced their shares in the Company subject to applicable laws and regulations as well as SSE Detailed Rules on the Shareholding Reduction
by the Shareholders, Directors, Supervisors, and Senior Management of Listed Company.
Name Work experience
Male, born in 1964, EMBA of Guanghua School of Management, Peking University, senior engineer. He was the chairman of the first to sixth board
of directors of the Company. He is the chairman of the board of directors of Tongwei Group and a director of the 7th board of directors of the Company.
Liu
Other social positions include a member of the 11th Standing Committee of the CPPCC National Committee, deputy to the NPC (National People's
Hanyuan
Congress), a member of Standing Committee of All-China Federation of Industry and Commerce, the executive chairman of CNECC, vice chairman
of the All-China Federation of Industry and Commerce Sichuan and the executive vice chairman of China Feed Industry Association.
Male, born in 1984, MIM from Imperial College London, UK, member of the CPC. He was the president assistant of Tongwei Group, chairman of
the board of directors of Tongwei Solar (Hefei) Co., Ltd., chairman of the board of directors of Tongwei Solar (Chengdu) Co., Ltd., and currently
Xie Yi serves as the chairman of the board of directors of the Company. Other social positions include a deputy to the 13th CPC Chengdu Congress, vice
chairman of the 14th Committee of Sichuan Youth Federation, member of the 15th CPPCC Chengdu Committee, member of the 11th CPPCC Standing
Committee of Shuangliu District, Chengdu; and vice chairman of the second council of CPIA.
Male, born in 1964, MBA of Guanghua School of Management, Peking University, senior accountant. He was the chief accountant of the Southwest
Medical Equipment Co., Ltd., the manager on behalf of the US party in the GE Healthcare China Southwest Branch, financial director of Sichuan
Zhongyuan Industries Company Limited, executive deputy general manager of Chengdu Yuanda Wheel and Rim Manufacturing Co., Ltd., vice
Yan Hu
president and financial director of South Hope Industrial Co., Ltd., director and financial director of New Hope Group, and the director of New Hope
Co., Ltd. After joining the Company, he has served as the chief accountant of Tongwei Group, the chief accountant, president, and secretary of the
board of directors of Tongwei Co., Ltd., and the director of the board of directors (1st, 2nd, 4th, 5th, and 6th) of Tongwei Co., Ltd. He is a director
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2021 Annual Report
and vice chairman of the 7th board of directors of the Company. He is also the legal representative and vice-chairman of Sichuan Association for
Listed Companies, vice chairman of Sichuan Enterprise Confederation and the Sichuan Entrepreneurs Association, vice-chairman of China Society of
Forestry, Animal Husbandry and Fishery Economics, vice chairman of Sichuan Research Institute for International Tax, and vice chairman of
Association of Feed Industry, and vice-chairman of Sichuan Fisheries Society.
Male, born in 1974, MBA and Master from Lingnan University. He served as the deputy general manager, financial director and secretary of the board
Duan of directors of Shanghai Topslane Medical Devices Co., Ltd.; Baotou financial director, president assistant, executive president and president of East
Yong Hope Group. He was the chairman of the board of directors of Yongxiang Co., Ltd. and a director of the 7th board of directors of the Company
(resigned in May 27, 2021).
Male, born in 1976, master in economics of the Guanghua School of Management in Peking University. He was an auditor of Beijing KPMG Huazhen
Accounting Firm, an industry analyst of CITIC Securities Research Department, a senior manager and director of energy industry group of Investment
Wang
Banking Committee of CITIC Securities, and the executive general manager of M&A Department of Investment Banking Committee of CITIC
Xiaohui
Securities. He is the executive director of China Life Asset Management Co., Ltd., a director of Beijing Jingneng Power Co., Ltd. and a director of
the 7th board of directors of the Company.
Female, born in 1964, member of the Communist Party of China, doctoral degree in economics, Renmin University of China. She worked in Huaneng
Power International Co., Ltd., and successively served as the chairman of Huaneng Capital Services Co., Ltd., Great Wall Securities and other
Ding Yi
companies. She is a director of the 7th board of directors of the Company and also serves as an independent director of Huaxia Bank Co., Ltd, Huatai
Asset Management Co., Ltd. and Yanshi New Materials Co., Ltd.
Male, born in 1969, doctor in economics, China CPA (Certified Public Accountant), China CPV (Certified Public Valuer), researcher, mentor of
Du master candidates in Institute of Finance of Sichuan Academy of Social Sciences. He was a member of the 12th and 13th Main Board Market Issuance
Kunlun Examination Commission of China Securities Regulatory Commission, and an independent director of the 5th and 6th board of directors of the
Company. He is an independent director of the 7th board of directors of the Company.
Male, born in 1964, dean of the Western Business School of Southwestern University of Finance and Economics, a professor of accounting, doctoral
supervisor, and vice president of Chengdu Accounting Society. He served as an independent director of several companies such as Sichuan Crun Co.,
Fu Daiguo
Ltd., Lier Chemical Co., Ltd., and Ingenic Semiconductor Inc. He is an independent director of the 7th board of directors of the Company, and also
an independent director of Maccura Biotechnology Co., Ltd. and Sichuan Langjiu Group Co., Ltd.
Male, born in 1966, doctor in economics from Emory University, USA and a professor. He worked in Emory University, Georgian College, Georgia
Public Affairs, Federal Reserve Bank and other institutions on a full-time or part-time basis, and served as a teacher at Renmin University of China
Wang Jin and Shanghai University. Since March 2012, he has been the director of the International Energy Research Institute. At present, he is an independent
director of the 7th board of directors of the Company, the CECEP Solar Energy Co., Ltd. and Shuangdeng Cable Co., Ltd., and external director of
the SPIC Guangdong Electric Power Co., Ltd.
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 chairman of the board of directors of Tongwei Group, and the chairman of the 6th board of supervisors of the Company. She is the chairman of the
7th board of supervisors of the Company.
Yang Male, born in 1972, master in market economics. He was the finance manager and project manager of Fuling Tongwei Feed Co., Ltd., general manager
Shixian assistant and financial manager of He'nan Tongwei Feed Co., Ltd., and a member of the 3rd to 6th board of supervisors of the Company. He is a
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2021 Annual Report
member of the 7th board of supervisors of the Company.
Male, born in 1969, CPA. He worked at Chengdu Zhongda Accounting Firm, Sichuan Branch of Beijing Jingdu Public Accounting Firm and Sichuan
Chen
Shenghe Public Accounting Firm. He is the director of Sichuan Branch of Beijing Xinghua Public Accounting Firm (Special General Partnership) and
Xiaohua
a member of the 6th and 7th board of supervisors of the Company.
Guo Male, born in 1970, college diploma. He served as the general manager of Jieyang Tongwei Feed Co., Ltd., the general manager of Guangdong
Yizhong Tongwei Feed Co., Ltd. and general manager of Guangdong Area. Since March 2016, he has been the general manager of the Company.
Male, born in 1965, EMBA, CPA. He was the finance manager, deputy general manager and general manager of Sichuan Tongwei, a member of the
Chen
4th and 5th board of directors of the Company. He is the general manager responsible for Vietnam area one and the deputy general manager of the
Pingfu
Company.
Wang Male, born in 1963, MBA, doctor's degree. He served as president assistant, director of human resources, marketing director and technical director of
Shangwen the Company. He is currently the deputy general manager of the Company.
Male, born in 1964, aquaculture engineer, EMBA in Agriculture from School of Continued Education, Tsinghua University (2002-2003). He served
Song as president assistant of the Company, general manager of Chongqing Area, general manager of Jiangsu and Zhejiang Area, general manager of
Gangjie Yangtze River and Huai River Area, general manager of Suzhou Tongwei Feed Co., Ltd., and general manager of Nanjing Tongwei Aquatic Products
Technology Co., Ltd. He is currently the deputy general manager of the Company.
Male, born in 1966, bachelor degree, aquaculture engineer. He served as the general manager of Shashi Tongwei Feed Co., Ltd., general manager
Shen
assistant of Guangdong Tongwei Feed Co., Ltd., general manager of Vietnam Area and general manager of Vietnam Tongwei. He is now the deputy
Jinzhu
general manager of the Company and general manager of Hefei Branch.
Male, born in 1979, doctor's degree, researcher, an expert receiving the special government allowance from the State Council. He was vice technology
Zhang Lu director and the technology director of fish feed in Guangdong Yuehai Feeds Group. Currently, he is the technology director and a deputy general
manager of the Company.
Male, born in 1968, bachelor degree in accounting from Shanghai University of Finance and Economics, master degree from Southwest Jiaotong
University, MBA from University of South Australia, CPA (Certified Public Accountant) and CPV (Certified Public Valuer). He was the legal
Zhou Bin
representative of Sichuan Beite Certified Public Accounting Firm, the general manager of Sichuan Zhongfa Certified Tax Accountant Firm and the
financial director of Yongxiang Co., Ltd. He is the financial director of the Company.
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. Now, he is the secretary of the 7th board of directors of the Company.
Other notes
"□ Applicable" "√ Not applicable"
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2021 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
Chairman of the
Liu Hanyuan Tongwei Group Co., Ltd. 2008-03-24
board of directors
China Life Asset Management
Wang Xiaohui Executive director 2017-03-08
Company Limited
Note on offices
None.
in shareholders
2. Offices in other entities
"√ Applicable" "□ Not applicable"
Name in office Entity name Title Start date End date
Sichuan Academy of Social Mentor of master
Du Kunlun 2012-12-01
Sciences candidates
Independent
Du Kunlun Luzhou Laojiao Co., Ltd 2015-06-30 2021-06-29
director
Independent
Du Kunlun Tianqi Lithium Corporation 2017-02-10 2020-09-09
director
Sichuan Jule Food Co., Ltd. (To Independent
Du Kunlun 2017-05-14 2020-09-09
be listed) director
Cscec Scimee Sci.&Tech. Co., Independent
Du Kunlun 2019-01-28 2022-01-24
Ltd. director
International Energy Research
Wang Jin Head 2012-06-01
Institute
Wang Jin Chongqing Zongshen Power Director 2016-04-01 2019-10-31
Independent
Wang Jin CECEP Solar Energy Co., Ltd. 2014-03-01 2020-02-28
director
Independent
Wang Jin Shuangdeng Cable Co., Ltd. 2020-08-01
director
Inner Mongolia Yili Energy Co Independent
Wang Jin 2020-05-01
Ltd. director
SPIC Guangdong Electric Power
Wang Jin External director 2020-03-01
Co., Ltd.
Southwestern University of
Fu Daiguo Professor 2002-12-01
Finance and Economics
Maccura Biotechnology Co., Independent
Fu Daiguo 2019-01-22
Ltd. director
Sichuan Langjiu Co., Ltd. Independent
Fu Daiguo 2019-07-31
(To be listed) director
Independent
Ding Yi Hua Xia Bank Co., Ltd. 2020-09-09
director
Huatai Asset Management Co., Independent
Ding Yi 2020-09-04
Ltd. director
Independent
Ding Yi Yuanshi New Materials Co., Ltd. 2021-10-22
director
Beijing Jingneng Power Co.,
Wang Xiaohui Director 2021-06-23
Ltd.
Beijing Xinghua Accounting
Head of Sichuan
Chen Xiaohua Firm (special general 2012-09-01
office
partnership)
Note on offices
None.
in other entities
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2021 Annual Report
(III). Renumeration of directors, supervisors, and senior managers
"√ Applicable" "□ Not applicable"
Under the Articles of Association and relevant provisions of the Detailed
Rules of Remuneration and Review Committee, the Committee studies and
reviews the remuneration policies and plans for directors and senior
Procedures for deciding
managers. The remuneration and review procedures for senior managers are
the renumeration of
put into implementation after being discussed and approved by the board of
directors, supervisors,
directors, the remuneration payments are determined after reviewed by the
and senior managers
Committee; the remuneration plans for directors and supervisors and
submitted to the shareholders meeting for approval after being approved by
the board of directors and board of supervisors.
1.The renumeration of directors, supervisors and senior managers who take
specific roles in production and operation of the Company consists of a base
and a performance-based bonus. The Company ensures the overall
Basis for the compensations and benefits to employees are of competitiveness in the
renumeration of industry and market through fair and appropriate payments given the
directors, supervisors, specific roles, duties and performances.
and senior managers 2. Directors and supervisors who do not hold full-time roles in the Company
received fixed allowances annually. Costs for performance of director and/or
supervisor duties are from the Company's annual funds of board of directors
and/or funds of board of supervisors.
The renumeration to directors, supervisors and senior managers are paid
Actual payments to according to their performance assessed under the Performance Review
directors, supervisors, Management Procedures. In the reporting period, the actual payments to
and senior managers directors, supervisors and senior managers are consistent with the disclosure
made by the Company.
Total renumeration
received by directors,
supervisors, and senior 30,120,500 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
Duan Mr. Duan Yong resigned from the office of director and other
Director Resigned
Yong roles in the Company on May 27, 2021 for job change.
(V). Notes on penalties from securities regulators
"□ Applicable" "√ Not applicable"
(VI). Others
"□ Applicable" "√ Not applicable"
V. Board of directors meetings held in the reporting period
Session No. Session date Resolutions
Proposals discussed and resolved: the Proposal on Tongwei Co.,
Ltd. Employee Share Plan (Draft) 2021-2023 and its Summary,
the Proposal on the Management Procedures on Tongwei Co.,
17th meeting of
Ltd. Employee Share Plan 2021-2023, the Proposal on
the 7th board of 2021-02-09
Requesting the Shareholders Meeting to Authorize the Board of
directors
Directors to Deal with Issues Relating to Tongwei Co., Ltd.
Employee Share Plan 2021-2023, the Proposal on Execution of
the Strategic Cooperation Agreement with Jinko Solar Co., Ltd.,
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2021 Annual Report
the Proposal on the Modification of the Articles of Association
and the Subsequent Business Registration, and the Proposal on
Holding the 1st Interim Shareholders Meeting 2021.
Proposals discussed and resolved: 2020 Work Report of the Board
of Directors, 2020 Work Report of the General Manager, 2020
Annual Report and its Summary, 2020 Financial Close Report,
2020 Profit Distribution Proposal, 2020 Working Report of
Independent Directors, the Summary of the Audit Committee on
Sichuan Huaxin (Group) Accounting Firm (Special General
Partnership)'s Performing the 2020 Audit of the Company, the
Proposal on Renewing the Engagement with the Accountant Firm,
the 2020 Evaluation Report on the Company's Internal Controls,
the 2020 Audit Report on the Company's Internal Controls, the
Proposal on 2020 Provision for Asset Impairment and Scrap of
Fixed Asset the Proposal on 2021 Application for Comprehensive
Credit Line, the Proposal on the Company's Accepting
Guarantees from and to Subsidiaries in 2021, the Proposal on the
Company's Providing Guarantees to its Customers in 2021, the
Proposal on Starting Bill Pool Service in 2021, the Proposal on
18th meeting of
Use of Short Surplus Funds for Wealth Management in 2021, the
the 7th board of 2021-04-09
Proposal on Conducting Hedging Service in 2021,the Proposal
directors
on Daily Related-party Transactions Expected in 2021, the
Special Report on the Storage and Actual Use of Funds Raised in
2020, the Proposal on Adjusting the Total Size of Some Projects
Invested by the Raised Funds, the Shareholder Distribution Plan
2021-2023, the 2021 Q1 Report (full text), the Proposal on the
Company’s Compliance with the Conditions for Issuing A-share
Convertible Bonds, the Proposal on the Proposed Plan for the
Company’s Public Issuing Convertible Bonds , the Proposal on
the Feasibility Report on Use of Funds Raised via the Company’s
Public Issuing A-share Convertible Bonds, the Rules on Meeting
of A-share Convertible Bond Holders, the Proposal on Requesting
the Shareholders Meeting to Authorize the Board of Directors to
Deal Issues relating to the Company's Public Issuing Convertible
Bonds, the Report on the Use of Funds Raised in the Previous
Financing Activity, and the Proposal on Holding 2022 Annual
Shareholders Meeting.
19th meeting of
Reviewed and approved the 2020 ESG Report of Tongwei Co.,
the 7th board of 2021-06-28
Ltd.
directors
20th meeting of
Reviewed and approved the Proposal on Investing the 200,000 -
the 7th board of 2021-06-30
ton High-purity Polysilicon Project in Leshan
directors
21st meeting of Reviewed and approved 2021 Semi-year Report and its Summary,
the 7th board of 2021-08-16 the Special Report on the Storage and use of Funds Raised in in
directors 1H 2021, and the Proposal on Change of Accounting Policies.
22nd meeting of
the 7th board of 2021-10-26 Reviewed and approved 2021 Q3 Report.
directors
23rd meeting of
Reviewed and approved the Proposal on Use of Some Idle Funds
the 7th board of 2021-12-10
for Temporary Supplement of Current Funds.
directors
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2021 Annual Report
VI. Performance of duties by directors
(I). Attendances at board of directors meetings and shareholders meetings by directors
Attendance
at
Attendance at board of directors meetings
shareholders
meetings
Number
of board
of
Director Independent directors
Number of
Name director meetings Absence from
Number shareholders
the In By two
Virtual of meeting the
director person proxy consecutive
/ director has
should meetings
attended
have
attended
in the
year
Liu
No 7 7 5 0 0 No 2
Hanyuan
Xie Yi No 7 7 5 0 0 No 2
Yan Hu No 7 7 5 0 0 No 2
Duan
No 2 2 1 0 0 No 2
Yong
Wang
No 7 7 6 0 0 No 0
Xiaohui
Ding Yi No 7 7 6 0 0 No 0
Du
Yes 7 7 6 0 0 No 1
Kunlun
Wang Jin Yes 7 7 6 0 0 No 0
Fu
Yes 7 7 6 0 0 No 1
Daiguo
Note on absence from two consecutive meetings
"□ Applicable" "√ Not applicable"
Number of board of directors meetings held in the year 7
Number of physical meetings 1
Number of virtual meetings 5
Number of virtual and physical combined meetings 1
(II). Director objections on issues of the Company
"□ Applicable""√ Not applicable"
(III). Others
"□ Applicable" "√ Not applicable"
VII. Committees under the board of directors
"√Applicable" "□Not applicable"
(1).Members of committees under the board of directors
Committee Members
Audit Committee Fu Daiguo, Du Kunlun, and Yan Hu
Nomination Committee Xie Yi, Wan Jin, and Du Kunlun
Remuneration and Review Committee Du Kunlun, Wang Jin, and Xie Yi
Strategy Committee Xie Yi, Liu Hanyuan, Yan Hu, Wang Jin and Wang Xiaohui
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2021 Annual Report
(2).Six meetings held by the Audit Committee in the Reporting Period
Other information on performance
Session date Content Important opinions and recommendations
of duties
Asked for the audit progress of the
1. Based on the audit results over the past years, Tongwei Co., Ltd
annual report, listened to the audit
has been running in accordance with regulation with robust internal
information from project managers
controls and adequate functioning of its internal audit and supervision
of the accounting firm, emphasized
system for effective risk prevention.
the importance of external
2. The 2020 Annual Report must be prepared in strict accordance with
auditing, in particular audit
Standards on Annual Reports of Publicly Listed Company of CSRC,
discrepancies, long-term equity
Discussed and reviewed Issues the Notice on 2020 Annual Reporting Disclosure by Companies
investments and impairments,
2021-02-19 Concerned relating to the Work of Listed in the Main Board Market of the Shanghai Stock Exchange,
revenue and accounts receivable,
2020 Annual Report and relevant memos to present the rule, accurate and complete
and related-party transactions,
information of the Company to investors.
required that accountants
3. Given the disclosure timeline, 2020 annual report and relevant
responsible for annual report audit
materials of proposals to board of directors must be drafted before
must conduct their work with
April 2, approved by the secretary of board of directors and the
carefulness and justice, and urged
financial director, and then submitted to the Audit Committee, before
the firm to submit the audit report
submitting to the board of directors for discussion and approval.
within the specified period.
The Audit Committee raised no objection to matters listed by Huaxin
Checked the auditing progress on
Accounting Firm in the Letter. The following views were raised on
annual report on the site.
key audit matters including asset impairment:
Emphasized on the need for a good
Considered the Letter of 1. Determination of key audit matters should be subject to sufficient
ending job to submit the audit
Communication with the communications with the management in term of its judgement made
2021-03-31 report by the specified time, and
Governance Level from Huaxin in impairment reserve assessment in terms of the accuracy of
communicated with audits from the
Accounting Firm provision for impairment reserve.
accounting firm regarding the audit
2. Asked the QC department of the accounting firm to perform full
performance and the actual
discussions on above matters regarding the execution of accounting
conditions of the Company.
standards.
1. Considered the 2020 Financial 1. Passed the 2020 Financial Report Audited by Huaxin Accounting
Report Audited by Huaxin Firm.
Accounting Firm 2. Passed the Summary Report on 2020 Audit Work by Huaxin
2021-04-03 None.
2. Considered the Summary Report Accounting Firm.
on 2020 Audit Work by Huaxin 3. Passed the Proposal on Renewing the Engagement with the
Accounting Firm Accounting Firm.
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2021 Annual Report
3. Considered the Proposal on 4. Passed the Proposal on Expected Daily Related-party Transactions
Renewing the Engagement with the in 2021.
Accounting Firm 5. Passed the Proposal on 2020 Provision for Impairment Reserve.
4. Considered the Proposal on 6. Passed the Special Report on Storage and Use of Funds Raised in
Expected Daily Related-party 2020
Transactions in 2021 7. Passed the 2020 Performance Report by Audit Committee
5. Considered the Proposal on 2020
Provision for Impairment Reserve
6. Considered the Special Report on
Storage and Use of Funds Raised in
2020
7. Considered the 2020 Performance
Report by Audit Committee
Considered the Progress Report on
Passed the Progress Report on Works Relating to 2021 Semi-year
2021-08-06 Works Relating to 2021 Semi-year None.
Report
Report
Considered the Progress Report on
2021-10-11 Passed the Progress Report on Works Relating to 2021 Q3 Report None.
Works Relating to 2021 Q3 Report
The situation and arrangement of
2021-12-28 2021 annual report audit and Passed the plan of 2021 annual report audit None.
internal control audit
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2021 Annual Report
(3).Specific circumstances where objections were raised
"□ Applicable" "√ Not applicable"
VIII. Note on the board of supervisors’ identification of the Company risks
"□ Applicable" "√ Not applicable"
The board of supervisors did not raise any objection to matters supervised in the reporting period.
IX. Employees of the parent company and major subsidiaries at the end of the reporting period
(I). Employees
Number of active employees of the parent company 1,730
Number of active employees of major subsidiaries 30,494
Total employees 32,224
Number of retirees for whom the parent and major subsidiaries 72
must bear relevant expenses
Profession structure
Profession Number of employees
Production 18,837
Sales 3,850
Technology 5,732
Finance 647
Administration 3,158
Total 32,224
Education structure
Education background Number of employees
Master or higher 594
Bachelor 6,350
Three-year college 7,491
Three-year college or lower 17,789
Total 32,224
(II). Compensation policy
"√ Applicable" "□ Not applicable"
Upholding the principle of "externally competitive and internally fair", the Company has created a
diverse compensation system with fairness, competition, win-win, incentive and lawfulness, that combines
incentive compensation with guaranteed compensation, explicit compensation with implicit compensation,
and short-term compensation with long-term compensation. To keep a properly competitive compensation
system, the Company conducts market research and compensation-cost analysis from time to time, and
adjusts and optimizes the incentive policy according to value and workload of roles. The leverage role of
performance-based compensation is used to fully motivate employees and increase the Company's
profitability for the sustainable development of the Company.
(III). Training plan
"√ Applicable" "□ Not applicable"
Human resources are an important driver for the Company’s sustained development; therefore, the
Company attaches high importance to selection, employment, development and retention of talents. In the
reporting period, the Company ensured the effective use and rapid development of employees through
various incentive policies and growth programs, integrated high-quality education resources based on the
development system represented by Tongwei Learning Center to gain outstanding operation models and
management approaches, and learned from advanced management experience and technologies for the
efficient combination of employee development and use. To respond to diversified development needs
from different levels, professions and work types, the Company has created a complete training system
coordinating different business lines and subsidiaries. Also, the Company encourages employees to
improve themselves by providing financial supports for employees who take part in further education or
training on professional skills.
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2021 Annual Report
(IV). Labor outsourcing
"□ Applicable" "√ Not applicable"
X. Proposal on profit distribution or capital surplus converted to share capital
(I). Development, execution or adjustments of cash dividend policy
"√ Applicable" "□ Not applicable"
The Company conducted the profit distribution in strict accordance with its dividend policy in the
reporting period. The 2020 Profit Distribution Proposal considered at the 18th meeting of the 7th board
of directors on April 09, 2021 and approved at the 2020 annual shareholders meeting on May 07, 2021
stated that based on the total 4,501,548,184 shares, a cash dividend of 2.41 yuan (including tax) per ten
shares would be paid to all registered shareholders for a total cash distribution of 1,084,873,112.34 yuan.
This plan was fully executed on May 21, 2021.
The Shareholder Distribution Plan 2021-2023 approved at the 18th meeting of the 7th board of
directors and the 2020 annual shareholders 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 2021 Profit Distribution Proposal raised by the board of directors on April 22 stated that based
on the total 4,501,548,184 shares, a cash dividend of 9.12 yuan (including tax) per ten shares would be
paid to all registered shareholders for a total cash distribution of 4,105,411,943.81 yuan. This plan will be
submitted to the 2021 annual shareholders meeting 2021 for consideration.
(II). Special note on cash dividend policy
"√ Applicable" "□ Not applicable"
Compliance with provisions of the Articles of Association or resolutions of the "√ Yes"
shareholders meeting "□ No"
Dividend standards and payout ratio are clear "√ Yes"
"□ No"
Relevant decision-making procedures and mechanism are complete "√ Yes"
"□ No"
Independent directors performed their duties and played their role "√ Yes"
"□ No"
Middle and small shareholders had opportunities to fully express their views and "√ Yes"
needs with their legitimate rights and interests fully protected "□ No"
(III). The Company should disclose the reasons and the purposes and plan of these undistributed
profit where the Company achieved profits and the profit attributable to shareholders of the parent
company was positive, but no cash dividend proposal was raised
"□ Applicable" "√ Not applicable"
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 interim announcements without
further progress or change
"□ Applicable" "√ Not applicable"
(II). Where relevant incentive matters were not disclosed in interim announcements or further
progress or change occurred
Share incentive
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
52 / 261
2021 Annual Report
Employee share plan
"√ Applicable" "□ Not applicable"
1. The 2017 Employee Share Plan expired on January 5, 2021. The Company had sold the planned
shares according to the incentive plan to provide returns to employees given their performance review.
2. The Company passed the Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2021-2023
and its Summary at the 17th meeting of the 7th board of directors on February 9, 2021 and the first interim
shareholders meeting on February 25, 2021 to keep the incentive to employees, fully motivate their
creativity and to align the interests of shareholders, the Company and employees. The total funds planned
under this Employee Share Plan are not more than 1,350 million yuan, and will be managed by an asset
manager through a trust/asset management product. The total units of the product are limited to 2,700
million and the price per unit is 1 yuan. The ratio of preferred units to common units is not higher than
1:1. The total preferred units are limited to 1,350 million and the total common units are limited to 1,350
million. The planned duration of this Employee Share Plan is 36 months with shares purchased from
secondary market. In the reporting period, the Employee Share Plan — “China Life Asset Management -
Advantage Select 2110 Insurance Asset Management Product” and “China Life Asset Management -
Advantage Select 2108 Insurance Asset Management Product” were created with stocks purchased in the
secondary market through public bidding and bulk trade. A total of 76,499,840 shares for 2,633,584,589
yuan (34.43 yuan per share) were purchased, taking up 1.70% of the Company's share capital. These shares
have a locking period from May 21, 2021 to May 20, 2022.
Other incentive measures
"□ Applicable" "√ Not applicable"
(III). Share incentives granted to directors and senior managers in the reporting period
"□ Applicable" "√ Not applicable"
(IV). Evaluation mechanism for senior managers in the reporting period and the development
and execution of incentive mechanism
"√ Applicable" "□ Not applicable"
The board of directors has a Remuneration and Review Committee which is responsible for
developing the performance review criteria for senior managers and conducting the review. Remuneration
to senior managers consists of base salary and performance-based bonus. The Remuneration and Review
Committee pays fair and appropriate salaries given the Company's performance, needs of job positions,
duties and work performance to ensure the compensation and benefits of employees are competitive in the
market and industry.
XII. Development and implementation of internal controls in the reporting period
"√ Applicable" "□ Not applicable"
Refer to the Internal Control Self-Assessment Report disclosed on http://www.sse.com.cn by the
Company on April 26, 2022.
Note on significant discrepancies in internal controls in the reporting period
"□ Applicable" "√ Not applicable"
XIII. Management and control over subsidiaries in the reporting period
"√ Applicable" "□ Not applicable"
As of the end of 2021, the Company had 263 subsidiaries including 253 domestic companies and 10
overseas companies. The Company held shares directly in 82 subsidiaries and indirectly in 181
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
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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.
In the reporting period, the Company purchased the aquatic feed company and a part of the swine
feed company under Tech-Bank via cash and effectively integrated assets, organizations, businesses,
personnel and funds to further increase the professionalism and scale of the feed business with an increased
market share and to strengthen its leading position in the industry. Further, to help with the smooth
integration with the new subsidiary with the Company, it set a Tech-Bank business area for which
managers from the Company were dispatched and increased the publicity activities in the new subsidiary.
As of the end of the reporting period, the said new subsidiary was integrated under planned schedule
without significant deviation.
XIV. Note on relevant information on internal control audit report
"√ Applicable" "□ Not applicable"
Sichuan Huaxin engaged by the Company has audited the Company's 2021 internal controls and
issued a report with standard unqualified opinion, details of which are in the 2021 Internal Control Audit
Report on Tongwei Co., Ltd. disclosed on http:www.sse.com.cn on April 26, 2022 by the Company.
Whether the internal control audit report was disclosed: Yes
Type of audit opinion: Standard unqualified opinion
XV. Correction of problems identified in self-check for the governance of listed companies
The Company has performed a self-inspection subject to the Self-Checklist of Listed Companies and
found no issues to be corrected.
XVI. Others
"□ Applicable" "√ Not applicable"
Section V. Environmental and Social Responsibility
I. Environmental information
(I). Note on the environmental protection by companies falling into the key waste discharge
organizations published by the environmental protection authority and their major subsidiaries
"√ Applicable" "□ Not applicable"
1.Waste discharge
"√ Applicable" "□ Not applicable"
In the reporting period, the Company strictly observed applicable environmental laws and regulations
in the construction and operation of environmental facilities, and wastewater, waste gas and solid waste
produced were discharged under relevant standards for clean production. Relevant environmental
information is provided below:
(1) Polysilicon production in Yongxiang
① Major pollutants in the wastewater are COD, NH3-N and PH.
Discharge method: continuous and stable discharge
Number of discharge 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 9.85 mg/l, NH3-N 0.778 mg/l and PH:7.75 all of which complied with
the standards.
Approved annual discharge amount: No limits for COD and NH3-N.
2021 total discharge amount: COD 4.98 tons and NH3-N 0.415 tons.
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② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particles
Emission method: continuous and stable emission
Number of emission 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 is
80 mg/m) and particles ≤ 20 mg/m.
Emission concentrations: sulfur dioxide 0.377 mg/m, nitrogen oxides 38.73 mg/m and particles 1.093
mg/m, all of which complied with the standards.
Approved annual emission amount: No limits for sulfur dioxide and particles; nitrogen oxides ≤ 53.1 tons.
2021 total emission amount: sulfur dioxide 0.1274 ton; particles 0.2234 ton and nitrogen oxides 9.096
tons, each of which was lower than the approved amount.
(2) Production of high-purity polysilicon in Yongxiang New Energy
① Major pollutants in the wastewater are COD, NH3-N and pH.
Discharge method: continuous and stable discharge
Number of discharge 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 11.771 mg/l, NH3-N 2.07 mg/l and PH:7.358 all of which complied with
the standards.
Approved annual discharge amount: COD ≤ 43.96 tons and NH3-N ≤ 4.4 tons.
2021 total discharge amount: COD 8.13 tons and NH3-N 1.48 tons, each of which was lower than the
approved amount.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particles
Emission method: continuous and stable emission
Number of emission 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 is
80 mg/m) and particles ≤ 20 mg/m.
Emission concentrations: sulfur dioxide 0.67 mg/m, nitrogen oxides 58.75 mg/m and particles 7.5
mg/m, all of which complied with the standards.
Approved annual emission amount: sulfur dioxide ≤ 26.98 tons, nitrogen oxides ≤ 76.04 tons, and particles
≤ 19.19 tons.
Thanks to the effective result of energy saving, electric boilers operated in most cases in 2021 while gas-
fired boilers were seldom in use, which resulted in much lowered emissions.
2021 total emission amount: sulfur dioxide 0.044 tons; nitrogen oxides 1.863 tons and particles 0.244 tons,
each of which was lower than the approved amount.
(3) Production of high-purity crystalline silicon in Inner Mongolia Tongwei
① Major pollutants in the boiler smoke are sulfur dioxide, nitrogen oxides and particles;
② Major pollutants in smoke generated from hydrogen production: sulfur dioxide, nitrogen oxides and
particles
Emission method: continuous and stable emission
Number of emission outlets: 4
Emission standards on boiler smoke: emission limits for ne boilers in Table 2 of the Emission Standard of
Air Pollutants for Boiler (GB13271-2014) — sulfur dioxide ≤50 mg/m, nitrogen oxides ≤ 200 mg/m and
particles ≤ 20 mg/m.
Emission standards on hydrogen production smoke: Air pollutant limits in Table 4 of the Emission
Standard of Pollutants for Petroleum Chemistry Industry (GB31571-2015) — sulfur dioxide ≤100 mg/m,
nitrogen oxides ≤ 180 mg/m and particles ≤ 20 mg/m.
Emission concentrations in boiler smoke: sulfur dioxide 0.67 mg/m, nitrogen oxides 52.94 mg/m and
particles 6.16 mg/m, all of which complied with the standards.
Emission concentrations in smoke from hydrogen production: sulfur dioxide 1.58 mg/m, nitrogen oxides
35.97 mg/m and particles 4.08 mg/m, all of which complied with the standards.
Approved annual emission amount: sulfur dioxide ≤ 1.459 tons, nitrogen oxides ≤ 67.36 tons.
2021 total emission amount: sulfur dioxide 0.21 tons; nitrogen oxides 5.61 tons, each of which was lower
than the approved amount.
(4) PVC and sodium hydroxide production in Yongxiang
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① Major pollutants in the wastewater are COD, NH3-N and PH.
Discharge method: continuous and stable discharge.
Number of discharge outlets: 1
Discharge standards: the Emission Standard of Pollutants for Caustic Alkali and Polyvinyl Chloride
Industry (GB15581-2016) — COD≤60 mg/l, NH3-N ≤15 mg/l and 6≤pH≤9.
Discharge concentrations: COD 17.52 mg/l, NH3-N 6.29 mg/l and PH 6 - 9, all of which complied with
the standards.
Approved annual discharge amount: COD ≤ 39 tons and NH3-N ≤ 9.75 tons.
2021 total discharge amount: COD 3.85 tons and NH3-N 0.89 tons, each of which was lower than the
approved amount.
② Heavy metal is mercury (II) chloride which is mainly used as the catalyst for vinyl chloride synthesis,
and coded as HW29 in National Directory of Hazardous Substances, must be disposed centrally to
qualified suppliers for treatment and recycle.
(5) Cement production in Yongxiang New Materials
① Major pollutants in the waste gas are dust, SO2 and NOX.
Emission method: continuous and stable emission
Number of emission outlets: 2
Emission standards: Emission Standard of Air Pollutants for Cement Industry (GB4915-2013). Dust ≤ 10
mg/m; SO2 ≤ 35 mg/m; NOx ≤ 100 mg/m
Emission concentrations: average concentration of dust was 4.95mg/m in the kiln head, 3.38 mg/m in
the kiln tail; average concentration of SO2 was 12.81 mg/m; average concentration of NOX was 71.76
mg/m, all of which met the standards.
Approved annual emission amount: dust ≤ 51.60 tons, SO2 ≤ 150 tons, and NOx ≤ 480 tons.
2021 total emission amount: dust from kiln head 10.24 tons, dust from kiln tail 8.47 tons, SO2 32.17 tons
and NOx 191.23 tons. All of them were lower than the respective approved amount.
② Major pollutants in the wastewater are COD and NH3-N.
Discharge method: continuous and stable discharge
Number of discharge outlets: 1
Discharge standards: Grade one standards in Integrated Wastewater Discharge Standard (GB8978-1996)
— COD ≤ 100 mg/l; NH3-N ≤ 15m g/l;
Discharge concentrations: COD 14.64 mg/l and NH3-N 0.23 mg/l. Each of them met the standards.
Approved annual discharge amount: No limits for COD and NH3-N.
2021 total discharge amount: COD 0.70 ton and NH3-N 0.01 ton.
(6) Production of solar cells in Chengdu:
① Major pollutants in the waste gas are fluoride, hydrogen chloride, chlorine, sulfuric acid mist, ammonia,
particles and volatile organic compounds (VOC)
Emission method: continuous and stable emission
Number of emission outlets: 30
Emission standards: Ammonia subject to limit in Table 2 of Emission Standards for Odor Pollutants
(GB14554-1993); VOC subject to industrial standards for electronic industry set in Table 3 of 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).
Ammonia ≤ 14 kg/h; VOC ≤60 mg/m; fluoride ≤3 mg/m; chlorine ≤5 mg/m; particles ≤30 mg/m;
hydrogen chloride ≤5 mg/m; and NOX ≤ 30 mg/m.
Emission concentrations: fluoride 1.38 mg/m; chlorine 1.58 mg/m; particles 6.1 mg/m; NOx 6.38 mg/m;
VOC 1.84 mg/m; hydrogen chloride 0.2 mg/m; ammonia 0.259 kg/h, all of which met the standards.
2021 total emission amount: Nitrogen oxides 49.89 tons and NH3-N 11.11 tons, each of which was lower
than the approved amount.
② Major pollutants in the wastewater are fluoride, CODcr, NH3-N and pH.
Discharge method: continuous and stable discharge
Number of discharge 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 22.81 ml/l; NH3-N 3.74 mg/l; pH 7.59 and fluoride 5.35 mg/l. Each of
them met the standards.
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Approved annual discharge amount: COD ≤ 1,109.8 tons and NH3-N ≤ 221.9 tons.
2021 total discharge amount: CODcr 164.12 tons and NH3-N 23.52 tons, each of which was lower than
the approved amount.
(7) Production of solar cells in Meishan:
① Major pollutants in the waste gas are chlorine, particles, VOC and fluoride.
Emission method: continuous and stable emission
Number of emission outlets: 15
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 mg/m (from industrial waste gas); ammonia ≤ 20 mg/m (waste gas from the wastewater
station); hydrogen sulfide ≤ 0.9 kg/h; and odor gas concentration 6,000; Sichuan Control Standards for
Volatile Organic Compounds (DB51/2377-2017) — VOC ≤ 60 mg/m; grade two limits in Table 2 of
Integrated Standards for Emission of Air Pollutants (GB16297-1996) — sulfuric acid mist ≤ 60 mg/m.
Emission concentrations: fluoride 2.06 mg/m; chlorine 1.39 mg/m; particles 10.76 mg/m; hydrogen
chloride 0.59 mg/m; VOC 0.63 mg/m; hydrogen chloride 16mg/m; sulfuric acid mist not detected;
ammonia 0.21 kg/h (rate), ozone 90.25, all of which met the standards.
2021 total emission amount: Nitrogen oxides 0.737 ton and VOC 2.19 tons.
② Major pollutants in the wastewater are COD, NH3-N, pH, total nitrogen and fluoride.
Discharge method: continuous and stable discharge
Number of discharge outlets: 3
Discharge standards: production wastewater is subject to the indirect discharge standards in Table 2 of
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/T31962-2015) and standards for designed inlet water of the second zone of the said
wastewater treatment plant;
Wastewater discharge concentrations: COD 34.41 mg/l, NH3-N 13.35 mg/l, PH 7.6, total nitrogen
22.55mg/l, and fluoride 5.9 mg/l all of which met the standards.
2021 total discharge amount: COD was 118.10 tons and NH3-N 45.81 tons.
(8) Production of solar cells in Hefei:
① Major pollutants in the waste gas are chlorine, particles, nitrogen oxides, hydrogen chloride, VOC and
fluoride.
Emission method: continuous and stable emission
Number of emission outlets: 31
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; VOCs ≤ 50 mg/msubject to
Tianjin Emission Standards for Volatile Organic Compounds from Industrial Enterprises (DB16297-2014).
Waste gas emission concentrations: nitrogen oxides 11.94 mg/m; fluoride 1.08 mg/m; chlorine 0.38
mg/m; particles 8.48 mg/m; hydrogen chloride 1.58 mg/m; VOCs 4.65mg /m, all of which met the
standards.
2021 total emission amount: nitrogen oxides 14.881 tons and VOCs 7.866 tons.
② Major pollutants in the wastewater are COD, NH3-N, pH, total nitrogen and fluoride.
Discharge method: continuous and stable discharge
Number of discharge 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; fluoride ≤ 8 mg/l.
Wastewater discharge concentrations: COD 87.6 mg/l, NH3-N 10.5 mg/l, PH 7.75, total nitrogen 21.7mg/l,
and fluoride 3.87 mg/l all of which met the standards.
2021 total discharge amount: COD 140.13 tons and NH3-N 18.016 tons
(9) Production of solar cells in Anhui:
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① Major pollutants in the waste gas are chlorine, particles, nitrogen oxides, hydrogen chloride, VOC and
fluoride.
Emission method: continuous and stable emission.
Number of emission 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; VOCs ≤ 50 mg/m subject to
Tianjin Emission Standards for Volatile Organic Compounds from Industrial Enterprises (DB16297-2014).
Waste gas emission concentrations: nitrogen oxides 27 mg/m; fluoride 0.53 mg/m; chlorine 0.9 mg/m;
particles 9.92 mg/m; hydrogen chloride 2.07 mg/m; VOCs 6.25mg /m, all of which met the standards.
2021 total emission amount: nitrogen oxides 0.206 ton and VOCs 13.314 tons.
② Major pollutants in the wastewater are COD, NH3-N, pH, total nitrogen and fluoride.
Discharge method: continuous and stable discharge.
Number of discharge outlets: 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; fluoride ≤ 8 mg/l.
Wastewater discharge concentrations: COD 32.05 mg/l, NH3-N 9.46 mg/l, PH 7.14, total nitrogen 22.25
mg/l, and fluoride 3.25 mg/l. Each of them met the standards.
2021 total discharge amount: COD 58.549 tons and NH3-N 17.968 tons.
(10) Production of solar cells in Jintang:
① Major pollutants in the waste gas are hydrogen chloride, hydrogen chloride, chlorine, ammonia,
particles, and volatile organic compounds (VOC);
Typical pollutant(s): fluoride.
Emission method: continuous and stable emission.
Number of emission outlets: 9.
Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission 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, subject to
limit 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 0.0096 mg/m (not detected
in most cases throughout the year); chlorine 1.54 mg/m; particles 12.8 mg/m; NOx 10.3 mg/m; VOC
1.7 mg/m; hydrogen chloride 0.6 mg/m; ammonia 2.22 kg/h. Each of them met the standards.
Approved annual emission amount: Nitrogen oxides ≤12 tons, and VOCs ≤12.1 tons.
2021 total emission amount: Nitrogen oxides 11.48 tons and VOCs 2.73 tons. All of them were lower than
the respective approved amount.
② Major pollutants in the wastewater are pH, COD, NH3-N and fluoride.
Discharge method: continuous and stable discharge.
Number of discharge outlets: 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: COD 37.4 ml/l; NH3-N 6.96 mg/l; pH 7.2-7.5 and fluoride 3.58 mg/l. Each of them met
the standards.
Approved annual discharge amount: COD ≤ 509.9 tons and NH3-N ≤ 102 tons.
2021 total discharge amount: COD 41.92 tons and NH3-N 7.81 tons; each of which was lower than the
approved amount.
(11) Production of solar cells in Tonghe:
① Major pollutants in the waste gas are fluoride, hydrogen chloride, chlorine, ammonia, particles and
volatile organic compounds (VOC).
Emission method: continuous and stable emission.
Number of emission outlets: 18
Emission standards: For solar cell projects, 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
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Pollutants for Battery Industry (GB30484-2013): fluoride ≤3 mg/m, chlorine ≤5 mg/m, particles ≤30
mg/m and hydrogen chloride ≤5 mg/m. For wafer cutting projects, particles ≤ 120 mg/m subject to grade
two limit in Integrated Standards for Emission of Air Pollutants (GB16297-1996), VOCs ≤ 60 mg/m
subject to industrial standards for electronic industry set in Table 3 of Sichuan Control Standards for
Volatile Organic Compounds (DB51/2377-2017).
Emission concentrations: fluoride 0.94 mg/m; chlorine 0.32 mg/m; particles 9.5 mg/m; VOCs 0.64
mg/m; hydrogen chloride 0.64 mg/m; ammonia 0.007 kg/h, all of which met the standards.
Approved annual emission amount: fluoride ≤ 2.08 tons, VOCs ≤ 39.904 tons and particles ≤ 8.713 tons.
2021 total emission amount: fluoride 0.16 ton, VOCs 0.045 ton and particles 0.22 ton.
② Major pollutants in the wastewater are CODcr, SS, pH, fluoride and TOC.
Discharge method: continuous and stable discharge.
Number of discharge outlets: 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; SS ≤ 140; pH 6 - 9; fluoride ≤ 8
mg/l. Discharge standards for materials dedicated to electronic industry in Table 1 of Discharge Standard
of Water Pollution for Electronic Industry (GB 39731-2020): TOC ≤ 200 mg/l.
Annual discharge concentrations throughout the year: CODcr 104 mg/l, pH 6.8, fluoride 3.46 mg/l, TOC
9.6 mgl, all of which met the standards.
Approved annual discharge amount: CODcr ≤ 1,327.37 tons and fluoride ≤ 39.2 tons.
2021 total discharge amount: CODcr 9.21 tons and fluoride 0.31 ton, each of which was lower than the
approved amount.
(12) Production in Chengdu Ronglai Tongwei Feed:
① Major pollutants in the wastewater are COD, NH3-N and total nitrogen.
Discharge method: continuous and stable discharge.
Number of discharge outlets: 1
Discharge standards: COD ≤ 500 mg/l, NH3-N ≤ 45 mg/l and total nitrogen ≤ 70 mg/l subject to
Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015).
Discharge concentrations: COD was 20 mg/l and NH3-N 12.5 mg/l; all of which met the standards.
Approved annual discharge amount: COD ≤ 0.6 ton and NH3-N ≤ 0.06 ton.
2021 total discharge amount: COD was 0.043 ton and NH3-N 0.027 ton.
② Major pollutants in the waste gas are particles;
Emission method: continuous and stable emission.
Number of emission outlets: 3
Emission standards: particles ≤ 120 mg/m subject to Integrated Standards for Emission of Air Pollutants
(GB16297-1996).
Emission concentrations : particles 7.71 mg/m.
Approved annual emission amount: particles 1.29 tons.
2021 total emission amount: particles 0.9 ton, lower than the approved amount.
(13) Production in Shashi Tongwei Feed:
① Major pollutants in the wastewater are COD, NH3-N and total nitrogen.
Discharge method: continuous and stable discharge.
Number of discharge outlets: 1
Discharge standards: COD ≤ 500 mg/l, NH3-N ≤ 45 mg/l and total nitrogen ≤ 70 mg/l subject to
Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015);
Discharge concentrations: COD 60mg/ l: NH3-N 5 mg/l and total nitrogen 15 mg/l; all of which met the
standards.
Approved annual discharge amount: COD 0.744 ton, NH3-N 0.062 ton and total nitrogen 0.186 ton.
2021 total discharge amount: COD 0.22 ton, NH3-N 0.019 ton and total nitrogen 0.056 ton.
(14) Chunyuan Food Company:
① Major pollutants in the wastewater are COD, NH3-N, PH, SS, BOD, animal fats and vegetable oils,
total phosphorus and total nitrogen.
Discharge method: intermittent discharge.
Number of discharge outlets: 1
Discharge standards: grade three limits for livestock processing in Table 3 of Discharge Standard of Water
Pollutants for Meat Packing Industry (GD13457-1992) — COD 500 mg/l, no limit on NH3-N, PH 6.0-
8.5, SS 400 mg/l, BOD 500 mg/l, animal fat and vegetable oils 60 mg/l, no limit on total phosphorus and
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no limit on total nitrogen.
Discharge concentrations: COD 18 mg/l, NH3-N 9.53 mg/l PH 7.5, SS 12 mg/l, BOD 18 mg/l, animal fat
and vegetable oils 0.16 mg/l, total phosphorus 2.91 mg/l and total nitrogen 12 mg/l, all of which met the
standards.
Approved annual discharge amount: COD 357.5 tons, no limits on other pollutants.
2021 total discharge amount: COD 9.66 tons, lower than the approved amount.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particles
Emission method: continuous and stable emission.
Number of emission outlets: 1
Emission standards: Emission Standard of Air Pollutants for Boilers in Chengdu, and 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 (GB14554-93). Odor <10 mg/m (limit to 20 mg/m),
hydrogen sulfide 0.005 mg/m (limit to 0.06 mg/m), ammonia 0.065 mg/m (limit to 1.5 mg/m).
Approved annual emission amount: No limits for sulfur dioxide, nitrogen oxides and particles.
(15) Chengdu Xintaifeng Agriculture Development Co., Ltd.:
① Major pollutants in the wastewater are COD, NH3-N, PH, SS, BOD, animal fats and vegetable oils,
total phosphorus and total nitrogen.
Discharge method: intermittent discharge.
Number of discharge outlets: 1.
Discharge standards: grade three limits for poultry slaughter in Table 3 of Discharge Standard of Water
Pollutants for Meat Packing Industry (GB13457-92) — COD 500 mg/l, no limit on NH3-N, Ph 6.0-8.5,
SS 300 mg/l, BOD 250 mg/l, animal fat and vegetable oils 50 mg/l, no limit on total phosphorus and no
limit on total nitrogen.
Discharge concentrations: COD 39 mg/l, NH3-N 1.09 mg/l: PH7.21, SS 8 mg/L, BOD 12.2 mg/l, animal
fat and vegetable oils 1.75 mg/l, total phosphorus 7.26 mg/l and total nitrogen 48.7 mg/l, all of which met
the standards.
Approved annual discharge amount: COD 306 tons, no limits on other pollutants.
2021 total discharge amount: COD 3.016 tons, lower than the approved
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particles
Emission method: continuous and stable emission.
Number of emission 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 (GB14554-93).
Odor 10 mg/m (limit to 20 mg/m), hydrogen sulfide 0.01 mg/m (limit to 0.06 mg/m), ammonia 0.02
mg/m (limit to 1.5 mg/m).
Approved annual emission amount: No limits for sulfur dioxide, nitrogen oxides and particles.
(16) Hai’nan Aquatic Products:
Major pollutants in the wastewater are COD, NH3-N, PH, total phosphorus and total nitrogen.
Discharge method: continuous and stable discharge.
Number of discharge outlets: 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.
Discharge concentrations: COD 39 mg/l, NH3-N 6.9 mg/l, total nitrogen 66.4 mg/l, total phosphorus 2.12
mg/l, all of which met the standards.
Approved annual discharge amount: No limits for COD, NH3-N, SS, total nitrogen, and total phosphorus.
2021 total discharge amount: COD 21.46 tons, NH3-N 3.8 tons, total phosphorus 1.17 tons and total
nitrogen 36.54 tons.
2.Construction and operation of pollution control facilities
"√ Applicable" "□ Not applicable"
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The pollution control facilities of key pollutant discharge sites of the Company operated normally
in the reporting period with all wastes treated subject to standards before being discharged. The details
are as below:
Yongxiang:
(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.
Tongwei Solar:
(1) Wastewater control facilities include domestic wastewater treatment device, multi-stage
physiochemical + biochemical pre-treatment + two stage A/O wastewater treatment system, all of which
operated normally;
(2) Waste gas control facilities include active carbon + low-temperature plasma treatment system,
reduction-based scrubber, acid-alkali scrubber, and combustion chamber, all of which operated normally.
Agriculture and Animal Husbandry:
(1) Wastewater control facilities include the domestic septic-tank. Domestic wastewater 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. In the
reporting period, the facility operated properly.
(2) Waste gas control facilities include the pulse-jet dust collector. The dust generated in feeding, crushing
and packing steps in the feed production process is collected by the pulse-jet just collector and then
removed by a draught fan. In the reporting period, the facility operated properly.
3.Environmental impact assessments and other administrative permits on construction projects
"√ Applicable" "□ Not applicable"
Yongxiang:
(1) The approval from Ecology Bureau of Baotou on the environmental impact assessment report on Inner
Mongolia Tongwei Phase II 50,000 - ton High-purity Polysilicon Project was obtained on June 18, 2021
(Bao Huan Guan Zi [2021] No. 76).
(2) The Administrative Permit for Construction Project from Ecology Bureau of Baoshan on the
environmental impact assessment report on the Hydropower and High-purity Polysilicon-integrated Green
Energy Project of Yunnan Tongwei High-purity Crystalline Silicon Company was obtained on July 30,
2021 (Bao Huan Zhun Zi (2021) No. 27).
(3) The approval from Ecology Bureau of Leshan on the 15 GW Monocrystalline Rod Pulling and Cutting
Project of Sichuan Yongxiang PV Technology was obtained on April 23, 2021 (Wu Huan Shen Pi [2021]
No.8).
(4) The reply letter from Ecology Bureau of Leshan on the change report for the Change of Manufacturing
Renovation Project from Phase II 45,000-ton High-purity Polysilicon to Phase II High-Purity Polysilicon
was obtained on May 6, 2021 (Leshi Huan Han [2021] No.65).
(5) The approval from Ecology Bureau of Wutongqiao, Leshan on the Ultra-low Emission Renovation
Project for the Rotary Kiln Smoke of Yongxiang New Materials was obtained on December 31, 2020 (Wu
Huan Shen Pi [2020] No. 29), and the project was completed and accepted by experts on March 23, 2021.
(6) The approval from Ecology Bureau of Wutongqiao, Leshan on the Renovation Project for Commercial
Concrete Capacity Expansion by 800,000 m3 and Overall Packaging of the Production Line of Yongxiang
New Materials was obtained on November 11, 2020 (Wu Huan Shen Pi [2020] No. 28), and the project
was completed and accepted by experts on December 12, 2021.
Tongwei Solar:
(1) The approval from Ecology Bureau of Chengdu on the environmental impact assessment report on the
Smart Factory based on the Coordinated Network of High-efficiency Crystalline Silicon Solar Cells of
Tonghe New Energy (Jintang) Co., Ltd. was obtained on July 1, 2021 (Cheng Huan Cheng Nuo Huan
Ping Shen (2021) No. 19).
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(2) The approval from Ecology Bureau of Chengdu on the environmental impact assessment report on the
Construction Project of PV-oriented Monocrystalline Silicon Wafers of Tonghe New Energy (Jintang)
Co., Ltd. was obtained on November 2, 2021 (Cheng Huan Shen Ping (2021) No. 73).
(3) Tonghe New Energy (Jintang) Co., Ltd. obtained the Pollutant Discharge Permit
(No.91510121MA662CJD4R001U) from Ecology Bureau of Chengdu on December 13, 2021.
