2022 Annual Report
Stock Code: 600438 Short Name: Tongwei Co., Ltd.
Tongwei Co., Ltd.
2022 Annual Report
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2022 Annual Report
Important Notice
I. The board of directors, supervisory committee as well as directors, supervisors and senior
managers of the Company are responsible for the authenticity, accuracy and completeness of the
information contained in this Annual Report without false records, misleading statements or
material omissions, and assume joint and several liability therefor.
II. All directors of the Company have been present in the board meeting.
III. Sichuan Huaxin (Group) CPA (Special General Partnership) has issued a standard unqualified
opinion on the Company.
IV. Liu Shuqi, Head of the Company, Zhou Bin, Head of accounting affairs and Gan Lu, Head of
accounting department represent that they are responsible for the authenticity, accuracy and
completeness of the financial statements in this Annual Report.
V. The proposal on profit distribution or the proposal on conversion of capital reserve to share
capital for current period resolved in the board meeting
The Company will distribute profits for the year 2022 based on its total share capital on the record
date. A cash dividend of 28.58 yuan per 10 shares (including tax) will be distributed to all shareholders. As
of December 31, 2022, the total share capital of the Company was 4,501,946,097 shares, based on which
the total cash dividend to be distributed is 12,866,561,945.23 yuan (including tax). If there is any change in
the total share capital before the record date, the total dividend amount will remain unchanged, and the
dividend per share will be adjusted accordingly. The above profit distribution proposal will be submitted to
the Company’s general meeting for approval before execution.
VI. Cautionary note on forward-looking statement
"√ Applicable" "□ Not applicable"
The forward-looking statements of the Company regarding its future development strategies and
business plans do not constitute any substantial commitment of the Company to investors; and investors
should pay attention to risks.
VII. Any funds possessed by the controlling shareholder and other related parties for non-operating
purposes?
No
VIII. Any outward guarantee provided by the Company in violation of the prescribed
decision-making procedures?
No
IX. More than half of the directors cannot ensure the truthfulness, accuracy, and completeness of
the annual report disclosed by the Company?
No
X. Notice on material risks
The Company had detailed possible risks in this Report. Please refer to “VI Discussion and 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"
*The 2022 Annual Report of Tongwei Co., Ltd. was published both in Chinese and English. Where any discrepancy arises between the English and the Chinese
content, the Chinese version shall prevail. The English version here was only used for investors’ reference.
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Contents
Section I. Definitions........................................................................................................................... 4
Section II. Company Profile and Major Financial Indicators ............................................................... 6
Section III. Management Discussion and Analysis ................................................................................ 9
Section IV. Company Governance ....................................................................................................... 40
Section V. Environmental and Social Responsibility ......................................................................... 62
Section VI. Important Matters .............................................................................................................. 75
Section VII. Share Changes and Shareholders ...................................................................................... 91
Section VIII. Preference Shares .............................................................................................................. 98
Section IX. Bonds ................................................................................................................................ 98
Section X. Financial Report .............................................................................................................. 102
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 documents Original auditor's report bearing the seal of the accountant firm and the signatures of the
to be checked CPAs.
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:
Definitions of frequently used terms
Tongwei, Company,
refers to Tongwei Co., Ltd.
We, or us
Tongwei Group refers to Tongwei Group Co., Ltd.
Yongxiang refers to Yongxiang Co., Ltd.
Yongxiang Polysilicon refers to Sichuan Yongxiang Polysilicon Co., Ltd.
Yongxiang New Energy refers to Sichuan Yongxiang New Energy Co., Ltd.
Inner Mongolia Inner Mongolia Tongwei High-purity Crystalline Silicon
refers to
Tongwei Company
Yunnan Tongwei refers to Yunnan Tongwei High-purity Crystalline Silicon Company
Tongwei New Energy refers to Tongwei New Energy Co., Ltd.
Hefei Solar refers to Tongwei Solar (Hefei) Co., Ltd.
Anhui Solar refers to Tongwei Solar (Anhui) Co., Ltd.
Chengdu Solar refers to Tongwei Solar (Chengdu) Co., Ltd.
Meishan Solar refers to Tongwei Solar (Meishan) Co., Ltd.
Tongyu Property refers to Chengdu Tongyu Property Management Co., Ltd.
Tongwei Media refers to Chengdu Tongwei Culture Media Co., Ltd.
Phase II 50,000-ton
Leshan Phase II 50,000-ton high-purity polysilicon project, i.e.,
High-purity Polysilicon
refers to technical renovation project on PV silicon material manufacturing
Project of Yongxiang
(Phase II High-purity Polysilicon Project)
New Energy
Phase I 50,000-ton
Baoshan Phase I 50,000- ton high-purity polysilicon project, i.e.,
High-purity Polysilicon
refers to High-purity Green Energy Project (Phase I 50,000-ton
Project of Yunnan
High-purity Polysilicon Project)
Tongwei
Phase II 50,000-ton
Baotou Phase II 50,000-ton High-purity Polysilicon Project, i.e.,
High-purity Polysilicon
refers to PV Silicon Material Manufacturing Project (Phase II High-purity
Project of Inner
Polysilicon Project)
Mongolia Tongwei
Phase I 7.5 GW Project on the application of homemade intelligent equipment
High-efficiency Solar refers to (system) powered by efficient silicon-based solar cells with an
Cell Project in Meishan annual capacity of 7.5 GW (Meishan Phase I)
Phase II 7.5 GW Project on the application of intelligent factory powered by
High-efficiency Solar refers to efficient silicon-based solar cells with an annual capacity of 7.5
Cell Project in Meishan GW (Meishan Phase II)
Phase I 7.5 GW Project on the application of intelligent connected factory
High-efficiency Solar refers to powered by efficient silicon-based solar cells with an annual
Cell Project in Jintang capacity of 7.5 GW (Jintang Phase I)
An efficient silicon-based cell project with an annual capacity of
Tonghe Project refers to
15 GW by Tongwei Solar and Trina Solar
Leshan Monocrystalline
Rod Pulling and refers to 15 GW monocrystalline rod pulling and cutting project
Cutting Project
CSRC refers to China Securities Regulatory Commission
SSE refers to Shanghai Stock Exchange
Designated Disclosure China Securities Journal, Shanghai Securities News, Securities
refers to
Media Daily, and STCN
LONGi refers to LONGi Green Energy Technology Co., Ltd.
TCL Zhonghuan refers to TCL Zhonghuan Renewable Energy Technology Co., LTD.
Trina Solar refers to Trina Solar Co., Ltd.
Jinko Solar refers to Jinko Solar Co., Ltd.
Sichuan Jinko refers to Sichuan Jinko Solar Co., Ltd.
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Metco Silicon Energy refers to Baotou Metco Silicon Energy Co., Ltd.
Yuze Semiconductor refers to Yuze Semiconductor (Yunnan) Co., Ltd.
Gokin Solar refers to Gokin Solar Co., Ltd.
Shuangliang Silicon
refers to Shuangliang Silicon Materials (Baotou) Co., Ltd.
Materials
Sichuan Huaxin refers to Sichuan Huaxin (Group) CPA (Special General Partnership)
Energy conversion A measure that indicates the ability of solar cells to convert light
refers to
efficiency energy into electrical energy
Convertible bonds refers to Convertible bonds
W refers to Watt, the unit of power
Units of power, 1 KW = 1000 W, 1 MW = 1000 KW, and 1 GW =
KW, MW, and GW refers to
1000 MW
High-purity polysilicon refers to High-purity metal silicon with purity greater than 99.9999999%
A cell produced with M6 silicon wafer (with a length of 166 mm),
166 mm cell refers to whose area is 12.21% larger than that of a cell produced by the
conventional M2 silicon wafer (with a length of 156.75 mm).
A cell produced with M10 silicon wafer (with a length of 182
182 mm cell refers to mm), whose area is 35.34% larger than that of a cell produced by
the conventional M2 silicon wafer (with a length of 156.75 mm).
A cell produced with M12 silicon wafer (with a length of 210
210 mm cell refers to mm), whose area is 80.5% larger than that of a cell produced by
the conventional M2 silicon wafer (with a length of 156.75 mm).
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
PERC Cell refers to carrier recombination on the back side of all aluminum back
surface field solar cells, and then the film will be opened to make
the aluminum back surface field effectively contact with the
silicon substrate.
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
IBC Cell refers to
is that both the PN junction and metal contact are on the back side
so that the front side is protected against from the metal shading,
which provides more effective power generation area and
therefore helps increasing the energy conversion efficiency.
Tunnel Oxide Passivated Contact, where an ultra-thin tunnel
oxide and a heavily doped polysilicon thin film are prepared on
TOPCon Cell refers to the surface of the cell to form a passivation contact structure, thus
increasing the open-circuit voltage and short-circuit current of the
cell and then improving the energy conversion efficiency.
Hetero-junction with Intrinsic Thin-layer, a high-efficiency
crystalline silicon solar cell structure, a hybrid solar cell made of
crystalline silicon substrate and amorphous silicon thin film, i.e.,
adding a non-doped (intrinsic) hydrogenated amorphous silicon
HJT Cell refers to thin film between P-type hydrogenated amorphous silicon and
N-type hydrogenated amorphous silicon and N-type silicon
substrate. HJT cells are welcomed due to their low process
temperature, good passivation effect, high open-circuit voltage
and double-sided power generation.
The percentage of the total output power of the module to the cell
CTM value refers to power shows the degree of module power loss. A higher CTM
value indicates a smaller degree of module package power loss.
Tongwei N-passivated Contact Cell, a Tongwei solar cell
designed with type-N passivated contact technology. it is an
TNC refers to
advanced solar cell that can improve the conversion efficiency by
leveraging the PECVD technology developed by Tongwei.
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Tongwei Back Contact Cell, a Tongwei solar cell designed with
TBC refers to
back contact technology.
Tongwei HJT Cell, a Tongwei solar cell designed with HJT
THC refers to
technology.
A large spanning support consisting of prestrained flexible
Flexible support refers to
rigging structures that can increase the land utilization.
Selective-emitter that influences the conductive properties of
SE refers to solar cells by high-doping the electrode contact area and
low-doping the light absorption area.
A leading Polish producer of solar energy system and a distributor
Corab S. A refers to
of well-known branded equipment
A leading supplier of solar cells, inverters, photovoltaic systems
PVO International refers to
and materials across Europe
Energy 3000 Solar A leading Austrian provider of energy products, solutions and
refers to
GmbH services in the photovoltaic and energy storage system.
The only French certification body authorized by the Energy
Certisolis refers to Regulatory Commission (CRE) to issue “simplified carbon
footprint assessments” for solar power plants.
A global leader of research and consulting services in the
InfoLink Consulting refers to
renewable energy and technology sector
CINNOResearch refers to CINNO Research Institute
CPIA refers to China Photovoltaic Industry Association
IEA refers to International Energy Agency
Reporting period refers to The period from January 1, 2022 to December 31, 2022
Section II. Company Profile and Major Financial Indicators
I. Company information
Full Chinese name 通威股份有限公司
Short Chinese name 通威股份
Full English name TONGWEI CO., LTD
Short English name TONGWEI CO., LTD
Legal representative Liu Shuqi
II. Contacts and contact details
Secretary of the Board of Directors Representative of Securities Affairs
Name Yan Ke Li Huayu
No. 588, Middle Section Tianfu Avenue, No. 588, Middle Section Tianfu Avenue,
Address High-Tech Zone, Chengdu, China High-Tech Zone, Chengdu, China (Sichuan)
(Sichuan) Pilot Free Trade Zone Pilot Free Trade Zone
Telephone 028-86168555 028-86168555
Fax 028-85199999 028-85199999
Email yank@tongwei.com lihy05@tongwei.com
III. Basic information
No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, China
Registered address
(Sichuan) Pilot Free Trade Zone
In the third interim general meeting held on November 16, 2016, the Company
discussed and resolved the Tongwei Co., Ltd Proposal on Changing its
Changes of the registered Registered Address and Modifying its Articles of Association by agreeing to
address change the registered address from No. 11, Forth Section of South 2nd Ring
Road, High-tech Zone, Chengdu” to “No. 588, Middle Section Tianfu Avenue,
High-Tech Zone, Chengdu”.