4.Environmental emergency response plan
"√ Applicable" "□ Not applicable"
In order to prevent and reduce environmental events, standardize the emergency management 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. Registration numbers:
(1) Environmental Emergency Response Plan of Sichuan Yongxiang New Energy Co., Ltd. (511112-2019-
008-H);
(2) Environmental Emergency Response Plan of Sichuan Yongxiang Polysilicon Co., Ltd. (511112-2021-
020-H);
(3) Environmental Emergency Response Plan of Yongxiang Co., Ltd. (511112-2021-034-H);
(4) Environmental Emergency Response Plan of Sichuan Yongxiang New Materials Co., Ltd. (511112—
2019—031-M);
(5) Environmental Emergency Response Plan of Inner Mongolia Tongwei High-purity Crystalline Silicon
Company Ltd. (150203-2021-048-H);
(6) Environmental Emergency Response Plan of East Factory of Tongwei Solar (Chengdu) Co., Ltd.
(510122-2020-875-M);
(7) Environmental Emergency Response Plan for the Project of Application of Homemade Intelligent
Equipment (System) from High-efficiency Crystalline Silicon Solar Cells with an Annual Capacity of 7.5
GW of Tongwei Solar (Meishan) Co., Ltd. (51140020200031-L);
(8) Environmental Emergency Response Plan of Tongwei Solar (Hefei) Co., Ltd. (340105-2019-013-M);
(9) Environmental Emergency Response Plan of Tongwei Solar (Anhui) Co., Ltd. (340105-2019-026-M);
(10) Environmental Emergency Response Plan of Tongwei Solar (Jintang) Co., Ltd. (510121-2021-311-
L);
(11) Environmental Emergency Response Plan of Chengdu Ronglai Tongwei Feed Co., Ltd. (510183-
2019-089-L);
(12) Environmental Emergency Response Plan of Chunyuan Food Co., Ltd. (5101893-2020-096-L).
5.Environmental self-monitoring plan
"√ Applicable" "□ Not applicable"
The Company and its subsidiaries have developed annual environmental monitoring plans with
technicians in safety and environment protection and advanced environmental testing instruments in place.
Business companies engaged in polysilicon and solar energy have separate safety and environment
departments. Online waste gas monitoring systems are set at emission outlets of boilers and cement kilns
and at main wastewater discharge outlets; online wastewater testing devices are installed at wastewater
discharge outlets to detect pollutants like COD, NH3-N and PH; online waste gas testing devices are set
at emission outlets of gas-fired boilers and cement kilns to detect pollutants such as SO2, NOX and
particles. These online monitoring instruments are connected to local environmental authorities so that all
data are sent to the pollution source monitoring systems of authorities in a real-time manner. At the same
time, the Company has a manual monitoring policy which requires that subsidiaries must monitor
wastewater, waste gas and facility-boundary noise on a quarterly basis as required by environmental
impact assessment reports and pollutant discharge permits, and engaged third parties to provide relevant
tests and test reports.
6.Administrative penalties due to environmental problems in the reporting period
"□ Applicable" "√ Not applicable"
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7.Other environmental information that should be disclosed
"□ Applicable" "√ Not applicable"
(II). Note on environmental protection by companies other than key pollutant discharge units
"√ Applicable" "□ Not applicable"
1. Administrative penalties due to environmental problems
"√ Applicable" "□ Not applicable"
Wuxi Tongwei, Tianjin Tongwei and Hai’nan Tongwei were fined for the concentration of facility-
boundary odor exceeding the limit. These are not significant penalties for environmental pollution. All
corrective actions were completed in the reporting period.
2. Other environmental disclosure with reference to key pollutant discharge units
"√ Applicable" "□ Not applicable"
Companies other than key pollutant discharge units are mainly feed producers. Feed industry is a
low-pollution sector. The pollutants generated in feed production are waste gas with a little wastewater,
solid waste and noise. Pollution control measures are as below:
(1) Waste gas control
The waste gas generated in feed production mainly consists of dust and exhaust of high temperature,
high humidity and high dust, which is treated by cyclone dust collector and dust collection bags, then
treated by sprinkler-based oxidation equipment before emitted.
(2) Wastewater control
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 control
Common types of solid waste generated in feed production are general solid waste and hazardous
solid waste. General type is periodically removed and transported by local environmental and health
authorities to landfills. Hazardous type is stored in a dedicated temporary room and sent to qualified parties
periodically for further treatment.
(4) Noise control
Noise producers in feed production mainly include crushers, mixers, draught fans, etc. The Company
uses low-noise equipment and has them arranged properly so that noise attenuates to the largest extent
over distance. High-noise equipment is enclosed with noise absorbing walls.
The Company and its subsidiaries 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 pertaining to ecologic protection, pollution control and performance of
environmental responsibility
"√ Applicable" "□ Not applicable"
The Company fully complies with environmental protection laws and regulations including the
Environmental Protection Law of the People’s Republic of China, Law of the People's Republic of China
on the Prevention and Control of Atmospheric Pollution, Law of the People's Republic of China on
Prevention and Control of Water Pollution, and Standard for Pollution Control on Hazardous Waste
Storage and developed and implemented many internal environmental management policies.
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Regarding the prevention and control of air pollution, the Company takes active measures in waste
gas governance and control the pollution of typical pollutants in strict accordance with national and local
environmental standards. Regarding wastewater treatment, the Company standardizes the discharge
procedures for domestic and production wastewater, keeps optimizing and upgrading the treatment
techniques and devices for wastewater to effectively enhance its wastewater treatment capabilities and
treatment quality. Regarding the comprehensive use of waste, the Company advances the reuse of waste,
standardizes the disposal of solid waste and ensure the safe transfer and effective monitoring of solid waste
for prevention of solid waste pollution. Regarding feed production and processing, with strong sense of
responsibility and of mission, the Company exerts fundamental efforts into the governance feed
production and processing environment, to eliminate complaints for odor in production processes and to
improve the environmental quality. As an industrial leader, it tries every effort into waste gas control,
environmental protection preparation and project, odor governance and obtain all environmental permits.
For this, the Company has developed dozens of environmental management policies and ensures the great
performance of everyday environmental management work. What is more, the Company increases EHS
personnel, advances the development of environmental protection standards, and spares no effort into
developing new environmental technologies with increases investments, to play its own role in creating a
beautiful environment.
(IV). Actions for reducing carbon emission in the reporting period and their effect
"√ Applicable" "□ Not applicable"
The severe climate change is a common challenge for the mankind. The Chinese government supports
the Paris Agreement with great efforts and advances international cooperation in climate change response.
It specified the 3060 Dual-Carbon goal at the 75th UN General Assembly — carbon peak by 2030 and
carbon neutral by 2060. As a representative company in PV, agriculture and animal husbandry, Tongwei
actively responds to relevant policies of the Chinese government in climate change by establishing an
energy supply system matching its own energy consumption, taking the “dual development” path of green
energy and green agriculture, exercising the green, low carbon and circular economy, upgrading
production processes and optimizing industrial structure to drive the health and sustainable development
of PV industry. This ensures its contribution to the country’s transformation of energy structure and the
realization of the carbon peak and carbon neutral goal. At the end of 2021, the Company set an Energy
Management Committee and Sustainable Development Work Group responsible for energy consumption
control and emission reduction.
In emission management, the Company has increased efforts by establishing a two-level system
consisting of the head office and each business to ensure the performance of carbon reduction
responsibility. In addition to full implementation of the Guiding Opinions of the Ministry of Ecology on
Coordinating and Strengthening the Work Relating to Climate Change and Ecological Environmental
Protection, the Company took the lead in starting the carbon inventory work in 2017 to systemically
analyze the greenhouse gas emission in an intuitive and quantitative manner. Also, an Advancing Work
Group on the emission reduction for carbon neutral was formed to take charge of the creation of the clean
energy supply system, as well as the overall planning, direction and objectives for carbon reduction and
carbon neutral work. The Advancing Work Group has an Execution Group responsible for liaising with
governmental agencies, preparing documents, management of carbon neutral work, and schemes for
development and construction of PV powerplants. Under the leadership of the Advancing Work Group,
Yongxiang has set a Carbon Asset Management Department for implementing the carbon neutral work
plan of Yongxiang to ensure the carbon neutral goal is achieved on time. Additionally, the Company takes
phases actions to complete its overall work planning, direction and objectives for carbon reduction,
enhances carbon emission management, and upgrades its clean energy supply system and advances green
transformation through carbon offset, saving energy and carbon footprint certification to create its green
image for sustainable development. In the reporting period, Tongwei and its subsidiaries and branches
emitted 6,554,463.64 tons carbon dioxide equivalent in their production and operation activities with the
emission intensity per one-million-yuan revenue being 103.23 tons.
In carbon footprint certification, the Company has taken the initiative and completed the carbon
footprint check and business carbon emission check in order to gain a full understanding of its carbon
emission level and prepare for the further actions for reducing carbon emission and reaching carbon neutral.
The entire lifecycle of polysilicon products and solar cells from sourcing of raw materials, production to
consumption is green, clean and low carbon. The Solar-grade polysilicon products have met the
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requirements in ISO/TS14067:2013 Greenhouse Gases — Carbon Footprint of Products — Requirements
and Guidelines for Quantification and Communication and PAS 2050:2011 Specification for the
Assessment of the Lifecycle of Greenhouse Gas Emissions of Goods & Services. As of the end of the
reporting period, the products of subsidiaries including Tongwei Solar and Sichuan Yongxiang had passed
the carbon footprint certification, and the carbon footprint of products of Yongxiang Polysilicon lowered
by approximate 6%. While highlighting the carbon emission in product lifecycle, these are also important
for lowering the high environmental costs and comprehensive production cost.
Regarding specific actions for reducing carbon emission, renewable energies are greatly employed
in agriculture companies. Solar panels have been installed in many subsidiaries for a total power
generation of over 1,797,724 kWh per year. The Company has removed high energy consuming equipment,
replaced oil-fired forklifts with electricity-driven forklifts, replaced coal and biomass-fired boilers with
gas-fired boilers, and performed the feasibility study on the use of electric boilers. Further, it vigorously
advances the renovation work for energy saving, the renovation of driers, use of steam generators and
application of automatic on-off technique in stacking machine have greatly lowered the energy
consumption and carbon emission. In polysilicon business, the Company further decreased the
consumption of steam, electricity for reduction reactions, silicon, water and electricity for power systems
by integrated use of steam by product, study on the intelligent control platform for reduction reactions,
use of new technology for increasing the productivity and energy consumption for manufacturing square
silicon cores, the study on intermittent braking type slurry processing for hydrochlorinate, the 450 A soft
water unit, reuse of out circulating water of the closed tower, reduction of electricity consumed for
polysilicon production, and other projects relating to energy saving and emission reduction. Yongxiang
became a party to SBTi (Science Based Targets initiative) in April 2021, the first Sichuan enterprise that
participated in the organization. As of the end of the reporting period, Yongxiang took a leading role in
developing 3 carbon neutral standards for the PV industry, and presented the Yongxiang New Energy Low
Carbon Work Plan at the COP26. Tongwei New Energy concluded a transaction of 87,000 green
electricity certificates of grid parity on China's green electricity certificate purchase platform
(http://www.greenenergy.org.cn), the largest single transaction since the platform went online on July 1,
2017, creating a new record nationwide. This has played a vital role in developing the market process of
green electricity certificate, and a profound role in the development of renewable energies in China, and
guiding the green consumption and use of clean energy in the country.
The Company will keep advancing the carbon reduction and carbon neutral work by giving play to
the value of Tongwei as a world-class safe food supplier and a world-class clean energy operator, and
focuses on the green and sustainable development for playing its own role in a better future for the mankind.
II. Social responsibility
"√ Applicable" "□ Not applicable"
Refer to the 2021 ESG Report of Tongwei Co., Ltd. disclosed on http://www.sse.com.cn by the
Company on April 26, 2022 for details.
III. Work relating to poverty relief and rural revitalization
"√ Applicable" "□ Not applicable"
Photovoltaic-based targeted poverty alleviation is a targeted and precise approach that combined
green type, blood-generation type and industry type. To solidify and expand the achievements of poverty
alleviation and actively practice the corporate social responsibility, the Company constructed PV-based
poverty alleviation projects in Jilin, Shandong, Ningxia, Inner Mongolia and Sichuan, which have
effectively relieved the extreme shortage of power in local areas, and provided continuous incomes for
poor households. This indeed provides a long-term solution to the poverty problem and a new path for
poverty alleviation combining industrial development, ecologic development and clean energy, important
contribution to the national PV-based poverty alleviation and moderate prosperity of poor groups, and
created a complete Tongwei Template for the country's battle against poverty. In the reporting period, the
Company invested 8,342,900 yuan into poverty alleviation. What is more, Yongxiang preferred candidates
from registered poor households in hiring process, having helped more than one hundred rural workers
get rid of poverty. Yongxiang was awarded with the title of Sichuan Employment-based Poverty
Alleviation Base in 2021.
Regarding rural revitalization, construction of Aquaculture-Photovoltaic Integration bases into which
rural tourism elements are introduced under the country's rural revitalization strategy. As a result, green
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power is produced on the water and green food under the water, with local rural tourism boosted, a way
that combines the three sectors together to create new farming, new energy and new village, helping China
reach carbon peak and carbon neutral goal and revitalize rural areas.
The Company will continue assuming social responsibility and advancing the PV-based poverty
alleviation to help local residents march toward prosperity, drive local industrial development and improve
local environment, thereby making contributions to the goals of green mountains and lush waters as well
as common prosperity. At the same time, the Company will combine Aquaculture-Photovoltaic Integration
and rural revitalization through the integration of three sectors to build rural tourism brands, driven rural
economic development, optimize rural the industrial structure and integrated use of land resources.
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Section VI. Important Matters
I. Fulfillment of commitments
(I). Commitments made by the Company, its actual controller, shareholders, related parties, and acquires in or by the reporting period
"√ Applicable""□ Not applicable"
Fulfilled Specific
Fulfillment Next steps
properly reasons
Commitment Commitment Commitment Time and duration to correct
Background and in for non-
type party content duration provided the non-
time or fulfillment
or not fulfillment
not in time
Liu Hanyuan, Tongwei Group and entities
under their control do not have horizontal
competition with the target company. Liu
Hanyuan, Tongwei Group and entities
under their control will not conduct any
operation activity that is identical, similar to
or competes with the existing business or
product of the target company, including but
not limited to through creation of,
Commitments
investment into, purchase of, merger of any This
related to
Solve Liu Hanyuan domestic or overseas company whose commitment
material asset Not Not
horizontal and Tongwei business and/or product is identical or remains valid No Yes
restructuring applicable applicable
competition Group similar to that of the target company, and and is being
will not generate any horizontal competition fulfilled.
of any kind in any form of economic
organization. Liu Hanyuan and Tongwei
Group promise to properly fulfill the said
commitment, and will be liable for damages
under laws if the interests and rights of
Tongwei or the target company are harmed
due to any breach of the said commitment
by Liu Hanyuan, Tongwei Group and/or any
entity under their control.
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2021 Annual Report
Liu Hanyuan, Tongwei Group and entities
under their control do not have any
obviously unfair related-party transaction
with the target company. After this
transaction, Liu Hanyuan, Tongwei Group
and entities under their control will try every
mean to avoid or reduce related-party
transactions with the target company; for
any related-party transaction that cannot be
avoided or are necessary for reasonable
grounds, a valid related-party transaction
agreement will be concluded with the target
company and approval procedures will be
completed under applicable laws,
regulations, provisions, listing rules and
This
other normative documents as well as the
Solve Liu Hanyuan commitment
articles of association of Tongwei; any Not Not
horizontal and Tongwei remains valid No Yes
transaction with Tongwei and/or its applicable applicable
competition Group and is being
subsidiaries will be performed at the fair
fulfilled.
value, such transactions will not be used to
do anything that is harmful to Tongwei
and/or its subsidiaries; the information
disclosure obligation relating to related-
party transactions will be performed in
accordance with applicable laws,
regulations, listing rules and the articles of
association of Tongwei. Liu Hanyuan and
Tongwei Group promise to properly fulfill
the said commitment, and will be liable for
damages under laws if the interests and
rights of Tongwei or the target company are
harmed due to any breach of the said
commitment by Liu Hanyuan, Tongwei
Group and/or any entity under their control.
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2021 Annual Report
Liu Hanyuan and Tongwei Group will not
harm the independence of Tongwei due to
this restructuring, keep separated from
Tongwei in terms of assets, personnel,
finance, organizational structure and
business, strictly observe relevant
provisions of the CSRC on independence of
listed companies, not use Tongwei as
This
guarantee in breach of provisions, not
Liu Hanyuan commitment
occupy funds of Tongwei in breach of Not Not
Others and Tongwei remains valid No Yes
provisions, and maintain the independence applicable applicable
Group and is being
of Tongwei. This commitment will remain
fulfilled.
valid as long as Tongwei is in legally
existence, Liu Hanyuan acts as the actual
controller of Tongwei and Tongwei Group
is the controlling shareholder of Tongwei.
Liu Hanyuan and Tongwei Group will be
liable for damages under laws if their breach
of the said commitment causes any loss to
Tongwei and/or its shareholders.
Tongwei Group will not occupy without
payment and/or use with payment the assets,
funds or other resources of Tongwei; for any
This
funds transfer between Tongwei Group and
commitment
Tongwei Tongwei, Tongwei Group will strictly Not Not
Others remains valid No Yes
Group observe requirements in applicable laws and applicable applicable
and is being
regulations, administrative rules and the
fulfilled.
articles of associations (including but not
limited to provisions on related-party
transactions).
Tongwei Group will not and will procure its This
Commitments Solve affiliates not to by itself or together with, for commitment
Tongwei Not Not
related to IPO horizontal the behalf of any person, firm or entity remains valid No Yes
Group applicable applicable
competition develop, operate or facilitate the operation and is being
of, participate in, or be engaged in any fulfilled.
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2021 Annual Report
business that causes or may cause indirect
or direct competition with the main business
of Tongwei. Tongwei Group agrees to
indemnify Tongwei from and against any
and all losses, damages and expenses
incurred due to its breach of this
commitment.
This
Liu Hanyuan and Guan Yamei will not
Solve Liu commitment
invest into any company whose business is Not Not
horizontal Hanyuan, remains valid No Yes
identical or similar to the business of the applicable applicable
competition Guan Yamei and is being
Company.
fulfilled.
Tongwei Group will not occupy without
payment and/or use with payment the assets,
funds or other resources of Tongwei; for any
This
funds transfer between Tongwei Group and
commitment
Tongwei Tongwei, Tongwei Group will strictly Not Not
Others remains valid No Yes
Group observe requirements in applicable laws and applicable applicable
and is being
regulations, administrative rules and the
fulfilled.
articles of associations (including but not
limited to provisions on related-party
transactions).
Changdu Tongrui Industrial Partnership
(Limited Partnership), Shanghai Yusheng
Investment Advisory Co Ltd., Shanghai
Yingshui Investment Management Co., Ltd.
- Yingshui Yueyi No. 19 Privately Placed
Commitments Private Security-based Investment Fund, Shanghai 6 months from
Restricted Not Not
related to placement Xingshan Asset Management Co., Ltd December 8, Yes Yes
shares applicable applicable
refinancing investors (Xinghan Asset Management - Xingyuan 2020.
No.5 Single Asset Management Plan),
Taikang Life Co., Ltd. Liantou Innovation
Driver-type Investment Account, E Fund
Management Co., Ltd., YEIG Co., Ltd.,
Hongde Fund Management Co., Ltd., Dajia
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2021 Annual Report
Asset Management Co., Ltd. - Blue Chip
Select No.5 Collective Asset Management
Product, Dacheng Fund Management Co.,
Ltd., JT Asset Management Co., Ltd.,
Hillhouse Management Co., Ltd. - China
Value Fund (ETF), Caitong Fund
Management Co., Ltd., Rosefinch Fund
Management Co., Ltd., Chengdu Fusen
Noble House Co., Ltd., and Foresight Fund
Management Co., Ltd. Shall not transfer the
shares obtained in this private placement
within six months after the end of the private
placement.
Before using up the raised funds or within
Before the
36 months after the raised funds are in place,
raised funds are
Tongwei shall not inject funds into similar
used up or
Tongwei financial services nor into Tongwei Not Not
Others within 36 Yes Yes
Co., Ltd. Agricultural Finance Guarantee Co., Ltd. applicable applicable
months after the
(including capital increase, borrowing,
raised funds are
guarantee and other forms of capital
in place.
investment) shall not be allowed.
Tongwei
employee
share plan
“China Life
Asset
Commitments Management
Shares may not be transferred within 12 May 21, 2021
related to Restricted - Advantage Not Not
months since the completion of the to May 20, Yes Yes
share shares Select 2110 applicable applicable
purchase. 2022
incentive Insurance-
based Asset
Management
Product” and
“China Life
Asset
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2021 Annual Report
Management
- Advantage
Select 2108
Insurance-
based Asset
Management
Product”
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2021 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). Other notes
"□ Applicable" "√ Not applicable"
VI. Engagement and dismissal of accounting firm
Unit: 10,000 yuan Currency: CNY
Engaged
Name of domestic accounting firm Sichuan Huaxin (Group) CPA (Special General Partnership)
Remuneration of domestic
417
accounting firm
Audit period of domestic
21 years
accounting firm
Name Remuneration
Sichuan Huaxin (Group) CPA (Special General
Internal control auditing firm 133
Partnership)
Sponsor China Securities Co., Ltd 0
Note on engagement and dismissal of accounting firm
"√ Applicable" "□ Not applicable"
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2021 Annual Report
As approved by 2020 shareholders meeting on May 7, 2021, the Company renewed the appointment of
Sichuan Huaxin to provide 2021 annual audit and internal control audit.
Note on change of accounting firm in the audit period
"□ Applicable" "√ Not applicable"
VII. Situations that cause suspension of trading risk
(I). Reasons for suspension of trading warning
"□ Applicable" "√ Not applicable"
(II). Proposed actions by the Company
"□ Applicable" "√ Not applicable"
(III). Situations and reasons for termination of trading
"□ Applicable" "√ Not applicable"
VIII. Matters relating to bankruptcy and reorganization
"□ Applicable" "√ Not applicable"
IX. Material litigation and arbitration matters
"□ Yes" "√ No"
X. Punishments on and corrections by the Company, and/or its directors, supervisors, senior
managers, controlling shareholder, and actual controller
"□ Applicable" "√ Not applicable"
XI. Note on the integrity status of the Company and its controlling shareholder and actual
controller
"□ Applicable" "√ Not applicable"
XII. Material related-party transactions
(I). Related-party transactions pertaining to everyday operation
1. Matters that have been disclosed in interim announcements without further progress or change
"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in interim announcements with further progress or change
"□ Applicable" "√ Not applicable"
3. Matters not disclosed in interim announcements
"□ Applicable" "√ Not applicable"
(II). Related-party transactions due to purchase or sale of assets or shares
1. Matters that have been disclosed in interim announcements without further progress or change
"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in interim announcements with further progress or change
"□ Applicable" "√ Not applicable"
3. Matters not disclosed in interim announcements
"□ Applicable" "√ Not applicable"
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2021 Annual Report
4. Performance achieved in the reporting period where performance agreement was involved
"□ Applicable" "√ Not applicable"
(III). Material related-party transactions for joint outward investments
1. Matters that have been disclosed in interim announcements without further progress or change
"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in interim announcements with further progress or change
"□ Applicable" "√ Not applicable"
3. Matters not disclosed in interim announcements
"□ Applicable" "√ Not applicable"
(IV). Related-party debts and claims
1. Matters that have been disclosed in interim announcements without further progress or change
"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in interim announcements with further progress or change
"□ Applicable" "√ Not applicable"
3. Matters not disclosed in interim announcements
"□ Applicable" "√ Not applicable"
(V). Financial transactions between the Company and financial companies with which the
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"
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2021 Annual Report
(II). Guarantee
"√Applicable" "□Not applicable"
Unit: 10,000 yuan Currency: CNY
Outward guarantees by the Company (excluding guarantees for subsidiaries)
Relation
Date Start date Expiry date Guarantee Relation
between
Guaranteed Guaranteed (agreement of of Guarantee Collateral Guarantee Guarantee Overdue Counter- for a with the
Guarantor guarantor
party amount execution the the type (if any) is fulfilled is overdue amount guarantee related related
and the
date) guarantee guarantee party party
Company
Tongwei
Agricultural Wholly- joint and
Farmers and
Finance owned 20,134.93 2021-01-01 2022-12-17 several No Yes 1,763.19 No
dealers
Guarantee subsidiary guarantee
Co., Ltd.
Tongwei
Agricultural Wholly- Farmers joint and
Finance owned (rooftop 2,073.94 2017-09-15 2028-05-31 several No No No
Guarantee subsidiary powerplants) guarantee
Co., Ltd.
Total guaranteed amount in the reporting period (excluding guarantees for
71,349.73
subsidiaries)
Total guaranteed amount at the end of the reporting period (A) (excluding guarantees
22,208.87
for subsidiaries)
Guarantees by the Company and its subsidiaries for other subsidiaries
Total guaranteed amount for subsidiaries in the reporting period 1,484,279.10
Total guaranteed amount for subsidiaries at the end of the reporting period (B) 1,154,960.16
Total guaranteed amount by the Company (including guarantees for subsidiaries)
Total guaranteed amount (A+B) 1,177,169.03
Ratio of total guaranteed amount to net assets of the Company (%) 28.26
Including:
Amount for shareholders, actual controller and its related parties (C)
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2021 Annual Report
Indirect or direct guaranteed amount for parties whose debt-ratio is over 70% (D) 526,286.69
Amount out of the total guaranteed amount that exceeds 50% of the net assets (E)
Total of the above three items (C+D+E) 526,286.69
Note on unexpired guarantees for which the Company may bear joint liability for
repayment
Note on guarantees The overdue guaranteed amount means the unrecovered balance of
repayments made for behalf of the guaranteed parties at the end of the
reporting period
(III). Entrusted cash management
1. Entrusted wealth management
(1) Overview of entrusted wealth management products
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Type Sources of funds Amount change Balance Overdue amount
Structured deposits The Company's own funds 465,000.00 0 0
Others
"□ Applicable" "√ Not applicable"
(2) Individual entrusted wealth management products
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Future Amount of
Statuary
How to Expected Actual entrusted provision for
Source of Destination of Annualized Actual procedure
Trustee Type Amount Start date End date determine return gain or wealth impairment
funds funds rate of return recovery completed
renumeration (if any) loss management reserve (if
or not
plan or not any)
Ping ’an Bank Ping ’an Bank Business The Company's Structured Floating
50,000.00 2020-12-15 2021-03-15 1.65%-4.55% 382.19 50,000.00 Yes
Chongqing Branch Structured Deposit 3M own funds deposits income
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2021 Annual Report
SPD Bank Corporate Stable Rate and The Company's Structured Floating 1.4%/3.05%/3.25
50,000.00 2020-12-15 2021-03-15 381.25 50,000.00 Yes
Chengdu Branch Fixed-term JG9014 3M own funds deposits income %
China Bank of CBC Yuntong Wealth Fixed-
The Company's Structured Floating
Communications term Structured Deposit 90 50,000.00 2020-12-18 2021-03-18 1.59%-3.00% 369.86 50,000.00 Yes
own funds deposits income
Xindu Sub-branch days
Ping ’an Bank Business
Ping ’an Bank The Company's Structured Floating
Structured Deposit 2021 40,000.00 2021-03-19 2021-05-19 1.65%-4.43% 203.22 40,000.00 Yes
Chongqing Branch own funds deposits income
CNY product
SPD Bank Liduoduo
SPD Bank Corporate Stable Rate Fixed The Company's Structured Floating 1.2%/3.15%/3.35
40,000.00 2021-03-19 2021-04-19 105.00 40,000.00 Yes
Chengdu Branch Term JG9013 CNY Business own funds deposits income %
Structured Deposit
Gongying Zhixin Exchange
ICBC Chengdu The Company's Structured Floating 1.48%/3.00%/3.40
Rate-linked CNY Structured 10,000.00 2021-03-19 2021-05-19 50.14 10,000.00 Yes
Branch own funds deposits income %
Deposit 03554 Series
China Bank of CBC Yuntong Wealth Fixed-
The Company's Structured Floating
Communications term Structured Deposit 63 20,000.00 2021-03-22 2021-05-24 1.59%-3.00% 103.56 20,000.00 Yes
own funds deposits income
Xindu Sub-branch days
SPD Bank Corporate Stable Rate The Company's Structured Floating 1.4%/3.15%/3.35
40,000.00 2021-04-21 2021-05-21 105.00 40,000.00 Yes
Chengdu Branch 21JG5810 Series own funds deposits income %
China Bank of CBC Yuntong Wealth Fixed-
The Company's Structured Floating
Communications term Structured Deposit 91 10,000.00 2021-03-22 2021-06-21 1.59%-3.00% 77.29 10,000.00 Yes
own funds deposits income
Xindu Sub-branch days
Gongying Zhixin Exchange
ICBC Chengdu The Company's Structured Floating 1.48%-3.15%-
Rate-linked CNY Structured 10,000.00 2021-05-28 2021-06-28 26.75 10,000.00 Yes
Branch own funds deposits income 3.55%
Deposit 04474 Series
Huatai Securities Huatai Securities Juyi No. The Company's Structured Floating
10,000.00 2021-05-28 2021-07-02 1.3%-3.4% 41.66 10,000.00 Yes
Co., Ltd. 21083 Income Receipts own funds deposits income
SPD Bank Corporate Stable Rate The Company's Structured Floating 1.40%-3.40%-
40,000.00 2021-06-01 2021-07-01 113.33 40,000.00 Yes
Chengdu Branch 21JG5510 Series own funds deposits income 3.60%
China Bank of CBC Yuntong Wealth Fixed-
The Company's Structured Floating
Communications term Structured Deposit 36 10,000.00 2021-05-31 2021-07-06 1.59%-3.15% 31.07 10,000.00 Yes
own funds deposits income
Xindu Sub-branch days
China Bank of CBC Yuntong Wealth Fixed-
The Company's Structured Floating
Communications term Structured Deposit 63 10,000.00 2021-05-31 2021-08-02 1.59%-3.20% 55.23 10,000.00 Yes
own funds deposits income
Xindu Sub-branch days
Ping ’an Bank Business
Ping’an Bank The Company's Structured Floating
Structured Deposit CNY 10,000.00 2021-06-01 2021-08-02 1.65%-4.53% 52.49 10,000.00 Yes
Chongqing Branch own funds deposits income
Product
Wealth CCB “Anxin” (7D) 2021/7/21
CCB Shuangjian The Company's Fixed-income Floating
FD Open-ended NV CNY 10,000.00 2021-06-01 and 3.60% 44.91 10,000.00 Yes
Road Sub-branch own funds assets income
Product 2021/7/28
China Bank of CBC Yuntong Wealth Fixed-
The Company's Structured Floating
Communications term Structured Deposit 38 10,000.00 2021-06-25 2021-08-02 1.59%-3.15% 32.79 10,000.00 Yes
own funds deposits income
Xindu Sub-branch days
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2021 Annual Report
Gongying Zhixin Exchange
ICBC Chengdu The Company's Structured Floating
Rate-linked CNY Structured 10,000.00 2021-06-29 2021-07-29 1.48%-3.7% 27.12 10,000.00 Yes
Branch own funds deposits income
Deposit 04897 Series
Gongying Zhixin Exchange
ICBC Chengdu The Company's Structured Floating 1.48%-3.25%-
Rate-linked CNY Structured 10,000.00 2021-07-30 2021-08-29 26.71 10,000.00 Yes
Branch own funds deposits income 3.65%
Deposit 05424 Series
China Bank of CBC Yuntong Wealth Fixed-
The Company's Structured Floating
Communications term Structured Deposit 39 10,000.00 2021-08-19 2021-09-27 1.85%/3.85% 33.66 10,000.00 Yes
own funds deposits income
Xindu Sub-branch days
Gongying Zhixin Exchange
ICBC Chengdu The Company's Structured Floating
Rate-linked CNY Structured 10,000.00 2021-09-03 2021-10-08 1.48%-3.1%-3.5% 29.73 10,000.00 Yes
Branch own funds deposits income
Deposit 05983 Series
Bank of Chengdu “Furong Jincheng” Entity The Company's Structured Floating
5,000.00 2021-09-10 2021-12-10 1.54%-3.5% 44.24 5,000.00 Yes
Keji Branch Structured Deposit own funds deposits income
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2021 Annual Report
Others
"□ Applicable" "√ Not applicable"
(3) Impairment reserve for entrusted wealth management
"□ Applicable" "√ Not applicable"
2. Entrusted loans
(1) Overview of entrusted loans
"□ Applicable" "√ Not applicable"
Others
"□ Applicable" "√ Not applicable"
(2) Individual entrusted loans
"□ Applicable" "√ Not applicable"
Others
"□ Applicable" "√ Not applicable"
(3) Impairment reserve for entrusted loans
"□ Applicable" "√ Not applicable"
3. Others
"□ Applicable" "√ Not applicable"
(IV). Other material contracts
"□ Applicable" "√ Not applicable"
XIV. Note on material matters that had material influence on value judgements and investment
decisions of investors
"√ Applicable" "□ Not applicable"
1. On April 9, 2021, the 18th meeting of the 7th board of directors passed proposals including the
Proposal on the Company's Public Issuing A-share Convertible Corporate bonds, details of which are in
relevant announcements disclosed on designated disclosure media and the website of Shanghai Stock
Exchange by the Company on April 13, 2021. This matter was approved by the 2020 shareholders meeting.
The planned issuance does not exceed 12 billion yuan with a duration of 6 years. The interest will be paid
once per year. The principal and the interest for the last year will be paid on maturity. The conversion
period is from the first trading day after six months since the convertible bonds are issued completely to
the maturity date of the convertible bonds. The funds raised net of issuing fee will be used for the
renovation project for the manufacturing of PV silicon materials (Phase II 50,000-ton High-purity
Polysilicon Project in Leshan), for the manufacturing project of PV silicon materials (Phase II 50,000-ton
80 / 261
2021 Annual Report
High-purity Polysilicon in Baotou), the 15 GW monocrystalline Rod Pulling and Cutting Project as well
as for supplementing current funds. On December 23, 2021, the Company received the CSRC Reply on
Approving Tongwei Co., Ltd. to Publicly Issue Convertible Corporate Bonds (CSRC Permit [2021]
No.4028). On February 21, 2022, the Proposal on Clarifying the Plan for Company's Public Issuing A-
share Convertible Corporate Bonds in the 24th meeting of the 7th board of directors was approved, which
determined relevant matters and determined the initial conversion price of 39.27 yuan/share. On February
24, 2022, the Company publicly issued convertible bonds of 12 billion yuan (“Tong 22 Convertible Bond”,
code 110085). The amount received net of undertaking and sponsorship costs (78 million yuan) (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. On March 7, 2022, the registration and custody procedures for
“Tong 22 Convertible Bond” were completed in CSDC Shanghai. On March 18, 2022, “Tong 22
Convertible Bond” was listed in the bond market.
2. On June 30, 2021, the 20th meeting of the 7th board of directors passed the Proposal on Investing
the 200,000- ton High-purity Polysilicon Project in Leshan. The Company on one party and Leshan
Government and Wutongqiao District Government on the other party signed the Investment Agreement
under which the Company plans to construct a high-purity polysilicon manufacturing site whose annual
capacity is 200,000 tons in Wutongqiao District Leshan through an investment expected to be 14 billion
yuan. The Project will be implemented in two phases, the details of which are available in relevant
announcements made by the Company on designated disclosure media and the website of Shanghai Stock
market on July 1, 2021.
3. In the reporting period, the Company and Tech-Bank signed a Strategic Cooperation Framework
Agreement. The Company purchased the entire aquatic feed business and a part of swine feed business of
Tech-Bank with 1.271 billion yuan, and started swine feed supply cooperation. This strategic cooperation
helps give full play to the core advantages of both parties in the industry for a coordinated and win-win
growth and for creating a good order of industrial development; also helps the Company further increase
the professionalism and scale of its feed business, to increase its market share and solidify its leading
position in the market. Refer to relevant announcements disclosed on the designated disclosure media and
http://www.sse.com.cn by the Company on September 25, 2021.
81 / 261
2021 Annual Report
Section VII. Share Changes and Shareholders
I. Change in share capital
(I). Share changes
1. Share changes
Unit: share
Before the change Change (+, -) After the change
Capital
Percent Bonus reserve Percent
Number New issue Others Sub-total Number
(%) issue converted (%)
to shares
I. Restricted shares 213,692,500 4.75 0 0 0 -213,692,500 -213,692,500 0 0
1. Shares held by the state
2. Shares held by the state-
owned legal entities
3. Shares held by other
213,692,500 4.75 0 0 0 -213,692,500 -213,692,500 0 0
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 4,287,855,684 95.25 0 0 0 213,692,500 213,692,500 4,501,548,184 100
1. CNY common shares 4,287,855,684 95.25 0 0 0 213,692,500 213,692,500 4,501,548,184 100
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2021 Annual Report
2. Foreign shares listed in
Chinese mainland
3. Foreign shares listed
outside Chinese mainland
4. Others
III. Total shares 4,501,548,184 100 0 0 0 0 0 4,501,548,184 100
2. Note on share changes
"√ Applicable" "□ Not applicable"
The Company issued 213,692,500 CNY common shares (A-share) to 16 investors via a private placement on December 8, 2020. A locking period of 6 months
from the issue completion (December 8, 2020) is applied to these shares. On June 8, 2021, a part of these restricted shares was unlocked and made available in the
market. In the reporting period, the total share capital was not changed.
3. Impact of the share change on the earnings per share, net assets per share and other financial indicators of the latest year and the latest period (if any)
"□ Applicable" "√ Not applicable"
4. Other disclosures the Company thinks necessary or required by the CSRC
"□ Applicable" "√ Not applicable"
(II). Change in restricted shares
"√Applicable" "□Not applicable"
Unit: share
Number of Number of
Opening restricted restricted Closing
Reason for
Shareholder name restricted shares shares restricted Unlocking date
restriction
shares unlocked in the increased in shares
year the year
Changdu Tongrui Industrial Partnership Lock non-publicly
7,142,857 7,142,857 0 0 2021-06-08
(Limited Partnership) offered shares
83 / 261
2021 Annual Report
Shanghai Yusheng Investment Advisory Co Lock non-publicly
14,300,000 14,300,000 0 0 2021-06-08
Ltd. offered shares
Shanghai Yingshui Investment Management
Lock non-publicly
Co., Ltd. - Yingshui Yueyi No. 19 Privately 7,142,857 7,142,857 0 0 2021-06-08
offered shares
Placed Security-based Investment Fund
Shanghai Xingshan Asset Management Co.,
Lock non-publicly
Ltd (Xinghan Asset Management - Xingyuan 7,142,857 7,142,857 0 0 2021-06-08
offered shares
No.5 Single Asset Management Plan)
Taikang Life Co., Ltd. Liantou Innovation Lock non-publicly
7,142,857 7,142,857 0 0 2021-06-08
Driver-type Investment Account offered shares
Lock non-publicly
Basic Pension Insurance Fund 1205 Portfolio 1,428,572 1,428,572 0 0 2021-06-08
offered shares
ICBC - E-Fund New Economy Flexible- Lock non-publicly
714,285 714,285 0 0 2021-06-08
Configuration Mixed Investment Fund offered shares
BOC - E-Fund New Balanced Growth Equity Lock non-publicly
4,285,714 4,285,714 0 0 2021-06-08
Investment Fund offered shares
BOC - E-Fund New Stable Growth Investment Lock non-publicly
714,285 714,285 0 0 2021-06-08
Fund offered shares
ICBC - E-Fund Kexiang Mixed Investment Lock non-publicly
1,428,572 1,428,572 0 0 2021-06-08
Fund offered shares
BOCOM - E-Fund Kexun Mixed Investment Lock non-publicly
1,428,572 1,428,572 0 0 2021-06-08
Fund offered shares
Lock non-publicly
YEIG Co., Ltd. 7,142,857 7,142,857 0 0 2021-06-08
offered shares
ICBC - Hongde Yuxiang Bond Investment Lock non-publicly
232,143 232,143 0 0 2021-06-08
Fund offered shares
CCB - Hongde Hongye Flexible-Configuration Lock non-publicly
357,143 357,143 0 0 2021-06-08
Mixed Investment Fund offered shares
ICBC - Hongde Honghua Flexible- Lock non-publicly
214,286 214,286 0 0 2021-06-08
Configuration Mixed Investment Fund offered shares
CCB - Hongde Strategic Transformation Equity Lock non-publicly
1,071,428 1,071,428 0 0 2021-06-08
Investment Fund offered shares
Lock non-publicly
CMB - Hongde Ruize Mixed Investment Fund 2,500,000 2,500,000 0 0 2021-06-08
offered shares
ICBC - Hongde Hongyi Quantitative Mixed 571,428 571,428 0 0 Lock non-publicly 2021-06-08
84 / 261
2021 Annual Report
Investment Fund offered shares
ICBC - Hongde Quantitative Select Mixed Lock non-publicly
357,143 357,143 0 0 2021-06-08
Investment Fund offered shares
Lock non-publicly
ICBC - Hongde Yukang Bond Investment Fund 714,286 714,286 0 0 2021-06-08
offered shares
China Everbright Bank - Hongde Select Mixed Lock non-publicly
535,714 535,714 0 0 2021-06-08
Investment Fund offered shares
BOCOM - Hongde Advantage Leading Lock non-publicly
107,143 107,143 0 0 2021-06-08
Flexible-Configuration Mixed Investment Fund offered shares
ICBC - Hongde Research Select Mixed Lock non-publicly
214,286 214,286 0 0 2021-06-08
Investment Fund offered shares
CMB - Hongde Ruixing 3Y Mixed Investment Lock non-publicly
892,857 892,857 0 0 2021-06-08
Fund offered shares
Postal Savings Bank of China - Hongde Lock non-publicly
100,000 100,000 0 0 2021-06-08
Ruixing 1Y Mixed Investment Fund offered shares
Dajia Asset - ICBC - Dajia Asset - Blue Chip
Lock non-publicly
Select No. 5 Collective Asset Management 7,142,857 7,142,857 0 0 2021-06-08
offered shares
Product
Dacheng Fund - Huaneng Trust Jiayue No.4
Lock non-publicly
Fund Trust - Dacheng Fund Excellence No. 1 7,142,857 7,142,857 0 0 2021-06-08
offered shares
Single Asset Management Plan
Dacheng Fund - Huaneng Trust Jiayue No.7
Lock non-publicly
Fund Trust - Dacheng Fund Excellence No. 2 24,285,715 24,285,715 0 0 2021-06-08
offered shares
Single Asset Management Plan
Dacheng Fund - Huaneng Trust Yueying No.13
Lock non-publicly
Fund Trust - Dacheng Fund Excellence No. 9 21,071,428 21,071,428 0 0 2021-06-08
offered shares
Single Asset Management Plan
CITIC Bank - JiuTai Ruiyi Private Placement Lock non-publicly
3,571,429 3,571,429 0 0 2021-06-08
Flexible-Configuration Mixed Investment Fund offered shares
CMB Securities - JiuTai Taifu Private
Lock non-publicly
Placement Theme Flexible-Configuration 285,714 285,714 0 0 2021-06-08
offered shares
Mixed Investment Fund
Jiutai Fund - CGB - Sichuan Jinduo Investment Lock non-publicly
4,285,714 4,285,714 0 0 2021-06-08
Co., Ltd. offered shares
Jiutai Fund - CGB - Orient Securities Co., Ltd. 500,000 500,000 0 0 Lock non-publicly 2021-06-08
85 / 261
2021 Annual Report
offered shares
Hillhouse Capital Management - China Value Lock non-publicly
17,857,142 17,857,142 0 0 2021-06-08
Fund (ETF) offered shares
Caitong Fund - Huaneng Trust Yueying No.15
Lock non-publicly
Fund Trust - Caitong Fund Excellence No. 2 9,368,328 9,368,328 0 0 2021-06-08
offered shares
Single Asset Management Plan
Caitong Fund - Huaneng Trust Jiayue No. 5
Lock non-publicly
Fund Trust - Caitong Fund Excellence No. 3 20,674,931 20,674,931 0 0 2021-06-08
offered shares
Single Asset Management Plan
Caitong Fund - Pan Xuhong - Caitong Fund Lock non-publicly
96,914 96,914 0 0 2021-06-08
Shaoxia No. 1 Single Asset Management Plan offered shares
Caitong Fund - Gao Xueqing Caitong Fund
Lock non-publicly
Haohai Private Placement No. 1 Single Asset 35,535 35,535 0 0 2021-06-08
offered shares
Management Plan
Caitong Fund - Qingdao Haisi Qingyun Equity
Investment Fund (Limited Partnership) - Lock non-publicly
484,569 484,569 0 0 2021-06-08
Caitong Fund Haisi Qingyun Single Asset offered shares
Management Plan
ICBC - Caitong Domestic Demand Growth Lock non-publicly
648,353 648,353 0 0 2021-06-08
12M Open-ended Mixed Investment Fund offered shares
Caitong Fund - CCB -China Life - Private
Lock non-publicly
Placement Portfolio Entrusted by China Life 807,614 807,614 0 0 2021-06-08
offered shares
Insurance (Group) to Caitong Fund
Caitong Fund - Liang Dekang - Caitong Fund
Lock non-publicly
Heng’neng New Energy No. 1 Single Asset 321,431 321,431 0 0 2021-06-08
offered shares
Management Plan
Caitong Fund - Chen Yanru - Caitong Fund
Lock non-publicly
Heng’neng New Energy No. 2 Single Asset 321,431 321,431 0 0 2021-06-08
offered shares
Management Plan
Caitong Fund - Chengdu Minxun Online
Technology Co., Ltd. - Caitong Fund Lock non-publicly
642,861 642,861 0 0 2021-06-08
Heng’neng New Energy No. 3 Single Asset offered shares
Management Plan
Caitong Fund - Sichuan Deebio Pharmaceutical Lock non-publicly
321,431 321,431 0 0 2021-06-08
Co., Ltd. - Caitong Fund Heng’neng New offered shares
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2021 Annual Report
Energy No. 4 Single Asset Management Plan
Caitong Fund - Liu Fangbai - Caitong Fund
Lock non-publicly
Heng’neng New Energy No. 5 Single Asset 482,953 482,953 0 0 2021-06-08
offered shares
Management Plan
Caitong Fund - Suzhou Industrial Park
Zhongxin Energy Development Co., Ltd. - Lock non-publicly
1,611,352 1,611,352 0 0 2021-06-08
Caitong Fund Zhongxin No. 1 Single Asset offered shares
Management Plan
Caitong Fund - Jiang Yong - Caitong Fund
Lock non-publicly
Yuquan No. 892 Single Asset Management 263,282 263,282 0 0 2021-06-08
offered shares
Plan
Caitong Fund - Shaanxi Investment Fund
Lock non-publicly
Management Co., Ltd. - Caitong Fund Yuquan 962,676 962,676 0 0 2021-06-08
offered shares
No. 838 Single Asset Management Plan
Caitong Fund - Luzhou Puxin Equity
Investment Fund (Limited Partnership) - Lock non-publicly
646,092 646,092 0 0 2021-06-08
Caitong Fund Puxin No.3 Single Asset offered shares
Management Plan
Caitong Fund - Central China Securities -
Lock non-publicly
Caitong Fund Tianxi Private Placement No. 66 323,046 323,046 0 0 2021-06-08
offered shares
Single Asset Management Plan
Caitong Fund - Capital Securities - Caitong
Lock non-publicly
Fund Huitong No. 1 Single Asset Management 32,304 32,304 0 0 2021-06-08
offered shares
Plan
Caitong Fund - Shanghai Lu'an Investment Co.,
Lock non-publicly
Ltd. - Caitong Fund Lu’an Private Placement 96,914 96,914 0 0 2021-06-08
offered shares
Select Single Asset Management Plan
Caitong Fund - Huang Zheng - Caitong Fund Lock non-publicly
96,914 96,914 0 0 2021-06-08
Dongxian No. 1 Single Asset Management Plan offered shares
Rosefinch Fund - Shaanxi Coal Industry
Lock non-publicly
Company Limited - Shaanxi Coal Rosefinch 6,785,714 6,785,714 0 0 2021-06-08
offered shares
New Energy Single Asset Management Plan
CMB - Rosefinch Industry Select Mixed Lock non-publicly
214,286 214,286 0 0 2021-06-08
Investment Fund offered shares
ICBC - Rosefinch Industry Select Mixed 39,286 39,286 0 0 Lock non-publicly 2021-06-08
87 / 261
2021 Annual Report
Investment Fund offered shares
Ping’ an Bank - Rosefinch Enterprise Leader Lock non-publicly
103,571 103,571 0 0 2021-06-08
Equity Investment Fund offered shares
Lock non-publicly
Chengdu Fusen Noble House Co., Ltd. 7,142,857 7,142,857 0 0 2021-06-08
offered shares
CMB - Ruiyuan Growth Value Mixed Lock non-publicly
7,142,857 7,142,857 0 0 2021-06-08
Investment Fund offered shares
Total 213,692,500 213,692,500 0 0 / /
88 / 261
2021 Annual Report
II. Issuance and listing of securities
(I). Issuance in reporting period
"□ Applicable" "√ Not applicable"
Note on issuance of securities in the reporting period (bonds with different interest rates and within the
duration should be specified individually):
"□ Applicable" "√ Not applicable"
(II). Changes in total shares and shareholding structure and change in the asset-liability structure
"√ Applicable" "□ Not applicable"
In the reporting period, the Company had a total of 4,501,548,184 shares, which was not changed.
As of the end of the reporting period, Tongwei Group, the controlling shareholder, held 43.85% of shares
in the Company.
As of the end of the reporting period, the total assets were 88.25 billion yuan and total liabilities 46.593
billion yuan for a L/A ratio of 52.80%.
(III). Current employee shares
"□ Applicable" "√ Not applicable"
III. Shareholders and actual controller
(I). Total shareholders
Total common shareholders at the end of the reporting period 308,719
Total common shareholders at the end of the month prior to the disclosure date of 282,214
annual report
Total preference shareholders at the end of the reporting period 0
Total preference shareholders with voting rights restored at the end of the month prior 0
to the disclosure date of annual report
89 / 261
2021 Annual Report
(II). Top ten shareholders, top ten floating shareholders (or non-restricted shareholders) at the end of the reporting period
Unit: share
Top ten shareholders
Shareholder name Restricted Pledge, mark or freeze
Current change Closing shares Percent (%) Shareholder type
(Full name) shares Status Number
Domestic investor
other than state-
Tongwei Group Co., Ltd. -24,400,000 1,974,022,515 43.85 0 Pledged 529,150,000
owned legal
entities
Hong Kong Securities Clearing
73,610,458 258,102,680 5.73 0 None. 0 Unknown
Company Ltd.
China Life Asset Management
Company Limited - Bank of China -
China Life Asset - Advantage Select 52,099,840 52,099,840 1.16 0 None. 0 Unknown
2108 Insurance Asset Management
Fund
China Life Insurance Co., Ltd. -
Traditional - Common Insurance 26,382,723 26,382,723 0.59 0 None. 0 Unknown
Product - 005L - CT001 Hu
Bank of China - Huatai PineBridge
Investments Zhonzheng PV Industry
-3,435,948 24,560,452 0.55 0 None. 0 Unknown
Trade Open-ended Index Investment
Fund
China Life Asset Management
Company Limited - Industrial Bank
of China - China Life Asset - 24,400,000 24,400,000 0.54 0 None. 0 Unknown
Advantage Select 2110 Insurance
Asset Management Fund
Shanghai Pudong Development Bank
- E-Fund Yuxiang Return Bond 24,126,402 24,126,402 0.54 0 None. 0 Unknown
Investment Fund
90 / 261
2021 Annual Report
Dacheng Fund - Huaneng Trust
Jiayue No.7 Fund Trust - Dacheng
-1,205,401 23,080,314 0.51 0 None. 0 Unknown
Fund Excellence No. 2 Single Asset
Management Plan
China Securities - Tianhong
Zhonzheng PV Industry Index 22,732,941 22,732,941 0.51 0 None. 0 Unknown
Sponsored Investment Fund
ICBC - Huatai - SSE 50 Trade Open-
22,586,101 22,586,101 0.50 0 None. 0 Unknown
ended Index Investment Fund
Top ten floating shareholders
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. 258,102,680 CNY common share 258,102,680
China Life Asset Management Company Limited - Bank of China -
China Life Asset - Advantage Select 2108 Insurance Asset Management 52,099,840 CNY common share 52,099,840
Fund
China Life Insurance Co., Ltd. - Traditional - Common Insurance
26,382,723 CNY common share 26,382,723
Product - 005L - CT001 Hu
Bank of China - Huatai PineBridge Investments Zhonzheng PV
24,560,452 CNY common share 24,560,452
Industry Trade Open-ended Index Investment Fund
China Life Asset Management Company Limited - Industrial Bank
of China - China Life Asset - Advantage Select 2110 Insurance 24,400,000 CNY common share 24,400,000
Asset Management Fund
Shanghai Pudong Development Bank - E-Fund Yuxiang Return
24,126,402 CNY common share 24,126,402
Bond Investment Fund
Dacheng Fund - Huaneng Trust Jiayue No.7 Fund Trust - Dacheng
23,080,314 CNY common share 23,080,314
Fund Excellence No. 2 Single Asset Management Plan
China Securities - Tianhong Zhonzheng PV Industry Index
22,732,941 CNY common share 22,732,941
Sponsored Investment Fund
ICBC - Huatai - SSE 50 Trade Open-ended Index Investment Fund 22,586,101 CNY common share 22,586,101
Note on application for special repurchase accounts among top ten
Not applicable
shareholders
Note on delegation of voting rights to or by, or wavier of voting rights
Not applicable
by the said shareholders
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2021 Annual Report
No relationship exists between Tongwei Group and any of the other shareholders. China Life
Asset Management - Bank of China- China Life Asset - Advantage Select 2108 Insurance
Asset Management Product and China Life Asset Management - Industrial Bank of China -
Note on the said shareholders’ relationship or acting in concert
China Life Asset - Advantage Select 2110 Insurance Asset Management Fund Product are
created for employee share plan and they act in concert. Whether or not other shareholders
have relationships or act in concert is not known.
Note on preference shareholders with voting rights restored and
Not applicable
number of shares they hold
Number of restricted shares held by top ten restricted shareholders and the restrictions
"□ Applicable" "√ Not applicable"
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2021 Annual Report
(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 entities
"√ Applicable""□ Not applicable"
Name Tongwei Group Co., Ltd.
Person in charge or legal
Guan Yamei
representative
Date of incorporation 1996-10-14
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; PV generation
(excluding items requiring prior licenses; items requiring post
licenses are subject to licenses or approvals)
Other companies listed within or
outside Chinese mainland that held
None.
shares in the Company in the
reporting period
Other notes None.
2. Natural persons
"□ Applicable" "√ Not applicable"
3. Special note on the fact that the Company has no controlling shareholder
"□ Applicable" "√ Not applicable"
4. Note on change of controlling shareholder in the reporting period
"□ Applicable" "√ Not applicable"
5. Box diagram specifying the ownership and control relationship between the Company and its
controlling shareholder
"√ Applicable" "□ Not applicable"
Tongwei Group Co., Ltd.
Ownership interest
43.85%
Tongwei Co., Ltd.
(II). Actual controller
1.Legal entity
"□ Applicable" "√ Not applicable"
2.Natural person
"√ Applicable" "□ Not applicable"
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2021 Annual Report
Name Liu Hanyuan
Nationality China
Residence right in other countries/regions No
Chairman of the board of directors of Tongwei Group,
member of the 7th board of directors of the Company,
member of the 11th Standing Committee of the
CPPCC National Committee, deputy to the NPC
(National People's Congress), member of Standing
Main professions and titles
Committee of All-China Federation of Industry and
Commerce, executive chairman of CNECC, vice
chairman of the All-China Federation of Industry and
Commerce Sichuan and the executive vice chairman
of China Feed Industry
Listed companies within and outside Chinese
mainland controlled by the actual controller in None.
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"
5.Box diagram specifying the ownership and control relationship between the Company and its
actual controller
"√ Applicable" "□ Not applicable"
Liu Hanyuan
Ownership interest
80.00%
Tongwei Group Co., Ltd.
Ownership interest
43.85%
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"
1.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"
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2021 Annual Report
2.Other legal entities holding over ten percent of the total shares
"□ Applicable" "√ Not applicable"
3.Note on restricting sale of shares
"□ Applicable" "√ Not applicable"
4.Specific implementation of share repurchases in the reporting period
"□ Applicable" "√ Not applicable"
Section VIII. Preference Shares
"□ Applicable" "√ Not applicable"
Section IX. Bonds
I. Enterprise bonds, corporate bonds and non-financial enterprise debt-financing instruments
"√ Applicable" "□ Not applicable"
(I). Enterprise bonds
"□ Applicable" "√ Not applicable"
(II). Corporate bonds
"□ Applicable" "√ Not applicable"
(III). Non-financial enterprise debt-financing instruments in inter-bank bond market
"√Applicable" "□Not applicable"
1.Basic information on non-financial enterprise debt-financing instruments
Unit: 100 million yuan Currency: CNY
Investor Risk of
Maturity Balance Interest Payment Trading appropriateness Trading termination
Bond name Short Name Code Issue date Value date
date of bonds rate (%) method venue arrangement mechanism of trading
(if any)
Transactions
are concluded
with
Installment
counterparties
2020 interest
trade by trade
Middle- Payments China
over the
Term Note 20 Tongwei and Interbank
102001216 2020-06-17 2020-06-19 2023-06-19 4.00 5.2 None. counter No
Series 1 of MTN001 principal Bond
through the
Tongwei repaid Market
CNY trading
Co., Ltd. on
system in
maturity
China Foreign
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"
Note on interest payment and principal
Bond name
repayment
2020 Middle-Term Note Series 1 of Tongwei Co., Ltd. Interest paid normally
95 / 261
2021 Annual Report
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 Signatory
Office location Contact Telephone
name accountants
Postal Savings No. 3 Jinrong Zheng Yarong,
010-68857443
Bank of China Street, Xicheng Lei Lufan, Li
010-68857440
Co., Ltd. District, Beijing Jiejuan
9/F, Building B and
E, Kaiheng Center, Li Puhai, Pu Fei,
China Securities
No. 2 Chaonei Yang Junwei and 028-68850820
Co., Ltd
Street, Dongcheng Wen Bingyi
District, Beijing
40/F, Building A,
Caifu Center, No.7,
Beijing Jindu Liu Rong and Lu
Middle Third-Ring 028-86203818
Law Firm Yong
Road, Chaoyang
District, Beijing
Sichuan Huaxin 28/F, Jinmao Lidu
Li Wulin, Tang
(Group) CPA South, No. 18,
Fangmo, and Zhang Lan 028-85560449
(Special General Ximianqiao Street,
Xia Hongbo
Partnership) Chengdu, Sichuan
7/F, Building D,
Zhaoshang
International
CCIX Credit Financial Center, Yu Qian and Liu
010-66428877
Rating Co., Ltd. No. 156 Fuxingmen Qing
Inner Street,
Xicheng District,
Beijing
33-34/F, Oriental
Financial Plaza,
Shanghai Xie Chenyan and 021-23198708
No. 318 South
Clearing House Chen Gongrong 021-23198682
Zhongshan Road,
Shanghai
No. 17 Jinrong
Beijing Financial 010-57896722
Street Yi, Xicheng Issue Department
Assets Exchange 010-57896516
District, Beijing
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
Correction for
Operation of with the
non-
the special purposes, use
Total amount Amount conforming
Bond name Amount used account for schedule and
raised unused use of the
raised funds other
raised funds
(if any) covenants in
(if any)
the prospectus
2020
Middle-Term 4.00 4.00 0.00 Not applicable Not applicable Yes
Note Series 1
96 / 261
2021 Annual Report
of Tongwei
Co., Ltd.
Construction progress and operation performance of projects for which the raised funds are used
"√ Applicable" "□ Not applicable"
All the funds raised through issuing of the MTNs are used for high-purity polysilicon and solar cell
projects and for increasing current funds.
Note on changes in the said purposes of funds raised through bond issuing
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
5.Credit rating adjustments
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
6.Execution and change of guarantees, repayment schedules and other repayment 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
Major financial indicators 2021 2020 Change YoY (%) for
change
Net profit excluding non-
8,486,488,644.67 2,408,554,229.37 252.35
recurring profits and losses
Current ratio 1.01 1.14 -11.40
Quick ratio 0.81 1.02 -20.59
L/A ratio (%) 52.80 50.91 + 1.89 ppts
Total debt/EBITDA 0.75 0.60 25.00
97 / 261
2021 Annual Report
Interest coverage ratio 15.17 6.95 118.27
Cash coverage ratio 22.06 8.89 148.14
EBITDA coverage 20.12 10.93 84.08
Repayment ratio (%) 100.00 100.00 0.00
Interest repayment ratio (%) 100.00 100.00 0.00
II. Convertible corporate bonds
"√ Applicable" "□ Not applicable"
(I). Issuance of convertible bonds
"√ Applicable" "□ Not applicable"
Approved by the CSRC in the CSRC Permit [2021] No. 4028, on February 24, 2022, the Company issued
120 million convertible bonds publicly with the nominal value of each bond being 100 yuan for a total
amount of 12 billion yuan. As agreed by the Shanghai Stock Exchange in the Self-Discipline Regulation
Decision 2022 [No.61], the convertible corporate bonds so issued is listed in Shanghai Stock Exchange
on March 18, 2022. The short name of the bond is “Tong 22 Convertible Bond” and the code is 110085.
(II). Convertible bond holders and guarantors in the reporting period
"□ Applicable" "√ Not applicable"
(III). Changes in convertible bonds in the reporting period
"□ Applicable" "√ Not applicable"
Cumulative conversion to shares in the reporting period
"□ Applicable" "√ Not applicable"
(IV). Adjustments of conversion prices
"□ Applicable" "√ Not applicable"
(V). Liabilities, changes in creditworthiness and cash arrangements for debt repayment in the next
year
"□ Applicable" "√ Not applicable"
(VI). Note on other information about the convertible bonds
"□ Applicable" "√ Not applicable"
Section X. Financial Report
I. Auditor's report
"√ Applicable" "□ Not applicable"
The annual financial report of the Company has been audited by Li Wulin, Tang Fangmo and Xia Hongbo,
accountants from Sichuan Huaxin who have issued an unqualified opinion.
Auditor's Report
Sichuan Huaxin Audit (2022) No.0028
To all the shareholders of Tongwei Co., Ltd.:
I. Audit 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 2021, the 2021 consolidated
98 / 261
2021 Annual Report
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.
In our opinion, the attached financial statements prepared in accordance with Enterprise Accounting
Standards in all material aspects, give a true and fair view of the consolidated and parent financial positions
as at 31 December 2021, and of the consolidated and parent operation performance and cash flows for the
year ended.
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 judgement, 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.
(I) Revenue recognition
1. Matter description
As indicated in Note V 47 Operating revenue and operating cost and Note XIV 2 Segment
information, the consolidated operating revenue of Tongwei was 63.491 billion yuan for the year 2021,
including 38.184 billion yuan from the operating activities of PV business and 24.590 billion yuan from
the operating activities of agriculture and animal husbandry business. Operating revenue is a key
performance indicator of Tongwei, the inherent risk that the management manipulated the revenue
recognition in order to reach a certain target or expectation exists, therefore we identify revenue
recognition as a key audit matter.
2. Audit measures
(1) Understand and test whether internal controls relating to sale and collection are effectively
designed and operated and evaluate the reasonableness of basis for and timing of revenue recognition.
(2) Perform the analysis process on sales revenue, gross profit of sales and receivables by industry,
including period-over-period comparison and product category comparison, to evaluate the reasonableness
of relevant changes.
(3) For key customers, check their contracts, purchase orders, delivery notes, receipt notes and other
documents, and obtain written confirmations on transaction amounts and closing balances for these
customers to understand that these transactions are true, complete and accurate; for other customers,
perform a sampling check on contracts, purchase orders, delivery notes, shipping notes, payment notes,
receipt notes and other documents to verify the amount of sales revenue is true, complete and accurate.
(4) According to the unit price set forth in the Power Purchase Agreement and power generation
subsidy documents, and the 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 desulfation
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 other 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.
(II) Existence of receivable banker’s acceptance and the completeness of payable banker's
acceptance
1. Matter description
As indicated in Note V 5 Receivables financing, Note V 26 Notes payable - banker's acceptance,
and Note XIV 4 Impact on the Company's liabilities by the bill pool, at December 13, 2021, the balances
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2021 Annual Report
of receivable financing and notes payable- banker's acceptance were 11.407 billion yuan and 9.762 billion
yuan respectively, accounting for 12.93% of the total assets, and 20.95% of the total liabilities, has
impacted the L/A ratio by 5.87 ppts. Bill-based settlement is a common practice in PV industry where
Tongwei operates. With the growing business of Tongwei and the introduction of bill pool service, the
balances of banker’s acceptance payable and receivable by Tongwei are large and some banker's
acceptance receivable are pledged. Given the large amounts of banker's acceptance receivable and payable,
we identify the existence receivable banker’s acceptance and the completeness of payable banker's
acceptance as a key audit matter.
2. Audit measures
(1) Understand and test the design and operation of key internal controls relating to the management
and bills to evaluate whether they are effective.
(2) Get the supplementary bill register of Tongwei and check whether the records in the register
match the books, and sample some payment and collection records of bills to check bill information.
(3) Review whether discount interest and its accounting are correct according to bill discount
agreement and bill pool agreement, and check the bill bond restricted due to issue of bills payable, pledged
bills receivable and the corresponding bills payable.
(4) Get written confirmations from banks on information about bills payable that are not issued and
bills receivable that are pledged, and information about bills discounted in the reporting period.
(5) Get the Company's credit reports, check whether the information of bills payable that are not
issued and the information of bills discounted at the end of the reporting period match the books.
(6) Supervise the physical inventory of bills receivable at the end of the reporting period to check
whether these bills receivable exist and whether the information is accurate, and check the pledge of bills
receivable.
(7) Review whether the bill settlement is properly considered and whether relevant items are
presented correctly in the cash flow statement prepared by Tongwei management.
IV. Other Information
Management of the Company is responsible for other information, which includes all information
contained in the 2021 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
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 Management and the Governance Body for the Financial Statements
Management of the Company is responsible for the preparation of the financial statements that give
a true and fair view in accordance with Enterprise Accounting Standards, 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, Management is responsible for assessing the Company's ability
as a going-concern, disclosing (as applicable) matters related to going-concern, and using the going-
concern basis, unless Management either intends to liquidate the Company, or to cease its operation or 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
judgement and maintain professional skepticism throughout the audit. We also:
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2021 Annual Report
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
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control.
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
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 (Project Partner)
(Special General Partnership) China CPA: Tang Fangmo
China CPA: Xia Hongbo
Chengdu China April 22, 2022
II. Financial Statements
Consolidated Balance Sheet
2021-12-31
Prepared by: Tongwei Co., Ltd.
Unit: Yuan Currency: CNY
Item Notes 2021-12-31 2020-12-31
Current assets:
Cash at bank and on hand 3,001,930,882.38 6,264,168,242.03
Settlement provisions
Lending to banks and other financial
institutions
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Held-for-trading financial assets 10,617,668.58 1,531,863,068.12
Derivative financial assets
Notes receivable 1,576,925,682.02 530,962,356.27
Accounts receivable 2,915,527,149.08 1,069,352,776.17
Receivables financing 11,406,947,347.71 9,711,898,567.92
Prepayments 1,606,545,040.83 1,113,458,878.37
Premium receivable
Reinsurance receivable
Reinsurance contract reserve receivable
Other receivables 611,985,134.57 797,517,755.34
Including: Interest receivable
Dividend receivable
Reverse repo
Inventories 5,682,791,568.04 2,773,077,527.98
Contract assets 715,103,024.30 988,680,196.66
Assets held for sale
Non-current assets due within one year
Other current assets 1,220,643,137.83 810,572,652.99
Total current assets 28,749,016,635.34 25,591,552,021.85
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 455,798,325.58 477,736,082.22
Other equity investments 153,551,598.71 153,445,100.85
Other non-current financial assets 3,146,248.25 1,258,097.00
Investment properties 112,342,965.02 102,993,048.15
Fixed assets 37,299,171,038.78 29,829,602,625.00
Construction in progress 10,636,400,885.06 2,997,901,620.59
Biological assets 3,637,671.91 91,397.35
Oil and gas assets
Right-of-use assets 4,376,242,263.30 -
Intangible assets 2,410,841,890.16 1,663,705,788.75
R&D expenses
Goodwill 746,573,277.73 635,818,717.99
Deferred expenses 261,810,537.42 835,269,963.57
Deferred tax assets 600,832,119.58 415,550,864.14
Other non-current assets 2,440,626,665.32 1,547,022,743.45
Total non-current assets 59,500,975,486.82 38,660,396,049.06
Total assets 88,249,992,122.16 64,251,948,070.91
Current liabilities:
Short-term borrowings 1,375,230,141.70 2,349,154,525.77
Borrowings from central bank
Borrowings from banks and other financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 9,957,923,070.67 9,411,924,434.78
Accounts payable 8,151,270,076.21 3,917,320,980.64
Advances from customers 102,259,825.29 35,072,100.83
Contract liabilities 3,112,027,804.79 2,302,728,492.73
Sale of financial assets to be repurchased
Inward deposits
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Payments from sale and purchase of
securities on behalf of customers
Payments from underwriting securities on
behalf of customers
Employee benefits payable 1,388,757,870.41 736,363,100.05
Taxes payable 815,986,908.56 220,414,765.91
Other payable 761,620,932.59 743,639,264.91
Including: Interest payable
Dividend payable
Service charge and commission payable
Reinsurance receivable
Liabilities held for sale
Non-current liabilities due within one year 2,487,029,263.29 2,533,702,158.71
Other current liabilities 207,540,516.40 130,204,120.53
Total current liabilities 28,359,646,409.91 22,380,523,944.86
Non-current liabilities:
Reinsurance contract reserve
Long-term borrowings 11,441,029,860.16 6,296,585,539.34
Bonds payable 410,493,072.19 410,096,446.33
Including: Preference share
Perpetual bond
Lease liabilities 2,500,641,465.80 -
Long-term payables 1,648,303,239.69 2,526,572,275.65
Long-term employee benefits payable 649,891,600.00 -
Estimated liabilities
Deferred income 900,673,699.85 782,273,717.14
Deferred tax liability 682,712,636.40 311,949,837.40
Other non-current liabilities
Total non-current liabilities 18,233,745,574.09 10,327,477,815.86
Total liabilities 46,593,391,984.00 32,708,001,760.72
Owners’ equity (or shareholders' equity)
Paid-up capital (or share capital) 4,501,548,184.00 4,501,548,184.00
Other equity instruments
Including: Preference share
Perpetual bond
Capital surplus 16,107,859,721.40 16,105,693,787.44
Less: Treasury shares
Other comprehensive income -82,307,403.96 -73,914,221.72
Special reserve 15,918,034.03 16,401,063.07
Surplus reserve 1,414,948,005.57 925,322,362.44
General risk reserve
Undistributed profit 15,544,604,417.32 9,066,353,854.50
Total equity attributable to owners or
37,502,570,958.36 30,541,405,029.73
shareholders of parent company
Minority interest 4,154,029,179.80 1,002,541,280.46
Total owners’ equity (or shareholders'
41,656,600,138.16 31,543,946,310.19
equity)
Total liabilities and owners’ equity (or
88,249,992,122.16 64,251,948,070.91
shareholders' equity)
Company Head: Xie Yi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Lei Jiaowen
Parent Balance Sheet
2021-12-31
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2021 Annual Report
Prepared by: Tongwei Co., Ltd.
Unit: Yuan Currency: CNY
Item Notes 2021-12-31 2020-12-31
Current assets:
Cash at bank and on hand 1,970,060,333.61 5,430,260,350.86
Held-for-trading financial assets - 1,500,000,000.00
Derivative financial assets
Notes receivable
Accounts receivable 40,695,659.25 3,002,746.85
Receivables financing 109,493,387.71 69,390,676.70
Prepayments 108,614,897.08 16,500,340.59
Other receivables 20,560,977,497.02 12,569,916,260.88
Including: Interest receivable
Dividend receivable
Inventories 261,237,746.52 235,553,546.57
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 2,541,944.34 11,747,755.66
Total current assets 23,053,621,465.53 19,836,371,678.11
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 3,779,357,407.99 3,821,033,136.03
Long-term equity investments 17,409,956,118.46 13,836,401,258.90
Other equity investments 153,551,598.71 153,445,100.85
Other non-current financial assets
Investment properties 36,946,716.47 38,690,960.02
Fixed assets 318,040,343.39 298,259,368.75
Construction in progress 32,573,013.72 26,343,888.97
Biological assets
Oil and gas assets
Right-of-use assets 186,547,779.55 -
Intangible assets 59,947,661.65 60,200,180.33
R&D expenses
Goodwill
Deferred expenses 28,608,471.43 18,576,273.26
Deferred tax assets 1,718,240.52 1,610,507.55
Other non-current assets
Total non-current assets 22,007,247,351.89 18,254,560,674.66
Total assets 45,060,868,817.42 38,090,932,352.77
Current liabilities:
Short-term borrowings 1,000,952,777.78 1,899,865,349.31
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 210,000,000.00 300,000,000.00
Accounts payable 192,746,374.17 81,247,275.28
Advances from customers 980,272.02 1,921,719.85
Contract liabilities 133,018,997.22 122,226,302.00
Employee benefits payable 75,932,124.36 93,517,635.88
Taxes payable 6,854,246.18 6,703,834.73
Other payable 7,261,257,606.36 3,898,411,472.34
Including: Interest payable
Dividend payable
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2021 Annual Report
Liabilities held for sale
Non-current liabilities due within one year 180,364,861.73 370,178,150.11
Other current liabilities 500.83 126,263.87
Total current liabilities 9,062,107,760.65 6,774,198,003.37
Non-current liabilities:
Long-term borrowings 4,066,980,000.00 3,405,262,828.00
Bonds payable 410,493,072.19 410,096,446.33
Including: preference share
Perpetual bond
Lease liabilities 175,574,283.65 -
Long-term payables 875,898,885.36 875,898,885.36
Long-term employee benefits payable 37,740,000.00 -
Estimated liabilities
Deferred income
Deferred tax liability
Other non-current liabilities
Total non-current liabilities 5,566,686,241.20 4,691,258,159.69
Total liabilities 14,628,794,001.85 11,465,456,163.06
Owners’ equity (or shareholders' equity)
Paid-up capital (or share capital) 4,501,548,184.00 4,501,548,184.00
Other equity instruments
Including: preference share
Perpetual bond
Capital surplus 17,082,993,947.39 17,084,837,736.04
Less: Treasury shares
Other comprehensive income 7,122,885.47 6,757,300.85
Special reserve
Surplus reserve 1,414,948,005.57 925,322,362.44
Undistributed profit 7,425,461,793.14 4,107,010,606.38
Total owners’ equity (or shareholders'
30,432,074,815.57 26,625,476,189.71
equity)
Total liabilities and owners’ equity (or
45,060,868,817.42 38,090,932,352.77
shareholders' equity)
Company Head: Xie Yi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Lei Jiaowen
Consolidated Profit Statement
Jan to Dec, 2021
Unit: Yuan Currency: CNY
Item Notes 2021 2020
I. Total operating revenue 63,491,070,520.12 44,200,270,334.23
Including: Operating revenue 63,491,070,520.12 44,200,270,334.23
Interest income
Earned premium
Service charge and commission income
II. Total operating cost 52,733,684,669.80 41,070,717,427.55
Including: Operating cost 45,918,101,338.17 36,648,405,064.38
Interest expense
Service charge and commission expense
Cash surrender value
Net claims
Net appropriation of claims reserve
Policy dividend expense
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2021 Annual Report
Reinsurance expense
Tax and surcharge 275,955,240.38 124,045,656.13
Sales expense 918,970,450.73 778,030,640.18
Management expense 2,947,649,906.71 1,808,578,103.39
R&D expenses 2,035,847,045.43 1,035,331,434.68
Financial expense 637,160,688.38 676,326,528.79
Including: Interest expense 909,680,869.13 682,296,633.96
Interest income 340,874,721.03 57,540,093.05
Add: Other income 359,499,729.72 303,549,939.09
Investment gain or loss (“-” for loss) 42,536,586.67 1,569,378,017.50
Including: Gains or losses from
-14,159,521.52 22,506,526.78
investments into associates and joint 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 (“-” 5,754,600.46 4,863,068.12
for loss)
Credit impairment loss (“-” for loss) -123,656,047.25 -25,239,864.43
Asset impairment loss (“-” for loss) -129,121,084.08 -267,765,939.43
Gain or loss from disposal of assets (“-” for -78,230,632.51 -1,148,829.24
loss)
III. Operating profit (“-” for loss) 10,834,169,003.33 4,713,189,298.29
Add: Non-operating revenue 19,939,910.39 36,995,627.30
Less: Non-operating expense 464,366,862.21 476,391,959.47
IV: Total profit (“-” for loss) 10,389,742,051.51 4,273,792,966.12
Less: Income tax expense 1,647,522,380.67 559,054,175.03
V. Net profit (“-” for net loss) 8,742,219,670.84 3,714,738,791.09
(I) By continuation
1. Going concern profit (“-” for net loss) 8,742,219,670.84 3,714,738,791.09
2. Discontinuation profit (“-” for net loss)
(II) By ownership attribution
1. Net profit attributable to shareholders of
8,207,920,822.18 3,607,923,359.56
the parent company (“-” for net loss)
2. Gain or loss to minority shareholders (“-” 534,298,848.66 106,815,431.53
for net loss)
VI. Other comprehensive income after tax -8,662,660.90 -42,114,020.67
(I) Other comprehensive income after tax
-8,393,182.24 -42,114,020.67
attributable to owners of the parent company
1. Other comprehensive income that cannot
106,497.86 59,742.91
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
106,497.86 59,742.91
investments
(4) Change in fair value of the Company's own
credit risk
2. Other comprehensive income that will be
-8,499,680.10 -42,173,763.58
reclassified into profit or loss
(1) Other comprehensive income that can be
259,086.76 -
converted to profit or loss under equity method
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2021 Annual Report
(2) Change in fair value of other debt
investments
(3) Amount recorded into other comprehensive
income due to reclassification of financial assets
(4) Reserve for credit impairment of other debt
investments
(5) Cash flow hedge reserve
(6) Foreign currency translation -8,758,766.86 -42,173,763.58
(7) Others
(II) Other comprehensive income after tax
-269,478.66 -
attributable to minatory shareholders
VII. Total other comprehensive income 8,733,557,009.94 3,672,624,770.42
(I) Total other comprehensive income
8,199,527,639.94 3,565,809,338.89
attributable to owners of the parent company
(II) Total other comprehensive income
534,029,370.00 106,815,431.53
attributable to minatory shareholders
VIII. Earnings per share:
(I) Basic earnings per share (yuan/share) 1.8234 0.8581
(II) Diluted earnings per share (yuan/share) 1.8234 0.8466
The net income realized by the acquired business before business combinations under common control is
0 yuan, the net income realized by the acquired business in the previous period is 0 yuan.
Company Head: Xie Yi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Lei Jiaowen
Parent Profit Statement
Jan to Dec, 2021
Unit: Yuan Currency: CNY
Item Notes 2021 2020
I. Operating revenue 4,745,062,369.13 4,192,495,277.69
Less: Operating cost 4,138,074,509.01 3,637,398,495.75
Tax and surcharge 9,442,554.93 11,378,524.54
Sales expense 136,155,655.40 102,341,946.30
Management expense 284,114,028.78 263,765,902.77
R&D expenses 123,549,069.00 82,199,172.38
Financial expense 43,467,537.55 136,659,179.77
Including: Interest expense 346,428,748.95 304,013,432.37
Interest income 313,377,278.23 35,879,830.81
Add: Other income 15,780,831.45 14,854,162.45
Investment gain or loss (“-” for loss) 5,126,983,146.04 3,696,091,743.61
Including: Gains or losses from investments
-10,820,494.85 -3,090,231.86
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
loss)
Credit impairment loss (“-” for loss) -233,666,771.33 -57,089,598.72
Asset impairment loss (“-” for loss) -24,020,900.00 -
Gain or loss from disposal of assets (“-” for
373,738.64 293,836.91
loss)
II. Operating profit (“-” for loss) 4,895,709,059.26 3,612,902,200.43
Add: Non-operating revenue 3,088,115.30 1,719,398.03
Less: Non-operating expense 2,648,476.27 3,745,810.54
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2021 Annual Report
III. Total profit (“-” for loss) 4,896,148,698.29 3,610,875,787.92
Less: Income tax expenses -107,732.97 -934,631.09
IV. Net profit (“-” for net loss) 4,896,256,431.26 3,611,810,419.01
(I) Net going concern profit (“-” for net loss) 4,896,256,431.26 3,611,810,419.01
(II) Net discontinuation profit (“-” for net loss)
V. Other comprehensive income after tax 365,584.62 59,742.91
(I) Other comprehensive income that cannot be
106,497.86 59,742.91
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
106,497.86 59,742.91
investments
4. Change in fair value of the Company's own
credit risk
(II) Other comprehensive income that will be
259,086.76
reclassified into profit or loss
1. Other comprehensive income that can be
259,086.76
converted to profit or loss under equity 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 4,896,622,015.88 3,611,870,161.92
VII. Earnings per share:
(I) Basic earnings per share (yuan/share)
(II) Diluted earnings per share (yuan/share)
Company Head: Xie Yi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Lei Jiaowen
Consolidated Cash Flow Statement
Jan to Dec, 2021
Unit: Yuan Currency: CNY
Item Notes 2021 2020
I. Cash flows generated from operating activities:
Cash received from sales of goods and
56,533,317,822.08 37,442,245,418.41
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
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2021 Annual Report
Net increase in borrowings from others
Net increase in repo service
Net cash received from sale and purchase of
securities on behalf of customers
Tax refunds received 590,036,800.90 423,961,983.83
Other cash received relating to operating
1,174,476,733.25 775,771,262.55
activities
Subtotal of cash inflows from operating
58,297,831,356.23 38,641,978,664.79
activities
Cash paid for purchase of goods and services 44,658,781,109.98 31,447,680,659.72
Net increase in customer loans and advances
Net increase in deposits in central bank and
other banks
Cash paid for claims of original insurance
contracts
Net increase in lending to other banks
Cash paid for interest, service charge and
commission
Cash paid for policy dividend
Cash paid to and for employees 3,196,053,127.99 2,730,865,444.91
Taxes paid 1,796,494,444.14 709,964,246.65
Other cash paid relating to operating activities 1,028,228,797.40 728,540,381.57
Subtotal of cash outflows from operating
50,679,557,479.51 35,617,050,732.85
activities
Net cash flows generated from operating
7,618,273,876.72 3,024,927,931.94
activities
II. Cash flows generated from investing activities:
Cash received due to recovery of investments 4,833,376,932.32 384,107,500.00
Cash received from investment income 123,201,544.94 96,464,234.31
Net cash recovered from disposal of fixed
assets, intangible assets and other long-term 123,667,405.09 133,040,127.00
assets
Net cash received from disposal of
1,225,758.29 1,778,884,791.31
subsidiaries and other operations
Other cash received relating to investing
467,644,949.90 502,607,812.51
activities
Subtotal of cash inflows from investing
5,549,116,590.54 2,895,104,465.13
activities
Cash paid for acquisition or construction of
fixed assets, intangible assets and other long- 13,975,125,087.15 5,486,604,092.60
term assets
Cash paid for investments 3,398,650,423.15 1,981,421,297.00
Net increase in pledge loans
Net cash paid by subsidiaries and other
1,259,384,961.47 -
operations
Other cash paid relating to investing activities 506,985,472.09 167,329,398.46
Subtotal of cash outflows from investing 19,140,145,943.86
7,635,354,788.06
activities
Net cash flow generated from investing -13,591,029,353.32
-4,740,250,322.93
activities
III. Cash flows generated from financing activities:
Cash received from investors 2,731,415,000.00 6,419,669,790.00
Including: Cash received by subsidiaries from 2,731,415,000.00 476,130,300.00
minority shareholders
Cash received from borrowings 13,172,158,951.98 14,436,194,796.08
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2021 Annual Report
Other cash received relating to financing 343,181,178.57 1,094,045,631.00
activities
Subtotal of cash inflows from financing 16,246,755,130.55 21,949,910,217.08
activities
Cash paid for debt repayment 9,310,054,630.44 13,143,663,135.37
Cash paid for dividend or profit distribution,
1,726,682,632.19 1,299,112,282.65
or interest payment
Including: Dividend and profit paid by
217,972,571.50 64,286,181.74
subsidiaries to minority shareholders
Other cash paid relating to financing activities 2,308,373,440.84 1,711,762,473.10
Subtotal of cash outflows from financing
13,345,110,703.47 16,154,537,891.12
activities
Net cash flow generated from financing
2,901,644,427.08 5,795,372,325.96
activities
IV. Effect of exchange rate changes on cash
-11,852,850.31 -36,746,892.76
and cash equivalents
V. Net increase in cash and cash equivalents -3,082,963,899.83 4,043,303,042.21
Add: Opening cash and cash equivalents 5,986,042,619.46 1,942,739,577.25
VI. Closing cash and cash equivalents 2,903,078,719.63 5,986,042,619.46
Company Head: Xie Yi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Lei Jiaowen
Parent Cash Flow Statement
Jan to Dec, 2021
Unit: Yuan Currency: CNY
Item Notes 2021 2020
I. Cash flows generated from operating activities
Cash received from sales of goods and
4,719,527,304.66 4,347,037,676.95
rendering of services
Tax refunds received - 68,193.57
Other cash received relating to operating
119,239,810.87 97,529,785.17
activities
Subtotal of cash inflows from operating
4,838,767,115.53 4,444,635,655.69
activities
Cash paid for purchase of goods and services 4,170,583,130.41 3,641,589,698.05
Cash paid to and for employees 335,195,029.61 346,227,657.01
Taxes paid 11,870,127.73 11,736,797.15
Other cash paid relating to operating activities 212,211,511.38 137,244,175.61
Subtotal of cash outflows from operating
4,729,859,799.13 4,136,798,327.82
activities
Net cash flows generated from operating
108,907,316.40 307,837,327.87
activities
II. Cash flows generated from investing activities:
Cash received due to recovery of investments 4,665,314,477.11 571,180,300.00
Cash received from investment income 5,075,416,248.29 4,060,910,871.57
Net cash recovered from disposal of fixed
2,789,338.88 117,199,544.67
assets, intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
- -
and other operations
Other cash received relating to investing
816,474.70 -
activities
Subtotal of cash inflows from investing
9,744,336,538.98 4,749,290,716.24
activities
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2021 Annual Report
Cash paid for acquisition or construction of
fixed assets, intangible assets and other long-term 110,423,219.68 49,489,656.66
assets
Cash paid for investments 6,697,701,017.73 5,347,326,300.00
Net cash paid by subsidiaries and other
operations
Other cash paid relating to investing activities
Subtotal of cash outflows from investing
6,808,124,237.41 5,396,815,956.66
activities
Net cash flow generated from investing
2,936,212,301.57 -647,525,240.42
activities
III. Cash flows generated from financing activities:
Cash received from investors - 5,943,539,490.00
Cash received from borrowings 5,490,022,450.94 10,630,759,167.28
Other cash received relating to financing
3,228,660,151.11 3,946,866,493.29
activities
Subtotal of cash inflows from financing
8,718,682,602.05 20,521,165,150.57
activities
Cash paid for debt repayment 5,927,154,780.94 10,573,275,246.67
Cash paid for dividend or profit distribution, or
1,317,238,048.86 1,080,839,135.95
interest payment
Other cash paid relating to financing activities 7,989,717,459.15 4,372,171,885.77
Subtotal of cash outflows from financing
15,234,110,288.95 16,026,286,268.39
activities
Net cash flow generated from financing
-6,515,427,686.90 4,494,878,882.18
activities
IV. Effect of exchange rate changes on cash and
74,502.26 -1,798,024.13
cash equivalents
IV. Net increase in cash and cash equivalents -3,470,233,566.67 4,153,392,945.50
Add: Opening cash and cash equivalents 5,430,039,900.28 1,276,646,954.78
VI. Closing cash and cash equivalents 1,959,806,333.61 5,430,039,900.28
Company Head: Xie Yi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Lei Jiaowen
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Consolidated Statement of Owner's Equity
Jan to Dec, 2021
Unit: Yuan Currency: CNY
2021
Equity attributable to owners of parent company
Item Other equity instruments Less: Other General Total owners’
Paid-up capital (or Undistributed Minority interest
Preference Perpetual Capital surplus Treasury comprehensive Special reserve Surplus reserve risk Others Sub-total equity
share capital) Others profit
share bond shares income reserve
I. Closing balance of the previous year 4,501,548,184.00 16,105,693,787.44 -73,914,221.72 16,401,063.07 925,322,362.44 9,066,353,854.50 30,541,405,029.73 1,002,541,280.46 31,543,946,310.19
Add: Changes in accounting policies -155,171,503.88 -155,171,503.88 -4,243,682.67 -159,415,186.55
Correction of previous errors
Business combinations under
common control
Others
II. Opening balance of the current year 4,501,548,184.00 16,105,693,787.44 -73,914,221.72 16,401,063.07 925,322,362.44 8,911,182,350.62 30,386,233,525.85 998,297,597.79 31,384,531,123.64
III. Current change (“-” for decrease) 2,165,933.96 -8,393,182.24 -483,029.04 489,625,643.13 6,633,422,066.70 7,116,337,432.51 3,155,731,582.01 10,272,069,014.52
(I) Total comprehensive income -8,393,182.24 8,207,920,822.18 8,199,527,639.94 534,029,370.00 8,733,557,009.94
(II) Capital invested and decreased by
- 2,731,415,000.00 2,731,415,000.00
owners
1. Common shares invested by owners - 2,731,415,000.00 2,731,415,000.00
2. Capital invested by holders of other
equity instruments
3. Amount of share payment recorded
into owners’ equity
4. Others
(III) Profit distribution 489,625,643.13 -1,574,498,755.48 -1,084,873,112.35 -217,972,571.50 -1,302,845,683.85
1. Withdrawal from surplus reserve 489,625,643.13 -489,625,643.13
2. Withdrawal from general risk reserve
3. Distribution to owners (or
-1,084,873,112.35 -1,084,873,112.35 -217,972,571.50 -1,302,845,683.85
shareholders)
4. Others
(IV) Internal carryover of owners’
equity
1. Capital surplus converted to capital
(or share capital)
2. Surplus reserve converted to capital
(or share capital)
3. Surplus reserve offset loss
4. Change in defined benefit plan
converted to retained earnings
5. Other comprehensive income
converted to retained earnings
6. Others
(V) Special reserve -483,029.04 -483,029.04 - -483,029.04
1. Withdrawal in current period 67,672,255.14 67,672,255.14 67,672,255.14
2. Use in current period 68,155,284.18 68,155,284.18 68,155,284.18
(VI) Others 2,165,933.96 2,165,933.96 108,259,783.51 110,425,717.47
IV. Closing balance of the current
4,501,548,184.00 16,107,859,721.40 -82,307,403.96 15,918,034.03 1,414,948,005.57 15,544,604,417.32 37,502,570,958.36 4,154,029,179.80 41,656,600,138.16
period
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2021 Annual Report
2020
Equity attributable to owners of parent company
Item Other equity instruments Less: Other General Total owners’
Paid-up capital Undistributed Minority interest
Preference Perpetual Capital surplus Treasury comprehensive Special reserve Surplus reserve risk Others Sub-total equity
(or share capital) Others profit
share bond shares income reserve
I. Closing balance of the previous
3,882,594,596.00 854,235,969.85 5,672,664,800.50 -31,800,201.05 18,057,814.87 564,141,320.54 6,617,152,692.38 17,577,046,993.09 511,143,241.73 18,088,190,234.82
year
Add: Changes in accounting policies
Correction of previous errors
Business combinations under
common control
Others
II. Opening balance of the current
3,882,594,596.00 854,235,969.85 5,672,664,800.50 -31,800,201.05 18,057,814.87 564,141,320.54 6,617,152,692.38 - 17,577,046,993.09 511,143,241.73 18,088,190,234.82
year
III. Current change (“-” for
618,953,588.00 -854,235,969.85 10,433,028,986.94 -42,114,020.67 -1,656,751.80 361,181,041.90 2,449,201,162.12 - 12,964,358,036.64 491,398,038.73 13,455,756,075.37
decrease)
(I) Total comprehensive income -42,114,020.67 3,607,923,359.56 3,565,809,338.89 106,815,431.53 3,672,624,770.42
(II) Capital invested and decreased
618,953,588.00 -854,235,969.85 10,438,034,921.25 - - 10,202,752,539.40 476,130,300.00 10,678,882,839.40
by owners
1. Common shares invested by
213,692,500.00 5,729,018,770.11 5,942,711,270.11 476,130,300.00 6,418,841,570.11
owners
2. Capital invested by holders of
405,261,088.00 -854,235,969.85 4,709,016,151.14 4,260,041,269.29 4,260,041,269.29
other equity instruments
3. Amount of share payment
recorded into owners’ equity
4. Others
(III) Profit distribution 361,181,041.90 -1,158,722,197.44 - -797,541,155.54 -64,286,181.74 -861,827,337.28
1. Withdrawal from surplus reserve 361,181,041.90 -361,181,041.90 - -
2. Withdrawal from general risk
reserve
3. Distribution to owners (or
-797,541,155.54 -797,541,155.54 -64,286,181.74 -861,827,337.28
shareholders)
4. Others
(IV) Internal carryover of owners’
equity
1. Capital surplus converted to
capital (or share capital)
2. Surplus reserve converted to
capital (or share capital)
3. Surplus reserve offset loss
4. Change in defined benefit plan
converted to retained earnings
5. Other comprehensive income
converted to retained earnings
6. Others
(V) Special reserve -1,656,751.80 - -1,656,751.80 - -1,656,751.80
1. Withdrawal in current period 46,066,158.86 46,066,158.86 46,066,158.86
2. Use in current period 47,722,910.66 47,722,910.66 47,722,910.66
(VI) Others -5,005,934.31 -5,005,934.31 -27,261,511.06 -32,267,445.37
IV. Closing balance of the current
4,501,548,184.00 16,105,693,787.44 -73,914,221.72 16,401,063.07 925,322,362.44 9,066,353,854.50 30,541,405,029.73 1,002,541,280.46 31,543,946,310.19
period
Company Head: Xie Yi Head of Accounting Affairs: Zhou Bin Head of Accounting Department: Lei Jiaowen
113 / 261
2021 Annual Report
Parent Statement of Owner's Equity
Jan to Dec, 2021
Unit: Yuan Currency: CNY
2021
Other equity instruments Less: Other
Item Paid-up capital (or Special
Capital surplus Treasury comprehensive Surplus reserve Undistributed profit Total owners’ equity
share capital) Preference Perpetual reserve
Others shares income
share bond
I. Closing balance of the previous year 4,501,548,184.00 17,084,837,736.04 6,757,300.85 925,322,362.44 4,107,010,606.38 26,625,476,189.71
Add: Changes in accounting policies -3,306,489.02 -3,306,489.02
Correction of previous errors
Others
II. Opening balance of the current year 4,501,548,184.00 17,084,837,736.04 6,757,300.85 925,322,362.44 4,103,704,117.36 26,622,169,700.69
III. Current change (“-” for decrease) -1,843,788.65 365,584.62 489,625,643.13 3,321,757,675.78 3,809,905,114.88
(I) Total comprehensive income 365,584.62 4,896,256,431.26 4,896,622,015.88
(II) Capital invested and decreased by
owners
1. Common shares invested by owners
2. Capital invested by holders of other
equity instruments
3. Amount of share payment recorded
into owners’ equity
4. Others
(III) Profit distribution 489,625,643.13 -1,574,498,755.48 -1,084,873,112.35
1. Withdrawal from surplus reserve 489,625,643.13 -489,625,643.13 -
2. Distribution to owners (or
-1,084,873,112.35 -1,084,873,112.35
shareholders)
3. Others
(IV) Internal carryover of owners’ equity
1. Capital surplus converted to capital
(or share capital)
2. Surplus reserve converted to capital
(or share capital)
3. Surplus reserve offset loss
4. Change in defined benefit plan
converted to retained earnings
5. Other comprehensive income
converted to retained earnings
6. Others
(V) Special reserve
1. Withdrawal in current period
2. Use in current period
(VI) Others -1,843,788.65 -1,843,788.65
IV. Closing balance of the current period 4,501,548,184.00 17,082,993,947.39 7,122,885.47 1,414,948,005.57 7,425,461,793.14 30,432,074,815.57
Item 2020
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2021 Annual Report
Other equity instruments Less: Other
Paid-up capital (or Special
Capital surplus Treasury comprehensive Surplus reserve Undistributed profit Total owners’ equity
share capital) Preference Perpetual reserve
Others shares income
share bond
I. Closing balance of the previous year 3,882,594,596.00 854,235,969.85 6,646,802,814.79 6,697,557.94 564,141,320.54 1,653,922,384.81 13,608,394,643.93
Add: Changes in accounting policies
Correction of previous errors
Others
II. Opening balance of the current year 3,882,594,596.00 854,235,969.85 6,646,802,814.79 6,697,557.94 564,141,320.54 1,653,922,384.81 13,608,394,643.93
III. Current change (“-” for decrease) 618,953,588.00 -854,235,969.85 10,438,034,921.25 59,742.91 361,181,041.90 2,453,088,221.57 13,017,081,545.78
(I) Total comprehensive income 59,742.91 3,611,810,419.01 3,611,870,161.92
(II) Capital invested and decreased by
618,953,588.00 -854,235,969.85 10,438,034,921.25 - 10,202,752,539.40
owners
1. Common shares invested by owners 213,692,500.00 5,729,018,770.11 5,942,711,270.11
2. Capital invested by holders of other
405,261,088.00 -854,235,969.85 4,709,016,151.14 4,260,041,269.29
equity instruments
3. Amount of share payment recorded
into owners’ equity
4. Others
(III) Profit distribution 361,181,041.90 -1,158,722,197.44 -797,541,155.54
1. Withdrawal from surplus reserve 361,181,041.90 -361,181,041.90 -
2. Distribution to owners (or
-797,541,155.54 -797,541,155.54
shareholders)
3. Others
(IV) Internal carryover of owners’
equity
1. Capital surplus converted to capital
(or share capital)
2. Surplus reserve converted to capital
(or share capital)
3. Surplus reserve offset loss
4. Change in defined benefit plan
converted to retained earnings
5. Other comprehensive income
converted to retained earnings
6. Others
(V) Special reserve
1. Withdrawal in current period
2. Use in current period
(VI) Others
IV. Closing balance of the current 4,501,548,184.00 17,084,837,736.04 6,757,300.85 925,322,362.44
4,107,010,606.38 26,625,476,189.71
period
Company Head: Xie Yi Head of Accounting Affairs: Zhou Bin Head of Accounting Department: Lei Jiaowen
115 / 261
2021 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 A-share common stock of 60 million yuan. 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 shareholders meeting on Tongwei Co.,
Ltd. 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 surplus (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 surplus (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 Tongwei Group Co., Ltd. (ZJXK [2016] No. 190) from the CSRC
on January 27, 2016, the Company issued common shares of 238,324,880 yuan to 17 legal persons such
as Tongwei Group Co., Ltd., Sichuan Giastar Group Co., Ltd. and 29 natural persons such as Tang
Guangyue, the face value of each share was 1.00 yuan. After that, the share capital was 1,055,434,512
shares.
On May 19, 2016, the Company increased its share capital through capital surplus (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 8, 2016, the Company issued common shares of 922,901,629 yuan to Tongwei Group Co.,
Ltd. The face value of each share was 1.00 yuan. After that, the share capital was 3,384,033,350 shares.
On December 23, 2016, the Company issued 498,338,870 shares to 5 institutions including 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
corporate bonds of 5 billion yuan on March 18, 2019, with a term of 6 years; after approved in (ZLJGJDS
[2019] No.052) from the Shanghai Stock Exchange, the convertible corporate bonds were listed for trading
on the Shanghai Stock Exchange from April 10, 2019; the bonds are named as Tongwei Convertible Bond
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 6th meeting of the 7th board of directors approved the to exercise the early
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2021 Annual Report
redemption right to redeem all "Tongwei Convertible Bonds" registered on the "Redemption Registration
Date"; the deadline of the redemption registration date is March 16, 2020; Tongwei Convertible Bonds
with a face value of 4,979,353,000 yuan were converted into 405,483,464 company shares. After that, the
Company had a total of 4,287,855,684 shares.
On November 20, 2020, the Company issued 213,692,500 shares to 16 institutions including
Changdu Tongrui Industrial Partnership (Limited Partnership) Co., Ltd. After that, the Company had a
total of 4,501,548,184 shares.
(2) Registered address, organizational form and headquarters address
The registered address of the Company is No. 588 Middle Section Tianfu Avenue, High-Tech Zone,
Chengdu, and its organizational form is Limited Liability Company. Its headquarters is located at No. 588,
Tianfu Avenue Middle Section, High-Tech Zone, Chengdu.
(3) Business nature and main operating activities
1) Business nature
The Company is engaged in agriculture, forestry, livestock husbandry and fishery. After 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 Tongwei brand fish feed, swine feed, poultry feed and fresh water and seawater
aquaculture feed; aquaculture and seedling cultivation; production, wholesale and retail of veterinary
drugs and feed additives; slaughtering and processing fish, pig and duck food and selling live fish;
production and sales of polysilicon and monocrystalline silicon, polyvinyl chloride and its series products,
sodium hydroxide and ancillary products, carbide slag cement; research and development of new chemical
products; production and sales of monocrystalline and multicrystalline silicon wafers, solar cell wafers,
solar cell modules, solar heat pipes, solar water heaters, water heating systems and solar photo thermal
applications; energy technology research and development; research and development of solar power
generation technology and technical consultation; design and construction of power engineering and
power system installation engineering; sales of PV equipment and providing technical advice; solar power
generation; electricity supply; electrical installation; engineering design; science and technology
promotion and application service industry; comprehensive utilization of waste resources; environmental
governance industry; wholesale and retail of commodities; rental and commercial services; import and
export industry; internet information service, etc.
(4) Largest shareholder and actual controller
The largest shareholder is Tongwei Group Co., Ltd. ("Tongwei Group"), and the actual controller is
Liu Hanyuan.
(5) Approver of financial statements
The Company's financial statements are approved by its board of directors. The financial report for
current period was approved by the 28th meeting of the 7th board of directors on April 22, 2022.
2. Scope of consolidation
"√ Applicable" "□ Not applicable"
(1) The 82 first-level subsidiaries consolidated in current period are listed as follows:
Number of
Shareholding Voting right
No. Subsidiary name Short name its
(%) (%)
subsidiaries
1 Yongxiang Co., Ltd. Yongxiang 10 100 100
2 Tongwei Solar (Hefei) Co., Ltd. Hefei Solar 9 100 100
3 Tongwei New Energy Co., Ltd. Tongwei New Energy 137 100 100
4 Chongqing Tongwei Feed Co., Ltd. Chongqing Feed 100 100
5 Xiamen Tongwei Feed Co., Ltd. Xiamen Feed 100 100
6 Yuanjiang Tongwei Feed Co., Ltd. Yuanjiang Feed 100 100
7 Wuhan Tongwei Feed Co., Ltd. Wuhan Feed 100 100
8 Shashi Tongwei Feed Co., Ltd. Shashi Feed 100 100
9 Guangdong Tongwei Feed Co., Ltd. Guangdong Feed 100 100
10 Shandong Tongwei Feed Co., Ltd. Shandong Feed 92 92
11 Zaozhuang Tongwei Feed Co., Ltd. Zaozhuang Feed 100 100
12 He’nan Tongwei Feed Co., Ltd. He’nan Feed 100 100
13 Changchun Tongwei Feed Co., Ltd. Changchun Feed 100 100
14 Chengdu Tongwei Aquaculture Chengdu Technology
100 100
Technology Co., Ltd.
117 / 261
2021 Annual Report
15 Chengdu Tongwei Sanxin Sanxin
70 70
Pharmaceutical Co., Ltd. Pharmaceutical
16 Tongwei (Hainan) Aquatic Products Hainan Products
100 100
Co., Ltd.
17 Hainan Haiyi Aquatic Products Feed Hainan Haiyi
100 100
Co., Ltd.
18 Zhuhai Haiyi Aquatic Products Feed Zhuhai Haiyi
100 100
Co., Ltd.
19 Hainan Haiyi Aquatic Seed Co., Ltd. Hainan Seed 1 49.95 49.95
20 Nantong Bada Feed Co., Ltd. Nantong Bada 2 100 100
21 Nanning Tongwei Feed Co., Ltd. Nanning Feed 100 100
22 Tianjin Tongwei Feed Co., Ltd. Tianjin Feed 100 100
23 Huaian Tongwei Feed Co., Ltd. Huaian Feed 100 100
24 Jieyang Tongwei Feed Co., Ltd. Jieyang Feed 100 100
25 Chengdu Ronglai Tongwei Feed Co., Ronglai Feed
80 80
Ltd.
26 Yangzhou Tongwei Feed Co., Ltd. Yangzhou Feed 100 100
27 Langfang Tongwei Feed Co., Ltd. Langfang Feed 100 100
28 Chengdu Tongwei Animal Nutrition Animal Nutrition
100 100
Technology Co., Ltd.
29 Panzhihua Tongwei Feed Co., Ltd. Panzhihua Tongwei 100 100
30 Foshan Nanhai Tongwei Aquatic Foshan Technology
100 100
Products Technology Co., Ltd.
31 Tongwei Agricultural Finance Tongwei Guarantee
100 100
Guarantee Co., Ltd.
32 Sichuan Tongguang Construction Tongguang
100 100
Engineering Co., Ltd. Construction
33 Chongqing Changshou Tongwei Feed Changshou Feed
100 100
Co., Ltd.
34 Qianxi Tongwei Feed Co., Ltd. Qianxi Feed 100 100
35 Lianyungang Tongwei Feed Co., Ltd. Lianyungang Feed 100 100
36 Chengdu Tongwei Automation Automation Company
80 80
Equipment Co., Ltd.
37 Foshan Tongwei Feed Co., Ltd. Foshan Feed 100 100
38 Zibo Tongwei Feed Co., Ltd. Zibo Feed 76 76
39 Tongwei (Dafeng) Feed Co., Ltd. Dafeng Feed 51 51
40 Kunming Tongwei Feed Co., Ltd. Kunming Feed 100 100
41 Zibo Tongwei Food Co., Ltd. Zibo Food 100 100
42 Foshan Gaoming Tongwei Feed Co., Gaoming Feed
100 100
Ltd.
43 Tianmen Tongwei Biotechnology Co., Tianmen
100 100
Ltd. Biotechnology
44 Binyang Tongwei Feed Co., Ltd. Binyang Feed 100 100
45 Fuzhou Tongwei William Feed Co., Fuzhou Feed
65 65
Ltd.
46 Ningxia Yinchuan Tongwei Feed Co., Yinchuan Feed
100 100
Ltd.
47 Haerbin Tongwei Feed Co., Ltd. Haerbin Feed 100 100
48 Nanjing Tongwei Aquaculture Nanjing Technology
100 100
Technology Co., Ltd.
49 Tongwei Holdings PTE. Ltd. Singapore Holdings 10 100 100
50 Tongwei Industrial (Tibet) Co., Ltd. Tibet Industrial 100 100
51 Chizhou Tongwei Feed Co., Ltd. Chizhou Feed 100 100
52 Chengdu Tongwei Aquatic Seed Co., Chengdu Seed
100 100
Ltd.
53 Hengshui Tongwei Feed Co., Ltd. Hengshui Feed 100 100
54 Qingyuan Tongwei Feed Co., Ltd. Qingyuan Feed 100 100
55 Honghu Tongwei Feed Co., Ltd. Honghu Feed 100 100
56 Sichuan Tongwei Food Co., Ltd. Sichuan Food 10 80 80
57 Hanshou Tongwei Feed Co., Ltd. Hanshou Tongwei 100 100
58 Tianmen Tongwei Aquaculture Tianmen Technology
100 100
Technology Co., Ltd.
59 Sichuan Fusion Link Co., Ltd. Fusion Link 60 60
60 Sichuan Willtest Technology Co., Ltd. Sichuan Test 1 85.04 85.04
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2021 Annual Report
61 Wuxi Tongwei Biotechnology Co., Wuxi Biotechnology
100 100
Ltd.
62 Zhejiang Tongwei Solar Technology Zhejiang Solar
100 100
Co., Ltd.
63 Sichuan Tongwei Feed Co., Ltd. Sichuan Tongwei 100 100
64 Qingdao Hairen Aquatic Seed Industry Qingdao Hairen
55.5 55.5
Technology Co., Ltd.
65 Nanning Tongwei Biotechnology Co., Nanning
100 100
Ltd. Biotechnology
66 Nanchang Tongwei Biotechnology Nanchang
80 80
Co., Ltd. Biotechnology
67 Yangjiang Haiyi Securities Co., Ltd. Yangjiang Haiyi 100 100
68 Zhanjiang Haixianfeng Bio-tech Co., Zhanjiang
51 51
Ltd. Haixianfeng
69 Sichuan Chunyuan Ecological Chunyuan Farming
100 100
Farming Co., Ltd.
70 Chengdu Tongwei Fishery-PV Chengdu Fishery-PV
100 100
Technology Co., Ltd. Technology
71 Maoming Tongwei Biotechnology Maoming
100 100
Co., Ltd. Biotechnology
72 Hainan Tongwei Biotechnology Co., Hainan Biotechnology
100 100
Ltd.
73 Guangdong Tongwei Biotechnology Guangdong
100 100
Co., Ltd. Biotechnology
74 Ningbo Tech-bank Feed Technology Ningbo Feed
100 100
Co., Ltd.
75 Qingdao Qihao Biotechnology Co., Qihao Biotechnology
1 100 100
Ltd.
76 Ningbo Tech-bank Biotechnology Co., Ningbo
100 100
Ltd. Biotechnology
77 Yancheng Tech-bank Feed Yancheng Tech-bank
51 51
Technology Co., Ltd.
78 Nanning Aigefei Feed Co., Ltd. Nanning Aigefei 51 51
79 Bengbu Tech-bank Feed Technology Bengbu Tech-bank
51 51
Co., Ltd.
80 Hubei Tech-bank Feed Co., Ltd. Hubei Tech-bank 51 51
81 Dongying Tech-bank Feed Dongying Tech-bank
51 51
Technology Co., Ltd.
82 Shenyang Tongwei Biotechnology Shenyang
100 100
Co., Ltd. Biotechnology
Total 181
(2) New first-level subsidiaries consolidated in current period
Subsidiary name Reason for change
Ningbo Tech-bank Feed Technology Co., Ltd. Business combinations under different control
Qingdao Qihao Biotechnology Co., Ltd. Business combinations under different control
Ningbo Tech-bank Biotechnology Co., Ltd. Business combinations under different control
Yancheng Tech-bank Feed Technology Co., Ltd. Business combinations under different control
Nanning Aigefei Feed Co., Ltd. Business combinations under different control
Bengbu Tech-bank Feed Technology Co., Ltd. Business combinations under different control
Hubei Tech-bank Feed Co., Ltd. Business combinations under different control
Dongying Tech-bank Feed Technology Co., Ltd. Business combinations under different control
Shenyang Tongwei Biotechnology Co., Ltd. New establishment through investment
(3) First-level subsidiaries cancelled in current period
None.