Office address No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, China
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(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 News,
disclose its annual reports Securities Daily, and STCN
Stock exchange websites where the Company
www.sse.com.cn
disclose its annual reports
Location where the Company stores its annual
Securities Department
report
V. Stock information
Stock information
Stock type Stock exchange Stock name Stock code Previous stock name
Shanghai Stock
A - share 通威股份 600438
Exchange
VI. Other information
Sichuan Huaxin (Group) CPA (Special General
Accountant firm Name
Partnership)
engaged by the
28th Floor, Jinmao Lidu South, No. 18, Ximianqiao Street,
Company Office location
Chengdu
(domestic)
Signatory accountants Li Wulin, Tang Fangmo, and Xia Hongbo
Name China Securities Co., Ltd
Sponsor that
Building B and E, Kaiheng Center, No. 2 Chaonei Street,
performs Office location
Dongcheng District, Beijing
continuous
Signatory
supervision duties Li Puhai and Pu Fei
representatives
in the reporting
Period of continuous Continuous supervision period for offering of convertible
period
supervision bonds: from March 18, 2022 to December 31, 2023
VII. Major accounting data and financial indicators within the latest three years
(I). Major accounting data
Unit: Yuan Currency: CNY
Major accounting 2021 YoY change 2020
2022
data (%)
After adjustment Before adjustment After adjustment Before adjustment
Operating
142,422,517,994.99 64,829,996,083.91 63,491,070,520.12 119.69 44,557,589,877.68 44,200,270,334.23
revenue
Net profit
attributable to
shareholders of 25,726,447,236.27 8,109,125,091.40 8,207,920,822.18 217.25 3,565,490,330.73 3,607,923,359.56
the listed
company
Net profit net of
non-recurring
gain and loss
attributable to 26,547,373,729.76 8,387,692,913.89 8,486,488,644.67 216.50 2,366,121,200.54 2,408,554,229.37
shareholders of
the listed
company
Net cash flow
generated from
43,817,909,631.70 7,474,393,433.33 7,618,273,876.72 486.24 2,964,584,179.22 3,024,927,931.94
operating
activities
YoY change
2022 close 2021 close 2020 close
(%)
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2022 Annual Report
After adjustment Before adjustment After adjustment Before adjustment
Net assets
attributable to
shareholders of 60,797,263,389.21 37,183,020,306.85 37,502,570,958.36 63.51 30,320,650,109.00 30,541,405,029.73
the listed
company
Total assets 145,243,793,631.19 87,895,197,228.99 88,249,992,122.16 65.25 64,017,869,793.39 64,251,948,070.91
(II). Major financial indicators
2021 2020
YoY change
Major financial indicators 2022
After Before (%) After Before
adjustment adjustment adjustment adjustment
Basic earnings per share (yuan/share) 5.7149 1.8014 1.8234 217.25 0.8480 0.8581
Diluted earnings per share
5.4889 1.8014 1.8234 204.70 0.8367 0.8466
(yuan/share)
Basic earnings per share net of
non-recurring gain and loss 5.8973 1.8633 1.8852 216.50 0.5628 0.5729
(yuan/share)
Weighted average return on net assets
52.36 24.14 24.24 + 28.22 ppts 16.08 16.13
(%)
Weighted average return on net assets
excluding of non-recurring gain and 54.03 24.97 25.07 + 29.06 ppts 10.67 10.77
loss (%)
Note on major accounting data and financial indicators within the latest three years by the end of reporting
period
"√ Applicable" "□ Not applicable"
The Ministry of Finance issued the “Interpretation No. 15 of Accounting Standard for Business
Enterprises” (Cai Kuai [2021] No. 35) (“Interpretation No. 15”) on December 31, 2021, which clarifies the
accounting treatment of products or by-products produced by enterprises for sales before the fixed assets
reach the intended usable state or during the research and development process. According to relevant
provisions of Interpretation No. 15, the Company implemented the relevant provisions of Interpretation No.
15 and make retrospective adjustments from January 1, 2022.
VIII. Differences between accounting data under domestic and foreign accounting standards
(I). Difference in net profit and net assets attributable to shareholders of the listed company
contained in the financial statements disclosed simultaneously under International Accounting
Standard and China Accounting Standard
"□ Applicable" "√ Not applicable"
(II). Difference in net profit and net assets attributable to shareholders of the listed company
contained in the financial statements disclosed simultaneously under Foreign Accounting
Standard and China Accounting Standard
"□ Applicable" "√ Not applicable"
(III). Note on differences between China and foreign accounting standards:
"□ Applicable" "√ Not applicable"
IX. 2022 major financial data by quarters
Unit: Yuan Currency: CNY
Q1 Q2 Q3 Q4
(Jan - Mar) (Apr - Jun) (Jul - Sept) (Oct - Dec)
Operating revenue 24,685,190,176.42 35,654,024,725.73 41,744,959,822.97 40,338,343,269.87
Net profit attributable to
shareholders of the listed 5,194,494,567.14 7,029,292,140.45 9,506,614,023.42 3,996,046,505.26
company
Net profit net of non-recurring
gain and loss attributable to 5,134,900,689.19 7,358,044,406.71 9,487,789,588.89 4,566,639,044.97
shareholders of the listed
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company
Net cash flow generated from
3,248,916,632.41 10,187,380,023.49 15,446,295,023.92 14,935,317,951.88
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: Yuan Currency: CNY
Notes (if
Non-recurring gain and loss items 2022 amount 2021 amount 2020 amount
applicable)
Profit and loss on disposal of non-current
-12,315,759.20 -77,844,159.34 1,541,869,733.03
assets
Government subsidies included in
current profit and loss, but excluding
ration or quota-based on-gonging
government subsidies closely related to 387,940,097.37 345,025,134.17 296,657,874.92
the normal operating businesses of the
Company, complying with national
policies
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 -130,149,063.69 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
-1,235,055,137.99 -444,426,951.82 -439,396,332.17
other than aforementioned items
Less: Effects of income tax -156,512,227.43 163,036,399.95 209,491,363.52
Effects of minority interest (after
-12,141,142.59 -7,310,612.82 4,655,892.34
tax)
Total -820,926,493.49 -278,567,822.49 1,199,369,130.19
Where the Company lists the non-recurring gain and loss items defined in the Explanatory 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"
XI. Items measured at fair value
"□ Applicable" "√ Not applicable"
XII. Others
"□ Applicable" "√ Not applicable"
Section III. Management Discussion and Analysis
I. Operation discussion and analysis
In 2022, against the backdrop of escalating Russia and Ukraine conflict, the world political and
economic situation was turbulent, and games between greater powers were impacting global supply chains.
The prices of commodities, in particular energy and food, continued to rise, and structural supply shortages
pushed up inflation levels in major economies. According to the International Monetary Fund estimates, the
world’s average consumer price index grew by 8.8% in 2022, the highest inflation level since the 21st
century started. The economic growth rate declined, and the recovery fell short of expectations across the
globe. Although facing triple pressures of shrinking demand, supply shocks, and weakening expectations,
China timely introduced policies to stabilize its economy, maintaining the steady growth of the domestic
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2022 Annual Report
economy. According to the data from the National Bureau of Statistics, China’s GDP reached 121 trillion
yuan in 2022, a year-on-year increase of 3%, continuing to lead the world’s major economies in terms of
growth rate.
During the reporting period, the photovoltaic industry maintained high-speed growth, and the feed
industry made steady progress. The Company firmly grasped the opportunities for industrial development
and adhered to the operation policy of “focus, execution and efficiency” as a response to the complicated
economic environment, having conducted businesses in a stable manner with great performance. In 2022,
the Company recorded a revenue of 142.423 billion yuan for a year-on-year growth of 119.69%; net profit
attributable to shareholders of the listed company of 25.726 billion yuan for a year-on-year growth of
217.25%; net profit excluding non-recurring gain and loss attributable to shareholders of the listed
company of 26.547 billion yuan for a year-on-year growth of 216.50%. The Company’s net weighted
average return on assets for the year was 52.36%, and the year-end debt to asset ratio was 49.57%, a
decrease of 3.44 percentage points from the end of last year.
(I) Feed and industry chain
In 2022, China’s feed industry continued to develop stably in the context of significant economic
growth pressures. The total production of industrial feed reached 302.234 million tons, a year-on-year
increase of 3%. Among them, the production of pig feed was 135.975 million tons, a year-on-year increase
of 4.0%; the production of poultry feed 121.363 million tons, a year-on-year decrease of 0.04%; and the
production of aquatic feed 25.257 million tons, a year-on-year increase of 10.2%. Affected by international
situation and extreme weather, the cost of feed raw materials has significantly increased. According to
Wind, the prices of corn and soybean meal increased by 7.3% and 31.9% respectively, compared to the
beginning of 2022 year. On the other hand, in some domestic regions, there was a temporary economic
slowdown and insufficient consumer demand, which resulted in lower than expected prices for breeding
products. Feed companies faced dual pressures from upstream and downstream operations. While top
companies effectively withheld risks with their comprehensive competitive advantages, survival and
development for small and medium-sized companies remained difficult.
In 2022, the Company integrated its feed and related industrial chain businesses by establishing
Tongwei Agriculture Development Co., Ltd., further enhancing its level of specialized operation. For
maximizing customer benefits, everyone at Tongwei adhered to the “quality policy”, deeply promoted
specialization, standardization and scaled development for mutual development with customers. During the
reporting period, the Company’s feed and industrial chain businesses achieved operating income of 31.646
billion yuan, a year-on-year increase of 28.69%. The total sales volume of feed was 7.194 million tons, a
year-on-year increase of 30.42%, with sales volumes of livestock and poultry feed and aquatic feed
reaching historical highs with year-on-year increases of 41.23% and 18.94% respectively.
In the reporting period, the Company performed the following key tasks:
1. Full effort into specialization, standardization and scaled development for higher core
competitiveness
The Company adhered to the “quality policy” throughout the year, and focused on promoting
“specialization, standardization and scaled” development, achieving remarkable results and further
strengthening its competitive advantages, which has been highly recognized by customers. Specialization in
procurement ensures stable feed quality from the source and effectively supports breeding results;
specialization in technology combines product development with user needs through a closed-loop process
of “market insights, R&D management, product design, and optimization by tracking”, achieving
maximum breeding benefits; product specialization includes regular dynamic reviews of product structure,
optimizing it to ensure consistent product quality. In 2022, the Company focused on “production
automation, business digitalization, and operation standardization” promoting comprehensive cost
reduction and efficiency improvement in feed production. Through the creation of a “benchmark factory”,
it further explored new models of digital production and intelligent management. In 2022, the Company
applied for 24 patents relating to the “intelligent management system for feed production” and
environmental protection in feed production. The company achieved one-click startup management for the
puffing machine and developed a set of feed production management modes that can be rolled out, opening
new ways to reduce production costs and improve product quality by reducing labor and increasing
automation. The company focused on both production and sales for scaled development. It improved the
efficiency by continuously optimizing the production process and promoting team building, and promoted
sales through innovative models such as host marketing and breeding competitions. Through the
“Marketing Communication”, a digital application system developed by the Company, it integrated the
supply and demand of its customers, achieving high synergy between production and sales. As a result,
several subsidiaries achieved full production and sales, and the Company's capacity utilization rate
increased by 5.40 percentage points year-on-year.