(4) First-level subsidiaries that have not been absorbed, merged or disposed of in current period
Please refer to "Change in Scope of Consolidation” and "Rights and Interests in Other Entities" for
details.
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2021 Annual Report
IV. Basis of preparation
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 2014.
2. Going concern
"√ Applicable" "□ Not applicable"
The Company's business activities have sufficient financial support. 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:
1. Statement of compliance
These financial statements and their notes prepared by the Company comply with the requirements
set forth in Accounting Standards for Business Enterprises and accurately and completely reflect the
financial condition on December 31, 2021 and the operation results, cash flows and other necessary
information of the Company for the reporting period. Additionally, the Company’s financial statements in
all major aspects comply with the requirements for the disclosure of the financial statements and the notes
in the Rules for the 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 2014.
2. Accounting periods
Each accounting year starts from the January 1 to the December 31st of the same year.
3. Operating cycle
"√ Applicable" "□ Not applicable"
The operating cycle is the average period of time required for the Company from purchase of 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
CNY is the reporting currency.
5. Accounting for business combinations under common control and under different control
"√ Applicable" "□ Not applicable"
A business combination is a transaction or other event in which two or more businesses are 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
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over the carrying value of net assets obtained from the acquisition is allocated to capital surplus (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 and 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 and 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 and 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 and loss); all other deferred income tax assets recognized that are linked with
business combination must be included in current profit and loss.
For a business combination under different control completed through multiple transactions, the
“package deal” criteria in Notice of the Ministry of Finance on Printing and Distributing the Interpretation
No. 5 of the Accounting Standards for Business Enterprises issued by Ministry of Finance (CK [2012] No.
19) and Article 51 of Accounting Standards for Business Enterprises No. 33 - Consolidated Financial
Statements (refer to "Methods used for preparing consolidated financial statements") are applied to
determine whether these transactions form a package deal. Accounting for a package deal is similar to the
accounting for “long-term equity investments”; 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
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
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benefit plan under equity method, the rest will be carried into investment income of the period in which
the acquisition data fall).
6. Methods used for preparing consolidated financial statements
"√ Applicable" "□ Not applicable"
(1) Principles for determining the scope of consolidation
The scope of consolidation is determined on the basis of control. Control means the power of 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. The scope of
consolidation covers the Company and all of its subsidiaries. Subsidiaries are entities under control of the
Company.
(2) Methods used for preparing consolidated financial statements
The Company starts to include a subsidiary into the scope of consolidation from the date when it
obtains the actual control over the subsidiary, and ceases including the subsidiary into the scope of
consolidation from the date when it loses the actual control over the subsidiary. For the disposed of
subsidiary, the operation results and cash flows until the disposal date have been appropriately included
in the consolidated profit statement and consolidated cash flow statement; disposal of subsidiaries during
the current period do not affect the opening balances in the consolidated balance sheet. For a new
subsidiary from a business combination under different control, the operation results and cash flows after
the disposal date have been appropriately included in the consolidated profit statement and consolidated
cash flow statement; and the opening balances and comparison numbers in consolidated financial
statements are not adjusted. For a new subsidiary from a business combination under common control and
the acquiree from Absorption combination, the operation results and cash flows from the start of the
acquisition period to the acquisition date have been appropriately included in the consolidated profit
statement and consolidated cash flow statement, with the comparison numbers in the consolidated
financial statements adjusted.
Regarding preparation of consolidation financial statement, if there are any difference between any
subsidiary and the Company in relation to the adopted accounting policies or accounting periods,
necessary adjustments shall be made to financial statements of such subsidiary such that these differences
are eliminated. For a subsidiary obtained through business combination under different control,
adjustments to its financial statements shall be based on the fair value of net identifiable assets on the
acquisition date.
All material intra-company balances, transactions and unrealized profits are offset in preparation of
consolidated financial statements.
The shares of shareholders' equity and current net profit and loss that are not attributed to the
Company, are respectively presented as minority interest, and monitory interest gain or loss in the items
of shareholders' equity and net profit in the consolidated financial statements. The share of current net
profit and loss that is attributed to minority interest is presented as the minority interest gain or loss in the
net profit item of the consolidated financial statements. If the loss borne by minority shareholders exceeds
the amount they enjoy in the shareholders' equity at the beginning of the current period, the minority
interest is written down accordingly.
If the Company loses control of a subsidiary due to partial disposal of the investment or other reasons,
the retained interest is re-measured at fair value on the date of losing control. The sum of 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
acquisition date, is carried into the investment income of current period when the control is lost. Other
comprehensive incomes relating to the equity investment in the former subsidiary shall be subject to, when
the control is lost, accounting treatment using the same basis on which the acquiree directly disposes
relevant assets or liabilities (namely, except for changes arising from the former subsidiary’s re-
measurement of net liabilities or net assets of defined benefit plan, the rest will be carried into investment
income of current period). The retained interest shall be subsequently measured as per the Accounting
Standards for Business Enterprises No. 2 - Long-term Equity Investments or Accounting Standards for
Business Enterprises No.22 - Recognition and Measurement of Financial Instruments or other relevant
regulations. See “Long-term equity investments” or “Financial instrument” for details.
Where the Company loses control of a subsidiary through disposal of equity investment in the
subsidiary through multiple transactions, it is required to identify whether these transactions form a
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package deal. These multiple transactions are generally under accounting treatment as a package deal if
the terms, conditions and economic effects of these transactions fall within one or more following
circumstances: ① they are entered into simultaneously or with the mutual impacts considered; ②
unless operated as a whole, they cannot reach a complete commercial result; ③ the occurrence of one
transaction depends on the occurrence of another one or more; or ④ a transaction is not economic when
seen separately but economic when combined with other transactions. If these transactions do not form a
package deal, each transaction is treated under “Partial disposal of long-term equity investment in a
subsidiary without losing control” (refer to “Long-term equity investments” for details) and “Losing
control of a subsidiary due to partial disposal of equity investment or other reasons” (refer to the previous
paragraph) depending on the specific circumstance. Where transactions for disposal of equity investment
in a subsidiary leading to losing control forms a package deal, each transaction is treated as a transaction
for disposal of equity investment in a subsidiary leading to losing control; however, the difference between
each disposal amount and the net assets that the Company would be entitled regarding the disposed
investment, before the control is lost, is recognized as other comprehensive income in the consolidated
financial statements; and upon the control is lost, all these differences are carried into profit and loss of
current period when the control is lost.
7. Classification of joint arrangements and accounting for joint operations
"√ Applicable" "□ Not applicable"
A joint arrangement is an arrangement of which two or more parties have joint control. 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” and “long-term equity investments under equity
method”.
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 form 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 and 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.
8. Criteria for determination of cash and cash equivalents
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 are defined as cash equivalents when the Company prepares cash flow statements.
Restricted bank deposits are not cash and cash equivalents in the cash flow statement.
9. Foreign currency transactions and foreign currency translation
"√ Applicable" "□ Not applicable"
(1) Accounting for foreign currency transactions:
An foreign currency transaction is recorded in reporting currency converted from the benchmark
exchange rate(generally, the central parity rate) published by the People’s Bank of China on its occurrence
date; at the end of the period, foreign currency monetary items are converted at the spot exchange rate at
the end of the period; foreign currency non-monetary items measured at historical costs are converted at
the spot rate on occurrence date; foreign currency non-monetary items measured at fair value are converted
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at the spot rate on the fair value determination date. Exchange differences are carried into the purchase
and construction costs of fixed assets if they are relating to purchase and construction of such fixed assets
and before the assets reach intended usable condition; into management expense if they are not related to
purchase and construction of fixed assets and during the construction preparation period; carried into
current financial expense if they are during the production and operation period.
(2) Translation of foreign currency financial statements:
Assets and liabilities on the balance sheet are converted at the spot exchange rate effective on 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.
Foreign currency cash flows and cash flows generated from overseas subsidiaries are converted at
exchange rates that are approximate to the spot exchange rates effective on occurrences of such cash flow
items.
10. Financial instruments
"√ Applicable" "□ Not applicable"
A financial instrument is defined as any contract that gives rise to a financial asset of one entity and
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 and 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 flows;
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 flows 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 and 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 and loss. Such designation may not be revoked.
(2) Measurement of financial assets
Financial assets are measured at fair value upon initial recognition. For financial assets measured at
fair value with changes in fair value recognized into current profit and loss, relevant transaction costs are
directly carried into current profit and loss; for other financial assets, relevant transaction cost 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 Financial assets measured at amortized cost
Financial assets measured at amortized cost is 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 and loss when the financial asset is
derecognized, reclassified, through the amortization process or in order to recognize impairment gains or
losses.
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② Debt 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 Non 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 and 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 Financial assets measured at fair value through current profit and loss
A gain or loss arising from any change in the fair value of a financial asset of this category (except
for relating to hedging accounting) is carried into current profit and loss.
(3) Impairment of financial assets
Under the expected credit loss (ECL) approach, the impairment provisions on financial assets
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 flows receivable and cash flows 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 of 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 with due cost for a single financial asset, the
Company classifies accounts receivable into several Groups by credit risk characteristics, and calculates
the expected credit loss for each Group. The basis for determining the groups is as below:
Creation of
Category Type Basis provision for a
group of bad debts
Notes or letters of credit receivable
(excluding commercial acceptance bills),
Group 1 performance bonds and deposits Payment type No provision
receivable during the settlement period;
use of petty cash by construction projects
that will be reimbursed and offset by
project expenditure, and other receivables
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for which sufficient evidence showing no
risk is available
Group 2 Accounts receivable from relevant Credit risk Expected credit
government departments characteristics note 1 loss
Accounts receivable from related parties
Group 3 within the scope of consolidation and Payment type No provision
accounts receivable from joint ventures
temporarily formed for coordinated use
of the Company's operating funds
Group 4 Accounts receivable other than above Credit risk Expected credit
items characteristics note 2 loss
Note 1: for Accounts receivable from relevant government departments during the settlement period,
no provision for bad debts is established if the payments are expected to be recovered within one year after
the balance sheet date without risk(such as government subsidies receivable); the provision for bad debts
is established as 5.00% of the balance receivable if the payments are expected to be recovered one year
after the balance sheet date (such as electricity subsidies receivable) given the time value of asset; the
provision for bad debts previously established by accounts receivable age over 5.00% of the balance
receivable is not reserved until the payments are recovered for prudential purpose.
Note 2: Accounts receivable other than above Groups are grouped according to credit risk
characteristic (accounts receivable age), and the percent of provision for bad debts is estimated according
to all reasonable and grounded information including forward looking information.
Account receivable age Provision (%)
Within one year 5.00
1- 2 years 10.00
2- 3 years 50.00
Over 3 years 100.00
The Company recognizes an impairment loss that has been provided or reversed into current profit
and loss. Gains or losses from debt investments measured at fair value through other comprehensive
income are recognized into current profit and loss with the other comprehensive income adjusted
accordingly.
(4) Recognition basis for and measurement of financial asset transfers
A financial asset meeting any one of the following conditions is derecognized: ① the contractual
right to collect the financial asset's cash flows 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 and
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 and 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 Financial liabilities measured at fair value through current profit and loss
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Financial liabilities measured at fair value through profit and 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 and 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 and 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 part, 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 and loss.
(7) Offsetting of financial assets and financial liabilities
A financial asset and a financial liability should be offset and the net amount reported when and 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.
11. Notes receivable
Determination of and accounting for expected credit loss of other receivables
"√ Applicable" "□ Not applicable"
A note receivable is a written promise held by the Company to collect the principal and interest on
maturity, including banker's acceptance, commercial acceptance and letters of credit. Provision for
expected credit loss is detailed in “Financial instruments”.
12. Accounts receivable
Determination of and accounting for expected credit loss of accounts receivable
"√ Applicable" "□ Not applicable"
Refer to “Financial instruments” for details on provision for expected credit loss.
13. Receivables financing
"√ Applicable" "□ Not applicable"
It means a banker's acceptance received by the Company in order to collect principal and interest on
maturity, to transfer through endorsement, and to cash by discounting. The carrying value of a banker’s
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acceptance is used as its fair value when the remaining term to maturity is short and the carrying value is
close to the fair value. Refer to “Financial instruments” for details on provision for expected credit loss.
14. Other receivables
Determination of and accounting for expected credit loss of other receivables
"√ Applicable" "□ Not applicable"
Refer to “Financial instruments” for details on provision for expected credit loss.
15. Inventories
"√ Applicable" "□ Not applicable"
(1) Classification of inventories
Inventories are classified into: raw materials, packaging materials, work-in-process, finished goods,
materials in transit, materials for repeated use (including packages, low-value consumables, scaffolding
for construction projects), goods on consignment, goods in transit, materials for processing on
consignment, consumable biological assets, constructions.
(2) Inventory costing methods
Inventory is recorded at the actual cost upon acquisition. The weighted average method is used for
calculating for the costs of all inventories except for materials for repeated use.
(3) Basis for determination of net realizable values of inventories and provision for obsolete inventory
allowance
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 and 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.
(4) Inventory system
Perpetual system is adopted.
(5) Amortization of materials for repeated use
When materials for repeated use (low-value consumables) are collected and used, the 50%-50%
amortization method is used for materials whose unit value is above 500 yuan and one-time amortization
for materials whose unit value is below 500 yuan. In Tongwei Solar (Hefei) Co., Ltd., a wholly-owned
subsidiary of the Company, and its subsidiaries' low-value consumables are amortized completely when
they are collected, and the effects are difficult to calculate accurately, no adjustment is made in the
consolidated statements.
16. Contract assets
(1).Methods and criteria for recognition of contract assets
"√ Applicable" "□ Not applicable"
A contract asset is defined as the Company’s right to consideration in exchange for goods or 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 after on
a netting basis; and contract assets and contract liabilities under different contracts are presented separately.
(2).Determination of and accounting for expected credit loss of contract assets
"√ Applicable" "□ Not applicable"
Refer to “Financial instruments” for details.
17. Assets held for sale
"√ Applicable" "□ Not applicable"
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A non-current asset or disposal group is classified as held for sale if most of the carrying value is
expected to be recovered via future cash flows from the sale (including non-monetary exchange with
commercial substance) of the asset or disposal group rather than future cash flows from use.
The following conditions must be met for an asset or disposal group to be classified as held for sale:
(1) The asset or disposal group must be available for immediate sale in its present condition 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 the 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 and loss, and the provision
for the asset heldfor-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.
18. Debt investments
(1).Determination of and accounting for expected credit loss of debt investments
"□ Applicable" "√ Not applicable"
19. Other debt investments
(1).Determination of and accounting for expected credit loss of other debt investments
"□ Applicable" "√ Not applicable"
20. Long-term receivables
(1).Determination of and accounting for expected credit loss of long-term receivables
"□ Applicable" "√ Not applicable"
21. Long-term equity investments
"√ Applicable" "□ Not applicable"
Long-term equity investments are equity investments under which investors impose control and
significant influence over investees and the equity investments into their joint ventures.
(1) Determination of investment cost
For a long-term equity investment generated from a business combination, for example, the long-
term equity investment obtained from a business combination under common control, the share of owner’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
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service and assessment and consulting services, and other management expenses for the combination are
carried into current profit and 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 and 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 of accounting for long-term equity 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 of accounting for long-term equity 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 an associate and joint ventures 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 are 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 owners’ equity of the
investee other than net profit and 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).
③ Purchase of minority shareholding
For preparation of consolidated financial statements, the Company's capital surplus is written down
to the extent of the difference between the newly added long-term equity investment from the purchase of
minority shareholding, and the Company's newly added share of the net asset of the subsidiary since the
acquisition date, and if the capital surplus is insufficient, the retained earnings are adjusted accordingly.
④ Disposal of long-term equity investments
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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, refer to relevant accounting policies
described in “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 and 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 the carrying value, and subject to subsequent
measurement according to the aforesaid accounting policies for long-term equity investments or financial
assets. Retroactive adjustment is made under relevant provisions if the accounting treatment for the
remaining interest shifts from cost method to equity method.
(3) Basis for determination of joint control of and significant influence over an investee
Control means the power of an investor over the investee; the investor is entitled to variable returns
by participating in related activities of the investee and able to influence the amount of return by exercising
the power. Joint control is the control over a certain arrangement by two or more parties under relevant
agreements and relevant activities for the arrangement cannot be decided unless unanimously agreed by
all such parties. Significant influence is the power to participate in the decision of financial and operating
policies of an entity; it is not control over these either individually or jointly with other parties. To
determine whether an investor can impose control of or significant influence over an investee, potential
factors concerning voting rights including corporate bonds convertible in current period and warrants
exercisable in current period, that the investor and other parties hold in the investee, should be considered.
(4) Impairment test and provision for impairment
The Company assesses at each balance sheet date whether there is an indication that a long-term
equity investment may be impaired. If any such indication exists, Company shall estimate the recoverable
amount of the asset. If carrying value of the asset is greater than its recoverable amount, an impairment
provision equaling to the difference of the two shall be established and recorded into current profit and
loss. Once recognized, the said impairment loss on a long-term equity investment will not be reversed in
subsequent periods.
22. Investment properties
(1).Measured at cost:
Depreciation or amortization method
An investment property is real estate property that has been purchased with the intention of 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 is 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; the carrying value is
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adjusted to the fair value on balance sheet date and the difference between fair value and original carrying
value is carried into current profit and loss.
(3) An investment property which the Company has changed its purpose is reclassified into other
assets.
23. Fixed assets
(1).Recognition criteria
"√ Applicable" "□ Not applicable"
Fixed assets refer to premises and buildings, machinery equipment, transpotation equipment and
other equipments related with production and operation with a useful life of over one year, held for use in
the production or supply of goods or services, lease 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 Annual
Category Depreciation method
(years) value rate depreciation rate
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 equipment Straight-line method 4—5 5% 23.75%—19%
Office equipment Straight-line method 4—5 5% 23.75%—19%
Note: The Company holds a permanent title over overseas private lands purchased for 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 deprecation rate and
depreciate amount shall be re-calculated according to the 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 the carrying value and its recoverable amount on the balance
sheet date.
(3).Recognition, measurement, and depreciation of fixed assets acquired under finance leases
"□ Applicable" "√ Not applicable"
24. Construction in progress
"√ Applicable" "□ Not applicable"
(1) Measurement of construction in progress
A construction in progress is measured at cost which includes borrowing interest and expense incurred
before the end of the construction period that should be capitalized.
When a construction in progress reaches its intended purpose and is delivered for use, a fixed asset 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 deprecation are adjusted accordingly.
A construction in progress is measured at the lower of the 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
three years;
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② The construction has been outdated in performance and technology and the economic benefits
brought to the Company are largely uncertain;
③ Any other circumstance that indicates the construction in progress has been impaired.
25. Borrowing costs
"√ Applicable" "□ Not applicable"
Borrowing costs that incur during the capitalization period and may be directly attributable to
capitalization criteria are capitalized. Capitalization starts when all three conditions are met: expenditures
are incurred, borrowing costs are incurred, and 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
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 and loss if it incurs after the asset reaches
its intended use or sale.
26. Biological assets
"√ Applicable" "□ Not applicable"
(1) Classification of biological assets
Productive biological assets of the Company include male fish and male pawn.
(2) Initial measurement of productive biological assets
① The cost for purchasing a productive biological asset includes the purchase price, relevant tax,
transportation cost, insurance cost and all other expenditures that are directly attributable to purchase of
the asset.
② The cost for constructing or generating a productive biological asset includes the feed cost, labor
cost, indirect expense that should be amortized as 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
Male fish 3 5% 31.67%
Male pawn 7 months Amortization completed in the breeding
0%
season
A productive biological asset is measured at the lower of the carrying value and its recoverable
amount on the balance sheet date.
27. Oil and gas assets
"□ Applicable" "√ Not applicable"
28. Right-of-use assets
"√ Applicable" "□ Not applicable"
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(1) A right-of-use asset is recognized on the commencement date of the lease except for short-term
lease and low-value lease. Commencement date of a lease is the date on which the lessor makes an asset
available for use by the Company. A right-of-use asset is measured at cost upon initial recognition; the cost
includes:
① the amount of the initial measurement of the lease liability;
② lease payments made at or before the commencement date of the lease, less any lease incentives
received (if any);
③ any initial direct costs incurred by the Company;
④ an estimate of costs to be incurred when the Company removes the asset, restores the place where
the asset is installed or restores the asset to the condition agreed by the lease terms (excluding costs incurred
to produce inventories). If the lease liability is remeasured after the commencement date of the lease, the
carrying value of the right-of-use asset is adjusted accordingly.
(2) Depreciation of a lease asset is provided over remaining useful life of a right-of-use asset if 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.
(3) The accounting policies for “impairment of long-term assets” are applicable to the identification
of whether a right-of-use asset has been impaired and the identified impairment loss.
29. Intangible assets
(1).Measurement, useful life and impairment test
"√ Applicable" "□ Not applicable"
An intangible asset is an identifiable non-monetary asset without physical substance that the
Company owns or controls.
An intangible asset is measured at cost upon initial recognition. If payment for an intangible asset is
deferred beyond normal credit terms so that it is a financing activity, its cost is the cash price equivalent.
The difference between this amount and the total payments is recognized into current profit and loss over
the period of credit unless it is capitalized.
The useful life of an intangible asset is analyzed and determined upon it is obtained. For an intangible
asset with a finite useful life, it is amortized with straight-line method over the useful life.
At the end of each accounting period, the useful lives and amortization methods for intangible assets
with finite useful lives are reviewed. At the end of each accounting year, the useful lives and amortization
methods for intangible assets with finite useful lives are reviewed.
An intangible asset is measured at the lower of the carrying value and its recoverable amount on the
balance sheet date.
(2).Accounting policies for internal R&D costs
"√ Applicable" "□ Not applicable"
All expenditure incurred at the research stage should be carried into current profit and loss 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 and 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 how 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 the availability of adequate technical, financial and other resources to complete the development
and to use or sell the intangible asset;
⑤ the expenditure attributable to the intangible asset during its development can be reliably
measured.
30. Impairment of long-term assets
"√ Applicable" "□ Not applicable"
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The Company assesses on 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 non-financial 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, indefinite-lived
intangible assets and intangible assets that have not reached usable condition, whether or not such sign of
impairment exists, must receive at least one impairment test per year.
If the impairment test indicates that carrying value of an asset is greater than its recoverable amount,
an impairment provision equaling to the difference of the two shall be established and recorded 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 flows 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 flows 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 group 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 carrying 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 other assets of the CGU on a pro rata basis according to the carrying value
of each asset in the CGU or the group.
If the fair value of an impaired goodwill recovers after an impairment has been recognized, the
impairment may not be reversed in a subsequent period.
31. Deferred expenses
"√ Applicable" "□ Not applicable"
A deferred expense is recognized as incurred and amortized over the benefit period or specified
amortization period with straight-line method. If a deferred expense cannot bring benefits to subsequent
accounting periods, the amortized value is recognized into current profit and loss.
32. Contract liabilities
(1).Recognition of contract liabilities
"√ Applicable" "□ Not applicable"
A contract liability is the Company’s obligation to transfer goods or services to a customer for 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 goods or services
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 after on a netting basis; and contract assets and contract liabilities under different contracts
are presented separately.
33. Employee benefits
(1).Accounting for short-term benefits
"√ Applicable" "□ Not applicable"
Short-term employee benefits include salaries, bonuses, allowances and subsidies, benefit expenses,
medical insurance costs, maternity insurance costs, work injury insurance costs, house provident fund
expenses, labor union expense and education expense, and non-monetary benefits. The Company
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recognizes the short-term employee benefits 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 for post-employment benefits
"√ Applicable" "□ Not applicable"
Post-employment benefits include defined benefit plans and defined contribution plans. Defined
contribution plans include among others basic pension insurance plan and unemployment insurance, the
contribution amounts are recognized into relevant costs of assets or current profit and loss when incurred.
Defined benefit plans provided by the Company are life subsidies and medical benefits for retirees under
national policies, the Company's provisions and the years retirees have worked for the Company.
An actuarial valuation is performed on the balance sheet date on defined benefit plans, with the gain
or loss from actuarial valuation recognized into other comprehensive income. Service cost and net interest
on the net defined benefit liability or asset are carried into current profit and loss.
(3).Accounting for termination benefits
"√ Applicable" "□ Not applicable"
Termination benefits are compensations provided for employees to terminate employment before
expiry or to encourage employees to leave service voluntarily. Termination benefits are carried into
employee benefits liability and into current profit and 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 and loss (termination benefits), if the
criteria for recognition of expected liabilities are met.
(4).Accounting for other long-term employee benefits
"√ Applicable" "□ Not applicable"
Other long-term employee benefits provided for employees are subject to accounting treatment for
defined contribution plans if appropriate, and otherwise, subject to the accounting treatment for defined
benefit plans.
34. Lease liabilities
"√ Applicable" "□ Not applicable"
On the commencement date of a lease, the Company recognizes a right-of-use asset and a lease
liability, short-term leases and low-value leases that should be subject to the simplified approach are
exempted.
A lease liability is initially measured at the present value of the lease payments payable over the lease
term. Lease payments are the payments made by the Company to the lessor for the right to use the
underlying asset over the lease period, including:
(1) fixed payments (including in-substance fixed payments), less any lease incentives receivable (if
any);
(2) variable lease payments that depend on an index or rate, initially measured using the index or rate
at the commencement date;
(3) the exercise price of a purchase option that the Company is reasonably certain to exercise;
(4) payments for terminating the lease provided that the lease term reflects that the Company will
exercise the termination option;
(5) amounts expected to be payable by the Company under residual value guarantees.
In calculating the present value of lease payments, the Company uses the interest rate implicit in the
lease as the discount rate; if the rate cannot be determined, the Company uses its incremental borrowing
rate.
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After the commencement date of the lease, the Company uses a fixed periodical interest rate to
calculate the interest on the lease liability over each period in the lease term and recognizes it into current
profit and loss or relevant costs of asset. After the commencement date of the lease, the Company will re-
measure the lease liability at the present value of changed lease payments in the event of any change in-
substance fixed payments change, in the amounts expected to be payable under residual value guarantees,
the index or rate used for determining the lease payments, the assessment result or actual exercise of
purchase option, renewal option or termination option.
35. Estimated liabilities
"√ Applicable" "□ Not applicable"
An estimated liability is recognized when an obligation occurs with respect to a contingency 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
adjusts the carrying value at the current best estimate if conclusive evidence indicates that the carrying
value cannot truly reflect the current best estimate.
36. Share-based payment
"□ Applicable" "√ Not applicable"
37. Other financial instruments including preference share and perpetual bond
"□ Applicable" "√ Not applicable"
38. Revenue
(1).Accounting policies for revenue recognition and measurement
"√ Applicable" "□ Not applicable"
① General principles for recognition of revenues
Revenue is the total inflow of economic benefits formed in daily operating activities of the Company,
which will lead to the increase of owners’ equity and is not related to the capital invested by owners.
The Company recognizes a revenue when it satisfies the performance obligation in the contract, i.e.,
the customer obtains control of goods or services.
Where two or more performance obligations are included in the contract, the Company allocates the
transaction price to each performance obligation on the basis of the relative stand-alone selling prices of
each distinct goods or services 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 are not included into the transaction price. For a contract with a significant financing component,
the Company calculates the transaction price as the amounts payable in cash by the customer when it would
obtain control of the goods or services. 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 goods or services to the customer pays the price is no longer than one year.
A performance obligation is satisfied over a period if one of the following criteria is met, otherwise,
it is satisfied at a point of time:
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a. The customer receives and consumes the economic benefits from the Company's satisfaction of the
performance obligation as it is satisfied by the Company;
b. The customer is able to control work-in-process created by the Company in satisfying the
performance obligation;
c. The goods created do not have an alternative use to the Company 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 goods or services is transferred to the customer. A customer obtains control of goods
or services if the following indicators are met:
a. The Company has a present right to payment for the goods or services;
b. The Company has transferred physical possession of the goods or services to the customer;
c. The Company has transferred to the customer the significant risks and rewards of ownership of the
goods;
d. The customer has accepted the goods 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 Specific revenue recognition methods
a. Sales revenue
A revenue is recognized when control of goods is transferred to a customer.
The Company mainly produces and sells high-purity polysilicon, cells and modules, 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.
b. 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 ratio 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 and loss.
c. Revenue from transfer of right-of-use assets
The revenue is recognized over the period of a right-of-use asset under the straight-line method.
(2).Accounting policies for revenue recognition of the same class of operating activities differ by
operating models
"□ Applicable" "√ Not applicable"
39. Contract costs
"√ Applicable" "□ Not applicable"
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Contract costs are classified into costs to obtain a contract and costs to fulfill a contract.
(1) Costs to fulfill a contract
The costs to fulfill a contract are recognized as an asset when the following criteria are met:
① the costs relate directly to a contract or an anticipated contract, including direct labor, 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 to obtain a contract are 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 and loss when incurred if the amortization period is not over a year.
(3) Amortization of contract costs
The asset recognized for contract costs is amortized on a systematic basis consistent with the 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 and 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
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 any 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 and loss to the extent that the
carrying value after the reversal does not exceed the carrying value on the reversal date should the provision
was not established.
40. Government grants
"√ Applicable" "□ Not applicable"
(1) Judgement basis for and accounting treatment for grants related to assets
Grants related to assets are government grants which the Company obtains to purchase, construct 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 and loss over the useful life of the asset (i.e., the depreciation and amortization period)
from the asset reaches the its intended use condition. The remaining deferred income is recognized into
current profit and 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 and loss.
(2) Judgement basis for and accounting treatment for grants related to income
Grants related to income are government grants other than those related to assets.
Accounting treatment:
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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 and loss or to write down
relevant costs when relevant expenses are recognized.
② Grants related to income are directly carried into current profit and loss or to write down relevant
costs if they are used to compensate relevant expenses or losses that the Company have incurred.
③ When should grants are recognized
A government grant is recognized when the Company complies with the conditions attaching to 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.
41. Deferred tax assets/ deferred tax liabilities
"√ Applicable" "□ Not applicable"
Income tax is accounted for under the balance sheet liability method.
A deferred tax asset is recognized for deductible temporary differences to the extent that it is 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 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 taxes are recognized as income or expense and included in profit or loss
for the period, except to the extent that the taxes arise from transactions or events that are recognized
directly in owners’ equity and business combinations.
42. Lease
(1).Accounting for operating leases
"□ Applicable" "√ Not applicable"
(2).Accounting for financial leases
"□ Applicable" "√ Not applicable"
(3).Determination of and accounting for lease under new lease standards
"√ Applicable" "□ Not applicable"
A lease is a contract under which the lessor agrees to allow a lessee to control the use of one or more
identified assets for a stated period of time in exchange for consideration. The Company assesses whether
a contract is a lease or contains a lease on the commencement date of the contract.
① The Company as lessee
a. Initial measurement
On the commencement date of a lease, the Company recognizes a right-of-use asset for the asset that
it can use over the lease period and a lease liability for the present value of lease payments that it has not
made, short-term leases and low-value leases are exempted. 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 amount of initial measurement of a right-of-use asset includes:
A. the amount of the initial measurement of the lease liability;
B. payments made at or before the commencement date of the lease, less any lease incentives received
(if any);
C. initial direct costs incurred by the Company;
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2021 Annual Report
D. an estimate of costs to be incurred when the Company removes the asset, restores the place where
the asset is installed or restores the asset to the condition agreed by the lease terms (excluding costs incurred
to produce inventories).
The amount of the initial measurement of the lease liability includes:
A. fixed payments (including in-substance fixed payments), less any lease incentives receivable (if
any);
B. variable lease payments that depend on an index or a rate;
C. the exercise price of a purchase option that the Company is reasonably certain to exercise;
D. payments for terminating the lease provided that the lease term reflects that the Company will
exercise the termination option;
E. amounts expected to be payable by the Company under residual value guarantees.
b. Subsequent measurement
The depreciation of right-of-use assets are established under Accounting Standards for Business
Enterprises No. 4 - Fixed Assets (refer to “fixed assets” for details). Depreciation of a lease asset is provided
over remaining useful life of a right-of-use 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.
The Company uses a fixed periodical interest rate to calculate the interest on the lease liability over
each period in the lease term and recognizes it into current profit and loss or relevant costs of asset. The
variable lease payments not included into the measurement of a lease measurement are included into
current profit and loss or relevant costs of asset when incurred.
After the commencement date of the lease, the Company will re-measure the lease liability at 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. The
remaining amount is included into current profit and loss if the lease liability needs to be further reduced
after the carrying value of the right-of-use asset has been written down to zero.
c. Short-term leases and low-value leases
A short-term lease is a lease that, at the date of commencement, has a term of 12 months or less, and
does not contain any purchase option; a low-value lease is a lease for which the underlying asset, when
new, is not over 50,000.00 yuan.
d. Lease modification
A lease modification is a change in the scope of a lease, or the consideration for a lease, that was not
part of the original terms and conditions of the lease, including adding or removing the right to use one or
more underlying assets, shortening or extending the contractual lease term, and so on. The effective date
of a lease modification is the date on which both parties agree to the lease modification.
The Company accounts for a lease modification as a separate lease if both of the following conditions
exist:
A. the modification increases the scope of the lease or extends the lease term by adding the right to
use one or more underlying assets; and
B. the consideration for the lease increases by an amount commensurate with the stand-alone price
for the increase in scope or for the extension in the lease term, as adjusted for the particular circumstances
of the contract.
For a modification that is not a separate lease, the Company re-allocates the consideration after the
modification, re-determines the lease term, and re-measures the lease liability using a revised discount rate
and the revised term payments determined at the modification date. In calculating the present value of the
revised lease payments, the Company uses the interest rate implicit in the remaining lease as the discount
rate; if the rate cannot be determined, the Company uses its incremental borrowing rate on the effective
date of the lease modification.
If a lease modification leads to a decreased lease scope or a shortened lease term, the Company
adjusts the carrying value of the right-of-use asset to reflect the partial or whole termination of the lease,
and includes the gain or loss from the partially or wholly terminated lease into current profit and loss. The
Company adjusts the carrying value of the right-of-use asset if any other lease modification leads to the re-
measurement of the lease liability.
② The Company as lessor
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2021 Annual Report
A lease is classified into either a financial lease or an operating lease on the commencement date
depending on the substance of the transaction. A financial lease is a type of lease in which all risks and
rewards relating to ownership of the lease asset are substantially transferred. All other leases are operating
leases.
a. Operating lease
The Company recognizes lease payments as the rental income over the lease term on a straight-line
basis. Variable lease payments not included into the lease payments that are related to an operating lease
are included into current profit and loss when incurred.
b. Financial lease
The Company recognizes the lease payments and de-recognizes the lease asset on commencement
date of the lease. Lease payments receivable are initially measured at net investment in the lease (the sum
of the unguaranteed residual value and the present value of the lease payments that are not yet received on
commencement date of the lease discounted at the interest rate implicit in the lease), and the interest income
over the lease term is recognized at the fixed periodical interest rate. The variable lease payments not
included into the measurement of the net investment in a lease are included into current profit and loss
when incurred.
③ Leaseback
a. The Company as seller and lessee
The Company determines whether the transfer of the asset in a leaseback qualifies as a sale.
A. If the transfer does not qualify as a sale, the Company continues to recognize the asset on its
balance sheet and accounts the received cash as a financial liability subject to the Accounting Standards
for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments (2017).
B. If the transfer qualifies as a sale, the Company measures the right-of-use asset from the leaseback
at the proportion of the previous carrying value that is retained for use by the Company and recognizes a
gain or loss only to the extent that the right is transferred to the buyer and lessor. The Company makes the
following adjustments if the fair value of the consideration for the sale of an asset does not equal the fair
value of the asset, or if the payments for the lease are not at market rates;
C. Any below-market terms shall be accounted for as a prepayment of lease payments; and
D. Any above-market terms shall be accounted for as additional financing provided by the buyer-
lessor to the seller-lessee. At the same time, the lesser adjusts its sale gain or loss at fair value and the
lessor adjusts the rental income at market rates.
The Company makes the adjustment by one of the following amounts that is easier to be determined:
I. difference between the fair value of the consideration for the sale of the asset and the fair value of
the asset;
II. difference between the present value of the payments for the lease and the present value of the
rent at market rates.
b. The Company as buyer and lessor
If the transfer does not qualify as a sale, the Company does not recognize the asset, but accounts the
cash paid as a financial asset subject to the Accounting Standards for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments (2017).
43. Other significant accounting policies and accounting estimates
"□ Applicable" "√ Not applicable"
44. Changes in significant accounting policies and accounting estimates
(1).Changes in significant accounting policies
"√Applicable" "□Not applicable"
Notes (names and
Changes in accounting policies and reasons Approval procedures amounts significantly
impacted)
The Ministry of Finance issued Accounting
Standards for Business Enterprises No.21 — The 21st meeting of the Refer to other notes for
Lease (as amended in 2018) in December, 2018 7th board of directors details
(“New Lease Standards”). Companies listed in
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2021 Annual Report
the Chinese mainland are required to apply the
new lease standards from January 1, 2021.
Other notes:
The Company applied the new lease standards from January 1, 2021. Under the guidance for the new
lease standards, the Company has chosen to adjust the retained earnings at the beginning of 2021 and other
relevant item amounts with respect to the cumulative effects on contracts that have not been completed on
the first application date, the comparative financial statements are not adjusted.
The effects on financial statements of the said change in accounting policies are below:
① Consolidated balance sheet
Unit: Yuan Currency: CNY
Item 2020-12-31 Adjustment 2021-01-01
Fixed assets 29,829,602,625.00 -1,579,039,410.89 28,250,563,214.11
Right-of-use assets 4,250,066,802.56 4,250,066,802.56
Deferred expenses 835,269,963.57 -675,195,960.61 160,074,002.96
Non-current liabilities due within
2,533,702,158.71 272,775,409.95 2,806,477,568.66
one year
Lease liabilities 2,014,878,545.62 2,014,878,545.62
Long-term payables 2,526,572,275.65 -132,407,337.96 2,394,164,937.69
Undistributed profit 9,066,353,854.50 -155,171,503.88 8,911,182,350.62
Minority interest 1,002,541,280.46 -4,243,682.67 998,297,597.79
② Parent balance sheet
Unit: Yuan Currency: CNY
Item 2020-12-31 Adjustment 2021-01-01
Right-of-use assets 203,257,388.29 203,257,388.29
Deferred expenses 18,576,273.26 -6,856,371.77 11,719,901.49
Non-current liabilities due within
370,178,150.11 18,737,622.44 388,915,772.55
one year
Lease liabilities 180,969,883.10 180,969,883.10
Undistributed profit 4,107,010,606.38 -3,306,489.02 4,103,704,117.36
No other changes in significant accounting policies occurred in the reporting period except for 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 the new lease
standards are applied for the first time in 2021
"√ Applicable" "□ Not applicable"
Consolidated Balance Sheet
Unit: Yuan Currency: CNY
Item 2020-12-31 2021-01-01 Adjustment
Current assets:
Cash at bank and on hand 6,264,168,242.03 6,264,168,242.03
Settlement provisions
Lending to banks and other
financial institutions
Held-for-trading financial assets 1,531,863,068.12 1,531,863,068.12
Derivative financial assets
Notes receivable 530,962,356.27 530,962,356.27
Accounts receivable 1,069,352,776.17 1,069,352,776.17
Receivables financing 9,711,898,567.92 9,711,898,567.92
Prepayments 1,113,458,878.37 1,113,458,878.37
Premium receivable
Reinsurance receivable
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2021 Annual Report
Reinsurance contract reserve
receivable
Other receivables 797,517,755.34 797,517,755.34
Including: Interest receivable
Dividend receivable
Reverse repo
Inventories 2,773,077,527.98 2,773,077,527.98
Contract assets 988,680,196.66 988,680,196.66
Assets held for sale
Non-current assets due within one
year
Other current assets 810,572,652.99 810,572,652.99
Total current assets 25,591,552,021.85 25,591,552,021.85
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 477,736,082.22 477,736,082.22
Other equity investments 153,445,100.85 153,445,100.85
Other non-current financial assets 1,258,097.00 1,258,097.00
Investment properties 102,993,048.15 102,993,048.15
Fixed assets 29,829,602,625.00 28,250,563,214.11 -1,579,039,410.89
Construction in progress 2,997,901,620.59 2,997,901,620.59
Biological assets 91,397.35 91,397.35
Oil and gas assets
Right-of-use assets 4,250,066,802.56 4,250,066,802.56
Intangible assets 1,663,705,788.75 1,663,705,788.75
R&D expenses
Goodwill 635,818,717.99 635,818,717.99
Deferred expenses 835,269,963.57 160,074,002.96 -675,195,960.61
Deferred tax assets 415,550,864.14 415,550,864.14
Other non-current assets 1,547,022,743.45 1,547,022,743.45
Total non-current assets 38,660,396,049.06 40,656,227,480.12 1,995,831,431.06
Total assets 64,251,948,070.91 66,247,779,501.97 1,995,831,431.06
Current liabilities:
Short-term borrowings 2,349,154,525.77 2,349,154,525.77
Borrowings from central bank
Borrowings from banks and other
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 9,411,924,434.78 9,411,924,434.78
Accounts payable 3,917,320,980.64 3,917,320,980.64
Advances from customers 35,072,100.83 35,072,100.83
Contract liabilities 2,302,728,492.73 2,302,728,492.73
Sale of financial assets to be
repurchased
Inward deposits
Payments from sale and purchase
of securities on behalf of customers
Payments from underwriting
securities on behalf of customers
Employee benefits payable 736,363,100.05 736,363,100.05
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2021 Annual Report
Taxes payable 220,414,765.91 220,414,765.91
Other payable 743,639,264.91 743,639,264.91
Including: Interest payable
Dividend payable
Service charge and commission
payable
Reinsurance receivable
Liabilities held for sale
Non-current liabilities due within
2,533,702,158.71 2,806,477,568.66 272,775,409.95
one year
Other current liabilities 130,204,120.53 130,204,120.53
Total current liabilities 22,380,523,944.86 22,653,299,354.81 272,775,409.95
Non-current liabilities:
Reinsurance contract reserve
Long-term borrowings 6,296,585,539.34 6,296,585,539.34
Bonds payable 410,096,446.33 410,096,446.33
Including: Preference share
Perpetual bond
Lease liabilities 2,014,878,545.62 2,014,878,545.62
Long-term payables 2,526,572,275.65 2,394,164,937.69 -132,407,337.96
Long-term employee benefits
payable
Estimated liabilities
Deferred income 782,273,717.14 782,273,717.14
Deferred tax liability 311,949,837.40 311,949,837.40
Other non-current liabilities
Total non-current liabilities 10,327,477,815.86 12,209,949,023.52 1,882,471,207.66
Total liabilities 32,708,001,760.72 34,863,248,378.33 2,155,246,617.61
Owners’ equity (or shareholders' equity)
Paid-up capital (or share capital) 4,501,548,184.00 4,501,548,184.00
Other equity instruments
Including: Preference share
Perpetual bond
Capital surplus 16,105,693,787.44 16,105,693,787.44
Less: Treasury shares
Other comprehensive income -73,914,221.72 -73,914,221.72
Special reserve 16,401,063.07 16,401,063.07
Surplus reserve 925,322,362.44 925,322,362.44
General risk reserve
Undistributed profit 9,066,353,854.50 8,911,182,350.62 -155,171,503.88
Total equity attributable to owners
30,541,405,029.73 30,386,233,525.85 -155,171,503.88
or shareholders of parent company
Minority interest 1,002,541,280.46 998,297,597.79 -4,243,682.67
Total owners’ equity (or
31,543,946,310.19 31,384,531,123.64 -159,415,186.55
shareholders' equity)
Total liabilities and owners’
64,251,948,070.91 66,247,779,501.97 1,995,831,431.06
equity (or shareholders' equity)
Notes on item adjustments:
"□ Applicable" "√ Not applicable"
Parent Balance Sheet
Unit: Yuan Currency: CNY
Item 2020-12-31 2021-01-01 Adjustment
Current assets:
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2021 Annual Report
Cash at bank and on hand 5,430,260,350.86 5,430,260,350.86
Held-for-trading financial 1,500,000,000.00 1,500,000,000.00
assets
Derivative financial assets
Notes receivable
Accounts receivable 3,002,746.85 3,002,746.85
Receivables financing 69,390,676.70 69,390,676.70
Prepayments 16,500,340.59 16,500,340.59
Other receivables 12,569,916,260.88 12,569,916,260.88
Including: Interest receivable
Dividend receivable
Inventories 235,553,546.57 235,553,546.57
Contract assets
Assets held for sale
Non-current assets due within
one year
Other current assets 11,747,755.66 11,747,755.66
Total current assets 19,836,371,678.11 19,836,371,678.11
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 3,821,033,136.03 3,821,033,136.03
Long-term equity investments 13,836,401,258.90 13,836,401,258.90
Other equity investments 153,445,100.85 153,445,100.85
Other non-current financial
assets
Investment properties 38,690,960.02 38,690,960.02
Fixed assets 298,259,368.75 298,259,368.75
Construction in progress 26,343,888.97 26,343,888.97
Biological assets
Oil and gas assets
Right-of-use assets 203,257,388.29 203,257,388.29
Intangible assets 60,200,180.33 60,200,180.33
R&D expenses
Goodwill
Deferred expenses 18,576,273.26 11,719,901.49 -6,856,371.77
Deferred tax assets 1,610,507.55 1,610,507.55
Other non-current assets
Total non-current assets 18,254,560,674.66 18,450,961,691.18 196,401,016.52
Total assets 38,090,932,352.77 38,287,333,369.29 196,401,016.52
Current liabilities:
Short-term borrowings 1,899,865,349.31 1,899,865,349.31
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 300,000,000.00 300,000,000.00
Accounts payable 81,247,275.28 81,247,275.28
Advances from customers 1,921,719.85 1,921,719.85
Contract liabilities 122,226,302.00 122,226,302.00
Employee benefits payable 93,517,635.88 93,517,635.88
Taxes payable 6,703,834.73 6,703,834.73
Other payable 3,898,411,472.34 3,898,411,472.34
Including: Interest payable
Dividend payable
Liabilities held for sale
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2021 Annual Report
Non-current liabilities due 370,178,150.11 388,915,772.55 18,737,622.44
within one year
Other current liabilities 126,263.87 126,263.87
Total current liabilities 6,774,198,003.37 6,792,935,625.81 18,737,622.44
Non-current liabilities:
Long-term borrowings 3,405,262,828.00 3,405,262,828.00
Bonds payable 410,096,446.33 410,096,446.33
Including: Preference share
Perpetual bond
Lease liabilities 180,969,883.10 180,969,883.10
Long-term payables 875,898,885.36 875,898,885.36
Long-term employee benefits
payable
Estimated liabilities
Deferred income
Deferred tax liability
Other non-current liabilities
Total non-current liabilities 4,691,258,159.69 4,872,228,042.79 180,969,883.10
Total liabilities 11,465,456,163.06 11,665,163,668.60 199,707,505.54
Owners’ equity (or shareholders' equity)
Paid-up capital (or share
4,501,548,184.00 4,501,548,184.00
capital)
Other equity instruments
Including: Preference share
Perpetual bond
Capital surplus 17,084,837,736.04 17,084,837,736.04
Less: Treasury shares
Other comprehensive income 6,757,300.85 6,757,300.85
Special reserve
Surplus reserve 925,322,362.44 925,322,362.44
Undistributed profit 4,107,010,606.38 4,103,704,117.36 -3,306,489.02
Total owners’ equity (or
26,625,476,189.71 26,622,169,700.69 -3,306,489.02
shareholders' equity)
Total liabilities and
owners’ equity (or shareholders' 38,090,932,352.77 38,287,333,369.29 196,401,016.52
equity)
Notes on item adjustments:
"□ Applicable" "√ Not applicable"
(4).Notes on retrospective adjustment of prior comparative data due to application of the new lease
standards for the first time in 2021
"□ Applicable" "√ Not applicable"
45. Others
"□ Applicable" "√ Not applicable"
VI. Taxes
1. Major taxes types and tax rates
Major taxes types and tax rates
"√ Applicable" "□ Not applicable"
Tax type Tax basis Tax rate
VAT Sales amount 0%, 3%, 5%, 6%, 9%, 13%
Consumption tax
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2021 Annual Report
Business tax
Urban construction and maintenance Turnover tax payable 1%-7%
tax
Corporate income tax Turnover tax payable 15%, 16.5%, 17%, 20%, 25%
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Land use tax Area of used land Local provisions
Property tax Original value × 70%, rent 1.2%, 12%
Disclose the circumstance when different corporate income tax payers exist
"□ Applicable" "√ Not applicable"
2. Tax preferences
"√ Applicable" "□ Not applicable"
(1) VAT
Sale of feed by domestic companies is exempt from value added tax under the Cai Shui [2001] No.
121 document from the Ministry of Finance and the State Taxation Administration.
Sale of cement by Sichuan Yongxiang New Materials Co., Ltd. is entitled to immediate return of 70%
VAT under the Cai Shui [2015] No. 78 document from the Ministry of Finance and the State Taxation
Administration.
Sale of agricultural products directly produced by some subsidiaries in livestock farming business
including Nanjing Tongwei Aquaculture Technology Co., Ltd. and Chengdu Tongwei Aquaculture
Technology Co., Ltd. is exempt 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).
The Company's transfer of the right of use of land to agricultural producers for the purpose of
agricultural production is exempt from value added tax from May 1, 2016 under the Cai Shui [2016] No.
36 document from the Ministry of Finance and the State Taxation Administration.
(2) Corporate income tax
1) Parent (including management head office and subsidiaries and branches) consolidated tax return
The collection provisions for corporate income tax in respect of the parent company are “untied
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).
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 those enterprises in encouraged industries
established in West China are entitled to income tax rate of 15% from January 1, 2021 to December 31,
2030. Tongwei Agricultural Finance Guarantee Co., Ltd., Sichuan Tongwei Sanlian Aquatic Products Co.,
Ltd., Sichuan Yongxiang Polysilicon Co., Ltd., Sichuan Yongxiang New Materials Co., Ltd., Sichuan
Yongxiang New Energy Co., Ltd., Sichuan Yongxiang Silicon Materials Co., Ltd., Sichuan Yongxiang
PV Technology Co., Ltd., Inner Mongolia Tongwei High-purity Crystalline Silicon Company Co., Ltd.,
Yunnan Tongwei High-purity Crystalline Silicon Company Limited, Tongwei Solar (Chengdu) Co., Ltd.,
Tongwei Solar (Meishan) Co., Ltd., Tongwei Solar (Jintang) Co., Ltd., Tonghe New Energy (Jintang) Co.,
Ltd. and PV powerplant companies are entitled to this reduction.
3) Subsidiaries approved as high-tech enterprises that are entitled to income tax rate of 15%
Guangdong Tongwei Feed Co., Ltd. was approved as a high-tech enterprise in 2020 (No.
GR202044000114).
Jieyang Tongwei Feed Co., Ltd. was approved as a high-tech enterprise in 2021 (No.
GR202144000333).
Nanning Aigefei Feed Co., Ltd. was approved as a high-tech enterprise in 2021 (No.
GR202145000799).
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2021 Annual Report
Zhuhai Haiyi Aquatic Products Feed Co., Ltd. was approved as a high-tech enterprise in 2021 (No.
GR202144012792).
Sichuan Willtest Technology Co., Ltd. was approved as a high-tech enterprise in 2021 (No.
GR202151001355).
Sichuan Fusion Link Co., Ltd. was approved as a high-tech enterprise in 2020 (No.
GR202051001569).
Chengdu Tongwei Automation Equipment Co., Ltd. was approved as a high-tech enterprise in 2021
(No. GR202151001846).
Tongwei Solar (Hefei) Co., Ltd. was approved as a high-tech enterprise in 2021 (No.
GR202134000919).
Tongwei Solar (Anhui) Co., Ltd. was approved as a high-tech enterprise in 2020 (No.
GR202034000630).
4) Subsidiaries engaged in seawater mariculture and inland aquaculture with entitlement in 50%
reduction of income tax
The Article 86 of the Implementation Regulations on the Corporate Income Tax of the People'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. Subsidiaries including Hainan Hairen Aquatic Seed Co., Ltd.,
Zhanjiang Haiyi Seed Co., Ltd., Tongwei Aquaculture-Photovoltaic Integration (Rudong) Co., Ltd.,
Chengdu Tongwei Aquatic Seed Co., Ltd., Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd.,
Nanjing Tongwei Aquaculture Technology Co., Ltd., and Chengdu Tongwei Aquaculture Technology Co.,
Ltd. are entitled to this preference.
5) Overseas subsidiaries entitled to tax preferences
The 218/2013/N-CP document issued by the Government of Vietnam on December 26, 2013, the
statutory rate of corporate income tax in Vietnam was reduced to 20% from January 1, 2016. The tax
preferences to which Tongwei Vietnam Co., Ltd. is entitled: 10% of tax preference to revenue from feed
business; no preference to revenue from non-main business. 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.
For Tongwei Feed Mill Bangladesh Ltd., the interest income on bank deposits out of its total profit
is 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: 3% for 0 to 1 million BDT (including 1 million); 10%
for 1 million to 2 million BDT (including 2 million); and 15% for the amount over 2 million BDT.
6) Tax preferences for public infrastructure projects with key national supports
According to the Notice of the Ministry of Finance of the People's Republic of China and State
Taxation Administration on Relevant Issues Concerning the Implementation of the Preferential Catalog
of Corporate Income Tax for Public Infrastructure Projects (Cai Shui 2008 [46]), the income from
investment and operation of enterprises engaged in public infrastructure projects supported by the State
are exempt from corporate 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 corporate income tax is halved
from the fourth to the sixth year.
According to the provisions of Cai Shui [2008] No. 116, new solar power generation projects
approved by the competent investment department of the government are public infrastructure projects.
Now, new PV power plants of the subsidiaries of Tongwei New Energy Co., Ltd. have been connected 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"
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VII. Notes to items in consolidated financial statements
1. Cash at bank and on hand
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Cash on hand 109,314.50 126,156.42
Cash at bank 2,901,525,647.94 5,972,818,689.87
Other cash at bank and on hand 100,295,919.94 291,223,395.74
Total 3,001,930,882.38 6,264,168,242.03
Including: Total deposits overseas 205,052,603.96 290,741,946.92
2. Held-for-trading financial assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Financial assets measured at fair value through current profit 10,617,668.58 1,531,863,068.12
and loss
Including:
Debt investments 1,500,000,000.00
Derivative financial assets 10,617,668.58 4,863,068.12
Equity investments 27,000,000.00
Total 10,617,668.58 1,531,863,068.12
Other notes:
"√ Applicable" "□ Not applicable"
A derivative financial asset is a paper gain from the difference between the locked-in exchange rate
in the undelivered forward lock-in contract within the scope of forward foreign exchange contract signed
by the Company for export sale and the Central Bank’s parity rate at the end of the period (hedge
ineffectiveness).
3. Derivative financial assets
"□ Applicable" "√ Not applicable"
4. Notes receivable
(1). Presentations of notes receivable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Banker's acceptance
Commercial acceptance 200,000,000.00
Letter of credit 1,376,925,682.02 530,962,356.27
Total 1,576,925,682.02 530,962,356.27
(2). Notes receivable pledged by the Company as of the end of the period
"□ Applicable" "√ Not applicable"
(3). Notes receivable endorsed or discounted by the Company as of the end of the period that have
not been due on the balance sheet date
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount de-recognized at the Amount not derecognized at the
Item
end of the period end of the period
Banker's acceptance
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2021 Annual Report
Commercial acceptance 200,000,000.00
Total 200,000,000.00
(4). Notes that have been converted by the Company to other receivables due to non-performance
of issuers as of the end of the period
"□ Applicable" "√ Not applicable"
(5). Disclosure by method for creation of provision for bad debts
"□ Applicable" "√ Not applicable"
Creation of provision for a single bad debt:
"□ Applicable" "√ Not applicable"
Creation of provision for a group of bad debts:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model
for expected credit loss:
"□ Applicable" "√ Not applicable"
(6). Provision for bad debts
"□ Applicable" "√ Not applicable"
(7). Notes receivable written off in current period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
5. Accounts receivable
(1).Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Account receivable age Closing balance
Within 1 year 2,114,817,099.60
1- 2 years 773,250,649.84
2- 3 years 159,591,279.30
Over 3 years 120,623,776.64
Total 3,168,282,805.38
(2).Disclosure by method for creation of provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Category Balance Provision for bad debts Balance Provision for bad debts
Carrying Carrying
Percent Provision value Percent Provision value
Amount Amount Amount Amount
(%) (%) (%) (%)
Creation of
provision
103,540,864.18 3.27 1,035,408.64 1.00 102,505,455.54 79,183,407.43 6.69 791,834.07 1.00 78,391,573.36
for a single
bad debt
Creation of
provision
3,064,741,941.20 96.73 251,720,247.66 8.21 2,813,021,693.54 1,104,970,371.10 93.31 114,009,168.29 10.32 990,961,202.81
for a group
of bad debts
Including:
Group 1 11,616,353.54 0.98 11,616,353.54
Group 2 1,435,401,418.99 45.30 68,054,324.68 4.74 1,367,347,094.31 526,840,587.52 44.49 26,100,847.26 4.95 500,739,740.26
Group 3 17,350.00 0.00 17,350.00 22,300.00 22,300.00
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2021 Annual Report
Group 4 1,629,323,172.21 51.43 183,665,922.98 11.27 1,445,657,249.23 566,491,130.04 47.84 87,908,321.03 15.52 478,582,809.01
Total 3,168,282,805.38 100.00 252,755,656.30 7.98 2,915,527,149.08 1,184,153,778.53 100.00 114,801,002.36 9.69 1,069,352,776.17
Creation of provision for a single bad debt:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance
Name Provision for Provision
Balance Provision reason
bad debts (%)
Price of feed
delivered to
103,540,864.18 1,035,408.64 1.00 Note:
overseas customers
secured by banks
Total 103,540,864.18 1,035,408.64 1.00 /
Note on creation of provision for a single bad debt:
"√ Applicable" "□ Not applicable"
Price of feed delivered to overseas customers are fully secured by local banks. The security banks will
make payments unconditionally when the payments are due, which are at a low risk, the provision percent
is set as 1% accordingly.
Creation of provision for a group of bad debts:
"√Applicable" "□Not applicable"
Creation by group: Group 2
Unit: Yuan Currency: CNY
Closing balance
Name Provision for bad
Accounts receivable Provision (%)
debts
Power supply companies
193,173,488.53
(desulfurization electricity price)
Electricity price subsidies 1,242,227,930.46 68,054,324.68 5.48
Total 1,435,401,418.99 68,054,324.68 4.74
Criteria for recognizing accounts receivables regarding the creation of provision for a group of bad debts:
"√ Applicable" "□ Not applicable"
The desulfurization electricity prices are recovered within the settlement period for no risk, no
provision for bad debts is created; electricity price subsidies have been included into the national subsidy
catalog, the subsidies that have not been included into the catalog are presented in contract assets.
Creation by group: Group 3
Unit: Yuan Currency: CNY
Closing balance
Name Accounts Provision for Provision
receivable bad debts (%)
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 12,800.00
Chengdu Tongwei Business Management Co., Ltd. 4,550.00
Total
Criteria for recognizing accounts receivables regarding the creation of provision for a group of bad debts:
"√ Applicable" "□ Not applicable"
Accounts receivable from subsidiaries and joint ventures of the parent company are at no risk, no
provision for bad debts is created.
Creation by group: Group 4
Unit: Yuan Currency: CNY
Name Closing balance
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2021 Annual Report
Accounts receivable Provision for bad debts Provision (%)
Within 1 year 1,477,609,846.16 73,880,492.31 5.00
1- 2 years 40,569,793.91 4,056,979.39 10.00
2- 3 years 10,830,161.72 5,415,080.86 50.00
Over 3 years 100,313,370.42 100,313,370.42 100.00
Total 1,629,323,172.21 183,665,922.98 11.27
Criteria for recognizing accounts receivables regarding the creation of provision for a group of bad debts:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model
for expected credit loss:
"□ Applicable" "√ Not applicable"
(3).Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current change
Opening
Category Recovered or Cleared or Closing balance
balance Provision Other changes
reversed written off
Creation
for a
791,834.07 243,574.57 1,035,408.64
single
debt
Risk
114,009,168.29 91,774,556.27 1,113,391.27 5,037,270.00 49,860,401.83 251,720,247.66
group
Total 114,801,002.36 92,018,130.84 1,113,391.27 5,037,270.00 49,860,401.83 252,755,656.30
Note: Other changes are the increase in provision for bad debts by 17,272,431.67 yuan due to the business
combination under different control, the increase in provision for impairment on contract assets by
32,936,359.14 yuan and the exchange difference of -348,388.97 yuan in current period.
Significant amounts recovered or reversed in current period:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Recovered or reversed
Entity name Recovery method
amount
Customer 1 824,310.76 Recovery of bad debts in prior period
Customer 2 69,802.68 Recovery of bad debts in prior period
Customer 3 68,119.83 Recovery of bad debts in prior period
Customer 4 60,000.00 Recovery of bad debts in prior period
Other 4 customers 91,158.00 Recovery of bad debts in prior period
Total 1,113,391.27 /
(4).Accounts receivable written off in current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Written off amount
Accounts receivable written off 5,037,270.00
Significant accounts receivable written off
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Whether the
amount is
Nature of accounts Written off Write-off
Entity name Write-off reason generated from a
receivable amount procedure
related-party
transaction
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2021 Annual Report
The payment is expected Approval under
Customer 1 Price of goods 1,393,071.13 No
unrecoverable due procedures
The payment is expected Approval under
Customer 2 Price of goods 574,155.01 No
unrecoverable due procedures
The payment is expected Approval under
Customer 3 Price of goods 489,943.00 No
unrecoverable due procedures
The payment is expected Approval under
Customer 4 Price of goods 330,493.21 No
unrecoverable due procedures
The payment is expected Approval under
Customer 5 Water surface rent 321,040.07 No
unrecoverable due procedures
The payment is expected Approval under
Customer 6 Price of goods 308,207.73 No
unrecoverable due procedures
Other 22 The payment is expected Approval under
1,620,359.85 No
customers unrecoverable due procedures
Total / 5,037,270.00 / / /
Note on write-off of accounts receivable:
"□ Applicable" "√ Not applicable"
(5).Top five entities in accounts receivable at the end of the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percent in the total
Closing balance of
accounts receivable at
Entity name Closing balance provision for bad
the end of the period
debts
(%)
Pig farming company under
952,736,512.87 30.07 47,636,825.64
Tech-bank Note
Customer 1 148,652,448.40 4.69 7,432,622.42
Customer 2 142,575,079.94 4.50 8,101,967.70
Customer 3 123,726,985.49 3.91 8,052,946.80
Customer 4 104,080,894.18 3.29 4,944,608.34
Total 1,471,771,920.88 46.45 76,168,970.90
Other notes
Note: the age of accounts receivable from the pig farming company under Tech-bank Food Co., Ltd.
(“Tech-bank”) is within the payment term agreed in the contract.
(6).Accounts receivable de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(7).Amounts of assets and liabilities generated due to transfer of accounts receivable and
continuing involvement
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
6. Receivables financing
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Banker's acceptance 11,406,947,347.71 9,711,898,567.92
Total 11,406,947,347.71 9,711,898,567.92
Change in receivable financing and change in fair value in current period:
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2021 Annual Report
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model
for expected credit loss:
"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
(1) The banker's acceptances pledged by the Company as of the end of the period totaled
10,084,007,955.24 yuan.
(2) The banker’s acceptances endorsed as of the end of the period that have not been due on the balance
sheet date totaled 6,974,410,024.68 yuan.
(3) The banker's acceptances discounted as of the end of the period that have not been due on the balance
sheet date totaled 2,278,756,254.77 yuan.
The acceptors of the said banker's acceptances are banks with a very low possibility of non-
performance, so these banker's acceptances have been de-recognized. The Company will be liable jointly
and severally with banks for bearers under the Law of Notes if the notes are not paid when they due.
7. Prepayments
(1).Prepayments by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Age
Amount Percent (%) Amount Percent (%)
Within 1 year 1,592,976,378.78 99.15 1,103,470,579.96 99.10
1- 2 years 9,894,205.53 0.62 5,066,523.70 0.46
2- 3 years 1,238,495.57 0.08 3,006,226.96 0.27
Over 3 years 2,435,960.95 0.15 1,915,547.75 0.17
Total 1,606,545,040.83 100.00 1,113,458,878.37 100.00
Note on the reason for significant prepayments over 1 year:
No significant prepayment over 1 year.
(2).Top five entities in prepayments at the end of the current period
"√ Applicable" "□ Not applicable"
The total amount of prepayments from top five entities for current period is 807,720,547.52 yuan,
taking up 50.28% of the total amount of prepayments at the end of the period.
Other notes
"√ Applicable" "□ Not applicable"
No prepayment is written off in current period.
8. Other receivables
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 611,985,134.57 797,517,755.34
Total 611,985,134.57 797,517,755.34
Other notes:
"□ Applicable" "√ Not applicable"
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2021 Annual Report
Interest receivable
(1).Types of interest receivable
"□ Applicable" "√ Not applicable"
(2).Significant overdue interest
"□ Applicable" "√ Not applicable"
(3).Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Dividend receivable
(4).Dividend receivable
"□ Applicable" "√ Not applicable"
(5).Significant interest receivable over 1 year
"□ Applicable" "√ Not applicable"
(6).Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Other receivables
(7).Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Age Closing balance
Within 1 year 314,878,125.17
1- 2 years 192,908,217.57
2- 3 years 71,709,103.87
Over 3 years 103,095,326.01
Total 682,590,772.62
(8).Classification by nature of payment
"√ Applicable""□ Not applicable"
Unit: Yuan Currency: CNY
Payment type Closing balance Opening balance
Performance bond 444,273,452.92 374,102,261.00
Asset disposal 76,665,987.95
Government grants 17,593,568.84 33,827,768.05
Advances 38,008,377.28 27,613,484.07
Insurance claims 4,702.00 306,340,731.68
Others 106,044,683.63 89,483,436.04
Total 682,590,772.62 831,367,680.84
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2021 Annual Report
(9).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 Jan-1-
17,308,901.67 16,541,023.83 33,849,925.50
2021
The Jan-1-2021
balance during
the current period
-- Converted
into stage II
-- Converted
-4,110,162.00 4,110,162.00
into stage III
-- Reversed into
stage II
-- Reversed into
stage I
Creation in
16,602,340.39 14,787,621.50 247,954.52 31,637,916.41
current period
Reversal in
current period
Clear in current
period
Write-off in
4,358,116.52 4,358,116.52
current period
Other changes 9,459,753.02 16,159.64 9,475,912.66
Balance on
December -31- 39,260,833.08 31,344,804.97 70,605,638.05
2021
Note on significant changes in balances of other receivables for which their provisions were changed in
current period:
"√ Applicable" "□ Not applicable"
Other changes include the increase in provision for bad debts by 9,459,753.02 yuan due to the
business combination and the exchange difference of 16,159.64 yuan.
Provisions for bad debts and basis for determining significant increases in credit risks of financial
instruments for current period:
"□ Applicable" "√ Not applicable"
(10). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current change
Opening Recovered Closing
Category Cleared or
balance Provision or Other changes balance
written off
reversed
Other
33,849,925.50 31,637,916.41 4,358,116.52 9,475,912.66 70,605,638.05
receivables
Total 33,849,925.50 31,637,916.41 4,358,116.52 9,475,912.66 70,605,638.05
Significant amounts recovered or reversed in current period:
157 / 261
2021 Annual Report
"□ Applicable""√ Not applicable"
(11). Other receivables written off in current period
"√ Applicable""□ Not applicable"
Unit: Yuan Currency: CNY
Item Written off amount
Other receivables written off in current period 4,358,116.52
Significant receivables written off:
"√ Applicable""□ Not applicable"
Unit: Yuan Currency: CNY
Whether the
amount is
generated
Nature of other Written off Write-off
Entity name Write-off reason from a
receivables amount procedure
related-
party
transaction
Customer 1 The payment is expected Approval under
Loan 3,113,131.36 No
unrecoverable due procedures
Customer 2 Lease payments for The payment is expected Approval under
495,909.04 No
water surface (land) unrecoverable due procedures
Other 20 The payment is expected Approval under
749,076.12 No
customers unrecoverable due procedures
Total / 4,358,116.52 / / /
Note on write-off of other receivables:
"□ Applicable" "√ Not applicable"
(12). Top five entities in other receivables at the end of the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Provision
Percent in the total
for bad
other receivables at
Entity name Payment type Closing balance Age debts
the end of the
closing
period (%)
balance
Entity 1 Performance bond 129,895,617.48 Note 1 19.03
Entity 2 Asset disposal 76,665,500.00 Within 1 year 11.23
Entity 3 Performance bond 52,000,000.00 1- 2 years 7.62
Entity 4 Performance bond 30,000,000.00 Within 1 year 4.40
Entity 5 Performance bonds
28,747,399.57 2- 3 years 4.21
and advances
Total 317,308,517.05 46.49
Note: the amount of Performance bond receivable from entity 1 at the end of the current period was
22,549,598.12 yuan for receivable age within 1 year, 43,162,846.70 yuan for receivable age of 1-2 years,
6,905,870.77 yuan for receivable age of 2-3 years and 27,979,778.46 yuan for receivable age of over 3
years.
(13). Grants receivable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Expected time and
Entity name Grant name Closing balance Age
amount and basis
Entity 1 Interest grant 17,593,568.84 Note
Other notes
Note: amount for current period is determined under the agreement signed with the government, and
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2021 Annual Report
is expected to be recovered within 1 year.
(14). Other receivables de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(15). Amounts of assets and liabilities generated due to transfer of other receivables and
continuing involvement
"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
Disclosure of closing balances of other receivables by method for creation of provision for bad debts:
Category Balance Provision for bad debts Carrying value
Amount Percent Amount Percent
(%) (%)
Creation of provision 11,903,851.90 1.74 2,736,175.13 22.99 9,167,676.77
for a single bad debt
Creation of provision 670,686,920.72 98.26 67,869,462.92 10.12 602,817,457.80
for a group of bad
debts
Including: Group 1 343,105,434.17 50.27 343,105,434.17
Group 2 98,895,738.30 14.49 98,895,738.30
Group 4 228,685,748.25 33.50 67,869,462.92 29.68 160,816,285.33
Total 682,590,772.62 100.00 70,605,638.05 10.34 611,985,134.57
① Note: The Repayment Agreement signed between the Company, Tianmen Jianhua Agricultural
Technology Development Co., Ltd. (“Jianhua Technology”, Tianmen Changfeng Aquatic Technology
Development Co., Ltd. (“Changfeng Technology” and Administration Committee of Tianmen Industrial
Park (“Tianmen Park Committee”) states that: (1) Tianmen Park Committee re-collects the fish pond in
Jianhua Technology and Chenhu Management Bureau of Changfeng Technology and releases the pond to
the Company, the Company directly deducts the debts to Chen Jianhua, Jianhua Technology and
Changfeng Technology when paying the land rent to Tianmen Park Committee on a yearly basis; (2)
Repayment schedule: 1 million yuan per year from 2016 to 2018, 1.5 million yuan per year from 2019 to
2027, and 593,900 yuan in 2028. The Company recognizes provision for bad debts at carrying balance
less the expected present value of future cash flows.
② Group 1 is other receivable at no risk, mainly includes performance bonds and reserves within
the settlement period. These are at no risk, so no provision for bad debts is created.
③ Group 2 is other receivables from governmental agencies. These are expected to be recovered or
settled within one year at no risk, so no provision for bad debts is created.
④ Group 4 other receivables for which provision for bad debts is created according to receivable
aging analysis:
Closing balance
Age Accounts receivable Provision for bad debts Provision (%)
Within 1 year 125,887,256.36 6,294,362.82 5
1- 2 years 13,721,171.29 1,372,117.13 10
2- 3 years 57,748,675.27 28,874,337.64 50
Over 3 years 31,328,645.33 31,328,645.33 100
Total 228,685,748.25 67,869,462.92 29.68
9. Inventories
(1).Classification of inventories
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
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Provision for Provision for
obsolete obsolete
inventory/ inventory/
Balance Carrying value Balance Carrying value
provision for provision for
impairment on impairment on
fulfillment costs fulfillment costs
Raw materials 2,302,650,278.47 9,983,945.22 2,292,666,333.25 1,531,391,779.83 489,807.98 1,530,901,971.85
Work-in-process 286,891,070.52 286,891,070.52 134,560,573.85 134,560,573.85
Packing materials 31,170,648.04 31,170,648.04 24,496,956.01 24,496,956.01
Goods in stock 924,876,172.89 27,417,517.64 897,458,655.25 543,565,920.80 15,850,096.94 527,715,823.86
Materials for
48,917,893.98 48,917,893.98 49,567,023.61 49,567,023.61
repeated use
Consumable
63,370,049.03 7,843,337.72 55,526,711.31 59,442,936.26 7,843,337.72 51,599,598.54
biological assets
Materials in
9,318.11 9,318.11 176,229.12 176,229.12
transit
Materials for
processing on 1,112,823,293.76 1,112,823,293.76 20,178,791.68 20,178,791.68
consignment
Costs to fulfill a
13,936,566.22 13,936,566.22 10,687,934.60 10,687,934.60
contract
Goods in transit 948,652,713.69 5,261,636.09 943,391,077.60 426,536,846.43 3,344,221.57 423,192,624.86
Total 5,733,298,004.71 50,506,436.67 5,682,791,568.04 2,800,604,992.19 27,527,464.21 2,773,077,527.98
(2).Provision for obsolete inventory and provision for impairment on fulfillment costs
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current increase Current decrease
Opening Closing
Item Reversed or
balance Provision Others Others balance
cleared
Raw materials 489,807.98 9,741,390.82 217,142.36 464,395.94 9,983,945.22
Work-in-process
Goods in stock 15,850,096.94 28,330,669.06 16,763,248.36 27,417,517.64
Materials for repeated use
Consumable biological assets 7,843,337.72 7,843,337.72
Costs to fulfill a contract
Goods in transit 3,344,221.57 5,261,636.09 3,344,221.57 5,261,636.09
Total 27,527,464.21 43,333,695.97 217,142.36 20,571,865.87 50,506,436.67
(3).Note on closing balance of inventories containing capitalized amount of borrowing costs
"□ Applicable" "√ Not applicable"
(4).Note on amount of fulfillment costs amortized in current period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
10. Contract assets
(1).Contract assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Balance Carrying value Balance Carrying value
provision provision
Electricity
price 758,955,932.09 43,852,907.79 715,103,024.30 1,051,832,084.69 63,151,888.03 988,680,196.66
subsidies
Total 758,955,932.09 43,852,907.79 715,103,024.30 1,051,832,084.69 63,151,888.03 988,680,196.66
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2021 Annual Report
Note: Electricity price subsidies presented in the contract assets are subsidies that have not been included
into the national subsidy catalog, the subsidies 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"
(3).Impairment provision for contract assets in current period
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model
for expected credit loss:
"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
(1) Impairment provision for contract assets:
Closing balance Opening balance
Category Provision for Provision Provision for Provision
Balance Balance
bad debts (%) bad debts (%)
Electricity
price 758,955,932.09 43,852,907.79 5.78% 1,051,832,084.69 63,151,888.03 6.00%
subsidies
(2) Changes in impairment provision for contract assets:
Category Opening balance Creation in current period Other changes Closing balance
Electricity
price 63,151,888.03 13,637,378.90 -32,936,359.14 43,852,907.79
subsidies
Note: Other changes include for the PV powerplants included into the national subsidy catalog in 2021,
the electricity price subsidies receivable and impairment provision that are converted into accounts
receivable and provision for bad debts.
11. Assets held for sale
"□ Applicable" "√ Not applicable"
12. Non-current assets due within one year
"□ Applicable" "√ Not applicable"
Significant debt investments and other debt investments at the end of the current period:
"□ Applicable" "√ Not applicable"
13. Other current assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Costs to obtain contracts
Costs of returns receivable
Costs of issuing convertible bond to be deducted 1,140,203.28
Other tax prepayments 1,335,221.74 135,144.66
Input tax credit/VAT prepayment 1,192,394,602.16 800,167,237.49
Corporate income tax prepayment 25,773,110.65 9,202,582.48
Prepaid distribution from PV powerplants in 655,750.06
poverty alleviation program
Interest prepayment 411,938.30
Total 1,220,643,137.83 810,572,652.99
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14. Debt investments
(1).Debt investments
"□ Applicable" "√ Not applicable"
(2).Significant debt investments at the end of the current period
"□ Applicable" "√ Not applicable"
(3).Impairment provision
"□ Applicable" "√ Not applicable"
Impairment provisions created in current period and basis for determining significant increases in credit
risks of financial instruments for current period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
15. Other debt investments
(1).Other debt investments
"□ Applicable" "√ Not applicable"
(2).Other significant debt investments at the end of the current period
"□ Applicable" "√ Not applicable"
(3).Impairment provision
"□ Applicable" "√ Not applicable"
Impairment provisions created in current period and basis for determining significant increases in credit
risks of financial instruments for current period
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
16. Long-term receivables
(1).Long-term receivables
"□ Applicable" "√ Not applicable"
(2).Provision for bad debts
"□ Applicable" "√ Not applicable"
Provisions for bad debts and basis for determining significant increases in credit risks of financial
instruments for current period
"□ Applicable" "√ Not applicable"
(3).Long-term receivables de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(4).Amounts of assets and liabilities generated due to transfer of long-term receivables and
continuing involvement
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
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2021 Annual Report
17. Long-term equity investments
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
Closing
Current change
balance Closing
Opening Adjustment of balance of
Investee Investment gain Other
balance Additional Decreased other Declared cash Impairment impairment
or loss under changes in Others
investments investments comprehensive dividend or profit provision provision
equity method equity
income
I. Joint ventures
Shaoxing Tongwei
5,737,908.83 5,541,776.67 -196,132.16
Jiuding Feed Co., Ltd.
Hefei Tongwei Jiuding
5,228,897.07 1,851,778.58 -1,085,451.82 2,291,666.67
Feed Co., Ltd.
Maoming Tongwei
9,757,770.36 -655,071.22 2,691,000.00 6,411,699.14
Jiuding Feed Co., Ltd.
Huangmei Tongwei
3,714,781.43 3,620,921.86 -93,859.57
Jiuding Feed Co., Ltd.
BioMar Tongwei
(Wuxi) Biotech Co., 101,225,309.42 3,881,464.81 105,106,774.23
Ltd.
Sub-total 125,664,667.11 11,014,477.11 1,850,950.04 4,982,666.67 111,518,473.37
II. Associates
Lijiang LONGi
Silicon Materials Co., 182,578,455.89 135,879,494.06 46,698,961.83
Ltd.
Zhongwei New
54,637,625.23 -54,637,625.23
Energy Co., Ltd.
Bohai Aquaculture
100,055,700.00 1,030,906.22 88,513.09 -1,571,789.65 99,603,329.66
Co., Ltd.
Haimao Seed Industry
150,000,000.00 -13,461,047.10 170,573.67 -2,307.33 136,707,219.24
Technology Co., Ltd.
Anhui Tech-bank Feed
60,000,000.00 -643,982.62 59,356,017.38
Technology Co., Ltd.
Anhui Tech-bank
Biotechnology Co., 23,000,000.00 402,678.61 23,402,678.61
Ltd.
Suzhou Taiyangjing
14,799,633.99 13,750,000.00 -3,339,026.67 25,210,607.32
New Energy Co., Ltd.
Sub-total 352,071,415.11 246,750,000.00 135,879,494.06 -16,010,471.56 259,086.76 -1,574,096.98 46,698,961.83 -54,637,625.23 344,279,852.21
Total 477,736,082.22 246,750,000.00 146,893,971.17 -14,159,521.52 259,086.76 -1,574,096.98 51,681,628.50 - -54,637,625.23 455,798,325.58
Other notes
Note: Other changes (-54,637,625.23 yuan) are from Zhongwei New Energy (Chengdu) Co., Ltd., an associate generated by a business combination under different
control in current period. Refer to “business combination under different control” for details.
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2021 Annual Report
18. Other equity investments
(1).Other equity investments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Chengdu Tongwei Property Co., Ltd. 153,551,598.71 153,445,100.85
(2).Non-trading equity investments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Reasons for
Amount converted from designation as Reasons for conversion
Dividend income
Cumulative Cumulative other comprehensive measurement at fair from other comprehensive
Item recognized in
gain loss income to retained value through other income to retained
current period
earnings comprehensive earnings
income
Chengdu Tongwei
6,863,798.71 Management mode
Property Co., Ltd.
Other notes:
"□ Applicable" "√ Not applicable"
19. Other non-current financial assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency ：CNY
Item Closing balance Opening balance
Sichuan Electricity Trading Center Co., Ltd. 3,146,248.25 1,258,097.00
Other notes:
"□ Applicable" "√ Not applicable"
20. Investment properties
Measurement models for investment properties
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2021 Annual Report
(1).Investment properties measured at cost
Unit: Yuan Currency: CNY
Premises and Construction in
Item Land use rights Total
buildings progress
I. Original carrying value
1. Opening balance 147,370,436.43 21,630,000.00 169,000,436.43
2. Current increase 37,869,094.45 37,869,094.45
(1) Purchased
(2) Conversion from stock/fixed assets/construction in progress 37,869,094.45 37,869,094.45
(3) Increase from business combination
3. Current decrease 23,159,098.17 23,159,098.17
(1) Disposal
(2) Others 23,159,098.17 23,159,098.17
4. Closing balance 162,080,432.71 21,630,000.00 183,710,432.71
II. Accumulated depreciation and accumulated amortization
1. Opening balance 28,005,445.18 8,635,036.25 36,640,481.43
2. Current change 8,620,908.19 666,408.39 9,287,316.58
(1) Deprecation or amortization 4,147,041.79 666,408.39 4,813,450.18
(2) Conversion from fixed assets 4,473,866.40 4,473,866.40
3. Decrease in current period 4,252,895.52 4,252,895.52
(1) Disposal
(2) Others 4,252,895.52 4,252,895.52
4. Closing balance 32,373,457.85 9,301,444.64 41,674,902.49
II. Impairment provision
1. Opening balance 29,366,906.85 29,366,906.85
2. Current change 9,132,441.67 9,132,441.67
(1) Provision 9,132,441.67 9,132,441.67
3. Current decrease 8,806,783.32 8,806,783.32
(1) Disposal
(2) Others 8,806,783.32 8,806,783.32
4. Closing balance 29,692,565.20 29,692,565.20
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IV. Carrying value
1. Closing carrying value 100,014,409.66 12,328,555.36 112,342,965.02
2. Opening carrying value 89,998,084.40 12,994,963.75 102,993,048.15
(2).Investment properties for which title certificates are not obtained
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
21. Fixed assets
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Fixed assets 37,294,101,648.99 28,239,517,321.46
Disposal of fixed assets 5,069,389.79 11,045,892.65
Total 37,299,171,038.78 28,250,563,214.11
Other notes:
"□ Applicable" "√ Not applicable"
Fixed assets
(1).Fixed assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Machinery Transportation PV generation Office
Item Premises and buildings Total
equipment vehicles equipment equipment
I. Original carrying value:
1. Opening balance 9,059,000,572.56 18,405,559,917.97 265,966,953.40 9,360,403,748.99 297,360,010.97 37,388,291,203.89
2. Current increase 2,309,838,457.05 10,178,982,420.94 81,515,933.97 1,475,601,283.96 70,671,416.03 14,116,609,511.95
(1) Purchase 220,331,015.09 72,505,388.15 957,213.38 42,650,626.95 336,444,243.57
(2) Conversion from construction in progress 1,910,455,296.93 8,774,727,120.32 3,440,487.37 1,624,904,843.21 15,997,617.26 12,329,525,365.09
(3) Increase from business combination 270,356,382.95 656,930,883.96 5,734,183.04 - 14,745,199.94 947,766,649.89
(4) Conversion from investment properties 23,159,098.17 23,159,098.17
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2021 Annual Report
(5) Conversion from right-of-use assets upon
479,183,544.80 479,183,544.80
lease term expires
(6) Adjustment from final accounts of
112,382,456.58 53,400,832.01 89,734.68 -150,260,772.63 -2,358,388.55 13,253,862.09
construction completion
(7) Exchange rate change -6,514,777.58 -5,590,975.24 -253,859.27 - -363,639.57 -12,723,251.66
3. Current decrease 95,317,709.74 3,952,236,726.58 28,866,574.80 4,273,347.05 12,808,478.96 4,093,502,837.13
(1) Disposal or scrap 56,221,640.21 2,346,167,054.18 28,866,574.80 4,273,347.05 12,808,478.96 2,448,337,095.20
(2) Conversion to construction in progress 1,226,975.08 1,606,069,672.40 1,607,296,647.48
(3) Conversion to investment properties 37,869,094.45 37,869,094.45
4. Closing balance 11,273,521,319.87 24,632,305,612.33 318,616,312.57 10,831,731,685.90 355,222,948.04 47,411,397,878.71
II. Accumulated depreciation
1. Opening balance 1,986,367,966.18 5,204,014,189.62 135,636,278.87 762,589,109.90 175,449,114.37 8,264,056,658.94
2. Current increase 503,801,243.41 2,061,908,206.37 46,824,115.98 375,250,359.13 32,115,989.61 3,019,899,914.50
(1) Provision 398,453,368.17 1,746,697,739.68 43,481,507.91 394,207,082.93 21,985,755.61 2,604,825,454.30
(2) Conversion from investment properties 4,252,895.52 4,252,895.52
(3) Conversion from right-of-use assets upon 144,535,105.61 144,535,105.61
lease term expire
(4) Increase from business combination 85,994,593.73 169,809,791.89 3,513,298.15 - 11,916,291.03 271,233,974.80
(5) Adjustment from final accounts of 16,619,363.52 3,409,810.99 0 -18,956,723.80 -1,540,203.08 -467,752.37
construction completion
(6) Exchange rate change -1,518,977.53 -2,544,241.80 -170,690.08 - -245,853.95 -4,479,763.36
3. Current decrease 51,822,811.73 1,551,159,728.18 19,692,180.44 401,397.73 10,073,708.30 1,633,149,826.38
(1) Disposal or scrap 46,337,906.57 1,202,488,612.16 19,692,180.44 401,397.73 10,073,708.30 1,278,993,805.20
(2) Conversion to construction in progress 1,011,038.76 348,671,116.02 349,682,154.78
(3) Conversion to investment properties 4,473,866.40 4,473,866.40
4. Closing balance 2,438,346,397.86 5,714,762,667.81 162,768,214.41 1,137,438,071.30 197,491,395.68 9,650,806,747.06
III. Impairment provision
1. Opening balance 153,367,068.57 508,932,761.59 10,219.13 221,877,025.60 530,148.60 884,717,223.49
2. Current increase 9,280,140.44 43,375,936.90 52,656,077.34
(1) Provision 43,375,936.90 43,375,936.90
(2) Conversion from investment properties 8,806,783.32 8,806,783.32
(3) Increase from business combination 473,357.12 473,357.12
3. Current decrease 9,152,512.23 461,725,662.53 5,643.41 470,883,818.17
(1) Disposal or scrap 20,070.56 461,725,662.53 5,643.41 461,751,376.50
(2) Conversion to investment properties 9,132,441.67 9,132,441.67
4. Closing balance 153,494,696.78 47,207,099.06 10,219.13 265,252,962.50 524,505.19 466,489,482.66
IV. Carrying value
1. Closing carrying value 8,681,680,225.23 18,870,335,845.46 155,837,879.03 9,429,040,652.10 157,207,047.17 37,294,101,648.99
2. Opening carrying value 6,919,265,537.81 12,692,612,966.76 130,320,455.40 8,375,937,613.49 121,380,748.00 28,239,517,321.46
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2021 Annual Report
① Adjustment from final accounts of construction completions mainly refers to the adjustment of fixed assets pre-converted to fixed assets from final accounts
of PV power plant completions.
② The carrying value of fixed assets is increased by 676,059,317.97 yuan due to business combination is from the business combination under different control:
purchase of Ningbo Tech-bank Feed Technology Co., Ltd., Qingdao Qihao Biotechnology Co., Ltd., Ningbo Tech-bank Biotechnology Co., Ltd., Yancheng Tech-
bank Feed Technology Co., Ltd., Nanning Aigefei Feed Co., Ltd., Bengbu Tech-bank Feed Technology Co., Ltd., Hubei Tech-bank Feed Co., Ltd., Dongying Tech-
bank Feed Technology Co., Ltd., Vietnam Tech-bank Feed Co., Ltd. (Collectively “Tech-bank Feed Companies”) and Zhongwei New Energy (Chengdu) Co., Ltd.
Refer to the “business combination under different control” for details.
③ The Company has engaged a professional firm to work together with the Company for conducting a comprehensive impairment test on PV powerplants. As
a result, the impairment provision for Phase I 20.00 MW Aquaculture-Photovoltaic Integration power plant in Helan, Ningxia and the Phase I 10.00 MW Aquaculture-
Photovoltaic Integration power plant in Chilechuan, Inner Mongolia was created for a total of 43,375,900 yuan.
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2021 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
9,264,786.19 6,221,979.23 3,042,806.96
buildings
Machinery
1,327,808.18 1,063,621.01 264,187.17
equipment
Total 10,592,594.37 7,285,600.24 3,306,994.13
(3).Fixed assets acquired by financial lease
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Original carrying Accumulated Impairment
Item Carrying value
value depreciation provision
Premises and
255,884,736.73 40,511,035.16 215,373,701.57
buildings
Machinery
2,110,406.30 820,262.01 1,290,144.29
equipment
PV generation
4,937,006,937.98 676,441,135.67 251,253,540.09 4,009,312,262.22
equipment
Total 5,195,002,081.01 717,772,432.84 251,253,540.09 4,225,976,108.08
Note: Fixed assets acquired from leaseback are listed above. No fixed asset acquired directly from
financial lease.
(4).Fixed assets leased out by operating lease
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing carrying value
Premises and buildings 158,348,762.62
Machinery equipment 28,378,577.95
Transportation equipment 185,042.69
Office equipment 559,120.72
Total 187,471,503.98
(5).Fixed assets for which title certificates are not obtained
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Reason for not
Item Carrying value obtaining title
certificate
Premises of Tongwei Solar (Meishan) Co., Ltd. 888,900,650.23 In progress
Premises of Tongwei Solar (Chengdu) Co., Ltd. 820,062,616.52 In progress
Premises of Tongwei Solar (Jintang) Co., Ltd. 551,775,119.30 In progress
Premises of Tongwei Solar (Hefei) Co., Ltd. 264,009,697.23 In progress
Premises of Sichuan Yongxiang New Energy Co., Ltd. 192,493,814.66 In progress
Premises of Fuzhou Tongwei William Feed Co., Ltd. 43,276,777.58 In progress
Premises of Nanchang Tongwei Biotechnology Co., Ltd. 32,443,744.62 In progress
Premises of Tongwei (Hainan) Aquatic Products Co., Ltd. 18,837,904.36 In progress
Premises of Huaian Tongwei Feed Co., Ltd. 18,538,930.03 In progress
Premises of Shenyang Branch Tongwei Co., Ltd. 9,843,109.01 In progress
Premises of Qianxi Tongwei Feed Co., Ltd. 5,697,647.22 In progress
Premises of Xiamen Tongwei Feed Co., Ltd. 2,944,300.04 In progress
169 / 261
2021 Annual Report
Premises of Inner Mongolia Tongwei High-purity In progress
2,873,504.83
Crystalline Silicon Company
Premises of Ningbo Tech-bank Feed Technology Co., Ltd. 568,024.62 In progress
Total 2,852,265,840.25
Other notes:
"□ Applicable" "√ Not applicable"
Disposal of fixed assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Disposal of fixed assets 5,069,389.79 11,045,892.65
Total 5,069,389.79 11,045,892.65
Other notes:
The closing balance under disposal of fixed assets only includes the net salvage value of scraped fixed
assets.
22. Construction in progress
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Construction in progress 10,275,906,661.11 2,933,099,260.27
Construction materials 360,494,223.95 64,802,360.32
Total 10,636,400,885.06 2,997,901,620.59
Other notes:
"□ Applicable" "√ Not applicable"
170 / 261
2021 Annual Report
Construction in progress
(1).Construction in progress
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Balance Carrying value Balance Carrying value
provision provision
Tongwei New Energy projects:
200 MW Aquaculture-Photovoltaic
Integration project in Dongying husbandry 9,509,808.86 9,509,808.86 585,781,725.88 585,781,725.88
area
100 MW Aquaculture-Photovoltaic
37,919,892.66 37,919,892.66 13,911,543.22 13,911,543.22
Integration project in Zhaoyuan County
200 MWP Aquaculture-Photovoltaic
Integration project in Huaiyuan County, 239,338,460.65 239,338,460.65
Bengbu
120 MW Aquaculture-Photovoltaic
182,665,801.80 182,665,801.80
Integration project in Binyang County
100 MW Aquaculture-Photovoltaic
Integration project in Taishan modern fishery 281,044,577.27 281,044,577.27 3,182,326.38 3,182,326.38
industry park
Phase I 100 MW Aquaculture-Photovoltaic
118,756,051.11 118,756,051.11 5,017,462.58 5,017,462.58
Integration project in Suihua
120 MWP Aquaculture-Photovoltaic
276,207,535.03 276,207,535.03 3,266,860.87 3,266,860.87
Integration project in Lianjiang
250 MW Aquaculture-Photovoltaic
Integration project in Chenhu for Tongwei 281,453,322.92 281,453,322.92
Tianmen
Other New Energy projects 235,788,573.16 235,788,573.16 206,569,274.97 206,569,274.97
Yongxiang projects:
Yongxiang Technological renovation for
29,930,785.31 29,930,785.31 240,839,251.28 240,839,251.28
polysilicon production
171 / 261
2021 Annual Report
Phase I 50,000-ton high-purity polysilicon
3,409,911,750.01 3,409,911,750.01 18,922,538.54 18,922,538.54
project in Yunnan
Phase II 50,000-ton high-purity polysilicon
1,192,138,830.18 1,192,138,830.18 577,974.76 577,974.76
project in Baotou
Phase II 50,000-ton high-purity polysilicon
21,508,913.81 21,508,913.81 41,830,743.74 41,830,743.74
project in Leshan
15 GW monocrystalline rod pulling and
755,030,527.90 755,030,527.90 71,887,730.93 71,887,730.93
cutting project
Other Yongxiang projects 68,606,172.86 68,606,172.86
Tongwei Solar projects:
Phase II 7.5 GW high-efficiency solar cell
809,599.56 809,599.56 523,132,682.15 523,132,682.15
project in Meishan
Phase I 7.5 GW high-efficiency solar cell
117,509,014.15 117,509,014.15 27,832,971.13 27,832,971.13
project in Meishan
Phase I 7.5 GW high-efficiency solar cell
1,964,042.72 1,964,042.72 484,681,023.28 484,681,023.28
project in Jintang
Anhui efficiency enhancing project 13,247,840.01 13,247,840.01
Tonghe 15 GW high-efficiency solar cell
2,281,757,633.72 2,281,757,633.72
project
Tonghe 15 GW water slicing project 560,024,727.84 560,024,727.84
Other Solar projects 140,933,740.38 5,282,262.90 135,651,477.48 191,006,063.88 5,282,262.90 185,723,800.98
Agriculture and Animal Husbandry projects:
Nanning Feed relocation project 1,268,630.25 1,268,630.25 74,459,717.42 74,459,717.42
Fuzhou Company phase II project 89,227,151.64 89,227,151.64 55,224,431.48 55,224,431.48
Other Agriculture and Animal Husbandry
187,221,840.87 187,221,840.87 137,670,900.02 137,670,900.02
projects
Total 10,281,188,924.01 5,282,262.90 10,275,906,661.11 2,938,381,523.17 5,282,262.90 2,933,099,260.27
(2).Changes in significant construction in progress in current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Interest
Including:
Amount converted Cumulative Cumulative capitalizati
Opening Other current Closing Constructio interest Sources of
Item name Budget Current increase to fixed assets in cost to budget interest on rate in
balance decreases balance n progress capitalized in funds
current period (%) capitalized current
current period
period (%)
172 / 261
2021 Annual Report
Tongwei New
Energy projects:
200 MW
Aquaculture-
Photovoltaic Self-
764,232,500.00 585,781,725.88 51,278,531.03 627,550,448.05 9,509,808.86 95.08 97 285,065.37
Integration project funding
in Dongying
husbandry area
100 MW
Aquaculture-
Photovoltaic Self-
408,574,900.00 13,911,543.22 280,668,399.31 256,660,049.87 - 37,919,892.66 87.02 90 2,762,619.89 543,618.33 4.76
Integration project funding
in Zhaoyuan
County
200 MWP
Aquaculture-
Photovoltaic Self-
674,250,000.00 239,338,460.65 276,497,442.33 515,835,902.98 98.41 100 327,780.80 289,717.40 4.76
Integration project funding
in Huaiyuan
County, Bengbu
120 MW
Aquaculture-
Photovoltaic Self-
471,338,500.00 182,665,801.80 182,665,801.80 85.05 80 1,497,728.19 1,497,728.19 3.97
Integration project funding
in Binyang
County
100 MW
Aquaculture-
Photovoltaic
Self-
Integration project 381,448,100.00 3,182,326.38 277,862,250.89 281,044,577.27 83.26 79 5,457,592.52 5,132,256.53 4.86
funding
in Taishan modern
fishery industry
park
Phase I 100 MW
Aquaculture-
Self-
Photovoltaic 439,790,100.00 5,017,462.58 113,738,588.53 118,756,051.11 95.36 90 8,966,587.65 8,965,129.93 4.79
funding
Integration project
in Suihua
120 MWP
Aquaculture-
Self-
Photovoltaic 468,371,900.00 3,266,860.87 330,253,358.99 57,312,684.83 276,207,535.03 80.47 80 3,592,247.85 3,569,779.30 4.85
funding
Integration project
in Lianjiang
250 MW
Aquaculture-
Photovoltaic Self-
458,065,500.00 281,453,322.92 281,453,322.92 80.90 80 2,203,532.80 2,203,532.80 4.88
Integration project funding
in Chenhu for
Tongwei Tianmen
Other New Energy
206,569,274.97 369,219,755.35 230,673,646.77 109,326,810.39 235,788,573.16 62,647,014.76 11,217,269.95
projects
Yongxiang
projects:
Yongxiang
technological
Self-
renovation for 487,870,900.00 240,839,251.28 44,907,798.37 255,816,264.34 29,930,785.31 58.57 60
funding
polysilicon
production
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2021 Annual Report
Phase I 50,000-ton
high-purity Self-
3,963,900,000.00 18,922,538.54 3,390,989,211.47 3,409,911,750.01 96.20 95 6,859,067.07 6,859,067.07 4.69
polysilicon project funding
in Yunnan
Phase II 50,000- Raising
ton high-purity fund and
4,016,290,000.00 577,974.76 1,300,963,730.01 74,247.79 109,328,626.80 1,192,138,830.18 32.41 30 610,813.42 610,813.42 4.30
polysilicon project self-
in Baotou funding
Phase II 50,000- Raising
ton high-purity fund and
3,893,700,000.00 41,830,743.74 3,692,830,950.14 3,713,152,780.07 21,508,913.81 95.74 94
polysilicon project self-
in Leshan funding
15 GW
monocrystalline
4,103,929,600.00 780,689,730.43 25,659,202.53 755,030,527.90 28,641,748.40
rod pulling and
cutting project
Other Yongxiang
71,887,730.93 202,834,414.31 205,315,371.26 800,601.12 68,606,172.86
projects
Tongwei Solar
projects:
Phase II 7.5 GW
high-efficiency Raising
2,200,000,000.00 523,132,682.15 1,116,785,987.58 1,637,597,920.60 1,511,149.57 809,599.56 72.56 99
solar cell project fund
in Meishan
Phase I 7.5 GW
high-efficiency Self-
2,500,000,000.00 27,832,971.13 165,148,509.50 75,472,466.48 117,509,014.15 94.00 99
solar cell project funding
in Meishan
Phase I 7.5 GW Raising
high-efficiency fund and
2,500,359,400.00 484,681,023.28 2,016,990,500.95 2,450,462,248.79 49,245,232.72 1,964,042.72 98.63 90 5,320,589.44 5,320,589.44 5.20
solar cell project self-
in Jintang funding
Anhui efficiency Self-
364,442,800.00 13,247,840.01 510,641,833.66 523,889,673.67 95.79 100
enhancing project funding
Tonghe 15 GW
Self-
high-efficiency 4,500,000,000.00 2,281,757,633.72 2,281,757,633.72 51.17 50
funding
solar cell project
Tonghe Solar 15
Self-
GW water slicing 1,500,000,000.00 560,024,727.84 560,024,727.84 37.93 40
funding
project
Other Solar
191,006,063.88 1,443,312,778.98 1,409,791,266.09 83,593,836.39 140,933,740.38
projects
Agriculture and
Animal
Husbandry
projects:
Nanning Feed Self-
115,631,700.00 74,459,717.42 20,566,312.00 93,757,399.17 1,268,630.25 82.18 90 667,787.84
relocation project funding
Fuzhou Company Self-
95,000,000.00 55,224,431.48 34,002,720.16 89,227,151.64 93.92 95 5,817,660.10 2,858,931.51 4.35
phase II project funding
Other Agriculture
and Animal
137,670,900.02 336,954,732.13 276,162,994.33 11,240,796.95 187,221,840.87 4,852,515.68 212,848.70
Husbandry
projects
Total 34,307,195,900.00 2,938,381,523.17 20,063,039,022.40 12,329,525,365.09 390,706,256.47 10,281,188,924.01 / / 140,510,351.78 49,281,282.57 / /
174 / 261
2021 Annual Report
Note 1: Budget means the investment budget for the project; accumulated cost to budget means the ratio of accumulated investment to the project to budget, and
accumulative cost includes the amount of fixed assets that has been carried forward in the previous year.
Note 2: Phase I 7.5 GW high-efficiency solar cell project in Jintang has changed from 7.5 GW/year PERC cells to 5.6 GW/year PERC cells (source of funds: raising
fund) and 1 GW/year HJT cells (source of funds: self-funding). The total budget is not adjusted. The total investment into projects for which funds are raised was
considered in the 18th meeting of the 7th board of directors and the 17th meeting of the 7th board of supervisors on April 13, 2021 and approved at the 2020 annual
shareholders meeting on May 8, 2021.
Note 3: Other decrease of 390,706,256.47 yuan includes: converted management expense of 344,699.23 yuan, converted intangible assets of 287,632,781.98 yuan,
the Company's write-off of current profit and loss of 181,132.08 yuan. The remaining decrease is from that Jianping Tongwei New Energy Co., Ltd decreased its
construction in progress by 102,547,643.18 yuan.
Note 4: 100 MW Aquaculture-Photovoltaic Integration project in Zhaoyuan County provided 70.24 MW to the grid in 2021, the corresponding construction in progress
was pre-converted into fixed assets. The closing balance means the remaining construction in progress.
Note 5: For the 250 MW Aquaculture-Photovoltaic Integration project in Chenhu for Tongwei Tianmen, the registration capacity is 250 MW and the total budget is 1
billion yuan. The project is constructed in different phases. The construction size for current period is 100 MW with a budget of 458,065,500 yuan; the cost to budget
is 80.90% and the construction progress is 80.00%.
Note 6: The budget for technological renovation project is adjusted each year according to actual circumstances.
Note 7: The budget means the actual budget net of working capital.
Note 8: The closing balance of 200 MW Aquaculture-Photovoltaic Integration project in Dongying husbandry area was affected by the pandemic because the
renovation for some fish ponds has not been completed.
Note 9: The difference between actual cost to budget for the phase II 7.5 GW high-efficiency solar cell project in Meishan is mainly from: ① the actual purchase
price of equipment was lower than the budget by about 151 million yuan; ② some supporting facilities are shared by Phase I and Phase II projects, resulting in a
reduction of about 206 million yuan.
(3).Impairment provision for construction in progress in current period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
Construction materials
(4).Construction materials
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item
Balance Impairment provision Carrying value Balance Impairment provision Carrying value
Special equipment 155,963,464.57 155,963,464.57 50,203,546.20 50,203,546.20
Special materials 204,530,759.38 204,530,759.38 14,598,814.12 14,598,814.12
175 / 261
2021 Annual Report
Total 360,494,223.95 360,494,223.95 64,802,360.32 64,802,360.32
23. Biological assets
(1).Productive biological assets measured at cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Planting industry Husbandry Forestry Aquaculture
Item Total
Category Category Category Category Category Category Male fish Male pawn
I. Original carrying value
1. Opening balance 555,792.00 555,792.00
2. Current increase 13,985,535.85 13,985,535.85
(1) Purchased 13,985,535.85 13,985,535.85
(2) Self-cultivated
3. Current decrease 410,332.00 410,332.00
(1) Disposal 410,332.00 410,332.00
(2) Others
4. Closing balance 145,460.00 13,985,535.85 14,130,995.85
II. Accumulated depreciation
1. Opening balance 464,394.65 464,394.65
2. Current increase 62,087.30 10,355,136.90 10,417,224.20
(1) Provision 62,087.30 10,355,136.90 10,417,224.20
3. Current decrease 388,294.91 388,294.91
(1) Disposal 388,294.91 388,294.91
(2) Others
4. Closing balance 138,187.04 10,355,136.90 10,493,323.94
III. Impairment provision
1. Opening balance
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal
(2) Others
4. Closing balance
IV. Carrying value
176 / 261
2021 Annual Report
1. Closing carrying value 7,272.96 3,630,398.95 3,637,671.91
2. Opening carrying value 91,397.35 91,397.35
(2).Productive biological assets measured at fair value
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
24. Oil and gas assets
"□ Applicable" "√ Not applicable"
25. Right-of-use assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Premises and buildings Machinery equipment Land and water surface Total
I. Original carrying value
1. Opening balance 189,924,672.75 1,906,742,875.52 3,186,983,854.04 5,283,651,402.31
2. Current increase 41,830,630.29 739,226,844.43 174,413,702.50 955,471,177.22
(1) Leased-in in current period 37,237,996.61 739,226,844.43 169,706,860.60 946,171,701.64
(2) Adjustment from
-244,526.56 4,706,841.90 4,462,315.34
modifications of terms of lease contracts
(3) Increase from business
4,837,160.24 4,837,160.24
combination
3. Current decrease 479,183,544.80 83,350,331.60 562,533,876.40
(1) Conversion to fixed assets 479,183,544.80 479,183,544.80
(2) Scrap or disposal 83,350,331.60 83,350,331.60
4. Closing balance 231,755,303.04 2,166,786,175.15 3,278,047,224.94 5,676,588,703.13
II. Accumulated depreciation
1. Opening balance 20,961,609.90 327,703,464.62 684,919,525.23 1,033,584,599.75
2. Current increase 27,082,245.88 133,937,610.65 275,832,246.60 436,852,103.13
(1) Provision 26,800,160.96 133,937,610.65 275,832,246.60 436,570,018.21
177 / 261
2021 Annual Report
(2) Increase from business
282,084.92 282,084.92
combination
3. Current decrease 982,967.71 144,535,105.61 24,572,189.73 170,090,263.05
(1) Disposal 982,967.71 24,572,189.73 25,555,157.44
(2) Conversion to fixed assets 144,535,105.61 144,535,105.61
4. Closing balance 47,060,888.07 317,105,969.66 936,179,582.10 1,300,346,439.83
III. Impairment provision
1. Opening balance
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal
4. Closing balance
IV. Carrying value
1. Closing carrying value 184,694,414.97 1,849,680,205.49 2,341,867,642.84 4,376,242,263.30
2. Opening carrying value 168,963,062.85 1,579,039,410.90 2,502,064,328.81 4,250,066,802.56
Other notes:
Conversion to fixed assets means the Company has obtained the ownership of machinery equipment acquired under financial lease upon the lease expires or through
its early exercising the purchase option.
26. Intangible assets
(1).Intangible assets
"□ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Non-patented Right to use
Item Land use rights Patents Software Trademarks Franchises Total
technologies transmission lines
I. Original carrying value
1. Opening balance 1,693,553,647.04 9,778,430.62 80,655,610.97 121,192,861.24 614,180.00 48,273,597.79 11,000,000.00 1,965,068,327.66
2. Current increase 439,965,039.21 139,830,055.58 113,187,131.76 47,467,269.30 96,749,227.50 7,795,872.99 18,981,500.00 863,976,096.34
(1) Purchase 7,967,023.17 3,903,271.44 18,260,600.01 18,949,000.00 49,079,894.62
(2) Internal
research and development
178 / 261
2021 Annual Report
(3) Increase from
163,188,756.39 137,673,915.90 111,440,000.00 5,188,173.26 96,749,227.50 32,500.00 514,272,573.05
business combination
(3) Conversion
from construction in 263,614,285.95 24,018,496.03 287,632,781.98
progress
(4) Adjustment
from final accounts of 7,996,896.00 7,795,872.99 15,792,768.99
construction completion
(5) Other increase 2,156,139.68 -2,156,139.68
(5) Exchange rate
-2,801,922.30 -2,801,922.30
change
3. Current decrease 6,998,839.19 9,090.00 4,730,245.47 112,300.00 11,850,474.66
(1) Disposal 6,998,839.19 9,090.00 4,730,245.47 112,300.00 11,850,474.66
4. Closing balance 2,126,519,847.06 149,599,396.20 193,842,742.73 163,929,885.07 97,251,107.50 56,069,470.78 29,981,500.00 2,817,193,949.34
II. Accumulated amortization
1. Opening balance 209,173,634.41 7,413,678.38 25,323,164.23 52,939,040.80 583,884.28 5,103,198.29 825,938.52 301,362,538.91
2. Current increase 53,984,703.46 7,617,825.04 11,491,327.29 21,763,321.88 10,353,141.95 3,217,806.71 643,793.53 109,071,919.86
(1) Provision 38,781,570.49 5,574,485.25 13,118,000.41 20,795,589.38 10,353,141.95 2,750,054.34 641,085.20 92,013,927.02
(2) Increase from
15,347,380.71 416,666.67 967,732.50 2,708.33 16,734,488.21
business combination
(3) Adjustment
from final accounts of 467,752.37 - 467,752.37
construction completion
(4) Other increase 1,626,673.12 -1,626,673.12
(5) Exchange rate
-144,247.74 -144,247.74
change
3. Current decrease 2,914,914.58 9,090.00 1,063,955.01 94,440.00 4,082,399.59
(1) Disposal 2,914,914.58 9,090.00 1,063,955.01 94,440.00 4,082,399.59
4. Closing balance 260,243,423.29 15,022,413.42 36,814,491.52 73,638,407.67 10,842,586.23 8,321,005.00 1,469,732.05 406,352,059.18
III. Impairment provision
1. Opening balance
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal
4. Closing balance
IV. Carrying value
1. Closing carrying
1,866,276,423.77 134,576,982.78 157,028,251.21 90,291,477.40 86,408,521.27 47,748,465.78 28,511,767.95 2,410,841,890.16
value
2. Opening carrying
1,484,380,012.63 2,364,752.24 55,332,446.74 68,253,820.44 30,295.72 43,170,399.50 10,174,061.48 1,663,705,788.75
value
179 / 261
2021 Annual Report
Intangible assets generated from internal research and development accounts for 0% of the closing balance of intangible assets.