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2. Maintaining leading quality by strengthening the advantage in procurement of raw materials
As a manufacturing process, feed production relies heavily on raw materials, which make up over 90%
of the cost and the quality of raw materials directly affects the breeding results. During the reporting period,
the prices of feed raw materials were affected by internal and external macro factors, continuing to rise with
significant fluctuations, which has significantly increased the operating pressure on feed companies. Some
companies even resorted to low-quality and low-cost raw materials to cut costs. In this context, the
Company adhered to the quality by keeping the procurement strategy of “stable raw materials and
consistent quality”. With a long-term specialized procurement team and mode, it closely tracked the feed
raw material market, assessed the timing of procurement, accurately understood the impact of factors such
as exchange rate fluctuations on raw material procurement to avoid future cost fluctuations. The Company
implemented a rolling cost budget mechanism and used advance procurement for core materials to achieve
cost optimization. It continued to strengthen cooperation with strategic suppliers, enhanced strategic
procurement of raw materials and factory direct procurement, with major raw material suppliers accounting
for over 75% of the procurement volume and a direct supply rate of 94% for local raw materials, further
consolidating its competitive advantage in the raw material supply chain. Through a reasonable supplier
evaluation system, the Company adopts site visits before supplier onboarding, spot checks, and evaluation
ranking to strictly guard against raw material quality risks, and ensured long-term and leading feed quality
from the source.
3. Creating new highlights in agriculture and husbandry sectors through a reasonable degree of
diversification
During the reporting period, while focusing on feed, the Company also fully utilized its professional
advantages in the fisheries sector and moderately extended its reach around the green aquatic industry chain,
creating new highlights in agriculture and husbandry sectors. In 2022, the Company's food business saw a
high-speed growth in profits, driven in part by its seafood export, which demonstrated a keen understanding
of market trends, seized opportunities, and expanded production capacity. As a result, gross margins
increased significantly, and profits reached an all-time high. The Company also continued to develop its
offline business by opening new stores and hosting various themed events, such as the “Fresh Journey” and
the “Tongwei Fish Banquet”, which increased customer loyalty and attracted new customers. The
e-commerce business adopted a “platform + community” supply chain model and focused on
mid-to-high-end consumers, resulting in a rapid increase in membership numbers and a significant
improvement in operational efficiency. Tongwei Fresh Fish worked hard to build differentiated competitive
strength in product quality with the standardization of facilities and having borne fruits of consistent quality.
Throughout the year, the brand’s influence steadily increased, and it secured partnerships with large-scale
e-commerce platforms such as Hema and PuPu.
Leveraging its accumulated aquaculture technologies and complete resources in the industry chain,
during the reporting period, the Company strategically developed its shrimp farming business. By focusing
on building a modern shrimp farming base of zero-emission, automation, digitization, and intelligence, and
supporting it with seedlings, animal health, feed, and equipment, the Company was committed to producing
environmentally friendly shrimp products of higher survival rate, better quality and lower cost, satisfying
consumers’ demand for safe and better aquatic products. The Company has achieved results in shrimp
seedling cultivation, circular water system, and intelligent aquaculture exploration, and launched a project
for the annual production of 10,000 tons of shrimp in a factory-farmed manner. The first-phase construction
is currently underway, and is expected to be completed and put into operation within 2023, making it an
industry leader in indoor shrimp farming.
(II) PV business
In 2022, under the stimulus of the Russia-Ukraine conflict, fossil fuel prices surged, and the energy
crisis quickly became highlighted. The economic benefits and energy security role of photovoltaic power
were significantly enhanced, and the global PV installed capacity grew substantially. According to China
Photovoltaic Industry Association (CPIA), the global newly installed PV capacity reached a
record-breaking 230 GW in 2022, a year-on-year increase of 35.3%. China ranked first in the world with
87.41 GW of newly installed PV capacity, a year-on-year increase of 59.3%, followed closely by the EU,
with a newly installed capacity of 41.4 GW, a year-on-year increase of 47%. In terms of the manufacturing
chain, China’s PV industry achieved excellent performance in 2022 again. According to CPIA, the
domestic PV manufacturing output value reached 1.4 trillion yuan, a year-on-year increase of over 95%.
The production of polycrystalline silicon, silicon wafers, cells, and modules reached 827,000 tons, 357 GW,
318 GW, and 288.7 GW respectively, with year-on-year increases of 63.7%, 57.5%, 60.7%, and 58.8%. The
total export value of products exceeded 50 billion US dollars for the first time, a year-on-year increase of
80.3%, reaching a record high. Due to the uneven production capacity in different parts of the industrial
chain, supply and demand contradictions still exist, and product prices fluctuated greatly throughout the
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year. However, under the strong support of end-market demand, industrial chain prices still showed an
upward trend. Among them, polycrystalline silicon showed the most significant year-on-year increase in
prices due to the largest production capacity gap. At the same time, driven by factors such as industry
supply and demand mismatch, technological changes, and rising demand, many players outside the industry
entered the PV sector, and existing players expanded production or extended the industrial chain,
intensifying market competition.
Based on the expected future development of the PV industry and the Company’s judgment about its
competitive strength, the Company released an Announcement on the Progress of Development Plan and
Future Plan for High-purity Polycrystalline Silicon and Solar Cell Business, stating that the cumulative
production capacity of high-purity polycrystalline silicon and solar cells will reach 800,000 to 1 million
tons and 130 to 150 GW respectively from 2024 to 2026. It would also continue to increase its investment
in technological development and enhance lean management levels to increase market share and become a
global leader in the field of high-purity polycrystalline silicon and solar cells. On the other hand, the
Company has responded to the trend of industry development by giving full play to its advantages in scale,
cost, and technology in the industrial chain, and began to expand the business in solar modules in the
second half of 2022. This ensured that the Company continued to provide customers with more advanced,
higher quality, and lower carbon PV products while keeping the long-term stable development of its PV
business.
In 2022, some regions in China experienced power shortages due to high temperatures, and the
industry underwent technological updates, accelerating the expansion of production capacity. Against these
challenges, the Company has focused on safety production, technological innovation, and lean management
for its PV business, worked efficiently and collaboratively to reduce costs and increase efficiency, and
further enhanced its core competitiveness.
1. High-purity polysilicon
The Company is a global leader in high-purity polysilicon, with industry-leading production capacity,
production costs, and product quality. During the reporting period, the production capacity of high-purity
polysilicon remained stable. Although being temporarily affected by objective factors such as high
temperatures and power restrictions, with the rapid operation of new projects, the Company achieved a
sales volume of 256,800 tons of high-purity polysilicon for the year, a year-on-year increase of 138.41%.
As the conflict between Russia and Ukraine accelerated energy transformation, global demand for
photovoltaic end-user installations exceeded expectations during the reporting period, and the supply of
high-purity polysilicon products was unable to meet demand, resulting in price surges. The Company's
profitability in high-purity polysilicon reached a record high, and has recovered all investment costs for its
in-production capacity.
During the reporting period, the Company strengthened its safety responsibility and made workplace
safety and stable operation its top priority. Based on the strict implementation of Yongxiang “Safe
Production Rules and Regulations”, the Company conducted a series of safety-specific activities such as the
“100-day safety campaign” and carried out comprehensive checklist-based inspections and investigations
for continuous and stable operation of production facilities throughout the year and for four-zero targets
(zero work injury, zero accident, zero operational error and zero unplanned downtime). In terms of
improving product efficiency, the Company increased R&D efforts, improved lean management levels, and
encouraged all employees to innovate in the form of reasonable proposals by timely delivering incentives.
These have effectively improved production performances. The silicon consumption, comprehensive
electricity consumption, and steam consumption per unit of output in the year all decreased by 2.7%, 10.7%,
and 72% year-on-year respectively. The product quality further improved, and the mono-grade rate
stabilized above 99%, achieving long-term stable supply to downstream major N-type material customers,
and the annual supply of N-type materials increased significantly year-on-year.
In 2022, the Company accelerated the construction and capacity release of all kinds of projects
without compromising the safety and quality. Among them, the second phase of the Inner Mongolia
Tongwei 50,000ton project achieved early production and broke the industry's practice of quality ramp-up.
The first batch produced met the solar grade standard. Meanwhile, the Company steadily advanced the
construction of Yongxiang Energy Technology's first phase of 120,000-ton project which is expected to be
put into operation in the third quarter of 2023. At that time, the Company's annual production capacity of
high-purity polysilicon will exceed 380,000 tons1, and its scale advantages will be further expanded. In
accordance with its development plan, the Company announced investment plans for Inner Mongolia
1
The completion of some high-purity polysilicon projects and equipment upgrades and renovations have resulted in
production capacity increase, and as of the end of the reporting period, the Company's high-purity polysilicon production
capacity exceeded 260,000 tons.
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Tongwei 200,000-ton high-purity polysilicon and supporting projects and Yunnan Tongwei Phase II
200,000-ton high-purity polysilicon and supporting projects during the reporting period. The new projects
would adopt the “Eighth Generation Yongxiang Method” process, with larger unit size, lower unit
investment, better process level, and higher intelligence level, continuing to lead the industry.
In line with the principle of long-term cooperation and common development, in 2022, the company
signed new long-term contracts on high-purity polysilicon with silicon wafer companies such as Longi,
Yuze Semiconductor, Meeco Silicon Energy, Qinghai Gokin Solar, and Shuangliang Silicon Materials to
ensure stable product sales. At the same time, the Company continued the equity partnership with Longi on
Yunnan Tongwei Phase II 200,000-ton high-purity polysilicon project as a part of its way to build strategic
cooperation relationships with upstream and downstream partners. The Company will continue to leverage
its professional advantages in the high-purity polysilicon segment, provide customers with high-quality and
low-carbon high-purity polysilicon products, and contribute to the development of the industry.
2. Solar cells
During the reporting period, the Company actively seized market opportunities and comprehensively
promoted the upgrading and transformation of small-size production lines, accelerated the construction of
new projects, and achieved rapid release of production capacity for 182mm and larger PERC cells,
effectively matching market demand. Based on its capacity planning, the Company successively launched
Tonghe project, Jintang Phase II, and Meishan Phase III project. Its total production capacity has exceeded
70GW, of which the capacity for 182mm and above size exceeds 95%. During the reporting period, the
Company sold 47.98GW, a year-on-year increase of 37.35%. According to InfoLink Consulting, in 2022,
the Company still led the world in solar cell shipments and became the first cell manufacturer in the
industry to exceed 100GW in cumulative shipments.
At the same time, the Company tapped the potential for cost reduction and efficiency improvement,
and through measures such as process improvement, graphic optimization, and use of domestic materials, it
achieved a steady increase in PERC cell efficiency and a continuous decrease in material consumption
while adapting to the rapid trend of thinning in the industry. Key competitive indicators such as A-level rate,
conversion efficiency, fragment rate, and non-silicon cost allowed the Company to remain at the
industry-leading level, and the average non-silicon cost of PERC products decreased by 13% year-on-year.