(2).Land use rights for which title certificates are not obtained
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Carrying value Reason for not obtaining title certificate
Land used by Inner Mongolia Tongwei High-purity Crystalline Silicon Company 108,964,198.04 In progress
Land used by Tongwei Solar (Chengdu) Co., Ltd. 50,975,197.47 In progress
The foundation was not leveled under regulations.
Land used by Xiamen Tongwei Feed Co., Ltd. 3,827,576.21 Submissions are being revised under relevant procedures
and requirements
Land used by Xide Tongwei Huijin New Energy Co., Ltd. 1,329,475.00 In progress
The company is located in Baotan Town. Huai'an
government only allocates a fixed area of land used for
Land used by Huaian Tongwei Feed Co., Ltd. 589,823.34 industrial purposes to Baotan government which then
allocates the land to enterprises. Active communications
with the government are under progress.
Total 165,686,270.06
Other notes:
"√ Applicable" "□ Not applicable"
No impairment provision for intangible assets was created at the end of the period because the net realizable value of each intangible asset was not lower than the
carrying cost.
27. R&D costs
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current increase Current decrease
Converted
Opening Closing
Item Recognized as intangible into current
balance Internal R&D costs Others balance
assets profit and
loss
R&D projects for solar cells 987,810,955.29 987,810,955.29
R&D projects for aquatic feed 119,492,352.50 119,492,352.50
180 / 261
2021 Annual Report
R&D projects for farming technologies 93,618,384.23 93,618,384.23
R&D projects for high-purity polysilicon 680,312,818.99 680,312,818.99
R&D projects for PVC and sodium hydrate 52,262,292.22 52,262,292.22
R&D projects for livestock and poultry feed 71,448,799.63 71,448,799.63
Others 30,901,442.57 30,901,442.57
Total 2,035,847,045.43 2,035,847,045.43
28. Goodwill
(1).Original carrying value of goodwill
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current increase Current decrease
Opening
Investee or event generating goodwill Business Closing balance
balance Disposal
combination
Hainan Haiyi Aquatic Products Feed Co., Ltd. 22,461,157.77 22,461,157.77
Zhuhai Haiyi Aquatic Products Feed Co., Ltd. 21,814,691.67 21,814,691.67
Chengdu Chunyuan Food Company Limited 17,886,370.20 17,886,370.20
Hainan Haiyi Aquatic Seed Co., Ltd. 2,911,456.80 2,911,456.80
Sichuan Chunyuan Ecological Farming Co., Ltd. 1,486,979.12 1,486,979.12
Tongwei Solar (Hefei) Co., Ltd. 591,542,868.55 591,542,868.55
Core goodwill generated from purchase of Tech-bank Feed Companies 28,663,999.56 28,663,999.56
Non-core goodwill generated from purchase of Tech-bank Feed
110,864,632.49 110,864,632.49
Companies
Total 658,103,524.11 139,528,632.05 797,632,156.16
(2).Impairment provision for goodwill
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current increase Current decrease
Investee or event generating goodwill Opening balance Closing balance
Provision Disposal
Chengdu Chunyuan Food Company Limited 17,886,370.20 17,886,370.20
Hainan Haiyi Aquatic Seed Co., Ltd. 2,911,456.80 2,911,456.80
Sichuan Chunyuan Ecological Farming Co., Ltd. 1,486,979.12 1,486,979.12
181 / 261
2021 Annual Report
Tongwei Solar (Hefei) Co., Ltd. 24,020,900.00 24,020,900.00
Non-core goodwill generated from purchase of Tech-bank Feed
4,753,172.31 4,753,172.31
Companies
Total 22,284,806.12 28,774,072.31 51,058,878.43
(3).Information relating to the asset group or combination of asset groups where goodwill falls
"√ Applicable" "□ Not applicable"
Products of above companies that generated goodwill have active markets. Main cash flows into these companies are independent from the cash flows into other
asset groups or combinations of asset groups. These companies are determined as separate asset groups. Such asset group is identical to the combination of asset
groups recognized when the goodwill impairment test was performed on the acquisition date.
(4).Note on the process, key parameters (such as forecast growth rate used for expecting present value of future cash flows, growth rate in stable period,
profit margin rate, discount rate, forecast period, applicable) of goodwill impairment test as well as the recognition of goodwill impairment loss
"√ Applicable" "□ Not applicable"
The recoverable amounts of Tongwei Solar (Hefei) Co., Ltd., Hainan Haiyi Aquatic Products Feed Co., Ltd. and Zhuhai Haiyi Aquatic Products Feed Co., Ltd.
are measured at the present value of expected future cash flows of the asset group. Future cash flows are determined according to the financial budget 2022-2026
approved by the management. The cash flow over 5 years for the asset group is calculated as perpetual cash flow. Other key assumptions used for expecting future
cash flows include: estimate the expected revenue, gross margin, costs, depreciation and amortization and increase in investments into long-term assets according to
track record of assets, industry trend and management expectation for the market development. The management believes that any reasonable change in the said
assumptions would not cause the carrying value of any asset group that shares the goodwill to be greater than its recoverable amount except that an impairment
provision for the goodwill of 24,020,900. 00 yuan previously shared from Tongwei Solar (Hefei) Co., Ltd. to the asset group of multicrystalline silicon cells has been
created because of scrap.
(5).Effects of goodwill impairment test
"√ Applicable" "□ Not applicable"
Impairment provision for non-core goodwill generated from business combination under different control in current period:
Investee Core goodwill Non-core goodwill Impairment provision in Note on goodwill
current period impairment
Ningbo Tech-bank Feed Technology Co., Ltd. 27,968,388.26 92,908,268.55 4,258,563.25 Note
Qingdao Qihao Biotechnology Co., Ltd. 5,406,198.30 94,657.72
Ningbo Tech-bank Biotechnology Co., Ltd. 695,611.30 1,432,013.25 34,591.37
Yancheng Tech-bank Feed Technology Co., Ltd. 5,397,757.35 156,910.54
Nanning Aigefei Feed Co., Ltd. 858,089.11 35,686.24
Bengbu Tech-bank Feed Technology Co., Ltd. 699,029.50 44,329.38
Hubei Tech-bank Feed Co., Ltd. 163,485.89 14,384.11
182 / 261
2021 Annual Report
Dongying Tech-bank Feed Technology Co., Ltd. 317,577.63 39,098.57
Vietnam Tech-bank Feed Co., Ltd. 3,682,212.91 74,951.13
Total 28,663,999.56 110,864,632.49 4,753,172.31
Other notes
"√ Applicable""□ Not applicable"
According to the Chuan-Hua-Heng-Ping report (2022) No. 28 of Sichuan Tianjian Huaheng Asset Appraisal Company Limited on the Fair Value Assessment of
Net Identifiable Assets of Ningbo Tech-bank Feed Technology Co., Ltd. Regarding the Purchase Price Allocation (PPA) for Tongwei Co., Ltd’ s Acquisition of Ningbo
Tech-bank Feed Technology Co., Ltd. and Chuan-Hua-Heng-Ping report (2022) No. 29 on the Fair Value Assessment of Net Identifiable Assets of Ningbo Tech-bank
Biotechnology Co., Ltd. Regarding the Purchase Price Allocation (PPA) for Tongwei Co., Ltd’ s Acquisition of Ningbo Tech-bank Biotechnology Co., Ltd., core
goodwill was recognized at the difference between the equity consideration and the Company's share of the fair value of net identifiable assets of the investee on
acquisition date; core goodwill was recognized at the increase in goodwill due to increase in effects of deferred tax liability on consolidation as a result of increase in
assessed value. As the increase in assessed value was amortized on consolidation, relevant deferred tax liability was written off and relevant impairment provision for
non-core goodwill was created. Therefore, only core goodwill was subject to impairment test at the end of the period.
29. Deferred expenses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Amortization in current Other decrease Closing balance
period
Expense for improvements of long-term assets 96,553,629.68 83,585,720.49 74,206,027.42 105,933,322.75
Decoration expense 48,681,890.99 86,437,297.53 12,304,965.82 122,814,222.70
Others 14,838,482.29 35,081,641.15 16,857,131.47 33,062,991.97
Total 160,074,002.96 205,104,659.17 103,368,124.71 261,810,537.42
30. Deferred tax assets/deferred tax liabilities
(1).Deferred tax assets not offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference Assets difference Assets
Provision for asset impairment 759,649,485.88 151,104,304.39 1,064,729,156.95 181,000,631.40
183 / 261
2021 Annual Report
Unrealized gain on internal
1,322,054,365.74 205,367,292.35 553,308,162.08 82,996,224.31
transactions
Deductible loss 127,368,220.47 19,811,869.18 676,668,440.56 100,731,514.19
Claims reserve 21,958,001.65 3,293,700.25
Amortization of fixed assets greater than
3,043,686.39 456,552.96 -50,791,292.05 -8,145,487.67
the amortization under tax laws
Decrease in depreciation of fixed assets
-75,165,300.03 -11,186,379.83 -318,546,577.09 -47,781,986.56
due to provision for asset impairment
Employee benefits payable 753,695,409.29 113,354,311.39 114,323,627.95 17,300,092.29
Deferred income 724,500,421.51 115,775,526.75 530,339,401.39 79,769,580.23
Deduction of gain at consolidation on
25,565,344.73 3,834,801.71 24,830,399.13 3,724,559.87
increase in assessed value of land
Interest on lease amortization 15,425,604.51 2,313,840.68 17,746,905.56 2,662,035.83
Total 3,656,137,238.49 600,832,119.58 2,634,566,226.13 415,550,864.14
(2).Deferred tax liabilities not offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
Increase in assessed value from business
486,551,435.76 114,919,145.64
combinations 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
2,379,425,585.71 356,913,837.86
equipment and appliance less than 5 million yuan
Discounted income from interest-free debts 18,955,505.36 2,843,325.80 39,270,080.33 5,890,512.05
Amortization of fixed assets less than the
1,372,249,974.84 205,837,496.23 2,014,647,721.36 302,197,158.22
amortization under tax laws
Paper gain on held-for-trading financial assets 10,617,668.58 2,198,830.87 25,747,780.82 3,862,167.13
Total 4,267,800,170.25 682,712,636.40 2,079,665,582.51 311,949,837.40
184 / 261
2021 Annual Report
(3).Net amount after offsetting deferred tax assets or liabilities
"□ Applicable" "√ Not applicable"
(4).Detailed deferred tax assets not recognized
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Deductible temporary difference
Deductible loss 2,176,875,369.80 1,191,015,304.72
Provision for asset impairment 159,535,463.69 93,967,516.39
Employee benefits payable 21,533,714.10
Deferred income 490,652.78
Total 2,358,435,200.37 1,284,982,821.11
(5).Deductible losses on deferred tax assets not recognized that will be due in the following years
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Year Closing amount Opening amount Notes
2021 93,613,531.47
2022 95,747,614.75 101,491,933.53
2023 100,189,511.81 75,229,312.46
2024 230,356,593.24 218,117,138.83
2025 354,691,177.91 702,563,388.43
2026 1,395,890,472.09
Total 2,176,875,369.80 1,191,015,304.72 /
Other notes:
"√ Applicable" "□ Not applicable"
The deductible losses on deferred tax assets not recognized in current period that are due in 2023 and 2044 are greater than these in prior period by 24,960,199.35
yuan and 12,239,454.41 yuan respectively. This is because subsidiaries wrote down deferred tax assets recognized due to deductible losses according to their forecasts.
31. Other non-current assets
"√ Applicable" "□ Not applicable"
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2021 Annual Report
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Balance Impairment Balance Impairment
Carrying value Carrying value
provision provision
Costs to obtain contracts
Costs to fulfill contracts
Costs of returns receivable
Contract assets
Input tax credit under VAT 620,859,210.32 620,859,210.32 752,680,595.05 752,680,595.05
Prepayments for engineering equipment 1,806,527,455.00 1,806,527,455.00 716,619,559.20 716,619,559.20
Water surface rent prepayments 13,240,000.00 13,240,000.00
Equity purchase price 3,082,000.00 3,082,000.00
Land prepayments 74,640,589.20 74,640,589.20
Total 2,440,626,665.32 2,440,626,665.32 1,547,022,743.45 1,547,022,743.45
Other notes:
Input tax credit under VAT whose deduction is expected to be over a year is presented under other non-current assets.
32. Short-term borrowings
(1).Classification of short-term borrowings
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Pledge borrowings
Mortgage borrowings 200,042,222.22 200,201,666.63
Guarantee borrowings 734,950,572.25 1,813,559,433.63
Credit borrowings 40,032,625.01 335,393,425.51
Guarantee + mortgage borrowings 200,204,722.22
Discount of commercial acceptances 200,000,000.00
Total 1,375,230,141.70 2,349,154,525.77
(2).Overdue short-term borrowings
"□ Applicable" "√ Not applicable"
Significant overdue short-term borrowings:
186 / 261
2021 Annual Report
"□ Applicable" "√ Not applicable"
Other notes
"√ Applicable" "□ Not applicable"
Refer to “related-party guarantees” for details on guarantees where the Company is the guarantor. The guarantees between the Company and its subsidiaries are
as below:
Guarantor Guaranteed party Guaranteed Guarantee Guarantee
amount commencement expiry date
date
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 1,109,657.48 2021-11-02 2022-01-31
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 755,812.46 2021-11-03 2022-02-01
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 1,155,426.08 2021-11-12 2022-02-10
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 1,455,475.41 2021-11-18 2022-02-16
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 674,674.24 2021-11-26 2022-02-24
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 686,308.43 2021-12-07 2022-03-07
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 1,611,901.01 2021-12-13 2022-03-14
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 1,084,812.53 2021-12-15 2022-03-15
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 1,303,354.36 2021-12-16 2022-03-16
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 1,835,643.56 2021-12-21 2022-03-21
The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei Tongta Tongwei Co., Ltd. 1,709,377.63 2021-12-21 2022-03-21
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 7,906,021.64 2021-10-19 2022-01-17
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 7,698,922.02 2021-11-09 2022-02-07
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 4,300,762.51 2021-11-12 2022-02-10
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 7,461,038.64 2021-11-19 2022-02-17
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 7,452,221.72 2021-11-26 2022-02-24
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 6,776,623.18 2021-12-02 2022-03-02
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 5,429,967.03 2021-12-07 2022-03-07
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 2,880,681.40 2021-12-10 2022-03-10
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 7,322,994.39 2021-12-17 2022-03-17
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 9,955,994.68 2021-12-24 2022-03-24
The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei Tongwei Vietnam Co., Ltd. 5,161,002.60 2021-12-28 2022-03-28
The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei Qianjiang Tongwei Co., Ltd. 2,082,259.29 2021-10-19 2022-01-17
The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei Qianjiang Tongwei Co., Ltd. 932,149.39 2021-10-22 2022-01-20
The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei Qianjiang Tongwei Co., Ltd. 1,940,213.77 2021-10-26 2022-01-24
The Company, Vietnam Tongwei, Tongta Tongwei, Haiyang Tongwei Qianjiang Tongwei Co., Ltd. 1,782,293.56 2021-10-28 2022-01-26
The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei Qianjiang Tongwei Co., Ltd. 5,641,122.06 2021-11-04 2022-01-31
187 / 261
2021 Annual Report
The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei Qianjiang Tongwei Co., Ltd. 2,292,562.81 2021-11-04 2022-01-31
The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei Qianjiang Tongwei Co., Ltd. 2,140,177.03 2021-11-11 2022-02-09
The Company, Vietnam Tongwei, Tongta Tongwei, Haiyang Tongwei Qianjiang Tongwei Co., Ltd. 1,165,563.90 2021-11-18 2022-02-16
The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei Qianjiang Tongwei Co., Ltd. 754,598.08 2021-12-14 2022-03-11
The Company, Vietnam Tongwei, Tongta Tongwei, Haiyang Tongwei Qianjiang Tongwei Co., Ltd. 1,618,691.55 2021-12-14 2022-03-14
The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei Qianjiang Tongwei Co., Ltd. 1,227,691.10 2021-12-24 2022-03-24
The Company, Vietnam Tongwei Haiyang Tongwei Co., Ltd. 809,315.55 2021-10-20 2022-01-18
The Company, Vietnam Tongwei Haiyang Tongwei Co., Ltd. 4,198,421.89 2021-11-04 2022-02-02
The Company, Vietnam Tongwei Haiyang Tongwei Co., Ltd. 2,143,675.01 2021-12-27 2022-03-27
The Company PT. Tongwei Indonesia 294,560.45 2021-11-01 2022-01-03
The Company PT. Tongwei Indonesia 4,017,581.07 2021-12-08 2022-04-01
The Company PT. Tongwei Indonesia 586,586.53 2021-12-22 2022-04-11
The Company, Singapore Holdings PT. Tongwei Indonesia 3,132,020.86 2021-10-22 2022-01-12
The Company, Singapore Holdings PT. Tongwei Indonesia 586,599.47 2021-10-25 2022-01-21
The Company, Singapore Holdings PT. Tongwei Indonesia 586,599.47 2021-11-03 2022-01-31
The Company, Singapore Holdings PT. Tongwei Indonesia 2,086,341.35 2021-08-16 2022-02-10
The Company, Singapore Holdings PT. Tongwei Indonesia 170,182.10 2021-11-19 2022-02-17
The Company, Singapore Holdings PT. Tongwei Indonesia 1,208,753.34 2021-11-19 2022-02-22
The Company, Singapore Holdings PT. Tongwei Indonesia 2,873,088.51 2021-12-07 2022-02-23
The Company, Singapore Holdings PT. Tongwei Indonesia 550,689.48 2021-12-03 2022-02-25
The Company, Singapore Holdings PT. Tongwei Indonesia 586,580.34 2021-12-07 2022-03-01
The Company, Singapore Holdings PT. Tongwei Indonesia 3,107,747.95 2021-10-12 2022-01-10
Yongxiang, Tongwei Solar (Anhui) Co., Ltd. The Company 200,204,722.22 2021-03-31 2022-03-31
Total 334,449,461.13
188 / 261
2021 Annual Report
33. Held-for-trading financial liabilities
"□ Applicable" "√ Not applicable"
34. Derivative financial liabilities
"□ Applicable" "√ Not applicable"
35. Notes payable
(1).Presentation of notes payable
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
Type Closing balance Opening balance
Commercial acceptances 124,448,544.24
Banker's acceptances 9,761,984,458.33 9,363,914,654.37
Letters of credit 71,490,068.10 48,009,780.41
Total 9,957,923,070.67 9,411,924,434.78
Total amount of overdue notes payable as of the end of the period is 0 yuan.
36. Accounts payable
(1).Presentation of accounts payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Within 1 year 7,686,622,841.17 3,345,411,733.19
1- 2 years 388,134,629.62 404,083,464.63
2- 3 years 42,680,870.30 145,845,168.26
Over 3 years 33,831,735.12 21,980,614.56
Total 8,151,270,076.21 3,917,320,980.64
(2).Significant accounts payable with an age over 1 year
"□ Applicable" "√ Not applicable"
Other notes
"√ Applicable" "□ Not applicable"
1) Accounts payable with an age over 1 year are mainly equipment and construction prices payable
by the Company.
2) Classification by nature of payment:
Item Closing balance Opening balance
Payable on operating activities 2,586,374,768.27 1,552,527,877.70
Payable on non-operating activities 5,564,895,307.94 2,364,793,102.94
Total 8,151,270,076.21 3,917,320,980.64
37. Advances from customers
(1). Presentation of advances from customers
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Within 1 year 97,237,950.05 31,301,784.79
1- 2 years 2,630,455.22 1,823,123.19
2- 3 years 728,229.39 1,947,192.85
Over 3 years 1,663,190.63
Total 102,259,825.29 35,072,100.83
189 / 261
2021 Annual Report
(2). Significant advances from customers with an age over 1 year
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
38. Contract liabilities
(1).Contract liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Customer advances 3,112,027,804.79 2,302,728,492.73
Total 3,112,027,804.79 2,302,728,492.73
(2).Significant changes in carrying values in the reporting period and reasons for the changes
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
39. Employee benefits payable
(1).Presentation of employee benefits payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
I. Short-term
736,363,100.05 4,789,591,348.91 4,137,196,578.55 1,388,757,870.41
benefits
II. Post-employment
benefits - defined 187,425,627.27 187,425,627.27
contribution plans
III. Termination
6,389,922.92 6,389,922.92
benefits
IV. Other benefits
due within one year
Total 736,363,100.05 4,983,406,899.10 4,331,012,128.74 1,388,757,870.41
(2).Presentation of short-term benefits
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
I. Salaries, bonuses,
allowances and 693,618,316.66 4,421,453,198.25 3,791,147,284.57 1,323,924,230.34
subsidies
II. Employee benefit
155,613,430.55 155,613,430.55
expense
III. Social insurance
107,439,822.99 107,439,822.99
expense
Including: Medical
90,752,410.19 90,752,410.19
insurance expense
Work injury
11,185,727.70 11,185,727.70
insurance expense
Maternity
5,501,685.10 5,501,685.10
insurance expense
IV. House provident
42,024,311.53 42,024,311.53
fund
V. Union funds and
42,744,783.39 62,812,951.65 40,724,094.97 64,833,640.07
education expense
VI. Short-term paid
leave
VII. Short-term profit-
sharing plan
190 / 261
2021 Annual Report
6. Non-monetary
220,047.86 220,047.86
benefits
7. Others 27,586.08 27,586.08
Total 736,363,100.05 4,789,591,348.91 4,137,196,578.55 1,388,757,870.41
(3).Presentation of defined contribution plans
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Closing
Item Current increase Current decrease
balance balance
1. Basic pension insurance 181,036,302.61 181,036,302.61
2. Unemployment insurance
6,389,324.66 6,389,324.66
expense
3. Enterprise annuity expense
Total 187,425,627.27 187,425,627.27
Other notes:
"√ Applicable" "□ Not applicable"
The balance of salaries, bonuses, allowances and subsidies payable is the December salaries and
annual bonus that had been established and would be paid in the next month. No delay in employee
payment exists.
40. Taxes payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
VAT 248,318,107.38 17,055,192.80
Consumption tax
Business tax
Corporate income tax 496,865,750.99 176,762,634.48
Personal income tax 24,877,403.26 10,437,660.41
Urban construction and maintenance tax 15,889,519.06 468,813.45
Property tax 6,773,632.40 6,137,519.90
Land use tax 3,309,489.18 2,837,025.80
Stamp duty 7,637,857.31 3,578,837.17
Others 12,315,148.98 3,137,081.90
Total 815,986,908.56 220,414,765.91
Other notes:
Under the Corporate Income Tax Law, the corporate income tax of the parent company and branches
is paid by the parent company in aggregate. The taxable income of the head office accounts for 50% of
the aggregated taxable income, the remaining taxable income is distributed to branches with three factors
(income, employee benefits and assets) as basis which take up 35%, 35% and 30% respectively. The
income tax payable by each entity is the taxable income distributed multiplied by the applicable tax rate.
For the aggregated income tax payable, the head office accounts for 50%, and the remaining income tax
payable is distributed to branches with three factors (income, employee benefits and assets) as basis which
take up 35%, 35% and 30% respectively.
41. Other payables
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest payable
Dividend payable
Other payables 761,620,932.59 743,639,264.91
Total 761,620,932.59 743,639,264.91
191 / 261
2021 Annual Report
Other notes:
"□ Applicable" "√ Not applicable"
Interest payable
(1).Presentation by category
"□ Applicable" "√ Not applicable"
Dividend payable
(2).Presentation by category
"□ Applicable" "√ Not applicable"
Other payables
(1). Other payable by nature
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Current accounts with related-parties 3,801,160.00 1,119,397.77
Bonds and deposits 511,772,262.14 499,462,015.47
Equity transfer price 54,137,857.00 91,500,000.00
Others 191,909,653.45 151,557,851.67
Total 761,620,932.59 743,639,264.91
(2). Other significant payables with an age over 1 year
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Reason for non-repayment or carryover
Inner Mongolia Taimengda Materials Bond within the settlement period
76,000,000.00
Management Co., Ltd.
Total 76,000,000.00 /
Other notes:
"□ Applicable" "√ Not applicable"
42. Liabilities held for sale
"□ Applicable" "√ Not applicable"
43. Non-current liabilities due within one year
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Long-term borrowings due within 1 year 981,675,606.47 1,076,804,937.39
Bonds payable due within 1 year
Long-term accounts payable due within 1 year 1,039,544,910.06 1,183,933,966.71
Lease liabilities due within 1 year 465,808,746.76 545,738,664.56
Total 2,487,029,263.29 2,806,477,568.66
Other notes:
(1) Long-term borrowings due within one year
Item Closing balance Opening balance
Credit borrowings 67,722,242.68 1,164,229.82
Guarantee borrowings 455,298,240.87 570,152,809.18
Mortgage borrowings 1,499,305.06
Pledge + guarantee borrowings 124,603,755.53 90,154,083.77
Mortgage + guarantee borrowings 107,591,505.55 300,403,333.34
192 / 261
2021 Annual Report
Mortgage + pledge + guarantee borrowings 224,960,556.78 114,930,481.28
Total 981,675,606.47 1,076,804,937.39
① Guarantees provided by Tongwei Group for the Company are detailed in “related-party
guarantees”. Guarantees provided by the Company for its subsidiaries are as below:
Guarantor Guaranteed party Guaranteed Guarantee Guarantee
amount commencement expiry date
date
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 10,104.63 2021-09-10 2022-03-09
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 36,366,562.03 2021-09-10 2022-09-10
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 10,104.63 2022-07-26 2022-01-22
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 12,115,450.92 2022-07-26 2022-07-26
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 50,125,000.00 2021-09-09 2022-03-08
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 50,125,000.00 2021-09-09 2022-09-08
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 375,000.00 2021-10-20 2022-12-31
Tongwei Co., Ltd. Tongwei Solar Hong Kong Co., Ltd. 658,822.31 2021-12-01 2022-12-31
Tongwei Co., Ltd. Tongwei Solar (Hefei) Co., Ltd. 352,916.67 2021-12-14 2022-12-31
Tongwei Co., Ltd. Tongwei New Energy Co., Ltd. 7,359,064.05 2019-03-18 2022-11-20
Aohanqi Xinhuo New Energy Co.,
Tongwei Co., Ltd. 40,507,756.94 2020-03-27 2022-09-30
Ltd.
Panzhihua Tongwei Huijin New
Tongwei Co., Ltd. 11,103,940.83 2019-06-28 2022-04-10
Energy Co., Ltd.
Binzhou Zhanhua Tonghui Marine
Tongwei Co., Ltd. 46,685,202.16 2020-12-30 2022-12-20
Technology Co., Ltd.
Tianjin Binhai Tongli New Energy
Tongwei Co., Ltd. 24,185,171.06 2020-06-30 2022-12-10
Co., Ltd.
Xichan Tongwei New Energy Co.,
Tongwei Co., Ltd. 6,708,125.36 2020-09-27 2022-12-21
Ltd.
Tongwei Co., Ltd. Sihong Tongli New Energy Co., Ltd. 72,165,815.28 2019-10-20 2022-10-20
Gao’an Tongwei Fishery-PV
Tongwei Co., Ltd. 9,990,032.73 2020-04-01 2022-12-21
Technology Co., Ltd.
Changde Dingcheng Tongwei New
Tongwei Co., Ltd. 12,550,338.64 2020-09-11 2022-12-20
Energy Co., Ltd.
Bengbu Tongwei New Energy Co.,
Tongwei Co., Ltd. 38,973,129.17 2021-03-11 2022-11-20
Ltd.
Gong’an Tongwei Fishery-PV
Tongwei Co., Ltd. 25,225,166.66 2021-03-26 2022-09-21
Technology Co., Ltd.
Binyang Jingchuang New Energy Co.,
Tongwei Co., Ltd. 7,109,312.50 2021-12-10 2022-12-10
Ltd.
Binyang Jingchuang New Energy Co.,
Tongwei Co., Ltd. 8,593,118.05 2021-12-10 2022-12-10
Ltd.
Qinzhou Tongwei Huijin New Energy
Tongwei Co., Ltd. 18,136,888.89 2021-10-27 2022-12-15
Co., Ltd.
Dongying Tongli New Energy Co.,
Tongwei Co., Ltd. 20,271,249.99 2021-03-04 2022-08-22
Ltd.
Sichuan Yongxiang New Energy Co.,
Tongwei Co., Ltd. 251,356,700.00 2021-07-30 2022-12-21
Ltd.
Sichuan Yongxiang New Energy Co.,
Tongwei Co., Ltd. 624,700.00 2021-09-23 2022-12-31
Ltd.
Yunnan Tongwei High-purity
Tongwei Co., Ltd. 58,111,666.67 2021-12-02 2022-12-31
Crystalline Silicon Company
Inner Mongolia Tongwei High-purity
Tongwei Co., Ltd. 955,555.56 2021-11-19 2022-12-31
Crystalline Silicon Company
Total 810,751,895.73
193 / 261
2021 Annual Report
① Pledge borrowings and mortgage borrowings are detailed in “assets with restricted ownership or
use right”.
② No long-term borrowings due within one year is overdue.
③ Long-term accounts payable due within one year are detailed in “long-term payables”.
44. Other current liabilities
Other current liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Short-term bonds payable
Sale returns payable
Output VAT to be converted 190,563,712.84 108,250,357.80
Reserve established by guarantor 16,976,803.56 21,953,762.73
Including: undue claims reserve 3,012,100.99 5,418,831.55
Compensation reserve established by guarantor 13,964,702.57 16,534,931.18
Total 207,540,516.40 130,204,120.53
Increase/decrease in short-term bonds:
"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
Undue claims reserve is created at 50% of the guarantee income; the reserve is reversed after the
guarantee obligation is discharged; the compensation reverse is created at 1% of the closing balance of
guaranteed amount.
45. Long-term borrowings
(1). Classification of long-term borrowings
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Pledge borrowings
Mortgage borrowings
Guarantee borrowings 5,462,279,024.22 3,255,292,828.00
Credit borrowings 1,220,980,000.00 769,970,000.00
Pledge + guarantee borrowings 1,388,907,338.52 1,101,062,711.34
Mortgage + guarantee borrowings 1,364,310,000.00
Mortgage + pledge + guarantee borrowings 2,004,553,497.42 1,170,260,000.00
Total 11,441,029,860.16 6,296,585,539.34
Note on classification of long-term borrowings:
1) Refer to “related-party guarantees” for details on guarantees provided by Tongwei Group to the
Company. Guarantees provided by the Company for its subsidiaries are as below:
Guarantor Guaranteed party Guaranteed Guarantee Guarantee
amount commencement expiry date
date
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 352,000,000.00 2021-07-26 2025-07-31
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 100,000,000.00 2021-09-27 2024-09-26
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 300,000,000.00 2021-10-20 2024-10-19
Tongwei Co., Ltd. Tongwei Solar (Meishan) Co., Ltd. 100,000,000.00 2021-09-09 2023-09-08
Tongwei Co., Ltd. Tongwei Solar Hong Kong Co., Ltd. 366,279,024.22 2021-12-01 2024-11-30
Tongwei Co., Ltd. Tongwei Solar (Hefei) Co., Ltd. 300,000,000.00 2021-12-14 2024-12-13
Tongwei Co., Ltd. Tongwei New Energy Co., Ltd. 93,820,000.00 2019-03-18 2036-03-18
Tongwei Co., Ltd. Aohanqi Xinhuo New Energy Co., Ltd. 300,000,000.00 2020-03-27 2030-03-26
194 / 261
2021 Annual Report
Tongwei Co., Ltd. Panzhihua Tongwei Huijin New
58,000,000.00 2019-06-28 2029-06-10
Energy Co., Ltd.
Tongwei Co., Ltd. Binzhou Zhanhua Tonghui Marine
458,623,600.00 2020-12-30 2035-12-03
Technology Co., Ltd.
Tongwei Co., Ltd. Tianjin Binhai Tongli New Energy Co.,
296,625,000.00 2020-06-30 2034-06-10
Ltd.
Tongwei Co., Ltd. Xichan Tongwei New Energy Co., Ltd. 69,500,000.00 2020-09-27 2034-09-27
Tongwei Co., Ltd. Sihong Tongli New Energy Co., Ltd. 613,653,672.00 2019-10-20 2033-04-20
Tongwei Co., Ltd. Gao’an Tongwei Fishery-PV
153,708,584.00 2020-04-01 2037-04-20
Technology Co., Ltd.
Tongwei Co., Ltd. Changde Dingcheng Tongwei New
244,128,666.52 2020-09-11 2035-08-10
Energy Co., Ltd.
Tongwei Co., Ltd. Bengbu Tongwei New Energy Co.,
410,901,313.42 2021-03-11 2034-12-29
Ltd.
Tongwei Co., Ltd. Gong’an Tongwei Fishery-PV
168,000,000.00 2021-03-26 2032-09-21
Technology Co., Ltd.
Tongwei Co., Ltd. Binyang Jingchuang New Energy Co.,
128,000,000.00 2021-12-10 2039-12-08
Ltd.
Tongwei Co., Ltd. Binyang Jingchuang New Energy Co.,
106,500,000.00 2021-12-10 2035-12-08
Ltd.
Tongwei Co., Ltd. Qinzhou Tongwei Huijin New Energy
122,000,000.00 2021-10-27 2035-10-27
Co., Ltd.
Tongwei Co., Ltd. Dongying Tongli New Energy Co.,
170,000,000.00 2021-03-04 2034-02-21
Ltd.
Tongwei Co., Ltd. Sichuan Yongxiang New Energy Co.,
950,000,000.00 2021-07-30 2026-07-29
Ltd.
Tongwei Co., Ltd. Sichuan Yongxiang New Energy Co.,
470,000,000.00 2021-08-25 2028-08-24
Ltd.
Tongwei Co., Ltd. Yunnan Tongwei High-purity
242,310,000.00 2021-11-24 2025-06-30
Crystalline Silicon Company
Tongwei Co., Ltd. Inner Mongolia Tongwei High-purity
800,000,000.00 2021-11-16 2026-11-15
Crystalline Silicon Company
Total 7,374,049,860.16
Note: pledge borrowings and mortgage borrowings are detailed in “assets with restricted ownership or
use right”.
Other note (including interest rate range):
"□ Applicable" "√ Not applicable"
46. Bonds payable
(1).Bonds payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
2020 Middle-Term Note Series 1 of Tongwei Co., Ltd. 410,493,072.19 410,096,446.33
Total 410,493,072.19 410,096,446.33
(2).Increase/decrease in bonds payable: (excluding other financial instruments such as preference
share and perpetual bond classified as financial liabilities)
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Interest Amortization
Bond Face Issue Bond Issue Opening Current Current Closing
established by of premium
name value date duration amount balance issue repayment balance
face value or discount
195 / 261
2021 Annual Report
2020
Middle-
Term Note 2020-
100 3 400,000,000.00 410,096,446.33 20,799,999.96 396,625.90 20,800,000.00 410,493,072.19
Series 1 of 06-17
Tongwei
Co., Ltd.
Total / / / 400,000,000.00 410,096,446.33 20,799,999.96 396,625.90 20,800,000.00 410,493,072.19
(3).Note on conversion conditions and conversion time of convertible bonds
"□ Applicable" "√ Not applicable"
(4).Note on other financial instruments classified as financial liabilities
Basic information of other financial instruments (including preference share and perpetual bond)
outstanding as of the end of the period
"□ Applicable" "√ Not applicable"
Changes in other financial instruments (including preference share and perpetual bond) outstanding as of
the end of the period
"□ Applicable" "√ Not applicable"
Note on basis for classification of other financial instruments as financial liabilities:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
47. Lease liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Lease liabilities 2,966,450,212.56 2,560,617,210.18
Less: Lease liabilities due within one year 465,808,746.76 545,738,664.56
Total 2,500,641,465.80 2,014,878,545.62
48. Long-term payables
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Long-term payables 1,647,453,239.69 2,393,314,937.69
Special payables 850,000.00 850,000.00
Total 1,648,303,239.69 2,394,164,937.69
Other notes:
"□ Applicable" "√ Not applicable"
Long-term payables
(1).Presentation of other payable by nature
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Closing balance
Debt investments Note 1 45,000,000.00
Borrowings Note 2 120,961,890.11
196 / 261
2021 Annual Report
Net extended debts 330,905,754.60 166,132,412.02
Financial lease payments payable 2,062,409,183.09 1,315,358,937.56
Including: CITIC Financial Leasing Co., Ltd. 1,201,212,181.09 731,303,713.43
SPDB Financial Leasing Co., Ltd. 294,835,281.38 309,076,615.42
Jiangsu Financial Leasing Co., Ltd. 440,703,322.56 174,978,450.78
Industrial Bank Financial Leasing Co., Ltd. 125,658,398.06 100,000,157.93
Total 2,393,314,937.69 1,647,453,239.69
Note 1: The Cooperation Agreement on Industrialization of High-efficiency SHJ Solar Cells signed
between and by Zhongwei New Energy (Chengdu) Co., Ltd. (“Zhongwei New Energy”) and Chengdu
Konggang Technology Venture Investment Group Co., Ltd. (“Venture Company”) on June 14, 2019
provided that: under the Investment Agreement and Supplementary Agreement on the 1 GW High-
efficiency Silicon SHJ Solar Cell Project signed between Zhongwei New Energy and Shuangliu District
government, from the date when the 1 GW project is fully put into production, Zhongwei New Energy
will repurchase shares held by Venture Company at the agreed repurchase price before which Venture
Company is not entitled to dividend or any other profit distribution from Zhongwei New Energy. The
repurchase interest rate is the five-year loan benchmark rate set by the People's Bank of China.
Note 2: On January 15, 2021, Tongwei Solar (Jintang) Co., Ltd and Chengdu Jinying Investment Co.,
Ltd., one of its non-controlling shareholders signed a borrowing agreement where the Company is the
guarantor. Under the agreement, the total borrowing is 600 million yuan from February 10, 2021 to
February 10, 2026. As of the end of December 31, 2021, the amount received was 120,770,000.00 yuan.
Other notes:
1) Presentation of net overdue debts
Item Closing balance Opening balance
Hefei High-tech Technology Development Zone Social
301,410,547.92 452,115,821.87
Services Company
Hefei High-tech Venture Park Management Co., Ltd. 44,312,090.61 59,021,050.61
Hefei High-tech Construction Investment Group Company 24,453,196.40 44,126,880.00
Total original value of debts 370,175,834.93 555,263,752.48
Less: Unrecognized financing costs measured at cost 18,955,505.36 39,270,080.33
Net extended debts 351,220,329.57 515,993,672.15
Including: Due within one year 185,087,917.55 185,087,917.55
Due over one year 166,132,412.02 330,905,754.60
Under the supplementary agreement to the Debt Restructuring Agreement signed in February 2016
by and between Tongwei Solar (Hefei) Co., Ltd., Tongwei Group Co., Ltd., Hefei High-tech Venture Park
Management Co., Ltd., Hefei High-tech Industrial Development Zone Administration Committee and
Hefei High-tech Urban Construction Investment Co., Ltd., and relevant documents on review and
reduction of debts made in 2019, Tongwei Solar (Hefei) Co., Ltd. is required to repay 925,439,587.58
yuan from 2019 in a five-year period. Under the arrangements, Tongwei Solar (Hefei) Co., Ltd has repaid
185,087,917.55 yuan resulting in the cumulative repayment of 555,263,752.65 yuan.
2) Presentation of financial leases:
Item Closing balance Opening balance
Financial lease payments payable 1,400,547,097.54 2,220,434,770.66
Less: Unrecognized financing costs 85,188,159.98 158,025,587.57
Net lease payments payable 1,315,358,937.56 2,062,409,183.09
3) Presentation by financial lease company:
Item Opening balance Closing balance
Lease payments 3,355,166,101.66 2,344,515,799.95
Including: 1. CITIC Financial Leasing Co., Ltd. 1,844,349,985.40 1,296,053,291.42
2. SPDB Financial Leasing Co., Ltd. 446,412,861.36 447,845,154.98
3. Jiangsu Financial Leasing Co., Ltd. 891,304,326.00 459,719,066.00
4. Industrial Bank Financial Leasing Co., Ltd. 173,098,928.90 140,898,287.55
Less: Unrecognized financing costs 293,910,869.41 174,699,869.88
Including: 1. CITIC Financial Leasing Co., Ltd. 173,843,439.69 93,838,828.67
2. SPDB Financial Leasing Co., Ltd. 49,804,509.85 46,682,907.45
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2021 Annual Report
3. Jiangsu Financial Leasing Co., Ltd. 48,712,778.06 19,015,743.39
4. Industrial Bank Financial Leasing Co., Ltd. 21,550,141.81 15,162,390.37
Net lease payments 3,061,255,232.25 2,169,815,930.07
Including: 1. CITIC Financial Leasing Co., Ltd. 1,670,506,545.71 1,202,214,462.75
2. SPDB Financial Leasing Co., Ltd. 396,608,351.51 401,162,247.53
3. Jiangsu Financial Leasing Co., Ltd. 842,591,547.94 440,703,322.61
4. Industrial Bank Financial Leasing Co., Ltd. 151,548,787.09 125,735,897.18
Less: Lease payments due within one year 1,134,731,331.00 943,968,702.41
Including: 1. CITIC Financial Leasing Co., Ltd. 549,153,605.74 523,976,797.97
2. SPDB Financial Leasing Co., Ltd. 121,714,324.58 109,508,295.82
3. Jiangsu Financial Leasing Co., Ltd. 431,585,260.00 279,555,834.00
4. Industrial Bank Financial Leasing Co., Ltd. 32,278,140.68 30,927,774.62
Less: Unrecognized financing costs due within one year 135,885,281.84 89,511,709.90
Including: 1. CITIC Financial Leasing Co., Ltd. 79,859,241.12 53,066,048.65
2. SPDB Financial Leasing Co., Ltd. 19,941,254.45 17,422,663.71
3. Jiangsu Financial Leasing Co., Ltd. 29,697,034.62 13,830,962.17
4. Industrial Bank Financial Leasing Co., Ltd. 6,387,751.65 5,192,035.37
Less: Net lease payments due within one year 998,846,049.16 854,456,992.51
Including: 1. CITIC Financial Leasing Co., Ltd. 469,294,364.62 470,910,749.32
2. SPDB Financial Leasing Co., Ltd. 101,773,070.13 92,085,632.11
3. Jiangsu Financial Leasing Co., Ltd. 401,888,225.38 265,724,871.83
4. Industrial Bank Financial Leasing Co., Ltd. 25,890,389.03 25,735,739.25
Lease payments due over one year 2,220,434,770.66 1,400,547,097.54
Including: 1. CITIC Financial Leasing Co., Ltd. 1,295,196,379.66 772,076,493.45
2. SPDB Financial Leasing Co., Ltd. 324,698,536.78 338,336,859.16
3. Jiangsu Financial Leasing Co., Ltd. 459,719,066.00 180,163,232.00
4. Industrial Bank Financial Leasing Co., Ltd. 140,820,788.22 109,970,512.93
Less: Unrecognized financing costs due over one year 158,025,587.57 85,188,159.98
Including: 1. CITIC Financial Leasing Co., Ltd. 93,984,198.57 40,772,780.02
2. SPDB Financial Leasing Co., Ltd. 29,863,255.40 29,260,243.74
3. Jiangsu Financial Leasing Co., Ltd. 19,015,743.44 5,184,781.22
4. Industrial Bank Financial Leasing Co., Ltd. 15,162,390.16 9,970,355.00
Net lease payments due over one year 2,062,409,183.09 1,315,358,937.56
Including: 1. CITIC Financial Leasing Co., Ltd. 1,201,212,181.09 731,303,713.43
2. SPDB Financial Leasing Co., Ltd. 294,835,281.38 309,076,615.42
3. Jiangsu Financial Leasing Co., Ltd. 440,703,322.56 174,978,450.78
4. Industrial Bank Financial Leasing Co., Ltd. 125,658,398.06 100,000,157.93
As of December 31, 2021, PV powerplant companies under the Company acquired a net amount of
2,169,815,930.07 under leaseback for which the Company acts as the guarantor with joint and several
liability. These companies have their right to electricity price income pledged and the leaseback of the
underlying assets pledged, shareholders of these companies have their shares pledged.
Special payables
(2).Presentation of special payables by nature
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Current Current Closing Reason
Item
balance increase decrease balance
Special funds used
as guarantees by
850,000.00 850,000.00
Tongwei Agriculture
Financing Guarantee
Total 850,000.00 850,000.00 /
198 / 261
2021 Annual Report
Other notes:
The special funds used as guarantees by Tongwei Agriculture Financing Guarantee are 2,480,000.00
yuan consisting of risk support funds (1,630,000.00 yuan) and funds for reward in place of subsidy
(850,000.00 yuan). The use of these funds is subject to Sichuan Management Procedures on Provincial-
level Special Fiscal Subsidy for Agriculture-related Credit Guarantee issued by the Department 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 1,630,000.000 yuan resulted
from unrecovered 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 649,891,600.00
Total 649,891,600.00
(2).Change in defined benefit plan
Present value of defined benefit plan
"□ Applicable" "√ Not applicable"
Plan asset:
"□ Applicable" "√ Not applicable"
Net defined benefit liability (asset)
"□ Applicable" "√ Not applicable"
Note on the defined benefit plan and risks relating thereto, and their impact on the Company's future
cash flows, time and uncertainty:
"□ Applicable" "√ Not applicable"
Note on significant actuarial assumptions for defined benefit plan and result of sensitivity analysis
"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
Other long-term employee benefits refer to the bonus to be paid one year later
50. Estimated liabilities
"□ Applicable" "√ Not applicable"
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2021 Annual Report
51. Deferred income
Deferred income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance Reason
Government grants 782,273,717.14 294,140,982.80 175,741,000.09 900,673,699.85
Total 782,273,717.14 294,140,982.80 175,741,000.09 900,673,699.85 /
Items relating to grants:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount
Amount carried
Increased grant carried into
Opening into non-operating Closing Relating to
Liability item in current other income Other changes
balance revenue in current balance asset/income
period in current
period
period
Subsidy for fixed asset Relating to asset
95,871,104.33 136,327,980.00 6,832,850.68 225,366,233.65
investment
Reward for fixed asset Relating to asset
investment (2.3 GW 111,363,555.01 13,498,612.71 97,864,942.30
project)
Subsidy for phase II fixed Relating to asset
99,837,188.67 13,298,843.70 86,538,344.97
asset investment
Infrastructure support fund Relating to asset
for Global Innovation Base 63,072,000.00 63,072,000.00
project
Special funds for Relating to asset
55,633,986.68 8,052,017.17 6,674,212.49 57,011,791.36
infrastructure construction
Subsidy for land investment 57,762,711.81 1,220,339.04 56,542,372.77 Relating to asset
Subsidy for high-purity Relating to asset
40,095,769.47 5,000,000.00 1,604,296.20 43,491,473.27
polysilicon project
State public service Relating to asset
27,150,000.00 319,411.76 26,830,588.24
platform
200 / 261
2021 Annual Report
2017-2019 special funds for Relating to asset
new Zhanxian projects of 33,069,260.64 7,169,211.86 25,900,048.78
provincial level
Technological renovation Relating to asset
project for the 2 GW 30,436,880.14 5,686,059.85 24,750,820.29
intelligent factory
Baotou fiscal subsidy for Relating to asset
21,180,555.58 2,083,333.32 19,097,222.26
emerging strategies
Subsidy for new energy Relating to asset
17,222,222.20 1,666,666.68 15,555,555.52
projects
Compensation for Relating to asset
14,982,511.25 2,794,704.48 12,187,806.77
relocation of Huai'an Feed
Compensation for Relating to asset
16,099,587.14 4,694,164.68 11,405,422.46
relocation of Tianjin Feed
Special subsidy for the Relating to asset
fixed asset and wastewater
25,620,000.00 14,694,985.62 10,925,014.38
treatment station of the 1
GW project
Special funds from 2020 Relating to asset
provincial funds for
industrial development (key 10,000,000.00 1,714,424.63 8,285,575.37
industrial and technological
renovation projects)
Compensation for Relating to asset
relocation of Chongqing 8,861,547.86 2,061,528.36 6,800,019.50
Feed
Integration of Relating to asset
trichlorosilane extraction
technology and equipment
5,000,000.00 5,000,000.00
for production of
polysilicon at a capacity of
20,000 tons
Subsidy for technological Relating to asset
renovation projects on fixed
38,072,706.21 35,435,142.29 2,637,563.92
assets (reward after
completion)
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2021 Annual Report
Subsidy for R&D Relating to asset
10,729,419.54 8,325,750.47 2,403,669.07
instruments and equipment
Other amounts relating to Relating to asset
103,263,101.74 38,353,805.63 38,518,897.09 -5,726,000.00 97,372,010.28
asset
Other amounts relating to Relating to
2,171,608.87 1,185,180.00 1,479,897.53 -241,666.65 1,635,224.69
income income
Total 782,273,717.14 294,140,982.80 169,773,333.44 -5,967,666.65 900,673,699.85
Other notes:
"√ Applicable" "□ Not applicable"
① Other changes of -5,726,000.00 yuan are detailed in “return of grants”; other changes of -241,666.65 yuan are the conversion to financial expense - fiscal interest
subsidy.
② Compensation payments for relocation converted to deferred income: for the compensation payments for relocation of Tianjin Feed, Huai'an Feed and Chongqing
Feed, other income of 9,550,397.52 was recognized in 2021 according to the estimated useful life (deprecation period).
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52. Other non-current liabilities
"□ Applicable" "√ Not applicable"
53. Share capital
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change (+, -)
Capital
Opening surplus Closing
balance New Bonus balance
converted Others Sub-total
issue issue
to share
capital
Total
4,501,548,184 4,501,548,184
shares
Other notes:
Restricted shares were unlocked to common CNY shares in the period.
54. Other equity instruments
(1).Basic information of other financial instruments (including preference share and perpetual
bond) outstanding as of the end of the period
"□ Applicable" "√ Not applicable"
(2).Changes in other financial instruments (including preference share and perpetual bond)
outstanding as of the end of the period
"□ Applicable" "√ Not applicable"
Note on changes in other equity instruments and the reasons as well as basis for relevant accounting
treatment
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
55. Capital surplus
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
Capital premium
16,104,104,330.61 4,813,240.22 686,736.11 16,108,230,834.72
(share premium)
Other capital
1,589,456.83 1,960,570.15 -371,113.32
reserves
Total 16,105,693,787.44 4,813,240.22 2,647,306.26 16,107,859,721.40
Other notes including changes in current period and reasons:
Purchase of minority interest constitutes an equity transaction. The capital surplus is adjusted by the
difference between the purchase price and the Company's share of the net assets of the investee. Details
are as below:
Before Purchase After Adjustment of
No. Investee
purchase of equity purchase capital surplus
Qingdao Hairen Aquatic Seed Industry
1 51.00% 4.50% 55.50% 1,310,766.58
Technology Co., Ltd.
2 Sichuan Willtest Technology Co., Ltd. 83.04% 2.00% 85.04% 67,548.36
3 Bayannaoer Ruibin New Energy Co., Ltd. 90.00% 10.00% 100.00% 2,512,953.30
4 Tongwei Huijin New Energy Co., Ltd. 94.75% 1.28% 96.03% 921,971.98
203 / 261
2021 Annual Report
Sichuan Tongwei Sanlian Aquatic
5 55.63% 0.80% 56.43% -7,852.11
Products Co., Ltd.
Sichuan Yongxiang Silicon Materials Co.,
6 92.15% 0.60% 92.75% -678,884.00
Ltd.
Total 4,126,504.11
Other decreases in capital surplus (1,960,570.15 yuan), including:
① De-registration of Shaoxing Tongwei Jiuding Feed Co., Ltd. (a joint venture) caused that other
equity changes in long-term equity investment (118,750.00 yuan) under equity method carried into capital
surplus to be converted into gain on investments.
② De-registration of Hefei Tongwei Jiuding Feed Co., Ltd. (a joint venture) caused that other equity
changes in long-term equity investment (141,666.67 yuan) under equity method carried into capital surplus
to be converted into gain on investments.
③ De-registration of Huangmei Tongwei Jiuding Feed Co., Ltd. (a joint venture) caused that other
equity changes in long-term equity investment (9,275.00 yuan) under equity method carried into capital
surplus to be converted into gain on investments.
④ Other capital surplus of Haimao Seed Industry Technology Co., Ltd. (an associate) was decreased,
the Company accordingly decreased its other equity change in long-term equity investment calculated
under the equity method and other capital surplus by 2,307.33 yuan according to its shareholding percent.
⑤ Other capital surplus of Bohai Aquaculture Co., Ltd. (an associate) was decreased, the Company
accordingly decreased its other equity change in long-term equity investment calculated under the equity
method and other capital surplus by 1,571,789.65 yuan according to its shareholding percent.
⑥ Yongxiang Co., Ltd. (a wholly-owned subsidiary) disposed its interest in Lijiang LONGi Silicon
Materials Co., Ltd. (one of its associates). As a result, the 116,781.50 yuan originally carried into other
capital surplus due to other equity change in long-term equity investment under equity method was
converted to gain on investment.
56. Treasury shares
"□ Applicable" "√ Not applicable"
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2021 Annual Report
57. Other comprehensive income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current amount
Less: Amount carried Less: Amount
into other carried into other After-tax
Less:
Opening Pre-tax comprehensive comprehensive After-tax income income Closing
Item Income
balance current income in prior income in prior attributable to the attributable balance
tax
amount periods that is periods that is parent company to minority
expenses
converted into converted into shareholders
current profit and loss retained earnings
I. Other comprehensive income that
cannot be reclassified into profit or 6,757,300.85 106,497.86 106,497.86 6,863,798.71
loss
Including: Change in re-measured
defined benefit plan
Other comprehensive income that
cannot be converted into profit and
loss under equity method
Change in fair value of other
6,757,300.85 106,497.86 106,497.86 6,863,798.71
equity investments
Change in fair value of the
company's own credit risk
II. Other comprehensive income that
-80,671,522.57 -8,769,158.76 -8,499,680.10 -269,478.66 -89,171,202.67
will be reclassified into profit or loss
Including: Other comprehensive
income that can be converted into 259,086.76 259,086.76 259,086.76
profit and 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
Foreign currency translation -80,671,522.57 -9,028,245.52 -8,758,766.86 -269,478.66 -89,430,289.43
Total other comprehensive income -73,914,221.72 -8,662,660.90 -8,393,182.24 -269,478.66 -82,307,403.96
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2021 Annual Report
58. Special reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
Work safety
16,401,063.07 67,672,255.14 68,155,284.18 15,918,034.03
expense
Total 16,401,063.07 67,672,255.14 68,155,284.18 15,918,034.03
59. Surplus reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
Statutory surplus
925,322,362.44 489,625,643.13 1,414,948,005.57
reserve
Discretionary
surplus reserve
Reserve fund
Enterprise
development fund
Others
Total 925,322,362.44 489,625,643.13 1,414,948,005.57
60. Undistributed profit
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
Item Current period Prior period
Unadjusted undistributed profit at the end of the
9,066,353,854.50 6,617,152,692.38
prior period
Total adjustment of opening undistributed profit (+
-155,171,503.88
for increase and - for decrease)
Adjusted opening undistributed profit 8,911,182,350.62 6,617,152,692.38
Add: Net current profit attributable to owners of
8,207,920,822.18 3,607,923,359.56
parent company
Less: Withdrawal from statutory surplus 489,625,643.13 361,181,041.90
Withdrawal from discretionary surplus reserve
Withdrawal from general risk reserve
Common dividend payable 1,084,873,112.35 797,541,155.54
Common dividend converted to share capital
Closing undistributed profit 15,544,604,417.32 9,066,353,854.50
Details on adjustment of opening undistributed profit:
① Retrospective adjustment made under the Accounting Standards for Business Enterprises and relevant new provisions
had an effect of 0 yuan on opening undistributed profit.