As a leader in the solar cell industry, the Company attaches great importance to changes in cell
technologies by continuously increasing R&D investment. It is one of the earliest companies to invest in
GW-level HJT and TOPCon technology pilot lines. The Company focuses on R&D around the scale
production of new technologies. During the reporting period, the Company launched TNC cell products
based on the industry’s first large-size PECVD Poly production line developed on its own regarding the
TOPCon technology path. In late November 2022, it put into operation the Meishan 9GW TNC cell project,
which is now fully operational and has an average conversion efficiency of 25.5%. If SE and other
technologies are added, the conversion efficiency is expected to be 25.7%. At the end of the year, the
Company started the construction of the Pengshan 16GW TNC cell project, which is expected to be
completed and put into operation in the second half of 2023. At that time, the Company’s TNC cell capacity
will reach 25GW. In the HJT technology route, the Company has completed the development of
double-sided nanocrystalline technology, and the module power has exceeded 720W (210 mm 66-piece
format). The industry’s first 210 half-cut copper interconnect pilot line has been established, and full-scale
development has been carried out in equipment, process, and materials. The grid line width has been
reduced to below 15μm, the efficiency has increased by more than 0.2% compared to the printing process,
and the yield rate has reached 95%, further approaching mass production conditions. In addition to above
technology routes, the Company has advanced its R&D effort into cutting-edge technologies such as
full-back contact cells and perovskite/silicon layered cells, all of which have made positive progress.
Among them, the perovskite/silicon layered cell laboratory was put into use during the reporting period,
and the third-party certified efficiency of small-size perovskite/crystalline silicon layered cells reached
27.19%.
3. Modules
The Company has been deeply involved in the photovoltaic industry for many years. It deployed some
production capacity since entering the solar cell industry, and based on which, the effort into R&D and
market development has never stopped. Based on the national dual carbon requirements and in line with the
trend of industry integration, during the reporting period, the Company started to comprehensively develop
its modules business and build a more competitive photovoltaic industry structure to ensure the steady
development of its photovoltaic business.
During the reporting period, the Company completed the “8GW Photovoltaic Intelligent Factory
Technical Transformation Project” by renovating the multicrystalline cell workshop at the original Hefei
base in just three months, and the production capacity jumped to 14GW. Thanks to the quality support from
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the upstream of the industrial chain and excellent production control capabilities, the Company’s core
production indicators such as product yield and single-line output have reached the industry’s leading level.
With full benchmarking with excellent product standards and quality systems from peers, the Company has
built a standardized management system with lean thinking. It has successfully passed the QMS, EMS and
OHSAS certification, and IEC 62941 system certification, obtained the French carbon footprint
certification and got listed on the Bloomberg New Energy Finance’s Tier 1 list of global photovoltaic
module manufacturers.
Its business of modules is positioned as a top brand. By quickly forming a professional team and fully
leveraging upstream resource advantages, it has helped to rapidly build a global distribution channel
through comprehensive brand promotion. In the centralized market, relying on reliable product quality,
excellent performance capability, and strong after-sales system, the Company has won orders from multiple
central state-owned power generation groups. In the distributed market, it actively explores the win-win
model of specialized division of labor and collaborative development by cooperating with terminal
platform-like companies. In the overseas market, it focuses on end markets in Europe, Asia-Pacific, South
America, etc., and uses a “matrix” of various product models such as overlapped-cell modules and half-cell
products to meet the differentiated needs of overseas customers for efficient modules. It has reached
strategic cooperation with overseas distributors and customers such as China Machinery Import and Export
(Group) Co., Ltd., Corab S.A, PVO International, and Energy 3000 Solar GmbH to realize the rapid
expansion of overseas channels. In 2022, the Company’s modules sales reached 7.94GW, a year-on-year
increase of 226.06%. According to InfoLink Consulting data, the Company was among the world's top ten
in terms of module shipments.
To ensure leading quality and optimized cost in modules, the Company started module projects in
Yancheng, Jintang, Nantong and other sites during the reporting period. According to the project investment
plan, it is expected that the its module production capacity will reach 80GW by the end of 2023. The
construction and operation of new projects will strongly support the its global expansion of module
business and provide downstream customers with stable and high-quality solar module products.
4. Aquaculture-Photovoltaic Integration PV powerplants
During the reporting period, the Company continued to focus on the development and construction of
large-scale Aquaculture-Photovoltaic Integration bases. Through systematic cost control and the reserve of
high-quality water surface resources, it has created an “ecological aquaculture + green energy” model with
core competitiveness, which can promote the coordinated development of industries, and moderately
develop tourism, leisure, and popular science areas. This has formed an organic integration of primary,
secondary, and tertiary industries, creating the “Tongwei Solution” in line with the new fisheries, new
energy, and new rural construction. This has effectively improved the added value of the industry. By the
end of 2022, the Company constructed 52 PV stations led by Aquaculture-Photovoltaic Integration with a
cumulative installed capacity connected to the grid being 3.4GW. The electricity settlement amount in the
year was 4.06 billion kWh, reducing 3.09 million tons of carbon emissions.
With continuous R&D investment and solid technology accumulation, the Company introduced
construction plans for a flexible support system with large span, high clearance, and zero deflection during
the reporting period. This has provided a more friendly fishing environment for PV projects, achieved
higher photovoltaic power generation efficiency, and opened up new ways to increase power generation. By
the end of the reporting period, the Company obtained 37 patents related to the construction plans. There
were over 12 flexible projects connected to the grid or under construction with a total scale exceeding
960MW. Among them, two external projects had a scale of over 100MW. With the on-going development
of technologies in the PV industry, the Company will further improve the economic benefits of the
Aquaculture-Photovoltaic Integration model through the use of efficient modules, 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 more clean energy, thereby making its own contribution to the green
development of the country while achieving its economic benefits.
II. Industries where the Company operated in the reporting period
(I) Feed industry
The feed industry 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 policy, China's feed industry has developed rapidly and formed a complete
industrial system, making significant contributions to the development of modern animal husbandry and the
agricultural and rural economy. In recent years, due to factors such as the slowdown in livestock production
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and industry integration, increased environmental and resource constraints, higher quality and safety
requirements, and intensified market competition, the growth rate of the feed industry has slowed
significantly. It has gradually transitioned from a high-speed growth stage focused on quantity to an
integration and improvement stage focused on quality. According to China Feed Industry Association, the
average annual compound growth rate of China's feed production reached 16.6% from 2000 to 2010, but
declined to 4.79% from 2011 to 2022. In the reporting period, the feed industry presented the following
development characteristics:
1. Total feed production grew steadily and business sizes were adjusted moderately
In 2022, the total output value of China's feed industry reached 1,316.85 billion yuan, a year-on-year
increase of 7.6%, and the total output of industrial feed was 302.234 million tons, a year-on-year increase
of 3%, exceeding 300 million tons for the first time. The industry has accelerated the adjustment of the
structure of feed products, and the pace of innovation has accelerated, with overall development being
stable toward a positive direction. In terms of operating scale, there were six feed groups with an annual
capacity of 10 million tons in 2022, similar to 2021. There were 36 feed companies with a capacity of over
1 million tons per year, 3 fewer than in 2021. The total feed output of these companies accounted for 57.5%
of the national total feed output, a decrease of 2.2 percentage points from 2021. Although the operating
scale has adjusted, the competitiveness of leading enterprises remains strong.
2. Costs of raw materials remained elevated and companies were under greater pressure
Affected by factors such as the escalation of geopolitical tensions, sustained inflation, and reduced
production in major regions, the supply of main raw materials for feed was tight, and prices continued to
rise in 2022. Feed companies faced significant challenges in ensuring raw material supply and controlling
costs, with some even experiencing a decrease in raw material quality and supply disruptions. In the same
period, the weakening of regional economic activity affected the end market, with weak consumption in the
catering sector, poor trading atmosphere in the wholesale market, and weak market conditions for major
livestock products. With the continuous increase in feed costs, the profitability of livestock breeding
continued to decline, with low interest in breeding, resulting in more small-scale farmers exiting from the
industry. Feed companies faced both upstream and downstream pressures, and the difficulty of operation
further increased.
3. Regulatory policies were deepened and industry transformation accelerated
In recent years, China's requirements for quality, safety, and environmental regulation in the feed
industry have deepened, and the industry has been accelerating its transformation towards specialized,
standard, green and regulated direction. In 2022, China issued and implemented policies such as the 14th
Five-Year Plan for the National Forage Industry Development, the 2022 Work Plan for Feed Quality and
Safety Supervision, and the Management Measures for Production Licenses for Feeds and Feed Additives,
which raised higher requirements for feed companies in terms of R&D, biological safety, and quality
control capabilities. Under this trend, companies with standard operations, strong technological capabilities,
strong regional presence, and excellent control capabilities are better able to adapt to policy requirements
and continue to transform and upgrade, while those with insufficient standardization face greater policy
risks.
(II) PV industry
PV is one of the strategic emerging industries in China. As the main direction of renewable energy, the
photovoltaic industry has become an important guarantee for global energy transformation and green
development, growing faster than economic development and having huge market space. After years of
twists and turns in the development, China's photovoltaic industry has basically freed itself from external
dependence and formed a complete industry chain with significant global competitive advantages, making
important contributions to the country's leapfrog development of renewable energy. In 2022, the production
of polysilicon, silicon wafers, cells, and modules in China's PV industry reached 827,000 tons, 357GW,
318GW, and 288.7GW respectively, with year-on-year growth rates all exceeding 55%. The industry's total
output value exceeded 1.4 trillion yuan and annual export exceeded 50 billion US dollars. As of 2022,
China has ranked first in the world for 10 consecutive years in terms of new photovoltaic installed capacity,
and the cumulative installed capacity the first in the world for 8 consecutive years. Against the backdrop of
global energy transformation, with the continuous implementation of energy conservation, emission
reduction, and green development policies at home and abroad, the industry will maintain high-speed
development. In the reporting period, the PV Industry presented the following development characteristics:
1. Turbulent global situation accelerated energy transformation with global installed capacity
exceeding expectation
For a long time, Russia has been an important exporter of traditional fossil energy, such as oil and
natural gas, to Europe. The Russia-Ukraine conflict broke out in the first half of 2022 pushed up global
prices for oil and natural gas and significantly impacted the international energy supply chain, causing an
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aggravating energy crisis in Europe. As a result, major overseas economies represented by European
countries accelerated their renewable energy transformation, and global photovoltaic installations exceeded
expectations, with the annual new installed capacity reaching 230GW, a year-on-year increase of 35.3%. In
China, despite rising prices throughout the photovoltaic industry chain and a year-on-year decline in the
investment return rate of power station companies, the country still achieved a year-on-year growth rate of
59.3% in new installed capacity, reaching 87.41GW, with distributed photovoltaics, which have relatively
lower price sensitivity, achieving a year-on-year growth of more than 70%.
2. Capital inflow remarkably sped up investments with intensified competitions in the industry
Given its development far exceeds the average economic growth, the photovoltaic industry continues
to be sought after in both the capital market and the industrial market. According to CINNOResearch, the
investment in China’s photovoltaic and wind power industries was approximately 3.4 trillion yuan in 2022.
Incomplete statistics show that in 2022, 15 new photovoltaic-related companies got listed in China, and
over 50 companies across the industry expanded into distributed photovoltaic and solar cell fields, with
about 30 of them listed on the A-share market. With the acceleration of production expansion by companies
within and beyond the industry, the tense supply in the industry chain will gradually ease. However, the
competition for top talents and high-quality resources such as land, raw materials, and electricity will
become more intense. Top companies in the industry will further secure their market position with
comprehensive competitive advantages in market presence, technological innovation, brand management,
and talent resources, while new players may face greater operational uncertainties and competitive
pressures.
3. Mismatch between supply and demand continued with elevated prices
Given the sustained and unexpectedly strong demand for end-user installations, the industry
development further accelerated. Although investment in all aspects of the industry increased in scale and
speed, and new production capacity was released, the release of production capacity was slow compared to
downstream demand growth, due to the large scale of investment in the upstream high-purity polysilicon
segment, long construction cycles, high management difficulties, coupled with factors such as unplanned
maintenance of some capacity in the industry and high-temperature power supply restrictions in regions
such as Sichuan. As a result, the supply of high-purity polysilicon and downstream products remained tight
throughout the year, and prices for high-purity polysilicon and downstream products continued to rise and
remained high for a long time.
4. Manufacturing processes optimized with new cell technologies booming
Cost reduction is an eternal topic for the development of PV industry. According to CPIA, in 2022, the
average comprehensive electricity consumption and steam consumption for producing polysilicon were
reduced to 60kwh/kg-Si and 15kg/kg-Si respectively, achieving significant cost reduction results. The trend
of silicon wafer thinning continued, with the average thickness of P-type monocrystalline silicon wafer
being around 155μm, a decrease of 15μm from the previous year. In terms of solar cells, the technology
route switching remained in 2022, and the average conversion efficiency of technology routes kept
breaking records. The average conversion efficiency of P-type monocrystalline cells reached 23.2%, an
increase of 0.1 percentage points from 2021; the average conversion efficiency of N-type TOPCon cells
24.5%, and the average conversion efficiency of heterojunction cells 24.6%, both significantly improved
from 2021. At the same time, the R&D efficiency of thin-film and perovskite cells continued to improve.
5. Integration trend furthered and top companies remained strong
Specialization and integration are two development models that have long existed in the PV industry.
Specialization focuses on certain segments of the industry chain for the purpose of achieving significant
competitive advantages in those segments. Integration involves a full industry chain, avoiding the cyclical
fluctuations of a single segment. Since 2022, with the continuous emergence of supply-demand mismatch
and the significant market fluctuations in some segments, and the continuous inflow of a large number of
external companies, companies have continued to expand their business across upstream and downstream
through various means. The trend of integration has become more prominent. Meanwhile, top companies
have further increased their presence with significant comprehensive competitive advantages, resulting in a
market pattern where the strong become stronger.
III. Businesses of the Company in the reporting period
Adhering to the vision of "For Better Life" and the corporate purpose of “Striving for Excellence,
Contributing to Society”, the Company mainly focuses on agriculture and new energy, thus forming 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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Type-P
Type-P monocrystalline
monocrystalline silicon cells
Monocrystalline silicon wafers Monocrystalline
silicon rods modules
Type-N
Type-N monocrystalline
monocrystalline silicon cells PV power
silicon wafers generation
Polysilicon
Multicrystalline Multicrystalline Multicrystalline Multicrystalline
silicon ingots silicon wafers silicon cells modules
Aquaculture-Photovoltaic
Integration powerplants
Livestock feed
Livestock husbandry Livestock processing
Livestock babies
Aquatic
husbandry
Aquatic husbandry
Aquatic processing
Aquatic seedlings
Aquatic feed
Note: Core businesses of the Company are in the dashed boxes
(I) Main businesses and the operation models
In agriculture, the major business is the research and development, production and sales of aquatic
feed, livestock feed and other products to meet the needs of aquatic animals and livestock for growth.
Aquatic feed has always been the core product and the main profit source of the Company in agriculture
and animal husbandry business group. As of the end of the reporting period, the Company owned more than
80 subsidiaries and branches involved in feed business with a business model of adopting on-site
production and establishing a peripheral sales coverage, while providing effective technical, financial and
other supporting services to farmers. Around the feed business, the Company was actively engaged in seed
breeding, husbandry, animal healthcare, food processing and trade which further completed the industry
chain and enhanced its comprehensive strength.
In new energy, the Company focuses on the research, production, and sales of high-purity polysilicon
and solar cells. As of the end of the reporting period, the Company had an annual capacity of over 260,000
tons for high-purity polysilicon, an annual capacity of over 70 GW for solar cells, and an annual capacity of
14 GW for modules. The Company has manufacturing sites in Leshan, Baotou and Baoshan for producing
high-purity polysilicon products with locally sourced raw materials which are delivered to downstream
manufacturers of silicon wafers. In recent years, the Company has signed long-term sale contracts with
silicon wafer manufacturers. Regarding solar cells, the manufacturing sites in 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. In terms of modules, the Company accelerated its business
expansion in the second half of 2022, relying on years of accumulation in technology and market, and
combined with the synergy benefit from high-purity polysilicon and solar cells, it has established a
competitive and large-scale module business system. Customers cover major domestic central state-owned
power generation groups and more than 40 countries and regions overseas. It is expected that the
production capacity will reach 80GW by the end of 2023.
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 the country and China and Southeast Asian countries such as Vietnam,
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Bangladesh, and Indonesia. These make it a leading aquatic feed producer and an important livestock feed
producer in the world. The Company has been holding a leading position in the industry regarding the
production and sale volume of aquatic feed, i.e., its core product. As a national key leading enterprise in
agricultural industrialization and a national enterprise technology center, the Company has won honors
such as the Second Prize of the National Science and Technology Progress Award, Famous Trademark of
China, and China Quality Award Nomination. During the reporting period, it again won the first prize of
Shandong Provincial Science and Technology Progress Award and the second prize of Sichuan Provincial
Science and Technology Progress Award, and participated in the formulation and revision of 6 national and
industry feed standards. With high-quality products and comprehensive and efficient services, the brand is
well-known in the industry and market.
In the field of photovoltaics, the Company has a production capacity of over 260,000 tons of
high-purity polysilicon, over 70GW of solar cell capacity, and 14GW of module capacity, with
world-leading product cost, quality, and efficiency. It is an important participant and driver in the global
photovoltaic industry. The Company’s high-purity polysilicon production has ranked first in the world for
several consecutive years, with a domestic market share of over 30% in 2022. As a specialized solar cell
producer, the Company's cell shipments have been the world's number one for 6 consecutive years since
2017 (according to InfoLink Consulting), and became the first company in the industry to accumulate over
100GW of cell shipments in the second quarter of 2022. In the field of modules, the Company has built a
technology and market foundation over the years. In the second half of 2022, it rapidly promoted the scaled
development of the module business, and entered the global top ten in terms of module shipments for the
year. According to its production capacity planning, by the end of 2023, the Company's high-purity
polysilicon capacity will be expected to exceed 380,000 tons, solar cell capacity reach 80-100GW, and
module capacity 80GW. The coordinated development and progress of all businesses will continue boosting
the company's industrial chain advantages and its core competitiveness will be further enhanced,
contributing to the global effort into carbon neutrality.
IV. Analysis of the core competitiveness in the reporting period
"√ Applicable" "□ Not applicable"
(I) Clear strategic planning and positioning
The Company focuses on technological innovation and intelligent manufacturing in the main stages of
PV industry, advances the large-scale application of clean energy with zero emission, is committed to
creating a green healthy aquatic industrial chain to meet consumer demand for safe food, and makes every
effort to provide the public with high-quality products in all industries closely related to human life and
continuously improve the quality of human life.
Based on the above strategic positioning, the long-term development goal of the Company is "a
world-class safe food supplier and a world-class clean energy operator", and the short and medium-term
development plan is "to build and consolidate the leading position of global high-purity polysilicon, solar
cells and aquatic feed."
(II) Leading capabilities of technical research and development
Regarding science and technology as the primary productive force, the Company attaches great
importance to technology research and development. For each business group, it has built a R&D team led
by subject matter experts and supported by increased investments, with plenty of achievements applied in
the market. This has helped the Company create value.
1. Agriculture and animal husbandry business group
The Company has a National Enterprise Technology Center approved by five ministries 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.
During the reporting period, the Center continued various basic, applied, and forward-looking studies,
comprehensively promoting the specialization and standardization of key elements such as raw materials,
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formulations, and products. Important achievements were made in technology innovation and product
upgrading, further consolidating the Company’s core competitiveness in the aquatic industry chain. As of
the end of the reporting period, the Company had submitted 971 patent applications in the agriculture and
animal husbandry business group with 707 authorized, and has led or participated in the formulation or
revision of 6 national and industry standards. The Precision Nutrition Study and the Development of Green
and Efficient Artificial Compound Feed for Lateolabrax Maculatus for which the Company was a joint
applicant won the first prize of the Shandong Provincial Science and Technology Progress Award, and its
Development and Application of Chinese Veterinary Drugs for the Prevention and Treatment of Pig
Diseases Under the Background of Antibiotic Resistance won the second prize of the Sichuan Provincial
Science and Technology Progress Award.
Over the years, the Company has established a young, high-quality R&D team, which continuously
consolidates its R&D capabilities and improves its product competitiveness under the leadership of the
experts with special government allowances from the State Council.
2. PV business group
The Company established a Photovoltaic Technology Center based on its research system in various
photovoltaic sectors. The center includes the branches of national technology centers at subsidiaries such as
Tongwei Solar (Chengdu) Co., Ltd. and Yongxiang Co., Ltd. It is supported by a research team primarily
consisting of industry experts. The center coordinates the joint R&D and integration of technologies in
various parts of the industry chain. As of the end of the reporting period, the Company’s photovoltaic
business group had applied for 2,411 patents of which 1,396 were authorized, and won many national and
provincial-level honors and awards, including the first prize of China Science and Technology
Industrialization Award.
In 2022, the PV Technology Center was mainly tasked with the cross-business group link and
integration in the introduction of new technologies and new products regarding solar cells and modules
(such as TNC and THC), with increased efforts into the IUR cooperation with domestic and 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,
TBC, perovskite, laminated cell/module, PV + storage) in the industry.
In terms of high-purity polysilicon, after years of development, the Company has made a number of
achievements with independent intellectual property rights in the core technology fields such as cold
hydrogenation, large-scale energy-saving rectification, high-efficiency reduction, tail gas recovery,
trichlorosilane synthesis and anti-disproportionation, making it at the leading position in the industry
regarding all consumptions per unit of production. In the reporting period, the mono crystal 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, 623 patent applications were submitted by Yongxiang with
423 patents authorized.
In terms of solar cells, the Company has gained a number of technological achievements with
independent intellectual property rights in core technology fields such as atomic layer deposition back
passivation, selective emitter technology, double-sided cells, multi-grid, TNC cells, and THC cells. It has
been an industry leader when it comes to the conversion efficiency of THC, TNC and TBC cells from mass
production. As of the end of the reporting period, 1366 patent applications were submitted by Tongwei
Solar with 744 patents authorized.
During the reporting period, the Company focused on breaking through the SMBB (Super Multi
Busbar) technology barriers in the field of solar modules, particularly achieving the industry's first
large-scale production of 210 mm SMBB modules. In addition, it made phased breakthroughs in many
cutting-edge module fields, including non-busbar module non-silver module, long-life module, and
special-scenario module products. As of the end of the reporting period, Tongwei Modules submitted 422
patent applications and had 229 patents authorized.
(III) Scale and cost advantage
1. Agriculture and animal husbandry business group
The Company is a national key leading enterprise in agricultural industrialization, with 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 business group
The Company has an annual capacity of over 260,000 tons for high-purity polysilicon with another
320,000 tons in construction and two new projects planned with a combined capacity of 320,000 tons, with
investments and consumptions per unit of production declining. With the on-going improvements of
technological processes and the expansion of capacity, the Company will have its costs further optimized
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after the projects in construction are put into service. In terms of solar cells, the Company's annual
production capacity has exceeded 70GW, with large-size production capacity accounting for over 95%. The
average non-silicon cost of PERC products has dropped by 13% year-on-year. As the new project in
Pengshan base is put into operation, the scale effect will be further strengthened with product technology
and size structure optimized, making the non-silicon cost advantage more prominent. As for solar modules,
various indicators rapidly climbed to the industry-leading level during the reporting period. According to its
investment plan, the Company is expected to own a module production capacity of 80GW by the end of
2023, and its production cost will take a leading position driven by both the supporting industrial chain and
technological innovation.