② Changes in accounting policies had an effect of 0 yuan on opening undistributed profit.
③ Correction of material accounting errors had an effect of 0 yuan on opening undistributed profit.
④ Change in business combination under common control had an effect of 0 yuan on opening undistributed profit.
⑤ The total effect of other adjustments on opening undistributed profit was 0 yuan.
61. Operating revenue and operating cost
(1).Operating revenue and operating cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current amount Prior amount
Item
Revenue Cost Revenue Cost
206 / 261
2021 Annual Report
Main
operating 62,770,969,084.94 45,243,144,449.29 43,433,643,659.03 35,981,319,412.69
activities
Other
operating 720,101,435.18 674,956,888.88 766,626,675.20 667,085,651.69
activities
Total 63,491,070,520.12 45,918,101,338.17 44,200,270,334.23 36,648,405,064.38
(2).Revenue from contracts with customers
"□ Applicable" "√ Not applicable"
Note on revenue from contracts with customers
"□ Applicable" "√ Not applicable"
(3).Note on performance obligations
"□ Applicable" "√ Not applicable"
(4).Note on allocation to remaining performance obligations
"□ Applicable" "√ Not applicable"
Other notes:
None.
62. Tax and surcharge
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Urban construction and maintenance tax 70,012,995.86 5,811,390.46
Education surcharge 30,168,484.84 2,586,236.78
Property tax 58,097,775.48 44,632,018.07
Land use tax 35,038,174.67 29,384,134.86
Stamp duty 46,710,678.44 28,693,509.43
Local education surcharge 20,103,271.22 1,748,269.18
Others 15,823,859.87 11,190,097.35
Total 275,955,240.38 124,045,656.13
63. Sales expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Employee benefits 528,231,438.62 481,340,424.63
Business travel cost 99,407,130.03 93,026,260.91
Advertising costs 80,254,400.11 44,478,775.18
Marketing and promotion costs 111,456,577.28 48,479,006.70
After-sale costs 34,614,317.63 25,354,463.26
Others 65,006,587.06 85,351,709.50
Total 918,970,450.73 778,030,640.18
64. Management expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Employee benefits 2,064,751,080.97 814,656,806.60
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2021 Annual Report
Depreciation expense 204,677,855.44 193,923,343.42
Repair expense 72,430,860.25 304,634,465.83
Amortization of intangible assets 75,297,475.40 55,901,116.03
Work safety expense 69,318,823.96 47,383,065.35
Consulting expense (including advisory expense) 66,490,767.62 34,706,761.03
Business travel cost 41,987,160.73 32,384,792.97
Entertainment expense 36,304,180.65 28,870,562.00
Poverty alleviation expense 20,890,496.81 25,607,452.08
Property management expense 35,361,538.27 25,587,370.41
Property insurance expense 37,506,718.29 23,769,131.07
Utilities expense 19,559,528.99 15,295,126.92
Quality inspection expense 20,846,288.55 14,762,058.00
Lease expense 15,681,362.19 20,025,522.43
Others 166,545,768.59 171,070,529.25
Total 2,947,649,906.71 1,808,578,103.39
65. R&D costs
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Labor cost 353,443,231.22 265,265,919.94
Costs of materials 1,169,498,684.84 467,088,270.02
Depreciation expense 144,323,781.86 107,915,190.95
Fuel and power 293,967,137.78 162,999,918.05
Other expense 74,614,209.73 32,062,135.72
Total 2,035,847,045.43 1,035,331,434.68
66. Financial expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Interest expense 469,390,027.14 521,590,309.29
Less: Fiscal interest subsidy -12,516,147.44 -12,760,919.51
Less: Interest income -111,780,056.77 -57,540,093.05
Add: Exchange loss 107,665,859.41 98,373,973.54
Less: Exchange gain -50,678,301.83 -59,002,987.44
Add: Amortization of unrecognized financing costs 223,712,325.17 173,467,244.18
Add: Financial institution fees 11,366,982.70 12,199,001.78
Total 637,160,688.38 676,326,528.79
67. Other income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Government grants relating to everyday operating activities 359,499,729.72 303,549,939.09
Total 359,499,729.72 303,549,939.09
Other notes:
Government grants relating to everyday operating activities are detailed below:
Relating to
Item Current amount Prior amount
asset/income
Amount relating to asset that is
168,293,435.91 85,331,920.28 Relating to asset
converted from deferred income
Other amounts relating to income 78,252,977.36 77,385,304.96 Relating to income
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2021 Annual Report
Government supports 20,880,000.00 16,212,962.86 Relating to income
Tax refund 20,154,724.40 20,861,993.94 Relating to income
Subsidy for 1GW project and R&D costs 17,000,000.00 Relating to income
Industrial subsidy 14,855,098.39 83,377,737.58 Relating to income
Special reward funds 14,398,300.00 Relating to income
Amount relating to income that is
1,479,897.53 1,294,384.42 Relating to income
converted from deferred income
Reward for innovation capability 9,000,000.00 Relating to income
Subsidy for work in place of training 7,147,000.00 Relating to income
Fiscal reward and subsidy for financial
5,000,000.00 Relating to income
bonds
Subsidy for employment stabilization 2,977,131.25 9,085,635.05 Relating to income
Other amounts relating to asset 61,164.88 Relating to income
Reward for R&D costs (2.3 GW project) 5,000,000.00 Relating to income
Reward for fixed asset investment 5,000,000.00 Relating to income
Total 359,499,729.72 303,549,939.09
68. Investment gain
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Gain on long-term equity investment under equity method -14,159,521.52 22,506,526.78
Gain on disposal of long-term equity investment 386,473.17 1,536,050,665.48
Gain on disposal of held-for-trading financial assets 497,846.62
Gain on other non-current financial assets -12,271.90
Discount interest on receivable financing -15,695,856.14
Gain on wealth management products purchased from 23,368,421.89 1,298,783.09
banks
Gain on forward exchange settlement 48,151,494.55 9,522,042.15
Total 42,536,586.67 1,569,378,017.50
Other notes:
(1) Gain on long-term equity investment under equity method
Investee Current amount Prior amount
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 3,881,464.81 -3,407,482.28
Bohai Aquaculture Co., Ltd. 1,030,906.22
Anhui Tech-bank Biotechnology Co., Ltd. 402,678.61
Huangmei Tongwei Jiuding Feed Co., Ltd. -93,859.57 -390,230.55
Shaoxing Tongwei Jiuding Feed Co., Ltd. -196,132.16 374,442.93
Anhui Tech-bank Feed Technology Co., Ltd. -643,982.62
Maoming Tongwei Jiuding Feed Co., Ltd. -655,071.22 674,274.34
Hefei Tongwei Jiuding Feed Co., Ltd. -1,085,451.82 -341,236.30
Suzhou Taiyangjing New Energy Co., Ltd. -3,339,026.67 -200,366.01
Haimao Seed Industry Technology Co., Ltd. -13,461,047.10
Jiangsu Yanhai Tongwei Fuyun New Energy Co., Ltd. -31,396.52
Lijiang LONGi Silicon Materials Co., Ltd. 52,989,624.97
Zhongwei New Energy (Chengdu)Co., Ltd. -27,161,103.80
Total -14,159,521.52 22,506,526.78
(2) Gain on disposal of long-term equity investment
Investee Current amount Prior amount
Hefei Tongwei Jiuding Feed Co., Ltd. 141,666.67
Shaoxing Tongwei Jiuding Feed Co., Ltd. 118,750.00
Lijiang LONGi Silicon Materials Co., Ltd. 116,781.50
Huangmei Tongwei Jiuding Feed Co., Ltd. 9,275.00
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2021 Annual Report
Chengdu Tongwei Industry Co., Ltd. 1,521,815,054.77
Jiangsu Yanhai Tongwei Fuyun New Energy Co., Ltd. 14,389,885.25
Danzhou Tongwei Huijin New Energy Co., Ltd. 111,272.90
Dongying Tongwei New Energy Co., Ltd. -265,547.44
Total 386,473.17 1,536,050,665.48
(3) Gain on disposal of held-for-trading financial assets
Investee Current amount Prior amount
Disposal of the equity in Chengdu Tongwei Industrial Co.,
497,846.62
Ltd. (2% shareholding)
Total 497,846.62
(4) Gain on other non-current financial assets
Investee Current amount Prior amount
Sichuan Electricity Trading Center Co., Ltd. -12,271.90
Total -12,271.90
69. Gain on hedge of net exposure
"□ Applicable" "√ Not applicable"
70. Fair value gain
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Source of gains Current amount Prior amount
Held-for-trading financial assets 5,754,600.46 4,863,068.12
Including: Gain on fair value from derivate financial
5,754,600.46 4,863,068.12
instruments
Total 5,754,600.46 4,863,068.12
71. Credit impairment loss
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Bad debt loss from notes receivable
Bad debt loss from accounts receivable -92,018,130.84 -19,644,098.38
Bad debt loss from other receivables -31,637,916.41 -5,595,766.05
Impairment loss from debt investments
Impairment loss from other debt investments
Bad debt loss from long-term receivables
Impairment loss from contract assets
Total -123,656,047.25 -25,239,864.43
72. Asset impairment loss
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
I. Bad debt loss
II. Obsolete inventory loss and impairment loss on
-43,333,695.97 -27,596,977.95
fulfillment costs
III. Impairment loss from long-term equity investments
IV. Impairment loss from investment properties
V. Impairment loss from fixed assets -43,375,936.90 -221,877,025.60
VI. Impairment loss from construction materials
VII. Impairment loss from construction in progress
VIII. Impairment loss from productive biological assets
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2021 Annual Report
IX. Impairment loss from gas and oil assets
X. Impairment loss from intangible assets
XI. Goodwill impairment loss -28,774,072.31
XII. Others
XIII. Impairment loss from contract assets -13,637,378.90 -18,291,935.88
Total -129,121,084.08 -267,765,939.43
73. Gain on asset disposal
"√Applicable" "□Not applicable "
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Gain on disposal of fixed assets -99,013,550.58 -1,164,677.07
Gain on disposal of intangible assets 15,823,037.54
Gain on disposal of right-of-use assets 5,007,050.34
Gain on disposal of construction in progress -47,169.81
Gain on disposal of productive biological assets 15,847.83
Total -78,230,632.51 -1,148,829.24
74. Non-operating revenue
Non-operating revenue
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount carried
into current non-
Item Current amount Prior amount
recurring gain or
loss
Payables that cannot be paid 11,220,621.89 24,527,711.39 11,220,621.89
Income relating to damages for breach 7,891,108.73 9,364,996.71 7,891,108.73
Gain on scrap of non-current assets 257,617.59 256,277.03 257,617.59
Others 570,562.18 2,846,642.17 570,562.18
Total 19,939,910.39 36,995,627.30 19,939,910.39
Grants carried into current gain and loss
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
75. Non-operating cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount carried into current non-
Item Current amount Prior amount
recurring gain or loss
Donations 2,205,539.82 4,119,119.08 2,205,539.82
Loss from scrap of
451,946,658.93 400,228,648.84 451,946,658.93
non-current assets
Fine 2,118,489.73 2,038,058.10 2,118,489.73
Late payment interest 916,935.53 486,097.27 916,935.53
Unusual loss 33,337.22 66,502,545.02 33,337.22
Damages 4,856,884.84 1,704,252.25 4,856,884.84
Others 2,289,016.14 1,313,238.91 2,289,016.14
Total 464,366,862.21 476,391,959.47 464,366,862.21
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2021 Annual Report
76. Income tax expense
(1).Income tax expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Current income tax 1,568,558,449.66 578,250,527.36
Deferred income tax 78,963,931.01 -19,196,352.33
Total 1,647,522,380.67 559,054,175.03
(2).Adjustment of accounting profit and income tax expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount
Total profit 10,389,742,051.51
Income tax expense under legal/applicable tax rate 2,597,435,512.88
Effect of different tax rates applied to subsidiaries -953,207,529.92
Effect of periods prior to adjustment -13,426,066.94
Effect of non-taxable income -85,827,481.86
Effect of nondeductible cost, expense and loss 26,514,218.41
Effect of use of deductible loss from prior unrecognized deferred tax assets -10,121,522.92
Effect of deductible temporary difference or deductible loss from deferred tax
235,725,173.67
assets not recognized in current period
Effect of recognition of deferred income tax in current period for the
-3,715,303.31
deductible loss from deferred tax assets not recognized in prior period
Effect of recognition of deferred income tax in current period for the
deductible temporary difference from deferred tax assets not recognized in -2,171,378.23
prior period
Effect of additional deduction of R&D cost -118,989,277.71
Effect of additional deduction of salaries for settlement of disabled employees -476,465.31
Tax exemption and deduction for investment into energy saving equipment -758,631.86
Other income tax deductions -126,124.71
Deferred income tax expense impacted by changes in tax rates 1,166,677.27
Effect of creation of provision for non-core goodwill impairment -9,545,475.57
Effect of scrap of fixed assets leading to decrease in impairment loss, to the
extent that increase in impairment loss has been achieved through deprecation -14,953,943.22
of increase in income under tax laws in prior years
Income tax expense 1,647,522,380.67
Other notes:
"□ Applicable" "√ Not applicable"
77. Other comprehensive income
"√ Applicable" "□ Not applicable"
Refer to notes for details
78. Cash flow statement
(1).Other cash received relating to operating activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Government grants 505,800,189.28 554,261,547.01
Insurance claims 304,741,143.61 115,076,534.20
212 / 261
2021 Annual Report
Bonds and deposits 216,063,316.45 35,682,905.20
Interest on bank deposits 111,381,985.30 34,466,767.72
Reserve and current accounts 14,433,073.85
Damages for breach 5,691,790.25 8,338,615.45
Rent income 13,703,889.84 24,886,231.48
Others 2,661,344.67 3,058,661.49
Total 1,174,476,733.25 775,771,262.55
(2).Other cash paid relating to operating activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Other cash paid relating to operating activities 851,207,059.21 661,342,975.25
Reserve and current accounts 27,699,083.31 53,949,024.73
Prepaid distribution from PV powerplants in
12,432,390.37 3,218,902.14
poverty alleviation program
Bonds and deposits 136,890,264.51 10,029,479.45
Total 1,028,228,797.40 728,540,381.57
(3).Other cash received relating to investing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Construction bid bonds 461,244,114.22 276,742,512.51
Construction account funds unlocked 6,400,835.68
Borrowings returned through disposal of
136,265,300.00
Chengdu Tongwei Industry Co., Ltd.
Equity transfer price 89,600,000.00
Total 467,644,949.90 502,607,812.51
(4).Other cash paid relating to investing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Prepaid equity purchase price 3,082,000.00
Refunded construction bid bonds 506,985,472.09 164,247,398.46
Total 506,985,472.09 167,329,398.46
(5).Other cash received relating to financing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Net reduction in note bonds 167,104,080.27 861,743,891.85
Funds coordinated from joint ventures 52,701,735.98 221,176,251.72
Interest income on bond deposits 400,362.32 11,125,487.43
Debt investments from minority
122,975,000.00
shareholders of subsidiaries
Total 343,181,178.57 1,094,045,631.00
(6).Other cash paid relating to financing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
213 / 261
2021 Annual Report
Item Current amount Prior amount
Financial lease expense 2,028,127,474.39 854,903,139.02
Notes and credit bonds 7,503,287.33 384,773,935.90
Funds coordinated to joint ventures 52,701,735.99 235,893,051.73
Principal repayment for interest-free debts 185,087,917.55 185,087,917.55
Purchase of minority shareholding 1,534,258.73 29,870,084.86
Financial lease risk reserve 22,549,598.12 11,247,063.94
Financing charges 9,179,990.00 5,793,587.60
Investment withdrawn by minority
1,689,178.73 2,450,000.00
shareholders
Others 1,743,692.50
Total 2,308,373,440.84 1,711,762,473.10
Note: The lease expense paid in current period includes the lease expense relating to leaseback contracts
of 1,341,397,284.46 yuan when the leaseback does not qualify as a sale, excluding expenses relating to
short-term leases and low-value asset leases.
79. Additional information on cash flow statement
(1).Additional information on cash flow statement
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Additional information Current amount Prior amount
1. Net profit adjusted as cash flow from operating activities
Net income 8,742,219,670.84 3,714,738,791.09
Add: provision for asset impairment 129,121,084.08 267,765,939.43
Credit impairment loss 123,656,047.25 25,239,864.43
Deprecation of fixed assets, depletion of oil and gas
2,620,056,128.68 2,357,189,141.57
assets and depreciation of productive biological assets
Amortization of right-of-use assets 436,570,018.21
Amortization of intangible assets 92,013,927.02 62,710,902.43
Amortization of long-term prepaid expenses 103,368,124.71 59,146,836.63
Loss from disposal of fixed assets, intangible assets and
78,230,632.51 1,148,829.24
other long-term assets (“-” for gain)
Loss from scrap of fixed assets (“-” for gain) 451,689,041.34 399,972,371.81
Loss from change in fair value (“-” for gain) -5,754,600.46 -4,863,068.12
Financial expense (“-” for gain) 704,955,202.62 726,479,351.22
Investment loss (“-” for gain) -42,536,586.67 -1,569,378,017.50
Decrease in deferred tax assets (“-” for increase) -171,807,171.48 -188,941,716.35
Increase in deferred tax liabilities (“-” for decrease) 250,771,102.49 169,745,364.02
Decrease in inventories (“-” for increase) -2,796,868,142.01 -384,993,632.73
Decrease in operating receivables (“-” for increase) -7,394,759,888.49 -6,669,843,200.17
Increase in operating receivables (“-” for decrease) 4,297,349,286.08 4,058,810,174.94
Others
Net cash flows generated from operating activities 7,618,273,876.72 3,024,927,931.94
2. Significant investing and financing activities not related to cash receipt and payment:
Debt for equity swap 4,224,357,901.63
Convertible corporate bonds due within one year
Fixed assets acquired by financial lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 2,903,078,719.63 5,986,042,619.46
Less: Opening balance of cash 5,986,042,619.46 1,942,739,577.25
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -3,082,963,899.83 4,043,303,042.21
214 / 261
2021 Annual Report
(2).Net cash paid by subsidiaries in current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount
Cash or cash equivalent paid in current period for current business combination 1,284,677,399.74
Including: Ningbo Tech-bank Feed Technology Co., Ltd. 941,052,018.29
Qingdao Qihao Biotechnology Co., Ltd. 76,369,224.71
Ningbo Tech-bank Biotechnology Co., Ltd. 18,340,900.00
Yancheng Tech-bank Feed Technology Co., Ltd. 61,200,000.00
Nanning Aigefei Feed Co., Ltd. 29,000,000.00
Bengbu Tech-bank Feed Technology Co., Ltd. 2,800,000.00
Hubei Tech-bank Feed Co., Ltd. 4,400,000.00
Dongying Tech-bank Feed Technology Co., Ltd. 10,600,000.00
Vietnam Tech-bank Feed Co., Ltd. 28,754,607.00
Zhongwei New Energy (Chengdu)Co., Ltd. 112,160,649.74
Less: Cash and cash equivalent held by subsidiary on acquisition date 25,292,438.27
Including: Ningbo Tech-bank Feed Technology Co., Ltd. 925,512.67
Qingdao Qihao Biotechnology Co., Ltd. 362,975.76
Ningbo Tech-bank Biotechnology Co., Ltd. 257,127.57
Yancheng Tech-bank Feed Technology Co., Ltd. 134,579.05
Nanning Aigefei Feed Co., Ltd. 17,438.94
Bengbu Tech-bank Feed Technology Co., Ltd. -
Hubei Tech-bank Feed Co., Ltd. 120,120.43
Dongying Tech-bank Feed Technology Co., Ltd. 183,135.00
Vietnam Tech-bank Feed Co., Ltd. 11,159,459.99
Zhongwei New Energy (Chengdu) Co., Ltd. 12,132,088.86
Add: Cash or cash equivalent paid in current period for prior business
combination
Net cash paid by subsidiary 1,259,384,961.47
(3).Net cash received in current period for disposal of subsidiary
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount
Cash or cash equivalent received in current period for current subsidiary disposal 1,423,800.00
Including: Jianping Tongwei New Energy Co., Ltd. 1,423,800.00
Less: Cash and cash equivalent held by subsidiary on the day when the Company
198,041.71
loses control
Including: Jianping Tongwei New Energy Co., Ltd. 198,041.71
Add: Cash or cash equivalent received in current period for prior subsidiary
disposal
Net cash received for subsidiary disposal 1,225,758.29
(4).Components of cash and cash equivalents
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
I. Cash 2,903,078,719.63 5,986,042,619.46
Including: Cash on hand 109,314.50 126,156.42
Bank deposits available for payment 2,872,458,634.04 5,956,397,774.28
Other cash available for payment 30,510,771.09 29,518,688.76
Central bank deposits available for payment
Interbank deposits
215 / 261
2021 Annual Report
Interbank borrowings
II. Cash equivalents
Including: bond investments due within three
months
III. Closing cash and cash equivalents 2,903,078,719.63 5,986,042,619.46
Including: restricted cash and cash equivalents
98,852,162.75 278,125,622.57
available for use by parent company or subsidiaries
Other notes:
"√ Applicable" "□ Not applicable"
The “cash received from sales of goods and rendering of services” in cash flow statement excludes the
cash from sale of goods and rendering of services (13,729,434,205.16) that was not received due to
endorsement of notes receivable.
80. Notes to statement of owner's equity
Note on “other” items and adjusted amounts for adjustment of closing balance of prior period:
"□ Applicable" "√ Not applicable"
81. Assets with restricted ownership or use right
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing carrying Restriction reasons
value
Cash at bank and on hand Provide guarantees for financing and
98,852,162.75
operations of the Company
Fixed assets Provide securities for financing of the
8,415,955,174.84
Company and financial lease
Intangible assets Provide collaterals for financing of the
425,887,607.93
Company
Receivables financing 10,084,007,955.24 Provides pledges for the bank acceptance bills
issued by the Company
Accounts receivable 1,227,885,049.80 Provide collaterals for financing of the
Company
Contract assets 660,365,599.48 Provide collaterals for financing of the
Company
Right-of-use assets 1,849,680,205.51 Provide collaterals for financing of the
Company
Investment properties 75,396,248.55 Provide collaterals for financing of the
Company
Total 22,838,030,004.10 /
82. Foreign currency monetary items
(1).Foreign currency monetary items
"√ Applicable" "□ Not applicable"
Unit: Yuan
Closing converted
Closing foreign Exchange rates for
Item CNY
currency balance translation
balance
Cash at bank and on hand
Including: USD 38,672,822.04 6.3757 246,567,491.49
EUR 3,743,834.44 7.2197 27,029,361.50
HKD 1,039,018.71 0.8176 849,502.35
216 / 261
2021 Annual Report
VND 522,278,170,797.22 0.0002798 146,132,654.79
BDT 5,816,579.94 0.0742539 431,903.94
SGD 70,437.72 4.7179 332,318.12
IDR 10,388,793,322.98 0.0004468 4,641,998.81
JPY 6.00 0.055415 0.33
Notes receivable
Including: USD 206,143,808.56 6.3757 1,314,311,080.25
EUR 8,672,742.88 7.2197 62,614,601.77
Accounts receivable - -
Including: USD 21,135,698.69 6.3757 134,754,874.10
EUR
HKD
VND 384,957,878,796.70 0.0002798 107,710,654.39
BDT 27,069,228.70 0.0742539 2,009,996.71
IDR 137,063,623,264.62 0.0004468 61,243,799.49
Other receivables
Including: USD 58,364,963.74 6.3757 372,117,499.32
VND 4,377,245,581.07 0.0002798 1,224,746.95
IDR 1,555,662,747.35 0.0004468 695,112.93
EUR 7,433,425.00 7.2197 53,667,098.47
Short-term borrowings
Including: VND 409,070,776,096.28 0.0002798 114,457,407.98
IDR 6,954,861,500.00 0.0004468 3,107,623.55
USD 2,616,109.80 6.3757 16,679,531.25
Notes payable
Including: USD 1,950,897.45 6.3757 12,438,336.87
EUR 8,179,250.00 7.2197 59,051,731.23
Accounts payable
Including: USD 2,042,944.32 6.3757 13,025,200.10
VND 156,244,312,392.78 0.0002798 43,716,931.28
BDT 158,582,985.07 0.0742539 11,775,410.44
IDR 87,941,489,493.32 0.0004468 39,292,257.51
EUR 221,300.00 7.2197 1,597,719.61
Employee benefits payable
Including: VND 8,794,788,783.81 0.0002798 2,460,769.10
BDT 11,287,078.82 0.0742539 838,110.00
Taxes payable
Including: VND 12,484,673,869.15 0.0002798 3,493,193.59
BDT 15,211,585.42 0.0742539 1,129,520.05
IDR 52,929,614.29 0.0004468 23,650.41
Other payable
Including: USD 60,575,544.88 6.3757 386,211,501.50
VND 10,495,272,647.10 0.0002798 2,936,562.02
BDT 2,687,020.17 0.0742539 199,521.82
IDR 3,165,217,414.00 0.0004468 1,414,306.26
EUR 7,786,300.00 7.2197 56,214,750.11
Non-current liabilities due
within one year
Including: USD 2,054,780.86 6.3757 13,100,666.33
Long-term borrowings - -
Including: USD 57,449,225.06 6.3757 366,279,024.22
EUR
HKD
217 / 261
2021 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"
Entity name Principal business Reporting Basis for reporting
location currency currency
Tongwei Holdings PTE. Ltd. Singapore USD Currency for main
operating activities
Tongwei Feed Mill Bangladesh Ltd. Bangladesh BDT Local main currency
Vietnam Tongwei Co., Ltd. Vietnam VND Local main currency
Haiyang Tongwei Co., Ltd. Vietnam VND Local main currency
Heping Tongwei Co., Ltd. Vietnam VND Local main currency
PT. Tongwei Indonesia Indonesia IDR Local main currency
Qianjiang Tongwei Co., Ltd. Vietnam VND Local main currency
Tongta Tongwei Co., Ltd. Vietnam VND Local main currency
Vietnam Tech-bank Co., Ltd. Vietnam VND Local main currency
Tongwei Solar Hong Kong Co., Ltd. Hong Kong USD Currency for main
operating activities
83. Hedge
"□ Applicable" "√ Not applicable"
84. Government grants
(1).Overview of government grants
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount carried into
Type Amount Presentation item
current profit and loss
Grants related to assets 1,073,057,911.07 Deferred income 168,293,435.91
Grants related to income 3,356,788.87 Deferred income 1,479,897.53
Grants related to income 189,726,396.28 Other income 189,726,396.28
Grants related to income 702,886,480.85 Operating cost 702,886,480.85
Grants related to income 12,516,147.44 Financial expense 12,516,147.44
Total 1,981,543,724.51 Total 1,074,902,358.01
(2).Return of grants
"□ Applicable" "√ Not applicable"
Other notes:
Tongwei Solar (Anhui) Co., Ltd. was not eligible for the filing condition “2018 sales revenue must
be not lower than 5 million yuan” set forth in the Note on Starting to Apply for 2019 Grant relating to
Technological Innovations (Wan Ke Zi Mi (2019) No.410)); as a result, 5,726,000.00 yuan of grant was
returned in current period.
85. Others
"□ Applicable" "√ Not applicable"
VIII. Changes in the scope of consolidation
1. Business combinations under different control
"√ Applicable" "□ Not applicable"
(1).Current business combinations under different control
"√ Applicable" "□ Not applicable"
218 / 261
2021 Annual Report
Unit: Yuan Currency: CNY
Shareholding Basis for Acquiree's Acquiree's net
Acquisition Acquisition percent Acquisition Purchase determining income from income from
Acquiree
date cost acquired method date acquisition purchase date to purchase date to
(%) date period end period end
Ningbo Tech-bank Date to
2021-
Feed Technology 2021-10-15 941,052,018.29 100.00 Purchase obtain 140,067,677.13 -9,956,490.94
10-01
Co., Ltd. control
Qingdao Qihao Date to
2021-
Biotechnology 2021-09-30 76,369,224.71 100.00 Purchase obtain 26,490,310.26 -5,149,356.12
10-01
Co., Ltd. control
Ningbo Tech-bank Date to
2021-
Biotechnology 2021-10-13 18,340,900.00 100.00 Purchase obtain 1,201,354.85 102,058.72
10-01
Co., Ltd. control
Yancheng Tech-
Date to
bank Feed 2021-
2021-10-15 61,200,000.00 51.00 Purchase obtain 125,012,574.93 -4,440,121.52
Technology Co., 10-01
control
Ltd.
Nanning Aigefei Date to
2021-
Feed Co., Ltd. 2021-10-15 29,000,000.00 51.00 Purchase obtain 78,150,558.81 -1,999,670.52
10-01
control
Bengbu Tech-
Date to
bank Feed 2021-
2021-10-15 2,800,000.00 51.00 Purchase obtain 1,132,505,726.56 -22,006,718.53
Technology Co., 10-01
control
Ltd.
Hubei Tech-bank Date to
2021-
Feed Co., Ltd. 2021-10-15 4,400,000.00 51.00 Purchase obtain 36,087,270.27 -2,329,941.00
10-01
control
Dongying Tech-
Date to
bank Feed 2021-
2021-10-26 10,600,000.00 51.00 Purchase obtain - -346,869.13
Technology Co., 10-01
control
Ltd.
Vietnam Tech- Date to
2021-
bank Feed Co., 2021-11-18 44,237,857.00 65.00 Purchase obtain 32,321,826.11 201,182.91
10-01
Ltd. control
Zhongwei New Date to
2021-
Energy (Chengdu) 2021-01-01 166,798,274.97 100.00 Purchase obtain 62,697,672.00 -85,610,069.44
01-01
Co., Ltd. control
Other notes:
By purchase date, relevant agreements for business combination had been approved and signed by
relevant parties, with necessary procedures for title transfer completed. The Company had sent directors
and managers to the acquirees and paid much of the combination prices, obtained control of financial and
operating policies of acquirees and entitlement to respective benefits and assumed respective risks.
219 / 261
2021 Annual Report
(2).Business combination costs and goodwill
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Business combination Qihao Ningbo Yancheng Nanning Bengbu Hubei Tech- Dongying Vietnam Zhongwei New
Ningbo Feed
costs Biotechnology Biotechnology Tech-bank Aigefei Tech-bank bank Tech-bank Tech-bank Energy
--Cash 941,052,018.29 76,369,224.71 18,340,900.00 61,200,000.00 29,000,000.00 2,800,000.00 4,400,000.00 10,600,000.00 44,237,857.00 112,160,649.74
--Fair value of non-cash
assets
--Fair value of debts
issued or assumed
--Fair value of equity
securities issued
--Fair value of
contingent consideration
--Fair value of pre-
purchase shares on 54,637,625.23
purchase date
--Others
Total costs 941,052,018.29 76,369,224.71 18,340,900.00 61,200,000.00 29,000,000.00 2,800,000.00 4,400,000.00 10,600,000.00 44,237,857.00 166,798,274.97
Less: Share of the
acquiree's net 820,175,361.48 70,963,026.41 16,213,275.45 55,802,242.65 28,141,910.89 2,100,970.50 4,236,514.11 10,282,422.37 40,555,644.09 166,798,274.97
identifiable assets
Amount that the
goodwill/combination
cost is smaller than the 120,876,656.81 5,406,198.30 2,127,624.55 5,397,757.35 858,089.11 699,029.50 163,485.89 317,577.63 3,682,212.91 -
share of the acquiree's
net identifiable assets
Note on determination of fair value of combination costs, contingent consideration and its changes:
None.
Main reasons for generation of large goodwill:
None.
Other notes:
1. Vietnam Tech-bank means Vietnam Tech-bank Feed Co., Ltd., and Zhongwei New Energy means Zhongwei New Energy (Chengdu) Co., Ltd.
2. Among the combination costs paid in cash, except for the 28,754,607.00 yuan (accounts for 65.00% of the total costs) that has been paid and the 15,483,250.00
yuan that has not been paid for combination of Vietnam Tech-bank, all other cash costs for combination of other entities have been paid completely.
220 / 261
2021 Annual Report
(3).Acquiree's net identifiable assets and liabilities on acquisition date
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Ningbo Tech-bank Feed Technology Qingdao Qihao Biotechnology Co.,
Co., Ltd. Ltd.
Fair value on Carrying value on Fair value on Carrying value on
acquisition date acquisition date acquisition date acquisition date
Assets: 1,020,441,913.57 648,808,839.38 174,077,697.25 138,036,375.22
Cash at bank and on 925,512.67 925,512.67 362,975.76 362,975.76
hand
Accounts receivable 474,012,659.44 474,012,659.44 3,722,622.63 3,722,622.63
Inventories 46,359,164.38 46,326,453.38 19,362,518.82 19,362,518.82
Fixed assets 148,821,580.00 96,513,122.64 107,244,449.54 90,923,826.98
Intangible assets 347,920,985.41 27,895,635.79 34,456,124.58 14,735,425.11
Construction in
2,172,845.00 2,172,845.00
progress
Other current assets 726,560.22 726,560.22
Deferred expenses 229,166.67 962,610.46 92,925.03 92,925.03
Deferred tax assets 8,109,520.67 8,109,520.67
Liabilities: 200,266,552.09 107,358,283.54 103,114,670.84 97,708,472.54
Borrowings
Accounts payable 101,819,991.92 101,819,991.92 95,759,820.88 95,759,820.88
Deferred tax 92,908,268.55 5,406,198.30
liability
Employee benefits
4,331,858.02 4,331,858.02 1,753,907.07 1,753,907.07
payable
Taxes payable 1,206,433.60 1,206,433.60 194,744.59 194,744.59
Net assets 820,175,361.48 541,450,555.84 70,963,026.41 40,327,902.68
Less: Minority
0.00 0.00 0.00 0.00
interest
Net assets acquired 820,175,361.48 541,450,555.84 70,963,026.41 40,327,902.68
Zhongwei New Energy (Chengdu) Co.,
Vietnam Tech-bank Feed Co., Ltd.
Ltd.
Fair value on Carrying value on Fair value on Carrying value on
acquisition date acquisition date acquisition date acquisition date
Assets: 79,400,682.55 51,075,967.92 353,734,615.18 353,734,615.18
Cash at bank 11,159,459.99 11,159,459.99 19,928,377.80 19,928,377.80
and on hand
Accounts 4,367,647.26 4,367,647.26 14,257,304.95 14,257,304.95
receivable
Inventories 9,428,454.37 12,289,420.14 11,445,045.07 11,445,045.07
Fixed assets 21,974,058.21 18,339,826.56 257,087,539.27 257,087,539.27
Intangible 32,253,440.39 4,701,991.64 19,661,601.68 19,661,601.68
assets
Other current
217,622.33 217,622.33 18,585,263.17 18,585,263.17
assets
R&D costs 12,372,703.24 12,372,703.24
Other non-
396,780.00 396,780.00
current assets
Liabilities: 17,007,383.96 11,342,441.03 186,936,340.21 186,936,340.21
221 / 261
2021 Annual Report
Borrowings 2,265,535.11 2,265,535.11 10,010,875.00 10,010,875.00
Accounts 8,385,924.28 8,385,924.28 127,046,452.55 127,046,452.55
payable
Deferred tax 5,664,942.93
liability
Employee
benefits 690,981.64 690,981.64 4,788,525.20 4,788,525.20
payable
Taxes payable 64,102.41 64,102.41
Other current
26,385.05 26,385.05
liabilities
Long-term
45,000,000.00 45,000,000.00
payables
Net assets 62,393,298.59 39,733,526.89 166,798,274.97 166,798,274.97
Less:
Minority 21,837,654.50 13,906,734.41 0.00 0.00
interest
Net assets
40,555,644.09 25,826,792.48 166,798,274.97 166,798,274.97
acquired
Dongying Tech-bank Feed Technology
Hubei Tech-bank Feed Co., Ltd.
Co., Ltd.
Fair value on Carrying value on Fair value on Carrying value on
acquisition date acquisition date acquisition date acquisition date
Assets: 44,211,119.20 42,928,876.93 37,207,714.01 34,716,909.05
Cash at bank 120,120.43 120,120.43 183,135.00 183,135.00
and on hand
Accounts 29,406,373.74 29,406,373.74
receivable
Inventories 5,382,690.65 5,382,690.65
Fixed assets 4,746,859.06 3,464,616.79
Intangible 28,074,024.96 25,583,220.00
assets
Right-of-use
4,555,075.32 4,555,075.32
assets
Construction
835,554.05 835,554.05
in progress
Other non-
8,115,000.00 8,115,000.00
current assets
Liabilities: 35,904,228.80 35,583,668.23 17,046,101.53 16,423,400.29
Borrowings
Accounts 30,601,844.07 30,601,844.07 16,207,586.05 16,207,586.05
payable
Deferred tax 320,560.57 0.00 622,701.24 0.00
liability
Employee
benefits 249,662.74 249,662.74
payable
Taxes payable 70,912.44 70,912.44 215,814.24 215,814.24
Non-current
liabilities due
152,440.14 152,440.14
within one
year
222 / 261
2021 Annual Report
Lease
4,508,808.84 4,508,808.84
liabilities
Net assets 8,306,890.40 7,345,208.70 20,161,612.48 18,293,508.76
Less:
Minority 4,070,376.29 3,599,152.26 9,879,190.11 8,963,819.29
interest
Net assets
4,236,514.11 3,746,056.44 10,282,422.37 9,329,689.47
acquired
Ningbo Tech-bank Biotechnology Yancheng Tech-bank Feed Technology
Co., Ltd. Co., Ltd.
Fair value on Carrying value on Fair value on Carrying value on
acquisition date acquisition date acquisition date acquisition date
Assets: 19,267,178.99 13,539,126.00 410,609,225.61 368,273,873.86
Cash at bank and on 257,127.57 257,127.57 134,579.05 134,579.05
hand
Accounts receivable 13,040,031.32 13,040,031.32 270,605,744.08 270,605,744.08
Inventories 157,688.12 196,304.97 27,507,585.74 27,507,585.74
Fixed assets 38,841.00 42,171.16 90,401,633.25 67,781,895.54
Intangible assets 5,770,000.00 0.00 21,703,819.92 1,988,205.88
Construction in
2,000.00 2,000.00
progress
Other current assets 100,594.12 100,594.12
Deferred expenses
Deferred tax assets 3,490.98 3,490.98 153,269.45 153,269.45
Liabilities: 3,053,903.54 1,621,890.29 301,193,063.54 290,609,225.60
Borrowing 200,000,000.00 200,000,000.00
Accounts payable 619,844.69 619,844.69 88,090,210.13 88,090,210.13
Deferred tax 1,432,013.25 10,583,837.94 0.00
liability
Employee benefits
904,284.00 904,284.00 1,507,696.50 1,507,696.50
payable
Taxes payable 66,451.74 66,451.74 204,741.17 204,741.17
Other current
31,309.86 31,309.86
liabilities
Deferred income 806,577.80 806,577.80
Net assets 16,213,275.45 11,917,235.71 109,416,162.07 77,664,648.26
Less: Minority
0.00 0.00 53,613,919.42 38,055,677.65
interest
Net assets acquired 16,213,275.45 11,917,235.71 55,802,242.65 39,608,970.61
Bengbu Tech-bank Feed Technology
Nanning Aigefei Feed Co., Ltd.
Co., Ltd.
Fair value on Carrying value on Fair value on Carrying value on
acquisition date acquisition date acquisition date acquisition date
Assets: 103,020,337.99 91,803,486.94 114,972,751.07 109,490,166.79
Cash at bank and on 17,438.94 17,438.94
hand
Accounts receivable 67,452,873.62 67,452,873.62 60,260,312.53 60,260,312.53
Inventories 11,862,874.75 11,600,665.99 24,890,714.48 24,890,714.48
Fixed assets 15,922,633.58 11,587,545.73 29,821,724.06 24,339,139.78
223 / 261
2021 Annual Report
Intangible assets 7,698,087.90 1,078,533.46
Deferred tax assets 66,429.20 66,429.20
Liabilities: 47,840,120.56 46,157,592.90 110,853,201.07 109,482,555.00
Borrowings
Accounts payable 45,306,853.82 45,306,853.82 108,847,596.00 108,847,596.00
Deferred tax liability 1,682,527.66 1,370,646.07
Employee benefits
561,545.50 561,545.50 634,959.00 634,959.00
payable
Taxes payable 245,901.58 245,901.58
Deferred income 43,292.00 43,292.00
Net assets 55,180,217.43 45,645,894.04 4,119,550.00 7,611.79
Less: Minority
27,038,306.54 22,366,488.08 2,018,579.50 3,729.78
interest
Net assets acquired 28,141,910.89 23,279,405.96 2,100,970.50 3,882.01
Method for determining the fair value of identifiable assets and liabilities:
None.
Contingent liabilities acquired from business combination
None.
Other notes:
None.
(4).Fair value re-measurement gain or loss on previously held equity on acquisition date
Business combination achieved in stages with the Company obtained control in the reporting period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount of
Fair value re- Method and key
other
Carrying value measurement assumptions for
Fair value of comprehensive
of previously gain or loss determining fair
previously held income relating
Acquiree held equity on on previously value of
equity on the to previously
the acquisition held equity on previously held
acquisition date held equity
date acquisition equity on the
converted into
date acquisition date
investment gain
Zhongwei New Energy Carrying value
54,637,625.23 54,637,625.23
(Chengdu) Co., Ltd.
(5).Note on the inability to reasonably determine consideration or fair value of acquiree's net
identifiable assets and liabilities on acquisition date or as of the end of the combination period
"□ Applicable" "√ Not applicable"
(6).Other notes
"□ Applicable" "√ Not applicable"
2. Business combinations under common control
"□ Applicable" "√ Not applicable"
3. Reverse acquisition
"□ Applicable" "√ Not applicable"
224 / 261
2021 Annual Report
4. Subsidiary disposal
Disposal of subsidiary with on transaction leading to losing control
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount of
Difference
Method and other
between
key comprehensive
disposal price
Carrying Fair value Fair value assumptions income
and share of Remaining
Basis for value of of re- for relating to
Disposal Control the equity on
Equity Disposal determining remaining remaining measurement determining equity
Subsidiary name percent lost subsidiary's control
disposal price method control lost equity on equity on gain or loss fair value of investment in
(%) date net assets lost date
date control control on remaining remaining former
regarding the (%)
lost date lost date equity equity on subsidiary
consolidated
control lost converted to
financial
date investment
statements
gain
Business
Jianping Tongwei Equity 2021-
83,023,800.00 100.00 registration 0.00 0.00
New Energy Co., Ltd. transfer 01-13
change
Other notes:
"√ Applicable" "□ Not applicable"
On October 19, 2020, Tongwei New Energy Co., Ltd. (a wholly-owned subsidiary) and Hunan Hengyang Xintong New Energy Development Co., Ltd. (former
name: Hunan Jianrong Yanheng New Energy Development Co., Ltd.) signed an agreement under which the subsidiary transferred the 100% shares of Jianping
Tongwei New Energy Co., Ltd. and the procedures for transfer were completed in January 2021.
5. Changes in scope of consolidation for other reasons
Note on changes in scope of consolidation for other reasons (such as new subsidiary or liquidation of subsidiary) and relevant circumstances:
"√ Applicable" "□ Not applicable"
Shenyang Tongwei Biotechnology Co., Ltd. was established in 2021 through investment from the Company.
Tongwei New Energy Engineering Design Sichuan Co., Ltd. and Sichuan Yongxiang New Materials Co., Ltd. Were changed from tier-one subsidiaries to tier-
two ones.
6. Others
"□ Applicable" "√ Not applicable"
225 / 261
2021 Annual Report
IX. Interest in other entities
1. Interest in subsidiaries
(1).Corporate group structure
"√ Applicable" "□ Not applicable"
Principal Equity percent (%)
Subsidiary Registered Obtaining
business Business nature
name location Direct Indirect method
location
Business combination
Yongxiang Co., Ltd. Leshan Leshan Chemical engineering and PV 99.9999 0.0001
under common control
Production and operation of solar Business combination
Tongwei Solar (Hefei) Co., Ltd. Hefei Hefei 100
cells and modules under common control
Business combination
Tongwei New Energy Co., Ltd. Chengdu Chengdu PV electricity operation 100
under common control
Business combination
Chongqing Tongwei Feed Co., Ltd. Chongqing Chongqing Feed production and operation 100
under common control
Business combination
Xiamen Tongwei Feed Co., Ltd. Xiamen Xiamen Feed production and operation 100
under common control
Business combination
Yuanjiang Tongwei Feed Co., Ltd. Yuanjiang Yuanjiang Feed production and operation 100
under common control
Business combination
Wuhan Tongwei Feed Co., Ltd. Wuhan Wuhan Feed production and operation 100
under common control
Business combination
Shashi Tongwei Feed Co., Ltd. Shashi Shashi Feed production and operation 100
under common control
Business combination
Guangdong Tongwei Feed Co., Ltd. Foshan Foshan Feed production and operation 100
under common control
Business combination
Shandong Tongwei Feed Co., Ltd. Zibo Zibo Feed production and operation 92
under common control
Business combination
Zaozhuang Tongwei Feed Co., Ltd. Zaozhuang Zaozhuang Feed production and operation 100
under common control
Business combination
He’nan Tongwei Feed Co., Ltd. Xinxiang Xinxiang Feed production and operation 100
under common control
Business combination
Changchun Tongwei Feed Co., Ltd. Changchun Changchun Feed production and operation 100
under common control
226 / 261
2021 Annual Report
Chengdu Tongwei Aquaculture Business combination
Chengdu Chengdu Farming 100
Technology Co., Ltd. under common control
Chengdu Tongwei Sanxin Business control under
Chengdu Chengdu Veterinary drugs 70
Pharmaceutical Co. Ltd. different control
Tongwei (Hainan) Aquatic Products Business control under
Hainan Hainan Food processing 100
Co., Ltd. different control
Hainan Haiyi Aquatic Products Feed Business control under
Hainan Hainan Feed production and operation 100
Co., Ltd. different control
Zhuhai Haiyi Aquatic Products Feed Business control under
Zhuhai Zhuhai Feed production and operation 100
Co., Ltd. different control
Business control under
Hainan Haiyi Aquatic Seed Co., Ltd. Hainan Hainan Farming 49.95
different control
Business control under
Nantong Bada Feed Co., Ltd. Nantong Nantong Feed production and operation 100
different control
Establishment through
Nanning Tongwei Feed Co., Ltd. Nanning Nanning Feed production and operation 100
investment
Establishment through
Tianjin Tongwei Feed Co., Ltd. Tianjin Tianjin Feed production and operation 100
investment
Establishment through
Huaian Tongwei Feed Co., Ltd. Huaian Huaian Feed production and operation 100
investment
Establishment through
Jieyang Tongwei Feed Co., Ltd. Jieyang Jieyang Feed production and operation 100
investment
Chengdu Ronglai Tongwei Feed Co., Establishment through
Chengdu Chengdu Feed production and operation 80
Ltd. investment
Establishment through
Yangzhou Tongwei Feed Co., Ltd. Yangzhou Yangzhou Feed production and operation 100
investment
Establishment through
Langfang Tongwei Feed Co., Ltd. Langfang Langfang Feed production and operation 100
investment
Chengdu Tongwei Animal Nutrition Establishment through
Chengdu Chengdu Feed production and operation 100
Technology Co., Ltd. investment
Establishment through
Panzhihua Tongwei Feed Co., Ltd. Panzhihua Panzhihua Feed production and operation 100
investment
Foshan Nanhai Tongwei Aquatic Establishment through
Guangzhou Guangzhou Farming 100
Products Technology Co., Ltd. investment
227 / 261
2021 Annual Report
Tongwei Agricultural Finance Establishment through
Chengdu Chengdu Guarantee 100
Guarantee Co., Ltd. investment
Sichuan Tongguang Construction Establishment through
Chengdu Chengdu Construction 100
Engineering Co., Ltd. investment
Chongqing Changshou Tongwei Feed Changshou, Changshou, Establishment through
Feed production and operation 100
Co., Ltd. Chongqing Chongqing investment
Establishment through
Qianxi Tongwei Feed Co., Ltd. Qianxi Qianxi Feed production and operation 100
investment
Establishment through
Lianyungang Tongwei Feed Co., Ltd. Lianyungang Lianyungang Feed production and operation 100
investment
Chengdu Tongwei Automation Establishment through
Chengdu Chengdu Equipment manufacturing 80
Equipment Co., Ltd. investment
Establishment through
Foshan Tongwei Feed Co., Ltd. Foshan Foshan Feed production and operation 100
investment
Establishment through
Zibo Tongwei Feed Co., Ltd. Zibo Zibo Feed production and operation 76
investment
Establishment through
Tongwei (Dafeng) Feed Co., Ltd. Yancheng Yancheng Feed production and operation 51
investment
Establishment through
Kunming Tongwei Feed Co., Ltd. Kunming Kunming Feed production and operation 100
investment
Establishment through
Zibo Tongwei Food Co., Ltd. Zibo Zibo Food processing 100
investment
Foshan Gaoming Tongwei Feed Co., Establishment through
Gaoming Gaoming Feed production and operation 100
Ltd. investment
Tianmen Tongwei Biotechnology Co., Establishment through
Tianmen Tianmen Feed production and operation 100
Ltd. investment
Establishment through
Binyang Tongwei Feed Co., Ltd. Binyang Binyang Feed production and operation 100
investment
Fuzhou Tongwei William Feed Co., Establishment through
Fuzhou Fuzhou Feed production and operation 65
Ltd. investment
Ningxia Yinchuan Tongwei Feed Co., Establishment through
Yinchuan Yinchuan Feed production and operation 100
Ltd. investment
Establishment through
Haerbin Tongwei Feed Co., Ltd. Binxian Binxian Feed sale 100
investment
228 / 261
2021 Annual Report
Nanjing Tongwei Aquaculture Establishment through
Nanjing Nanjing Farming and feed sale 100
Technology Co., Ltd. investment
Establishment through
Tongwei Holdings PTE. Ltd. Singapore Singapore Trade 100
investment
Establishment through
Tongwei Industrial (Tibet) Co., Ltd. Lhasa Lhasa Trade 100
investment
Anhui Establishment through
Chizhou Tongwei Feed Co., Ltd. Chizhou Feed production and operation 100
Province investment
Chengdu Tongwei Aquatic Seed Co., Establishment through
Chengdu Chengdu Farming 100
Ltd. investment
Establishment through
Hengshui Tongwei Feed Co., Ltd. Hebei Hebei Feed production and operation 100
investment
Establishment through
Qingyuan Tongwei Feed Co., Ltd. Yingde Yingde Feed production and operation 100
investment
Establishment through
Honghu Tongwei Feed Co., Ltd. Honghu Honghu Feed production and operation 100
investment
Establishment through
Sichuan Tongwei Food Co., Ltd. Chengdu Chengdu Food processing 80
investment
Establishment through
Hanshou Tongwei Feed Co., Ltd. Changde Honghu Feed production and operation 100
investment
Establishment through
Sichuan Fusion Link Co., Ltd. Chengdu Chengdu Others 60
investment
Establishment through
Sichuan Willtest Technology Co., Ltd. Chengdu Chengdu Test service 85.04
investment
Wuxi Tongwei Biotechnology Co., Establishment through
Wuxi Wuxi Farming and feed sale 100
Ltd. investment
Tongwei New Energy Engineering Business control under
Chengdu Chengdu Electricity engineering design 100
Design Sichuan Co., Ltd. different control
Zhejiang Tongwei Solar Technology Establishment through
Zhejiang Zhejiang PV 100
Co., Ltd. investment
Establishment through
Sichuan Tongwei Feed Co., Ltd. Meishan Chengdu Feed production and operation 100
investment
Qingdao Hairen Aquatic Seed Industry Business control under
Qingdao Qingdao Farming 55.5
Technology Co., Ltd. different control
229 / 261
2021 Annual Report
Sichuan Yongxiang New Materials Establishment through
Leshan Leshan Chemical engineering 100
Co., Ltd. investment
Tianmen Tongwei Aquaculture Establishment through
Tianmen Tianmen PV electricity operation 100
Technology Co., Ltd. investment
Nanning Tongwei Biotechnology Co., Establishment through
Nanning Nanning Feed production and operation 100
Ltd. investment
Establishment through
Yangjiang Haiyi Securities Co., Ltd. Yangjiang Yangjiang Feed production and operation 100
investment
Nanchang Tongwei Biotechnology Establishment through
Nanchang Nanchang Feed production and operation 80
Co., Ltd. investment
Zhanjiang Haixianfeng Bio-tech Co., Business control under
Hainan Chengmai Biological products 51
Ltd. different control
Sichuan Chunyuan Ecological Farming Business control under
Chengdu Qionglai Farming 100
Co., Ltd. different control
Chengdu Tongwei Fishery-PV Establishment through
Chengdu Xinjin Others 100
Technology Co., Ltd. investment
Maoming Tongwei Biotechnology Co., Establishment through
Maoming Maoming Feed production and operation 100
Ltd. investment
Hainan Tongwei Biotechnology Co., Establishment through
Hainan Chengmai Feed production and operation 100
Ltd. investment
Guangdong Tongwei Biotechnology Establishment through
Guangdong Sihui Feed production and operation 100
Co., Ltd. investment
Ningbo Tech-bank Feed Technology Business control under
Ningbo Ningbo Feed production and operation 100
Co., Ltd. different control
Qingdao Qihao Biotechnology Co., Laixi, Laixi, Business control under
Feed production and operation 100
Ltd. Qingdao Qingdao different control
Ningbo Tech-bank Biotechnology Co., Business control under
Ningbo Ningbo Biological products 100
Ltd. different control
Yancheng Tech-bank Feed Technology Yancheng, Yancheng, Business control under
Feed production and operation 51
Co., Ltd. Jiangsu Jiangsu different control
Business control under
Nanning Aigefei Feed Co., Ltd. Nanning Nanning Feed production and operation 51
different control
Bengbu Tech-bank Feed Technology Bengbu, Bengbu, Business control under
Feed production and operation 51
Co., Ltd. Anhui Anhui different control
230 / 261
2021 Annual Report
Huangshi, Huangshi, Business control under
Hubei Tech-bank Feed Co., Ltd. Feed production and operation 51
Hubei Hubei different control
Dongying Tech-bank Feed Technology Dongying, Dongying, Business control under
Feed production and operation 51
Co., Ltd. Shandong Shandong different control
Shenyang Tongwei Biotechnology Co., Establishment through
Shenyang Shenyang Biological products 100
Ltd. investment
Note on equity percent different from voting right percent:
None.
Basis for cases when the Company has control of an investee in which it only holds 50% or less voting rights and when the Company has no control of an 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 trustor
None.
Other notes:
Note 1: The Company established Shenyang Tongwei Biotechnology Co., Ltd. in 2021.
Note 2: Tongwei New Energy Engineering Design Sichuan Co., Ltd. and Sichuan Yongxiang New Materials Co., Ltd. were changed from tier-one subsidiaries to
tier-two ones of the Company in 2021 by becoming into the subsidiaries of Tongwei New Energy Co., Ltd. and Yongxiang Co., Ltd.
(2).Important non-wholly-owned subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Minority Current profit or loss attributable to Current dividend declared to Closing minority interest
Subsidiary name
equity (%) minority shareholders monitory shareholders balance
Sichuan Yongxiang New Energy Co., Ltd. 15.00% 528,446,756.86 193,350,000.00 809,316,396.24
Note on minority shareholders’ equity percent is different from their percent of voting rights:
"□ Applicable" "√ Not applicable"
Other notes:
231 / 261
2021 Annual Report
"□ Applicable" "√ Not applicable"
(3).