(IV) Quality and brand advantages
1. Agriculture and animal husbandry business group
Since its inception, the Company has developed a series of formula feeds that can meet the needs of
various aquatic animals through continuous R&D and improvement. After years of tests in the market, the
feed quality and market services of the Company have been highly recognized by farmers, which has
created one of the iconic brands in the domestic aquatic feed industry. At the same time, the Company has
made great efforts to build a well-known fresh fish brand “Tongwei Fish”, and established aquatic and
livestock food processing bases in Hainan and Sichuan for processing food in strict accordance with the
requirements of the HACCP quality management system. As a result, the full-cycle quality monitoring from
source to dinner table has been realized, which has effectively enhanced the value and competitiveness of
the industrial chain.
2. PV business group
The Company has improved the quality of its monocrystalline silicon products by developing
technologies for self-control of reduction processes, multiphase flow, cascaded utilization of reduction
thermal energy, and boron/phosphorus/carbon impurity removal. Its product quality is top-notch, with a
monocrystalline rate exceeding 99%, and it has achieved long-term stable supply of N-type materials to
downstream customers. In 2022, Yongxiang was awarded multiple national and provincial-level honors,
including National Intellectual Property Demonstration Enterprise, First Prize in China's Science and
Technology Industrialization Award and Gongga Peiyou Enterprise. The conversion efficiency, yield rate,
chip rate, CTM value, and other indicators of solar cells from the Company are leading in the industry and
have been widely recognized by customers, demonstrated by multiple professional certifications at home
and abroad. In 2022, Tongwei Solar was awarded multiple national, provincial, and industry honors,
including National High-tech Enterprise, Outstanding Intelligent Manufacturing Scene in 2022, Top 100
Manufacturing Enterprises in Sichuan Province in 2022, Green Supply Chain Management Enterprise in
Sichuan Province and Integrity Model Enterprise in Sichuan Province. In terms of the module business, the
Company has rapidly gained brand awareness since accelerating its expansion during the reporting period.
In 2022, Tongwei Modules was included in the Tier 1 list of global photovoltaic module manufacturers by
Bloomberg New Energy Finance, and the Terra series module products received the carbon footprint
certificate awarded by Certisolis, an authoritative French certification body. With efficient and reliable
modules and excellent after-sales service capabilities, the Company has established stable cooperation
relationships with most of China's central state-owned power generation groups and has gained customer
recognition and trust.
(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 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
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the value and goals of the Company; Honesty, Trust, Fairness and Excellence the management philosophy,
that is, being sincere and candid, winning trust by credibility, running business with fairness and legitimacy,
taking the lead with guaranteed excellence; Three Determines the important management principle of the
Company, that is, efficiency determines profit, detail determines success, speed determines life and death;
Work hard; Work with intelligence; Work with the spirit of seizing the day the code of conduct for
employees. After years of development, the spirit advocated by the culture, closely integrated with our
business targets and daily work, guides the benchmarking of all business groups, branches and subsidiaries,
continuously and deeply advances the fine-tuning of management and constantly boosts the high-quality
development of various business activities.
V. 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
Current period
GL Account Last period amount Change (%)
amount
Operating revenue 142,422,517,994.99 64,829,996,083.91 119.69
Operating cost 88,059,961,179.23 48,382,829,594.08 82.01
Sales expense 1,434,770,892.87 919,009,792.93 56.12
Management expense 7,867,914,704.37 2,951,233,971.46 166.60
Financial expense 689,147,212.07 637,160,688.38 8.16
R&D cost 1,464,443,543.84 1,025,715,488.68 42.77
Net cash flow generated from operating activities 43,817,909,631.70 7,474,393,433.33 486.24
Net cash flow generated from investing activities -20,806,151,564.50 -13,447,148,909.93 -54.73
Net cash flow generated from financing activities 9,246,274,097.59 2,901,644,427.08 218.66
Note on the reasons for operating revenue change: mainly attributed to the expansion of PV business
group’s operation size and rise of product prices.
Note on the reasons for operating cost change: mainly attributed to the expansion of PV business group's
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
convertible bonds issued by the Company.
Note on the reasons for change in R&D cost: mainly attributed to increased R&D investments into silicon
materials, solar cells and modules.
Note on the reasons for change in net cash flow generated from operating activities: mainly attributed to the
expanded operating size and improved profitability.
Note on the reasons for change in net cash flow generated from investing activities: mainly attributed to
increased investments into PV business group.
Note on the reasons for change in net cash flow generated from financing activities: mainly attributed to
convertible bonds issued by the Company.
Detailed note on any significant change in the business type, profit structure or profit source of the
Company
"□ Applicable" "√ Not applicable"
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2. Revenue and cost analysis
"□ Applicable" "√ Not applicable"
(1). Main businesses by industry, product, region and sale model
Unit: Yuan Currency: CNY
Main businesses by industry
Gross profit YoY change of YoY change of YoY change of gross
Industry Operating revenue Operating cost
margin (%) operating revenue (%) operating cost (%) profit margin (%)
Agriculture and animal husbandry 31,646,055,679.69 29,147,668,534.83 7.89 28.69 30.95 - 1.59 ppts
PV 109,826,328,708.82 58,106,965,979.28 47.09 187.62 152.81 + 7.29 ppts
Total 141,472,384,388.51 87,254,634,514.11 38.32 125.38 92.86 + 10.40 ppts
Main businesses by product
Gross profit YoY change of YoY change of YoY change of gross
Product Operating revenue Operating cost
margin (%) operating revenue (%) operating cost (%) profit margin (%)
Feed, food and relevant activities 31,646,055,679.69 29,147,668,534.83 7.89 28.69 30.95 - 1.59 ppts
Solar cells, modules and relevant activities 53,526,448,754.97 48,074,022,328.84 10.19 114.67 111.42 + 1.38 ppts
High-purity polysilicon and chemical engineering 61,855,061,411.02 15,384,960,344.64 75.13 229.70 146.19 + 8.44 ppts
PV power 1,654,610,456.96 773,526,860.19 53.25 3.25 29.83 - 9.57 ppts
Offset from consolidation -7,209,791,914.13 -6,125,543,554.39
Total 141,472,384,388.51 87,254,634,514.11 38.32 125.38 92.86 + 10.40 ppts
Main businesses by region
Gross profit YoY change of YoY change of YoY change of gross
Region Operating revenue Operating cost
margin (%) operating revenue (%) operating cost (%) profit margin (%)
East China 54,197,508,326.20 45,417,982,480.87 16.20 133.60 127.85 + 2.12 ppts
South China 12,300,423,046.70 11,122,093,251.52 9.58 51.10 50.82 + 0.17 ppts
West China 74,699,211,156.62 38,055,628,424.35 49.05 190.44 139.97 + 10.71 ppts
North China 17,930,621,736.25 10,055,745,017.70 43.92 69.86 44.99 + 9.62 ppts
Middle China 6,940,137,809.05 6,501,478,900.83 6.32 23.53 22.56 + 0.74 ppts
Overseas 12,599,798,279.52 11,511,886,129.03 8.63 57.72 56.62 + 0.64 ppts
Offset from consolidation -37,195,315,965.83 -35,410,179,690.19
Total 141,472,384,388.51 87,254,634,514.11 38.32 125.38 92.86 + 10.40 ppts
Main businesses by sale model
Gross profit YoY change of YoY change of YoY change of gross
Sale model Operating revenue Operating cost
margin (%) operating revenue (%) operating cost (%) profit margin (%)
Direct sale 115,319,222,018.16 63,337,406,388.99 45.08 144.92 104.95 + 10.71 ppts
Franchised dealership 26,153,162,370.35 23,917,228,125.12 8.55 66.72 66.80 - 0.04 ppts
Note on main businesses by industry, product, region and sale model:
The dealership mode basically covers feed and modules dealership overseas.
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(2). Production and sale analysis
"√ Applicable" "□ Not applicable"
YoY change of YoY change of sale YoY change of
Main products Unit Production Sale Inventory
production (%) (%) inventory (%)
Feed 10,000 tons 643.36 719.40 11.18 19.65 30.42 6.67
High-purity polysilicon 10,000 tons 26.69 25.68 1.17 144.12 138.41 480.81
Solar cells GW 49.18 47.98 1.90 38.72 37.35 60.17
Modules GW 4.74 7.94 1.25 88.99 226.06 329.52
PV generation 100 million kWh 40.61 40.60 0.00 27.85 31.39 /
Note: The sales volume of modules in 2022 included modules produced on behalf of clients.
(3). Fulfillment of major purchase contacts and sales contracts
√ Applicable □ Not applicable
Fulfillment of major existing sales contracts as of the end of the reporting period
√ Applicable □ Not applicable
Unit:100 million yuan Currency: CNY
Amount to
Total Amount fulfilled in
Subject matter Counterparty Amount fulfilled be Fulfillment or not Note on non-fulfillment
amount the reporting period
fulfilled
High-purity polysilicon LONGi / 243.30 243.30 / Yes
High-purity polysilicon Qinghai Gokin Solar / 50.50 50.50 / Yes
High-purity polysilicon Yuze Semiconductor / 15.49 15.49 / Yes
High-purity polysilicon Metco Silicon Energy / 73.29 55.49 / Yes
High-purity polysilicon Shuangliang Silicon Materials / 17.94 17.94 / Yes
High-purity polysilicon Jinko Solar / 123.33 88.50 / Yes
High-purity polysilicon Trina Solar / 38.64 24.48 / Yes
Note: ① only quantities are agreed in the above major sales contracts where prices are determined according to the market prices; ② above amounts include taxes.
Fulfillment of major existing purchase contracts as of the end of the reporting period
"□ Applicable" "√ Not applicable"
(4). Cost analysis
Unit: Yuan
Cost by industry
Current period
Last period amount to YoY amount
Industry Cost item Current amount amount to total Last period amount
total cost (%) change (%) Remarks
cost (%)
Agriculture and animal husbandry Raw materials 27,595,466,380.85 94.67 20,912,211,007.71 93.95 31.96
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Agriculture and animal husbandry Labor cost 380,990,879.22 1.31 367,104,377.22 1.65 3.78
Agriculture and animal husbandry Manufacturing expense 1,171,211,274.75 4.02 979,382,716.46 4.40 19.59
PV industry Raw materials 45,102,802,056.52 77.62 17,056,289,488.92 74.21 164.73
PV industry Labor cost 1,823,636,210.19 3.14 806,471,779.10 3.51 115.74
PV industry Manufacturing expense 11,180,527,712.58 19.24 5,121,685,079.88 22.28 104.75
Cost by product
Current period
Last period amount to YoY amount
Product Cost item Current amount amount to total Last period amount
total cost (%) change (%) Remarks
cost (%)
Feed, food and relevant activities Raw materials 27,595,466,380.85 94.67 20,912,211,007.71 93.95 31.96
Feed, food and relevant activities Labor cost 380,990,879.22 1.31 367,104,377.22 1.65 3.78
Feed, food and relevant activities Manufacturing expense 1,171,211,274.75 4.02 979,382,716.46 4.40 19.59
High-purity polysilicon and chemical
Raw materials 7,097,583,400.89 50.20 3,072,125,706.97 49.16 131.03
engineering
High-purity polysilicon and chemical
Labor cost 420,052,797.73 2.97 265,592,641.47 4.25 58.16
engineering
High-purity polysilicon and chemical
Manufacturing expense 6,619,608,592.98 46.82 2,911,520,274.36 46.59 127.36
engineering
Solar cells, modules and relevant
Raw materials 43,504,348,412.37 90.49 20,517,743,788.12 90.23 104.78
activities
Solar cells, modules and relevant
Labor cost 1,366,510,671.86 2.84 540,879,137.63 2.38 144.01
activities
Solar cells, modules and relevant
Manufacturing expense 3,203,163,244.61 6.66 1,680,093,841.06 7.39 84.14
activities
PV power Manufacturing expense 773,526,860.19 100.00 595,820,555.39 100.00 29.83
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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
"√Applicable" "□Not applicable"
The sales amount from top five customers was 53.489 billion yuan, accounting for 37.56% 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
√Applicable "□Not applicable"
The purchase amount to top five suppliers was 26.858 billion yuan, accounting for 21.23% 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 to a single supplier was over 50% of the total purchase amount and/or the top five
suppliers include new suppliers or the Company was heavily dependent on a small number of suppliers
"□ Applicable" "√ Not applicable"
Other notes
None.