Main financial information of important non-wholly owned subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Subsidiary Current Non-current Current Non-current
Current assets Non-current assets Total assets Total liabilities Current assets Non-current assets Total assets Total liabilities
liabilities liabilities liabilities liabilities
Sichuan
Yongxiang
New 3,577,128,981.61 6,399,280,804.01 9,976,409,785.62 2,550,821,147.39 2,030,145,996.60 4,580,967,143.99 1,741,305,412.65 3,124,618,871.64 4,865,924,284.29 1,460,492,652.45 1,483,967,369.23 2,944,460,021.68
Energy
Co., Ltd.
Current amount Prior amount
Cash flows
Total Total
Subsidiary Cash flows from Operating from
Operating revenue Net income comprehensive Net income comprehensive
operating activities revenue operating
income income
activities
Sichuan Yongxiang New Energy Co., Ltd. 6,909,496,192.32 3,522,978,379.02 3,522,978,379.02 3,083,528,871.28 2,290,460,762.24 527,682,526.10 527,682,526.10 91,803,475.40
Other notes:
None.
232 / 261
2021 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).Note on changes in ownership interest
"√ Applicable" "□ Not applicable"
(1) Note on changes in ownership interest:
In January 2021, Sichuan Tongwei Food Co., Ltd. (a subsidiary controlled by the Company) acquired
0.80% of ownership interest in Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. from minority
shareholders with a consideration of 301,500.00 yuan. After the acquisition, the Company’s ownership
interest in Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. was changed from 55.63% to 56.43%.
In January 2021, Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. (a subsidiary
controlled by the Company) had its share capital increased for which the contributions made by the
Company and the minority shareholders were not proportional to their interest percentages. After that, the
Company's ownership interest in Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. was
changed from 51.00% to 55.50%.
In August 2021, the Company acquired 2.00% of ownership in Sichuan Willtest Technology Co.,
Ltd. from minority shareholders with a consideration of 553,874.73 yuan. After the acquisition, the
Company's ownership interest in Sichuan Willtest Technology Co., Ltd. was changed from 83.04% to
85.04%.
In May 2021, Yongxiang Co., Ltd. (a wholly-owned subsidiary of the Company) acquired 0.60% of
ownership interest in Sichuan Yongxiang Silicon Materials Co., Ltd. from minority shareholders with a
consideration of 678,884.00 yuan. After the acquisition, the ownership interest of Yongxiang Silicon
Materials Co., Ltd. In Sichuan Yongxiang Silicon Materials Co., Ltd. was changed from 92.15% to
92.75%.
In January 2021, Gansu Lvjuren New Energy Investment Co., Ltd. (a wholly-owned subsidiary of
the Company) acquired 10.00% of ownership interest in Bayannaoer Ruibin New Energy Co., Ltd. from
minority shareholders with a consideration of 699,500.00 yuan. After the acquisition, the ownership
interest of Gansu Lvjuren New Energy Investment Co., Ltd. in Bayannaoer Ruibin New Energy Co., Ltd.
was changed from 90.00% to 100.00%.
In May 2021, Tongwei New Energy Co., Ltd. (a wholly-owned subsidiary of the Company) acquired
1.28% of ownership interest in Tongwei Huijin New Energy Co., Ltd. from minority shareholders with a
consideration of 3,490,463.62 yuan. After the acquisition, the ownership interest of Tongwei New Energy
Co., Ltd. In Tongwei Huijin New Energy Co., Ltd. was changed from 94.75% to 96.03%.
(2).Effects of transactions on minority interest and interest attributable to owners of parent
company
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Sichuan Tongwei Qingdao Hairen Sichuan Willtest
Sanlian Aquatic Aquatic Seed Technology Co., Ltd.
Products Co., Ltd. Industry Technology
Co., Ltd.
Acquisition cost/disposal
301,500.00 9,885,000.00 553,874.73
consideration
--Cash 301,500.00 9,885,000.00 553,874.73
233 / 261
2021 Annual Report
--Fair value of non-cash assets
Total acquisition cost/disposal
301,500.00 9,885,000.00 553,874.73
consideration
Less: Share of subsidiary's net
assets based on the ownership 293,647.89 11,195,766.58 621,423.09
interest acquired or disposed
Difference 7,852.11 -1,310,766.58 -67,548.36
Including: Adjustment of
-7,852.11 1,310,766.58 67,548.36
capital surplus
Adjustment of surplus
reserve
Adjustment of
undistributed profit
Sichuan Tongwei Huijin
Bayannaoer Ruibin New
Yongxiang Silicon New Energy Co.,
Energy Co., Ltd.
Materials Co., Ltd. Ltd.
Acquisition cost/disposal
678,884.00 699,500.00 3,490,463.62
consideration
--Cash 678,884.00 699,500.00 3,490,463.62
--Fair value of non-cash assets
Total acquisition cost/disposal
678,884.00 699,500.00 3,490,463.62
consideration
Less: Share of subsidiary's net
assets based on the ownership - 3,212,453.30 4,412,435.60
interest acquired or disposed
Difference 678,884.00 -2,512,953.30 -921,971.98
Including: Adjustment of
-678,884.00 2,512,953.30 921,971.98
capital surplus
Adjustment of surplus
reserve
Adjustment of
undistributed profit
Other notes
"□ Applicable" "√ Not applicable"
3. Interest in joint ventures or associates
"√ Applicable" "□ Not applicable"
(1).Important joint ventures or associates
"□ Applicable" "√ Not applicable"
(2).Main financial information of important joint ventures
"□ Applicable" "√ Not applicable"
(3).Main financial information of associates
"□ Applicable" "√ Not applicable"
(4).Aggregated financial information of non-important joint ventures and associates
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance / Current Opening balance / Prior amount
amount
Joint ventures:
Total carrying value 111,518,473.37 125,664,667.11
234 / 261
2021 Annual Report
Totals by ownership interest percentage:
--Net profit 1,850,950.04 -3,121,628.38
--Other comprehensive income
--Total comprehensive income 1,850,950.04 -3,121,628.38
Associates:
Total carrying value 344,279,852.21 352,071,415.11
Totals by ownership interest percentage:
--Net profit -16,010,471.56 25,628,155.16
--Other comprehensive income 259,086.76
--Total comprehensive income -15,751,384.80 25,628,155.16
(5).Note on significant limitations on the ability of joint ventures or associates to transfer funds to
the Company
"□ Applicable" "√ Not applicable"
(6).Excess losses by joint ventures or associates
"□ Applicable" "√ Not applicable"
(7).Unconfirmed commitments relating to joint venture investments
"□ Applicable" "√ Not applicable"
(8).Contingent liabilities relating to joint venture or associate investments
"□ Applicable" "√ Not applicable"
4. Important joint operations
"□ Applicable" "√ Not applicable"
5. Interest in structured entities outside of the scope of consolidation
Note on structured entities outside of the scope of consolidation:
"□ Applicable" "√ Not applicable"
6. Others
"□ Applicable" "√ Not applicable"
X. Risks relating to financial instruments
"√ Applicable" "□ Not applicable"
(I) Credit 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
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.
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2021 Annual Report
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, 2021, the
balance of accounts receivable from top five customers was 1,471,771,900 yuan accounting for 46.45%
of the total balance of accounts receivable.
(II) Market risk
It is the risk that fair value of future cash flow of financial instrument volatilizes due to changes 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 include 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 Note V. 65.
(III) 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, 2021, the breakdown of financial liabilities held by the Company by remaining
contract obligations is as below:
Unit: 10,000 Yuan Currency: CNY
Item Within 1 year 1- 2 years 2- 5 years Over 5 years Total
Short-term borrowings 137,523.01 - - - 137,523.01
Notes payable 995,792.31 - - - 995,792.31
Accounts payable 815,127.01 - - - 815,127.01
Other payable 76,162.09 - - - 76,162.09
Long-term borrowings 145,531.91 408,898.21 617,335.34 246,101.64 1,417,867.10
Bonds payable 2,080.00 42,080.00 - - 44,160.00
Lease liabilities 56,561.56 47,059.01 68,428.88 245,251.79 417,301.24
Long-term payables 113,533.67 91,487.01 80,160.19 7,221.28 292,402.15
Total 2,342,311.56 589,524.23 765,924.42 498,574.71 4,196,334.91
XI. Fair value disclosure
1. Closing fair value of assets and liabilities measured at fair value
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing fair value
Level 1 fair Level 2 fair Level 3 fair
Item
value value value Total
measurement measurement measurement
I. Continuous measurement at
fair value
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2021 Annual Report
(I) Held-for-trading financial assets 10,617,668.58 10,617,668.58
1. Financial assets measured at fair
value through current profit and
loss
(1) Debt investments
(2) Equity investments
(3) Derivative financial assets 10,617,668.58 10,617,668.58
2. Financial assets designated to be
measured at fair value through
current profit and loss
(1) Debt investments
(2) Equity investments
(II) Other debit investments
(III) Other equity investments 153,551,598.71 153,551,598.71
(IV) Investment properties
1. Land use right for lease
2. Buildings for lease
3. Land use right held for transfer
after its value is increased
(V) Biological assets
1. Consumable biological assets
2. Productive biological assets
Receivables financing 11,406,947,347.71 11,406,947,347.71
Other non-current financial assets 3,146,248.25 3,146,248.25
Total assets continuously
measured at fair value 10,617,668.58 11,563,645,194.67 11,574,262,863.25
(VI) Held-for-trading financial
liabilities
1. Financial liabilities measured at
fair value through current profit and
loss
Including: trading bonds issued
Derivative financial
liabilities
Others
2. Financial liabilities designated to
be measured at fair value through
current profit and loss
Total liabilities continuously
measured at fair value
II. Non-continuous measurement
at fair value
(I) Assets held for sale
Total assets non-continuously
measured at fair value
Total liabilities non-continuously
measured at fair value
2. Basis for determining market price of level one items continuously and non-continuously
measured at fair value
"√ Applicable" "□ Not applicable"
Derivative financial assets are paper gain from USD forward contracts. The closing fair value is
calculated from data published by the bank with which the contracts have been purchased.
3. Qualitative and quantitative information of valuation techniques and important parameters
used for level 2 items continuously and non-continuously measured at fair value
"√ Applicable" "□ Not applicable"
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2021 Annual Report
Remaining term of receivables financing is short, which means the 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.
4. Qualitative and quantitative information of valuation techniques and important parameters
used for level 3 items continuously and non-continuously measured at fair value
"□ Applicable" "√ Not applicable"
5. Reconciliation between opening and closing carrying values and sensitivity analysis for
unobservable parameters for level 3 items continuously and non-continuously measured at fair
value
"□ Applicable" "√ Not applicable"
6. Reasons for and policies at level conversion for items continuously measured at fair value
"□ Applicable" "√ Not applicable"
7. Changes in valuation techniques and reasons
"□ Applicable" "√ Not applicable"
8. Fair value of financial assets and financial liabilities not measured at fair value
"□ Applicable" "√ Not applicable"
9. Others
"□ Applicable" "√ Not applicable"
10. Parent company
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Parent’s ownership Parent's voting
Registered Business Registered
Parent company name percentage in the right percentage in
location nature Capital
Company (%) the Company (%)
Tongwei Group Co., Sichuan Mixed
20,000.00 43.85 43.85
Ltd. operation
Note on 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 2 billion 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.
Other notes:
None.
11. Subsidiaries of the Company
Refer to Notes for details.
238 / 261
2021 Annual Report
"√ Applicable" "□ Not applicable"
Details of subsidiaries are in Note VII. Interest in other entities.
12. Joint ventures and associates
Details of important joint ventures and associates are in Notes.
"□ Applicable" "√ Not applicable"
Other joint ventures or associates that concluded related-party transactions with the Company in current
period or in prior periods that had caused balances
"√ Applicable" "□ Not applicable"
Name of joint venture or associate Relationship with the Company
Shaoxing Tongwei Jiuding Feed Co., Ltd. Joint venture
Hefei Tongwei Jiuding Feed Co., Ltd. Joint venture
Maoming Tongwei Jiuding Feed Co., Ltd. Joint venture
Huangmei Tongwei Jiuding Feed Co., Ltd. Joint venture
BioMar Tongwei (Wuxi) Biotech Co., Ltd. Joint venture
Anhui Tech-bank Feed Technology Co., Ltd. Associate
Anhui Tech-bank Biotechnology Co., Ltd. Associate
Zhongwei New Energy (Chengdu) Co., Ltd. Associate
Other notes
"√ Applicable" "□ Not applicable"
Zhongwei New Energy (Chengdu) Co., Ltd. was included into the scope of consolidation due to
business combination under different control in current period (refer to business combination under
different control), only related-party transactions with Zhongwei New Energy (Chengdu) Co., Ltd. prior
to the combination are disclosed.
13. Other related parties
"√ Applicable" "□ Not applicable"
Name Relationship with the Company
Chengdu Haozhuren Pet Food Co., Ltd. Common ultimate control
Chengdu Tongwei Culture Media Co., Ltd. Common ultimate control
Chengdu Tongwei Property Co., Ltd. Common ultimate control
Chengdu Tongyu Property Management Co., Ltd. Common ultimate control
Chengdu Xinrui Technology Development Co., Ltd. Common ultimate control
Meishan Tongwei Property Co., Ltd. Common ultimate control
Leshan Yongxiang Polysilicon Co., Ltd. Common ultimate control
Chengdu Low-carbon Urban Investment Co., Ltd. Common ultimate control
Chengdu Tongwei Business Management Co., Ltd. Common ultimate control
Sichuan Tongwei Shidi Property Co., Ltd. Common ultimate control
The wholly-owned subsidiary of BioMar
Zhuhai Haiwei Feed Co., Ltd. Tongwei (Wuxi) Biotech Co., Ltd., the
Company's joint venture
Other notes
None.
14. 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
Related party Related-party transaction Current amount Prior amount
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2021 Annual Report
Spare supplies, spare parts
Chengdu Xinrui Technology Development Co., Ltd. 38,560,074.17 56,823,096.05
and machinery equipment
Property management and
Chengdu Tongyu Property Management Co., Ltd. 40,633,560.03 33,118,380.09
service fees
Feed, raw materials,
Zhuhai Haiwei Feed Co., Ltd. packaging materials, 29,054,160.65 51,746,426.23
labels
Chengdu Tongwei Culture Media Co., Ltd. Goods and services 19,657,805.03 13,193,706.47
BioMar Tongwei (Wuxi) Biotech Co., Ltd. Feed and pre-mixed feed 199,789.47 132,070.00
Spirits and beverages,
Chengdu Tongwei Business Management Co., Ltd. 2,889,642.18
gifts
Tongwei Group Co., Ltd. Service fee 346,911.08
Chengdu Haozhuren Pet Food Co., Ltd. Feed 1,725.61
Solar cells,
monocrystalline silicon
Zhongwei New Energy (Chengdu) Co., Ltd. 24,038,384.44
wafers, pulp, main
chemicals
Zhuhai Haiwei Feed Co., Ltd. Processing fee 35,145.94
Leshan Yongxiang Polysilicon Co., Ltd. Machinery equipment 5,512,820.52
Sale of goods/rendering of services
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current
Related party Related-party transaction Prior amount
amount
Raw materials, feed and
Zhuhai Haiwei Feed Co., Ltd. 90,079,786.26 43,895,114.93
others
Feed, raw materials, pre-
BioMar Tongwei (Wuxi) Biotech Co., Ltd. mixed feed, packaging 20,103,851.67 21,140,103.85
materials
Tongwei Group Co., Ltd. and its subsidiaries Food 1,174,464.48 2,248,468.28
Coupons, gift packages and
Tongwei Group Co., Ltd. 344,772.67
so on.
Chengdu Tongwei Business Management Co., Ltd. Food 297,769.00
Chengdu Haozhuren Pet Food Co., Ltd. Pre-mixed feed 285,335.10 171,972.50
Chengdu Tongwei Business Management Co., Ltd. Office equipment 235,379.01
Chengdu Tongyu Property Management Co., Ltd. Call center 191,818.34
Maoming Tongwei Jiuding Feed Co., Ltd. Feed 86,878,572.97
Shaoxing Tongwei Jiuding Feed Co., Ltd. Feed, packaging materials 24,455,667.01
Solar cells, monocrystalline
Zhongwei New Energy (Chengdu) Co., Ltd. silicon wafers, others, 13,986,289.11
fixtures
Huangmei Tongwei Jiuding Feed Co., Ltd. Feed 12,039,841.63
Hefei Tongwei Jiuding Feed Co., Ltd. Feed 8,406,436.28
BioMar Tongwei (Wuxi) Biotech Co., Ltd. Machinery equipment 1,655,191.09
Service fee, construction
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 677,242.47
service
Zhuhai Haiwei Feed Co., Ltd. Service fee 435,394.32
Tongwei Group Co., Ltd. Machinery equipment 185,683.25
Zhuhai Haiwei Feed Co., Ltd. Machinery equipment 69,254.00
Chengdu Haozhuren Pet Food Co., Ltd. Machinery equipment 39,067.95
Chengdu Haozhuren Pet Food Co., Ltd. Test service 70,629.25
Coupons, gift packages,
Meishan Tongwei Property Co., Ltd. 51,613.79
food
Coupons, gift packages and
Sichuan Tongwei Shidi Property Co., Ltd. 1,690,814.66
so on.
Tongwei Group Co., Ltd. and its subsidiaries Others 32,550.37 72,982.32
Note on related-party transactions on sale and purchase of goods and rendering and receipt of services
"□ Applicable" "√ Not applicable"
(2).Related-party management/entrusted management and contract-based operation/outsourcing
Entrusted management/contract-based operation by the Company:
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2021 Annual Report
"□ 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 prior
current period period
Chengdu Haozhuren Pet Food Co., Ltd. Machinery equipment 6,215,951.07 4,948,883.02
Chengdu Haozhuren Pet Food Co., Ltd. Premises and buildings 69,523.81 1,402,394.82
Zhongwei New Energy (Chengdu) Co., Ltd. Premises and buildings 2,582,095.45
The Company as lessee:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Lease expense Lease expense
Lessor name Type of leased asset recognized in current recognized in prior
period period
Chengdu Tongwei Property Co., Ltd. Premises and buildings 14,368,832.60 13,142,095.31
Tongwei Group Co., Ltd. Premises and buildings 1,067,691.42 1,086,024.76
Note on related-party leases
"□ Applicable" "√ Not applicable"
(4).Related-party guarantees
The Company as guarantor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Guarantee Guarantee
Guaranteed Guarantee
Guaranteed party commencement fulfilled
amount expiry date
date completely
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 5,000,000.00 2021-12-14 2022-03-14 No
The Company provided a guarantee limited to 55 million yuan for the debt of BioMar Tongwei (Wuxi)
Biotech Co., Ltd. (One of its associates) made from HSBC Bank (China) Co., Ltd. As of December 31,
2021, the borrowing balance in HSBC Bank (China) Co., Ltd. was 5 million yuan.
As of December 31, 2021, the Company had no related party guarantees other than the above one
and the financing guarantees to its subsidiaries.
The Company as guaranteed party
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Guaranteed Guarantee Guarantee fulfilled
Guarantor Guarantee expiry date
amount commencement date completely
Tongwei Group Co., Ltd. 200,235,277.78 2020-02-25 2022-02-24 No
Tongwei Group Co., Ltd. 200,235,277.78 2020-02-25 2022-02-24 No
Tongwei Group Co., Ltd. 200,235,277.78 2020-02-25 2022-02-24 No
Tongwei Group Co., Ltd. 563,633.35 2021-12-21 2022-12-27 No
Tongwei Group Co., Ltd. 742,368.00 2021-12-21 2022-11-18 No
Tongwei Group Co., Ltd. 10,822.94 2021-12-21 2022-11-18 No
Tongwei Group Co., Ltd. 446,111.12 2021-12-21 2022-11-10 No
Tongwei Group Co., Ltd. 298,680.55 2021-12-21 2022-05-25 No
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2021 Annual Report
Tongwei Group Co., Ltd. 886,218.06 2021-12-21 2022-11-23 No
Tongwei Group Co., Ltd. 543,124.98 2021-12-21 2022-11-22 No
Tongwei Group Co., Ltd. 10,000,000.00 2020-11-23 2022-03-20 No
Tongwei Group Co., Ltd. 10,000,000.00 2020-11-23 2022-09-20 No
Tongwei Group Co., Ltd. 10,000,000.00 2021-04-28 2022-04-27 No
Tongwei Group Co., Ltd. 1,000,000.00 2020-12-28 2022-06-27 No
Tongwei Group Co., Ltd. 1,000,000.00 2020-12-28 2022-12-02 No
Tongwei Group Co., Ltd. 10,000,000.00 2020-06-22 2022-05-25 No
Tongwei Group Co., Ltd. 5,483,102.00 2016-11-25 2022-05-18 No
Tongwei Group Co., Ltd. 5,483,102.00 2016-11-25 2022-11-18 No
Tongwei Group Co., Ltd. 5,850,000.00 2017-03-16 2022-05-31 No
Tongwei Group Co., Ltd. 16,600,000.00 2017-03-16 2022-05-31 No
Tongwei Group Co., Ltd. 5,870,000.00 2017-03-16 2022-11-18 No
Tongwei Group Co., Ltd. 16,800,000.00 2017-03-16 2022-11-30 No
Tongwei Group Co., Ltd. 125,000.00 2021-09-27 2022-12-31 No
Tongwei Group Co., Ltd. 410,000,000.00 2020-11-23 2023-11-22 No
Tongwei Group Co., Ltd. 10,000,000.00 2020-11-23 2023-03-20 No
Tongwei Group Co., Ltd. 10,000,000.00 2020-11-23 2023-09-20 No
Tongwei Group Co., Ltd. 495,000,000.00 2020-12-28 2023-12-27 No
Tongwei Group Co., Ltd. 1,000,000.00 2020-12-28 2023-06-27 No
Tongwei Group Co., Ltd. 440,000,000.00 2020-11-24 2023-11-23 No
Tongwei Group Co., Ltd. 10,000,000.00 2021-04-28 2023-04-27 No
Tongwei Group Co., Ltd. 250,000,000.00 2021-04-28 2024-04-27 No
Tongwei Group Co., Ltd. 200,000,000.00 2020-11-11 2023-11-10 No
Tongwei Group Co., Ltd. 200,000,000.00 2021-04-16 2024-04-15 No
Tongwei Group Co., Ltd. 220,000,000.00 2020-06-22 2023-05-25 No
Tongwei Group Co., Ltd. 100,000,000.00 2021-09-27 2024-09-26 No
Tongwei Group Co., Ltd.,
100,000,000.00 2021-11-17 2024-10-29 No
Tongwei Solar (Hefei) Co., Ltd.
Tongwei Group Co., Ltd.,
500,000,000.00 2021-10-29 2023-10-26 No
Tongwei Solar (Hefei) Co., Ltd.
Note on related-party guarantees
"√ Applicable" "□ Not applicable"
Long-term borrowings due within one year include interest on long-term borrowings due within one year
of 4,321,792.34 yuan.
(5).Related-party lending
"□ Applicable" "√ Not applicable"
(6).Related-party asset transfer and debt restructuring
"□ Applicable" "√ Not applicable"
(7).Key management personnel compensation
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Item Current amount Prior amount
Key management personnel compensation 3,009.97 3,416.38
(8).Other related-party transactions
"□ Applicable" "√ Not applicable"
15. Accounts receivable and payable from and to related parties
(1).Accounts receivable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item name Related party Provision for Provision for
Balance Balance
bad debts bad debts
Accounts BioMar Tongwei (Wuxi) Biotech
12,800.00 22,300.00
receivable Co., Ltd.
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2021 Annual Report
Accounts Chengdu Tongwei Business
4,550.00
receivable Management Co., Ltd.
Accounts
Tongwei Group Co., Ltd. 45,544.80
receivable
Advances to Anhui Tech-bank Feed
532,545.20
suppliers Technology Co., Ltd.
(2).Accounts payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item name Related party Closing Opening balance
balance
Accounts payable Chengdu Xinrui Technology Development Co., Ltd. 35,843,000.82 19,615,058.44
Accounts payable Chengdu Tongwei Culture Media Co., Ltd. 6,851,067.39 3,583,632.38
Accounts payable Anhui Tech-bank Feed Technology Co., Ltd. 4,920,062.20
Accounts payable Anhui Tech-bank Biotechnology Co., Ltd. 2,122,411.00
Accounts payable Zhuhai Haiwei Feed Co., Ltd. 11,712.20 209,203.69
Accounts payable Chengdu Tongyu Property Management Co., Ltd. 683.05
Contract liabilities Anhui Tech-bank Feed Technology Co., Ltd. 88,843.13
Contract liabilities Meishan Tongwei Property Co., Ltd. 50,000.00
Contract liabilities Chengdu Low-carbon Urban Investment Co., Ltd. 2,870.00
Contract liabilities Chengdu Tongyu Property Management Co., Ltd. 2,099.81
Other payable Chengdu Xinrui Technology Development Co., Ltd. 3,757,800.00 670,000.00
Other payable Chengdu Tongwei Culture Media Co., Ltd. 40,000.00 328,978.47
Other payable Chengdu Tongwei Business Management Co., Ltd. 3,360.00
Other payable Chengdu Tongyu Property Management Co., Ltd. 86,747.86
Other payable Zhuhai Haiwei Feed Co., Ltd. 33,422.22
Other payable Maoming Tongwei Jiuding Feed Co., Ltd. 249.22
Other payable Huangmei Tongwei Jiuding Feed Co., Ltd.
Note: The Company coordinates funds of joint ventures (the funds coordinated from BioMar
Tongwei (Wuxi) Biotech Co., Ltd. and Zhuhai Haiwei Feed Co., Ltd are provided by shareholders
depending in their contribution percentages), and calculates interest according to the benchmark rate on
one-year loan specified by the People's Bank of China. The interest paid by the Company (negative value
means the interest received) is as below:
Related party Current amount Prior amount
Huangmei Tongwei Jiuding Feed Co., Ltd. 270,061.53
Hefei Tongwei Jiuding Feed Co., Ltd. 175,665.88
Shaoxing Tongwei Jiuding Feed Co., Ltd. 459,688.47
Zhuhai Haiwei Feed Co., Ltd. -715,997.24
Maoming Tongwei Jiuding Feed Co., Ltd. 129,735.92
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 1,994.51 751,919.52
Total 1,994.51 1,071,074.08
16. Related-party commitments
"□ Applicable" "√ Not applicable"
17. Others
"□ Applicable" "√ Not applicable"
XII. Share-based payment
1. Overview of share-based payments
"□ Applicable" "√ Not applicable"
2. Equity-settled share-based payments
"□ Applicable" "√ Not applicable"
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2021 Annual Report
3. Cash-settled share-based payments
"□ Applicable" "√ Not applicable"
4. Modification and termination of share-based payments
"□ Applicable" "√ Not applicable"
5. Others
"□ Applicable" "√ Not applicable"
XIII. Commitments and contingencies
1. Important commitments
"□ Applicable" "√ Not applicable"
2. Contingencies
(1).Important contingencies on balance sheet date
"√ Applicable" "□ Not applicable"
Outward guarantees
As of December 31, 2021, the Company had the following outward guarantees and the post-date
repayments of guaranteed borrowings and recovery of guaranteed sales on credit:
Guarantees for farmers who borrowed money from financial institutions for purchasing Tongwei
Feed and building rooftop powerplants:
Unit: 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 farmers who borrowed 2021-01-05 2022-12-17 201,349,278.49 147,128,146.99
money from financial
institutions for purchasing
Tongwei feed
Tongwei Agricultural
Finance Guarantee Co.,
Ltd. provided guarantees
for farmers who borrowed 2017-09-15 2027-12-27 20,739,382.43 918,270.63
money from financial
institutions for building
rooftop powerplants
Total 222,088,660.92 148,046,417.62
Note: As of December 31, 2021, the balance of repayment made by Tongwei Agricultural Finance
Guarantee Co., Ltd. for behalf of guaranteed parties was 17,631,911.48 yuan. It is trying to recover the
balance.
No important continencies other than the above-mentioned ones as of December 31, 2021.
(2).Note on no important contingencies that require disclosure
"□ Applicable" "√ Not applicable"
3. Others
"□ Applicable" "√ Not applicable"
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2021 Annual Report
XIV. Post balance sheet events
1. Important non-adjusting events
"□ Applicable" "√ Not applicable"
2. Profit distribution
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Proposed profit or dividend distribution 4,105,411,943.81
Declared profit or dividend
In 2021, the parent company received a total net profit of 4,896,256,431.26 yuan, with prior
undistributed profit of 4,107,010,606.38 yuan, adjustment of opening undistributed profit of -3,306,489.02
yuan under new lease standards, withdrawal of statutory surplus reserve of 489,625,643.13 yuan,
distribution of prior cash dividend of 1,084,873,112.35 yuan. As a result, the parent company had a total
undistributed profit of 7,425,461,793.14 yuan. Given the actual conditions, the Company proposed to pay
9.12 yuan in cash (including tax) per 10 shares to all shareholders for the total 4,501,548,184 shares.
3. Sales return
"□ Applicable" "√ Not applicable"
4. Note on other post balance sheet events
"□ Applicable" "√ Not applicable"
XV. Other important matters
1. Prior error corrections
(1).Retrospective restatement
"□ Applicable" "√ Not applicable"
(2).Prospective application
"□ Applicable" "√ Not applicable"
2. Debt restructuring
"□ Applicable" "√ Not applicable"
3. Asset exchange
(1).Non-monetary exchange
"□ Applicable" "√ Not applicable"
(2).Other asset exchange
"□ Applicable" "√ Not applicable"
4. Annuity plan
"□ Applicable" "√ Not applicable"
5. Discontinued operations
"□ Applicable" "√ Not applicable"
6. Segments
(1).Basis and accounting policies for reporting segments
"√ Applicable" "□ Not applicable"
The Company classifies operating segments given its organizational structure, management
requirements and internal reporting policies. An operating segment is a component that meets the
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2021 Annual Report
following conditions: ① it 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 flows 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
Item Management head Agriculture and PV Offsets among Total
office animal husbandry segments
Total assets 36,610,286,905.30 11,524,665,011.98 75,252,463,827.82 35,137,423,622.94 88,249,992,122.16
Total liabilities 6,501,953,299.16 9,404,038,873.79 52,343,252,239.50 21,655,852,428.45 46,593,391,984.00
Operating revenue 24,590,256,728.92 38,184,020,831.78 3,308,475.76 62,770,969,084.94
Operating cost 22,258,698,101.39 22,984,446,347.90 45,243,144,449.29
(3).Note on reasons why the Company has no reporting segments or cannot disclose the total assets
and total liabilities of each reporting segment
"□ Applicable" "√ Not applicable"
(4).Other notes
"□ Applicable" "√ Not applicable"
7. Important transactions or events with influence on decisions of investors
"□ Applicable" "√ Not applicable"
8. Others
"√ Applicable" "□ Not applicable"
(1) Pledge of the Company's shares held by the controlling shareholder
As of December 31, 2021, Tongwei Group Co., Ltd. held 1,974,022,515 shares in the Company of
which, 529,150,000 were pledged for financing purpose.
(2) Impact of bill pool service on the Company's assets and liabilities
Bill-based settlement is a common practice in PV industry where the Company operates. With the
growing business of Tongwei and the introduction of bill pool service, undue banker's acceptances are
pledged by the Company for issuing banker's acceptances payable to pay suppliers, leading to significance
increase in banker's acceptances payable and receivable. At the end of 2021, the balances of banker's
acceptances receivable and payable reached 11,406,947,300 yuan and 9,761,984,500 yuan respectively,
accounting for 12.93% of total assets and 20.95% of total liabilities, having impacted the L/A ratio by 5.87
ppts. Refer to the following table for details (unit: 10,000 yuan).
Item Consolidated amount Effect Amount net of effect
Total current assets 2,874,901.66 -976,198.45 1,898,703.21
Total non-current assets 5,950,201.95 5,950,201.95
Total assets 8,824,999.21 -976,198.45 7,848,800.76
Total current liabilities 2,835,964.64 -976,198.45 1,859,766.19
Total non-current
1,823,374.56 1,823,374.56
liabilities
Total liabilities 4,659,339.20 -976,198.45 3,683,140.75
L/A ratio 52.80% 46.93%
(3) Progress for obtaining the title for land used for phase III and phase IV of Tongwei Solar
(Chengdu) Co., Ltd.
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2021 Annual Report
The phase III and phase IV are located in No.5 and No. 6 groups of Bajiao community, Huangjia
subdistrict, and No.5 group of Wangjiachang community, Shuangliu district, Chengdu for a total land area
of 340 Mu. The Company has not obtained the title for 160 Mu including 60 Mu in litigation. The plaintiff
Chengdu Guigu Environment Technology Co., Ltd withdrew its claims on August 16, 2021. As a result,
the license for land use is in progress.
(4) Loss from scrap of non-current assets
The 2021 loss from scrap of non-current assets was 451,946,700 yuan detailed as below:
1) In order to increase the benefits of assets and install high-efficiency module facilities, the Company
scraped the facility and equipment for multicrystalline solar cell production line in Hefei Solar. The
original carrying value of scraped asset is 1,869,433,000 yuan, and the carrying value after scrap is
433,755,700 yuan. The net loss from scrap net of expected residual value is 385,044,500 yuan.
2) Tongwei Solar (Chengdu) Co., Ltd. upgraded its production line for monocrystalline solar cells
and scrapped the removed assets. The original carrying value of scraped asset is 37,252,700 yuan, and the
carrying value after scrap is 25,456,000 yuan. The net loss from scrap net of expected residual value is
24,350,400 yuan.
No important matters other that the above-mentioned ones required disclosure as of December 31,
2021.
(5) Leases
The Company as lessee:
Item Amount
(in 10,000
yuan)
Interest expense on lease liabilities 12,174.18
Short-term lease expense subject to simplified treatment carried into relevant assets or
1,937.19
current profit and loss
Low-value lease expense subject to simplified treatment carried into relevant assets or
0
current profit and loss (excluding short-term lease expense from low-value assets)
Variable lease payments not included into the measurement of lease liabilities carried into
0
relevant assets or current profit and loss
Income received subleases of right-of-use rights 23,725.84
Total cash outflows relating to leases (Note 1) 68,673.02
Relevant gain or loss on leasebacks 0
① Total cash outflows relating to leases include rents calculated and paid under lease liabilities and
short-term lease expenses, excluding relevant leaseback expenses when the leaseback does not qualify as
a sale.
② Refer to “risks relating to financial instruments” for details on analysis of maturity of lease
liabilities.
XVI. Notes to main items of parent's financial statements
1. Accounts receivable
(1).Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Age Closing balance
Within 1 year 42,509,610.28
1- 2 years 346,143.87
2- 3 years
Over 3 years 861,921.96
Total 43,717,676.11
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2021 Annual Report
(2).Disclosure by method for creation of provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Category Balance Provision for bad debts Balance Provision for bad debts
Carrying Carrying
Percent Provision value Percent Provision value
Amount Amount Amount Amount
(%) (%) (%) (%)
Creation of provision for a
single bad debt
Including:
Creation of provision for
43,717,676.11 100 3,022,016.86 6.91 40,695,659.25 4,065,977.45 100 1,063,230.60 26.15 3,002,746.85
a group of bad debts
Including:
Group 4 43,717,676.11 100 3,022,016.86 6.91 40,695,659.25 4,065,977.45 100 1,063,230.60 26.15 3,002,746.85
Total 43,717,676.11 / 3,022,016.86 / 40,695,659.25 4,065,977.45 / 1,063,230.60 / 3,002,746.85
Creation of provision for a single bad debt:
"□ Applicable" "√ Not applicable"
Creation of provision for a group of bad debts:
"√Applicable" "□Not applicable"
Creation of provision for groups: Group 4
Unit: Yuan Currency: CNY
Closing balance
Name
Accounts receivable Provision for bad debts Provision (%)
Within 1 year 42,509,610.28 2,125,480.51 5.00
1- 2 years 346,143.87 34,614.39 10.00
2- 3 years
Over 3 years 861,921.96 861,921.96 100.00
Total 43,717,676.11 3,022,016.86 6.91
Criteria for recognizing accounts receivables regarding the creation of provision for a group of bad debts:
"□ Applicable" "√ Not applicable"
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2021 Annual Report
Refer to disclosure of other receivables if the provision for bad debts is created under the general model for expected credit loss:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model for expected credit loss:
"□ Applicable" "√ Not applicable"
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2021 Annual Report
(3).Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current change
Opening Closing
Category Recovered or Cleared or Other
balance Provision balance
reversed written off changes
Bad debt
provision for
1,063,230.60 1,894,628.26 64,158.00 3,022,016.86
accounts
receivable
Total 1,063,230.60 1,894,628.26 64,158.00 3,022,016.86
Significant amounts recovered or reversed in current period:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Entity name Recovered or reversed amount Recovery method
Customer 1 34,158.00 Recovery of bad debts in prior period
Customer 2 30,000.00 Recovery of bad debts in prior period
Total 64,158.00
Other notes
None.
(4).Accounts receivable written off in current period
"□ Applicable" "√ Not applicable"
Significant accounts receivable written off
"□ Applicable" "√ Not applicable"
(5).Top five entities in accounts receivable at the end of the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percent in the total
Closing balance of
Entity name Closing balance accounts receivable at the
provision for bad debts
end of the period (%)
Entity 1 17,285,675.87 39.54 864,283.79
Entity 2 9,455,489.99 21.63 472,774.50
Entity 3 9,017,565.12 20.63 450,878.26
Entity 4 2,150,387.74 4.92 107,519.39
Entity 5 1,378,663.24 3.15 68,933.16
Total 39,287,781.96 89.87 1,964,389.10
(6).Accounts receivable de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(7).Amounts of assets and liabilities generated due to transfer of accounts receivable and
continuing involvement
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
2. Other receivables
Presentation of items
"√ Applicable" "□ Not applicable"
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2021 Annual Report
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 20,560,977,497.02 12,569,916,260.88
Total 20,560,977,497.02 12,569,916,260.88
Other notes:
"□ Applicable" "√ Not applicable"
Interest receivable
(1).Types of interest receivable
"□ Applicable" "√ Not applicable"
(2).Significant overdue interest
"□ Applicable" "√ Not applicable"
(3).Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Dividend receivable
(4).Dividend receivable
"□ Applicable" "√ Not applicable"
(5).Significant interest receivable over 1 year
"□ Applicable" "√ Not applicable"
(6).Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Other receivables
(1). Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Age Closing balance
Within 1 year 21,316,259,319.76
1- 2 years 1,469,008.56
2- 3 years 1,289,388.15
Over 3 years 3,149,244.09
Total 21,322,166,960.56
(2). Classification by nature of payment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Payment type Closing balance Opening balance
Current accounts with related parties 21,267,261,376.21 13,087,118,075.50
Performance bond 43,495,417.81 4,844,381.00
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2021 Annual Report
Others 11,410,166.54 8,141,079.34
Total 21,322,166,960.56 13,100,103,535.84
(3). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Stage I Stage II Stage III
12-Month Lifetime expected Lifetime expected Total
Provision for bad debts
expected credit credit loss (without credit loss (with
loss credit impairment) credit impairment)
Balance on Jan-1-2021 530,187,274.96 530,187,274.96
The Jan-1-2021 balance
during the current period
-- Converted into stage II
-- Converted into stage III -769,954.49 769,954.49
-- Reversed into stage II
-- Reversed into stage I
Creation in current period 231,772,143.07 231,772,143.07
Reversal in current period
Clear in current period
Write-off in current
-769,954.49 -769,954.49
period
Other changes
Balance on December 31,
761,189,463.54 761,189,463.54
2021
Note on significant changes in 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 current period:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current change
Opening Recovered Closing
Category Cleared or
balance Provision or Other changes balance
written off
reversed
Other
530,187,274.96 231,772,143.07 769,954.49 761,189,463.54
receivables
Total 530,187,274.96 231,772,143.07 769,954.49 761,189,463.54
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(5). Other receivables written off in current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Written off amount
Other receivables written off in current period 769,954.49
Significant receivable written off:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
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2021 Annual Report
Whether
the
amount is
Nature of other Written off Write-off generated
Entity name Write-off reason
receivables amount procedure from a
related-
party
transaction
The payment is Approval
Lease payments for
Customer 1 495,909.04 expected under due No
water surface (land)
unrecoverable procedures
The payment is Approval
Performance bond
Customer 2 150,969.00 expected under due No
for water surface
unrecoverable procedures
The payment is Approval
Other 5
123,076.45 expected under due No
customers
unrecoverable procedures
Total 769,954.49 /
Note on write-off of other receivables:
"□ Applicable" "√ Not applicable"
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2021 Annual Report
(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
other receivables at
Entity name Payment type Closing balance Age debts
the end of the
closing balance
period (%)
Tongwei Solar Co., Ltd. Current accounts with related parties 3,720,058,219.01 Within 1 year 17.45
Tongwei Solar (Chengdu) Co., Ltd. Current accounts with related parties 2,757,224,362.96 Within 1 year 12.93
Yongxiang Co., Ltd. Current accounts with related parties 1,807,871,698.78 Within 1 year 8.48
Tongwei Solar (Meishan) Co., Ltd. Current accounts with related parties 1,242,695,466.28 Within 1 year 5.83
Sichuan Yongxiang Silicon Materials Co., Ltd. Current accounts with related parties 886,829,191.57 Within 1 year 4.16
Total 10,414,678,938.60 48.85
(7). Grants receivable
"□ Applicable" "√ Not applicable"
(8). Other receivables de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(9). Amounts of assets and liabilities generated due to transfer of other receivables and continuing involvement
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
3. Long-term equity investments
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Balance Carrying value Balance Carrying value
provision provision
Investments into subsidiaries 17,022,660,757.00 43,292,356.80 16,979,368,400.20 13,629,952,348.59 19,271,456.80 13,610,680,891.79
Investments into associates and
430,587,718.26 430,587,718.26 225,720,367.11 225,720,367.11
joint ventures
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2021 Annual Report
Total 17,453,248,475.26 43,292,356.80 17,409,956,118.46 13,855,672,715.70 19,271,456.80 13,836,401,258.90
(1). Investments into subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Impairment Closing balance
Current
Investee Opening balance Current increase Closing balance provision in of impairment
decrease
current period provision
Chongqing Tongwei Feed Co., Ltd. 23,074,213.76 23,074,213.76
Chengdu Tongwei Animal Nutrition Technology Co., Ltd. 11,605,910.79 11,605,910.79
Nanning Tongwei Feed Co., Ltd. 28,978,368.63 28,978,368.63
Chengdu Tongwei Aquaculture Technology Co., Ltd. 9,245,867.39 9,245,867.39
Chengdu Tongwei Sanxin Pharmaceutical Co. Ltd. 7,000,000.00 7,000,000.00
Chengdu Ronglai Tongwei Feed Co., Ltd. 16,000,000.00 16,000,000.00
Sichuan Tongguang Construction Engineering Co., Ltd. 20,000,000.00 20,000,000.00
Tongwei Agricultural Finance Guarantee Co., Ltd. 100,000,000.00 100,000,000.00
Panzhihua Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Chongqing Changshou Tongwei Feed Co., Ltd. 30,000,000.00 30,000,000.00
Qianxi Tongwei Feed Co., Ltd. 30,000,000.00 30,000,000.00
Chengdu Tongwei Automation Equipment Co., Ltd. 12,103,854.14 12,103,854.14
Kunming Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Shandong Tongwei Feed Co., Ltd. 703,760.04 703,760.04
Xiamen Tongwei Feed Co., Ltd. 13,752,585.43 13,752,585.43
Zaozhuang Tongwei Feed Co., Ltd. 18,987,038.58 18,987,038.58
Huaian Tongwei Feed Co., Ltd. 10,599,481.76 10,599,481.76
Yangzhou Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Lianyungang Tongwei Feed Co., Ltd. 80,000,000.00 80,000,000.00
Zibo Tongwei Feed Co., Ltd. 3,800,000.00 3,800,000.00
Nantong Bada Feed Co., Ltd. 57,372,600.00 57,372,600.00
Tongwei (Dafeng) Feed Co., Ltd. 49,900,133.00 49,900,133.00
Zibo Tongwei Food Co., Ltd. 50,000,000.00 50,000,000.00 12,420,000.00
Shashi Tongwei Feed Co., Ltd. 21,851,065.30 21,851,065.30
Yuanjiang Tongwei Feed Co., Ltd. 70,858,072.03 70,858,072.03
He’nan Tongwei Feed Co., Ltd. 6,518,994.97 6,518,994.97
Guangdong Tongwei Feed Co., Ltd. 59,994,628.41 59,994,628.41
Wuhan Tongwei Feed Co., Ltd. 16,479,438.23 16,479,438.23
Jieyang Tongwei Feed Co., Ltd. 50,000,000.00 50,000,000.00
Tongwei (Hainan) Aquatic Products Co., Ltd. 201,859,769.84 50,000,000.00 151,859,769.84
Hainan Haiyi Aquatic Products Feed Co., Ltd. 85,711,797.01 85,711,797.01
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2021 Annual Report
Foshan Nanhai Tongwei Aquatic Products Technology Co.,
10,000,000.00 10,000,000.00 3,940,000.00
Ltd.
Foshan Tongwei Feed Co., Ltd. 30,095,100.00 30,095,100.00
Foshan Gaoming Tongwei Feed Co., Ltd. 100,000,000.00 100,000,000.00
Tianmen Tongwei Biotechnology Co., Ltd. 15,000,000.00 15,000,000.00
Binyang Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Fuzhou Tongwei William Feed Co., Ltd. 32,500,000.00 32,500,000.00
Changchun Tongwei Feed Co., Ltd. 10,585,208.09 10,585,208.09
Tianjin Tongwei Feed Co., Ltd. 14,700,000.00 14,700,000.00
Langfang Tongwei Feed Co., Ltd. 15,000,000.00 15,000,000.00
Ningxia Yinchuan Tongwei Feed Co., Ltd. 30,000,000.00 30,000,000.00
Haerbin Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Nanjing Tongwei Aquaculture Technology Co., Ltd. 10,000,000.00 10,000,000.00
Zhuhai Haiyi Aquatic Products Feed Co., Ltd. 31,897,204.89 31,897,204.89
Hainan Haiyi Aquatic Seed Co., Ltd. 20,763,456.80 20,763,456.80 2,911,456.80
Tongwei Holdings PTE. Ltd. 61,605,594.60 61,605,594.60
Tongwei Industrial (Tibet) Co., Ltd. 100,000,000.00 100,000,000.00
Chizhou Tongwei Feed Co., Ltd. 50,000,000.00 50,000,000.00
Honghu Tongwei Feed Co., Ltd. 90,164,469.77 90,164,469.77
Chengdu Tongwei Aquatic Seed Co., Ltd. 5,000,000.00 5,000,000.00
Hengshui Tongwei Feed Co., Ltd. 5,000,000.00 5,000,000.00
Qingyuan Tongwei Feed Co., Ltd. 5,000,000.00 5,000,000.00
Hainan Tongwei Biotechnology Co., Ltd. - 50,000,000.00 50,000,000.00
Sichuan Tongwei Food Co., Ltd. 48,000,000.00 16,000,000.00 64,000,000.00
Hanshou Tongwei Feed Co., Ltd. 27,900,000.00 - 27,900,000.00
Yongxiang Co., Ltd. 4,103,699,373.39 2,284,361,365.68 6,388,060,739.07
Tongwei Solar (Hefei) Co., Ltd. 2,884,624,940.43 2,884,624,940.43 24,020,900.00 24,020,900.00
Tianmen Tongwei Aquaculture Technology Co., Ltd. 25,939,300.00 25,939,300.00
Sichuan Fusion Link Co., Ltd. 1,200,000.00 1,200,000.00
Sichuan Willtest Technology Co., Ltd. 20,894,961.76 553,874.73 21,448,836.49
Wuxi Tongwei Biotechnology Co., Ltd. 150,007,603.05 150,007,603.05
Tongwei New Energy Co., Ltd. 4,055,911,940.76 4,055,911,940.76
Zhejiang Tongwei Solar Co., Ltd. 8,000,000.00 8,000,000.00
Tongwei New Energy Engineering Design Sichuan Co.,
4,300,000.00 4,300,000.00
Ltd.
Sichuan Tongwei Feed Co., Ltd. 100,000,000.00 100,000,000.00
Qingdao Hairen Aquatic Seed Industry Technology Co.,
40,800,000.00 9,885,000.00 50,685,000.00
Ltd.
Sichuan Yongxiang New Materials Co., Ltd. 83,053,975.00 83,053,975.00
Nanchang Tongwei Biotechnology Co., Ltd. 96,000,000.00 96,000,000.00
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2021 Annual Report
Yangjiang Haiyi Securities Co., Ltd. 50,000,000.00 50,000,000.00
Sichuan Chunyuan Ecological Farming Co., Ltd. 15,146,640.74 15,146,640.74
Zhanjiang Haixianfeng Bio-tech Co., Ltd. 765,000.00 765,000.00
Nanning Tongwei Biotechnology Co., Ltd. 50,000,000.00 50,000,000.00
Maoming Tongwei Biotechnology Co., Ltd. 40,000,000.00 40,000,000.00
Ningbo Tech-bank Feed Technology Co., Ltd. 941,052,018.29 941,052,018.29
Qingdao Qihao Biotechnology Co., Ltd. 76,369,224.71 76,369,224.71
Ningbo Tech-bank Biotechnology Co., Ltd. 18,340,900.00 18,340,900.00
Yancheng Tech-bank Feed Technology Co., Ltd. 61,200,000.00 61,200,000.00
Nanning Aigefei Feed Co., Ltd. 29,000,000.00 29,000,000.00
Bengbu Tech-bank Feed Technology Co., Ltd. 28,300,000.00 28,300,000.00
Hubei Tech-bank Feed Co., Ltd. 4,400,000.00 4,400,000.00
Dongying Tech-bank Feed Technology Co., Ltd. 10,600,000.00 10,600,000.00
Total 13,629,952,348.59 3,530,062,383.41 137,353,975.00 17,022,660,757.00 24,020,900.00 43,292,356.80
(2). Investments into associates and joint ventures
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current change
Investment Closing
Adjustment of Declared
Investment Opening gain or loss Other Closing balance of
Additional Decreased other cash Impairment
Unit balance under changes in Others balance impairment
investments investments comprehensive dividend provision
equity equity provision
income or profit
method
I. Joint ventures
Shaoxing Tongwei
5,737,908.83 5,541,776.67 -196,132.16
Jiuding Feed Co., Ltd.
Hefei Tongwei Jiuding
5,228,897.07 1,851,778.58 -1,085,451.82 2,291,666.67
Feed Co., Ltd.
Maoming Tongwei
9,757,770.36 - -655,071.22 2,691,000.00 6,411,699.14
Jiuding Feed Co., Ltd.
Huangmei Tongwei
3,714,781.43 3,620,921.86 -93,859.57 -
Jiuding Feed Co., Ltd.
BioMar Tongwei (Wuxi)
101,225,309.42 3,881,464.81 105,106,774.23
Biotech Co., Ltd.
Sub-total 125,664,667.11 11,014,477.11 1,850,950.04 4,982,666.67 111,518,473.37
II. Associates
Bohai Aquaculture Co., -
100,055,700.00 1,030,906.22 88,513.09 99,603,329.66
Ltd. 1,571,789.65
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2021 Annual Report
Haimao Seed Industry -
150,000,000.00 170,573.67 -2,307.33 136,707,219.24
Technology Co., Ltd. 13,461,047.10
Anhui Tech-bank Feed
60,000,000.00 -643,982.62 59,356,017.38
Technology Co., Ltd.
Anhui Tech-bank
23,000,000.00 402,678.61 23,402,678.61
Biotechnology Co., Ltd.
Sub-total - -
100,055,700.00 233,000,000.00 259,086.76 319,069,244.89
12,671,444.89 1,574,096.98
- -
Total 225,720,367.11 233,000,000.00 11,014,477.11
10,820,494.85
259,086.76
1,574,096.98
4,982,666.67 430,587,718.26
Other notes:
There are not significant limitations on realization of investments and remittance of investment gains.
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2021 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
4,554,199,847.43 3,998,297,572.06 4,074,241,307.34 3,607,501,899.05
activities
Other activities 190,862,521.70 139,776,936.95 118,253,970.35 29,896,596.70
Total 4,745,062,369.13 4,138,074,509.01 4,192,495,277.69 3,637,398,495.75
(2). Revenue from contracts with customers
"□ Applicable" "√ Not applicable"
(3). Note on performance obligations
"□ Applicable" "√ Not applicable"
(4). Note on allocation to remaining performance obligations
"□ Applicable" "√ Not applicable"
Other notes:
None.
5. Investment gain
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Long-term equity investment gains under cost
5,047,065,159.73 4,058,240,234.33
method
Gain on long-term equity investment under equity
-10,820,494.85 -3,090,231.86
method
Gain on disposal of long-term equity investment 82,577,082.35 -360,357,041.95
Investment gain on held-for-trading financial
assets in the holding period
Dividend income on other equity investments in
the holding period
Interest income on debt investments in the holding
period
Interest income on other debt investments in the
holding period
Gain on disposal of held-for-trading financial
assets
Investment gain on disposal of other equity
investments
Investment gain on disposal of debt investments
Investment gain on disposal of other debt
investments
Debt restructuring gain
Gain on wealth management products purchased 23,368,421.89 1,298,783.09
from banks
Discount interest on receivable financing -15,207,023.08
Total 5,126,983,146.04 3,696,091,743.61
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2021 Annual Report
Other notes:
None.
6. Others
"√ Applicable" "□ Not applicable"
The Company coordinates funds of all subsidiaries. The fund flows between the Company and its
parent company are reflected in “other cash received relating to financing activities” or “other cash paid
relating to financing activities” of “parent company's cash flow statement” as quarterly net amount for
financing activities.
XVII. Additional information
1. Current non-recurring gains and losses
"√ Applicable" "□ Not applicable"
Unit: 元 Currency: CNY
Item Amount Notes
Profit and loss on disposal of non-current assets -77,844,159.34
Tax refund, reduction or exemption approved beyond
authority or without official approval
Government subsidies included in current profit and loss
(excluding ration or quota-based on-gonging government
345,025,134.17
subsidies closely related to the normal operating
businesses of the Company)
Gain or loss from contingencies not relating to normal
operating activities of the Company
In addition to the effective hedging business related to the
normal business operations of the Company, the fair
value gain and loss from held-for-trading financial assets,
derivative financial assets, held-for-trading financial
liabilities, and derivative financial liabilities, as well as 54,403,941.63
investment returns from disposal of held-for-trading
financial assets, derivative financial assets, held-for-
trading financial liabilities, derivative financial liabilities,
and other debt investments
Reversal of impairment provision for accounts receivable
and contract assets subject to separate impairment test
Gain or loss from outward entrusted loans
Gain or loss from fair value change of investment
properties subsequently measured at fair value
Effect on current profit and loss of one-time adjustment
under taxation and accounting laws and regulations
Custody income from entrusted operations
Non-operating revenue and expenses other than
-444,426,951.82
aforementioned items
Other non-recurring gain and loss items
Less: Effects of income tax 163,036,399.95
Effects of minority interest -7,310,612.82
Total -278,567,822.49
Where the Company lists the non-recurring gain and loss items defined in the Explanatory Announcement
on Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-Recurring
Gain and Loss Items as recurring gain and loss items, notes should be provided.
"□ Applicable" "√ Not applicable"
2. Net yield on assets and earnings per share
"√ Applicable" "□ Not applicable"
Profit in reporting period Earnings per share
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2021 Annual Report
Weighted average Diluted
Basic earnings per
return on net assets earnings per
share
(%) share
Net profit attributable to common
24.24 1.8234 1.8234
shareholders of the Company
Net profit excluding non-recurring
profits and losses attributable to
25.07 1.8852 1.8852
common shareholders of the
Company
3. Differences between accounting data under domestic and foreign accounting standards
"□ Applicable" "√ Not applicable"
4. Others
"□ Applicable" "√ Not applicable"
Chairman of the board of directors: Xie Yi
Submission date approved by the board of directors: April, 22 2022
Revision
"□ Applicable" "√ Not applicable"
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