3. Expenses
"□ Applicable" "√ Not applicable"
4. R&D cost
(1).R&D cost
"√ Applicable" "□ Not applicable"
Unit: Yuan
R&D cost expensed in the current period 4,400,583,344.89
R&D cost capitalized in the current period
Total R&D cost 4,400,583,344.89
Total R&D cost to operating revenue (%) 3.09
Percent of capitalized R&D cost (%)
(2).R&D personnel
"√ Applicable" "□ Not applicable"
R&D employees 3,549
R&D employees to total employees (%) 8.61
Education background of R&D employees
Education background Number of employees
Doctor degree 29
Master degree 342
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Bachelor's degree 1,578
Others 1,600
Age groups of R&D employees
Age group Number of employees
Under 30 years old 1,324
30 - 40 years old 1,595
40 - 50 years old 465
50 - 60 years old 160
60 years old or above 5
(3).Note
"√ Applicable" "□ Not applicable"
Science and technology are the primary productive force. The Company keeps technological
innovation and development by keeping abreast of industry trends and for meeting customer needs. For
each business group, it has built a R&D team led by subject matter experts and supported by increased
investments, with plenty of achievements that helped the Company create value.
The Company has3,549 R&D employees, or 8.61% of its total 41,214 employees. Specifically, those
holding bachelor or higher degrees account for 54.92% of the R&D employees; 62.69% of the R&D
employees are 30 years old or above, and 37.31% are under 30 years old.
(4).Reasons for material changes in R&D staff structure and the impact on the Company’s future
development
"√ Applicable" "□ Not applicable"
As of the end of the reporting period, the Company had 3,549 R&D employees, a year-on-year
increase of 214 from 3,335, which is mainly driven by: the increase of talents in aquatic and livestock R&D
team, technical service team, and alga R&D team because the Company intended to enhance the systematic
study into indoor shrimp farming and intelligent feeding system, and processes for spirulina feed used for
photoenergy aquaculture; the further business expansion of high-purity polysilicon, solar cells and solar
modules with the advancement of new projects in Leshan, Yunnan, Inner Mongolia, Jintang, Meishan,
Pengshan and Hefei, which required more talents and resulted in the increase of R&D employees. The
increase in R&D personnel helps with the advancement of R&D projects, has boosted its R&D capability
and level for improving its sustainability on a long-term basis.
5. Cash flow
"√ Applicable" "□ Not applicable"
Refer to the analysis of changes in related items of the income statement and cash flow statement in
this Section.
(II). Note on material change in profit caused by non-main operating activities
"□ Applicable" "√ Not applicable"
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(III). Analysis of assets and liabilities
"√Applicable" "□Not applicable"
1. Assets and liabilities
Unit: Yuan
Opening Closing
Opening balance balance to the Closing balance of balance to the YoY balance
Project name Note
of current period total assets last period total assets (%)
(%) (%)
Due to improved profitability and sufficient operating cash
Cash at bank and on hand 36,841,572,130.01 25.37 3,001,930,882.38 3.42 1,127.26
flow.
Held-for-trading financial
4,298,524,475.70 2.96 10,617,668.58 0.01 40,384.64 Due to purchase of wealth management products.
assets
Due to expansion of overseas business and increase in the
Notes receivable 2,450,913,663.89 1.69 1,576,925,682.02 1.79 55.42
L/Cs.
Due to extended payment cycle to strategic customers in the
Accounts receivable 4,501,362,630.14 3.10 2,915,527,149.08 3.32 54.39
agriculture and husbandry, and module businesses.
Due to increase in goods in stock, goods in transit and raw
Inventories 11,002,649,108.38 7.58 5,682,791,568.04 6.47 93.61 materials as a result of increased operation size, overseas
business expansion, and rise of raw material costs.
Due to deduction of the previous year's overpaid input tax in
Other current assets 786,407,734.06 0.54 1,220,643,137.83 1.39 -35.57
the current year.
Due to the conversion of solar cells and high-purity polysilicon
Construction in progress 3,997,396,999.92 2.75 10,610,819,753.03 12.07 -62.33
projects into fixed assets.
Short-term borrowings 87,767,124.22 0.06 1,375,230,141.70 1.56 -93.62 Due to the adjustment of the Company's financing structure.
Accounts payable 11,018,161,537.30 7.59 8,151,270,076.21 9.27 35.17 Due to business expansion and increase in procurement.
Due to business expansion and increase in advances from
Contract liabilities 5,405,872,108.61 3.72 3,112,027,804.79 3.54 73.71
suppliers in the PV business group.
Due to expanded investment size and adjustment of financing
Long-term borrowings 15,409,335,995.67 10.61 11,441,029,860.16 13.02 34.68
structure.
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2. Overseas assets
"√Applicable" "□Not applicable"
(1) Assets
In which: The overseas assets were 2,637,790,616.96 yuan, accounting for 1.82% of the total assets.
(2) Note on the high ratio of overseas assets
"□ Applicable" "√ Not applicable"
3. Main restricted assets at the end of the reporting period
"√ Applicable" "□ Not applicable"
Unit: CNY
Closing carrying
Item Restriction reasons
value
Cash at bank and on hand 25,374,248.91 Provide guarantees for financing and operations
Receivables financing 9,665,638,659.50 Provides pledges for bank acceptance bills issued by the Company
Accounts receivable 715,625,583.47 Provide collaterals for financing of the Company
Contract assets 355,864,692.87 Provide collaterals for financing of the Company
Fixed assets 5,957,339,958.31 Provide collaterals for the Company's financing
Right-of-use assets 1,392,343,524.16 Provide collaterals for financing of the Company
Intangible assets 445,149,567.28 Provide collaterals for financing of the Company
Investment properties 72,509,754.87 Provide collaterals for financing of the Company
Total 18,629,845,989.37
4. Other notes
"□ Applicable" "√ Not applicable"
(IV). Industrial operation analysis
"√ Applicable" "□ Not applicable"
The Company is involved in PV, agriculture, forestry, livestock husbandry and fishery.
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Analysis of operational information in the PV industry
1. PV equipment manufacturing
"□ Applicable" "√ Not applicable"
2. Key technical indicators of PV products
"√ Applicable" "□ Not applicable"
Product category Technical indicator
Solar energy-grade polysilicon: Output ratio of products at all levels Ratio of electricity cost to total product cost
Solar energy-grade polysilicon 100% 29.77%
Solar cells: Average energy conversion efficiency in mass production Maximum energy conversion efficiency in R&D stage
Type P: 23.98%
Monocrystalline silicon cells 26.18%
Type N: 25.50%
Modules: Average module power in mass production Maximum module power in R&D stage
182 72 format PERC modules: 547.9 W 182 72 format PERC modules: 588.4 W
Silicon solar cells
182 72 format TOPCon modules: 580.5 W 210 66 format PERC modules: 720.7 W
Discussion and analysis of indicators: (1) Average energy conversion efficiency of mass production solar cells means the ratio of the maximum output power of solar
cells when they are under sunlight to the incident ray power, an important parameter to measure the quality and technical level of cells. The higher the energy
conversion efficiency rate, the higher the output power of the single wafer of the cell, and the single wafer of the cell with high power can be packaged into high
power PV modules. (2) The maximum energy conversion efficiency rate in R&D stage: The highest average conversion efficiency of cells in R&D experiments is
tested by recognized third-party organizations. The Company focuses on the development of high-efficiency cells. It further improves the conversion efficiency of
cells and modules by adopting multi-busbars, back passivation, SE process, high-resistance dense grid, alkali polishing, overlapping solar cells and HJT
technologies, allowing the Company to be the industry leader in product quality with relevant indicators.
3. PV powerplants
"√ Applicable" "□ Not applicable"
Unit: 10,000 Yuan Currency: CNY
Development of PV powerplants
Number of powerplants 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
48 powerplants with 52 powerplants with
No powerplant was sold in the
grid connected installed 0 grid connected installed 6.6 GW 0
period
capacity of 2.7 GW capacity of 3.4 GW
Note: The total installed capacity approved means the installation capacity of powerplants that have been registered and held by the Company (including those
connected to and not connected to the grid)
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"√ Applicable" "□ Not applicable"
Unit: 10,000 Yuan Currency: CNY
Operation of PV powerplants in the year:
Installed
Power generation Grid connected power Settled power (10,000 Price of grid connected Electricity
Region capacity Subsidies
(10,000 kWh) (10,000 kWh) kWh) electricity (yuan/kWh) revenue
(MW)
Centralized:
Anhui 280.15 36,861.82 35,620.34 35,279.63 0.37 11,858.73 1,331.86
Guangdong 245.00 20,333.34 20,101.74 19,948.37 0.48 7,977.11 1,580.52
Hubei 419.33 23,919.65 23,644.39 23,616.06 0.37 8,737.71 6.35
Jiangsu 315.00 43,288.69 42,344.96 42,305.52 0.52 14,637.66 7,302.21
Shandong 557.91 75,552.37 74,328.95 75,251.79 0.34 23,693.70 1,904.85
Others 1,504.07 198,640.43 195,429.41 195,018.79 0.34 61,428.97 4,873.37
Total 3,321.46 398,596.30 391,469.79 391,420.16 / 128,333.88 16,999.16
Distributed:
Anhui 0.42 42.50 42.50 42.50 0.87 14.46 22.40
Hubei 3.14 201.08 201.08 201.08 0.86 98.60 73.55
Jiangsu 0.56 61.58 61.58 61.58 0.99 37.89 22.83
Shandong 11.32 1,565.29 1,534.54 1,523.20 0.75 772.21 365.83
Others 94.13 13,171.69 12,814.96 12,738.38 0.66 4,126.79 4,227.61
Total 109.57 15,042.14 14,654.66 14,566.74 / 5,049.95 4,712.22
Note:
① The average on-grid electricity price for centralized power generation is 0.37 yuan/kWh, while the average on-grid electricity price for distributed power
generation is 0.67 yuan/kWh.
② The Company focuses on Aquaculture-Photovoltaic Integration a differentiator, and the market development mainly covers five provinces: Anhui, Guangdong,
Hubei, Jiangsu, and Shandong.
"□ Applicable" "√ Not applicable"
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4. Recommended tables
(1). Production of PV products and PV capacity in construction (as of the end of the reporting period)
"√ Applicable" "□ Not applicable"
Unit: 10,000 Yuan Currency: CNY
Current
Total investment investment in (Expected)
Capacity Process route in Designed Process route in
Product category Yield in production lines production completion
utilization operation capacity construction
in construction lines in time
construction
Modified Siemens 120,000 Modified Siemens
287,943.43 287,943.43 2023
Solar energy-grade process tons process
266,900 tons 122.91%
polysilicon Modified Siemens 200,000 Modified Siemens
44,719.43 44,719.43 2024
process tons process
Silicon wafers:
Monocrystalline silicon
/ / / 351,020.33 246,816.77 15 GW 2022 Monocrystalline
wafers
Solar cells:
Monocrystalline silicon cells 49.18 GW 100.50% PERC/TOPCON 15,629.53 15,629.53 16 GW 2023 PERC/TOPCON
Modules:
High-efficiency High-efficiency
Silicon solar modules 4.74 GW 105.43% 1,572.17 1,572.17 25 GW 2023
modules modules
Analysis of the reasons and effect of significant changes in capacity utilization: Not applicable
(2). Major financial indicators of PV products
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Sales revenue Gross profit margin (%)
Product category Sales-to-production ratio (%)
Domestic Overseas Domestic Overseas
Solar energy-grade polysilicon 96.19 60,195,496,172.34 76.96
Solar cells:
Multicrystalline silicon cells / 657,226.35 2,147,399.65 / /
Monocrystalline silicon cells 97.56 31,920,633,281.37 5,757,095,854.34 9.82 10.56
Modules:
Silicon solar cells 75.68 9,559,687,047.64 4,380,510,790.67 5.33 17.72
PV products sold overseas should be listed by country or region
"√Applicable" "□Not applicable"
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Unit: Yuan Currency: CNY
Overseas sales of modules
Country/region Sales revenue Gross profit margin (%)
South Korea 1,961,861,356.90 21.96
Germany 1,024,126,456.79 12.75
Italy 238,821,426.13 10.64
Poland 183,826,513.94 11.04
Netherlands 212,350,501.50 14.07
France 303,098,052.91 15.00
Others 456,426,482.50 20.55
Unit: Yuan Currency: CNY
Overseas sales of monocrystalline silicon cells
Country/region Sales revenue Gross profit margin (%)
Türkiye 3,348,874,889.35 11.33
South Korea 312,924,110.73 6.72
Germany 413,938,510.91 9.84
Hong Kong SAR, China 320,789,632.97 13.37
India 248,621,417.30 10.75
Others 1,111,947,293.08 8.75
(3). PV powerplant projects commissioned or developed
"□ Applicable" "√ Not applicable"
5. Other notes
"□ Applicable" "√ Not applicable"
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(V). Investment analysis
Overall analysis of outward equity investments
"□ Applicable" "√ Not applicable"
1. Significant equity investments
"□ Applicable" "√ Not applicable"
2. Significant non-equity investments
"√ Applicable" "□ Not applicable"
Unit: 10,000 Yuan
Amount invested in Cumulative Return realized in the
Project name Project progress Sources of funds
the reporting period investment amount reporting period
Phase I 50,000-ton High-purity Polysilicon Project of
56,153.67 464,378.94 Completed 561,916.96 Self-funding
Yunnan Tongwei
Phase II 50,000-ton High-purity Polysilicon Project of Inner Raising fund and
284,376.77 511,242.03 Completed 352,171.80
Mongolia Tongwei self-funding
Put into
15 GW Monocrystalline Rod Pulling and Cutting Project of Raising fund and
246,816.77 351,020.33 production by -50,262.88
Yongxiang PV Technology self-funding
batch
Phase I 120,000-ton High-purity Polysilicon Project of
287,943.43 287,943.43 In progress / Self-funding
Yongxiang New Energy
Tonghe Project 131,438.88 359,981.26 Completed 82,120.24 Self-funding
Phase I 16 GW High-efficiency Solar Cell Project in
15,629.53 15,629.53 In progress / Self-funding
Pengshan
Phase II 200,000-ton High-purity Polysilicon Project of
44,719.43 44,719.43 In progress / Self-funding
Yunnan Tongwei
25 GW High-efficiency Solar Modules Manufacturing Base
1,572.17 1,572.17 In progress / Self-funding
Project in Yancheng
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3. FVTPL financial assets
"□ Applicable" "√ Not applicable"
Securities investments
"□ Applicable" "√ Not applicable"
PE investments
"□ Applicable" "√ Not applicable"
Derivatives investments
"□ Applicable" "√ Not applicable"
4. Progress of significant asset restructuring and integration in the reporting period
"□ Applicable" "√ Not applicable"
(VI). Significant asset and equity sales
"□ Applicable" "√ Not applicable"
(VII). Analysis of companies where the Company holds shares
"√ Applicable" "□ Not applicable"
Unit: 10,000 Yuan
Full name of Business Registered Operating Operating
Total assets Net assets Net income
subsidiary nature capital revenue profit
Yongxiang Co.,
PV
Ltd 142,086.69 6,516,829.10 4,310,424.63 6,233,082.70 4,069,490.58 3,429,593.31
industry
(combination)
(VIII). Structure entities controlled by the Company
"□ Applicable" "√ Not applicable"
VI. Discussion and analysis on the Company's future development
(I). Industry pattern and trends
"√ Applicable" "□ Not applicable"
1. Feed industry
(1) Entering a stage of steady and high-quality development where there is still room for market
expansion
Since the Reform and Opening up, China’s feed industry has undergone many years of high-speed
development. From 2011 on, its output has steadily ranked first in the world, and its annual output now
exceeds one-fifth of the global total. Since 2011, the annual growth of feed production in China has
gradually slowed down. In 2022, the national growth was only 3%, and the number of feed companies
decreased from over 10,000 to just over 5,000 in 2019, indicating significant industry consolidation and
upgrading. The further revision, publication and implementation of relevant laws and regulations such as
the Environmental Protection Law of the People's Republic of China, the Food Safety Law of the People's
Republic of China, and the Measures for the Administration of Feed and Feed Additives have raised higher
requirements for safety and quality, technology development, and environmental protection of feed
enterprises, and the industry has entered a stable and high-quality development stage. However, from the
perspective of market space, China's per capita consumption of meat is still lower than that of developed
countries, indicating significant room for growth. With the further development of the domestic economy
and the continuous increase in per capita disposable income, the demand for high-quality meat products,
dairy products, and aquatic food by consumers will continue to rise, and the feed industry still has a good
outlook.
(2) Some raw materials are dependent on imports and reducing grain in feed is a long-term
strategy for the industry
Main raw materials for feed production are corn and soybean (meal), the latter is primarily imported, a
situation that is unlikely to change in a long run. The demand for corn for feed is the main contributor to the
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significant shortfall, making it a crucial risk point for China's food security. In recent years, impacted by
global inflation and geopolitical conflicts, grain prices have risen sharply, which led to rising feed costs.
Looking ahead, extreme weather, frequent geopolitical conflicts, and ongoing cross-border trade frictions
may keep grain prices at high levels for a long time, making it difficult for feed companies to alleviate cost
pressures. Since 2018, to resolve the high content of corn and soybean meal in feed, China launched a
campaign to replace corn and soybean meal in feed, making improving feed conversion efficiency a key
task to promote high-quality development of animal husbandry, which has delivered good results. The
low-protein diets and precision formula technologies that are part of the action to reduce grain content in
feed will also place higher requirements on the research and development, formulation, and production
capabilities of feed companies, and are expected to further widen the gap between feed companies.
(3) Scaled development together with digital upgrading is the direction with the integration
trend further boosted
In recent years, the scale of livestock and poultry farming has been growing, which imposes greater
pressure on small-scale farmers in terms of animal quarantine, environmental protection, and profitability,
leading some to exit the market. As a result, the market share of large-scale farms and breeding groups
continues to increase. Aquaculture is also increasingly specialized and intensive, placing higher
requirements on the scale, R&D capabilities, and biological control. Leading feed enterprises, represented
by the Company, are taking the lead in exploring intelligent factories and digital enterprises, which will
lead the direction of industry upgrading. At the same time, in the context of slower total growth, accelerated
development of self-formulated feed by breeding enterprises, and intensified market competition, industry
leaders with established channels, brand advantages, stronger capital, management, R&D, talent, and scale
strength attempt to expand downstream into breeding, slaughtering, food, and trade sectors, and the trend
towards integration is further strengthened However, small and medium-sized enterprises with weak
comprehensive competitiveness may face continued pressure in environmental governance, R&D, and
market competition, and their survival space may be further narrowed.
2. PV
(1) The global trend of energy transformation is clear and PV has a huge development space
It is highly certain that the trend of vigorously promoting the development of green energy globally
remains in a long run. Due to simple construction and installation, wide applicability, safety,
cost-effectiveness and efficiency, photovoltaics have developed into the main force of renewable energy,
and will also reduce the cost of electricity generation, expand the market space, and improve the
development speed through continuous technological progress and increased scale. With carbon emissions
becoming an important factor affecting commodity imports and exports, and many countries issuing
policies to encourage investment, construction, and application of photovoltaic power generation to achieve
energy independence and get rid of energy dependence, vigorously developing renewable energy in
particular photovoltaics has become an inevitable choice concerning the national strategic development of
countries. According to IEA, the new installed PV capacity over the world from 2022 to 2027 would reach
1500 GW. By 2027, the cumulative installed capacity of photovoltaics globally will exceed that of coal and
become the largest installed energy form, indicating that the photovoltaic industry has broad prospects.
(2) Industry competition continues to intensify, and the market concentration may be subject to
fragmentation
In recent years, the demand for photovoltaic products has grown rapidly, leading to supply shortfall
and price increase, while the entire PV industry chain has shown strong willingness to expand production,
and large amounts of capital have entered the industry. According to InfoLink Consulting, as of the end of
2022, effective production capacities for silicon materials, wafers, cells, and modules all exceeded 500GW,
and there are still plans for further expansion in each segment. It is expected that by the end of 2023, the
total production capacity in each segment will exceed 800GW, and the industry will go to a phase of
intensified competition, with the possibility that the concentration in some segments may be subject to
fragmentation. Meanwhile, some companies are accelerating their vertical integration to consolidate their
competitive advantage and reduce risks associated with upstream and downstream sectors. This trend will
also increase competition in the industry. Against this backdrop, leading companies with advanced R&D
capability, management and operational experience, and strong talent pool will be able to bear more risks
and consolidate their market position and competitive advantages during the expansion of their production
capacities.
(3) Distributed PV market grows rapidly with increasingly diverse “PV+” scenarios
The wide application of photovoltaic products has resulted in two categories of PV models, i.e.,
centralized and distributed, in China where the latter is in particular growing fast. Driven by the national
policy of “Bringing Solar Energy to Every Household”, the domestic distributed market is expected to
continue its rapid growth in the future, benefiting from the accelerated development of distributed
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photovoltaic projects across counties and the one-stop energy solutions facilitated by photovoltaic
companies. As technology advancements, economies of scale and policy-based incentives have remarkably
increased the economic benefits of photovoltaic power generation, the application scenarios of photovoltaic
power generation will become increasingly diversified. The “PV+” market has spawned various business
models that are combined with agriculture, industry, construction, transportation, and communication,
providing photovoltaic companies with broader opportunities. Relevant companies participate in business
development in various application scenarios through investment, acquisition, business cooperation, and
other means to achieve performance growth. However, the requirements for photovoltaic products vary
depending on application scenarios. This has imposed new requirements for photovoltaic companies in
terms of targeted product development, R&D capabilities, technological reserves, production organization,
and other aspects.
(4) Solar cell technologies are updating and type-n may have a significantly increased market
share
As the conversion efficiency of PERC cells approaches its theoretical limit, new types of cell
technologies are thriving, continuously breaking through both conversion efficiency and production
capacity. As of 2022, the average conversion efficiency of P-type monocrystalline cells was 23.2%, N-type
TOPCon cells 24.5%, heterojunction cells 24.6%. The conversion efficiencies of thin-film and perovskite
cells are improving as well. However, given the current production capacity and investment scale at the
industry-level as well as the level of end-user electricity costs, it is expected that N-type cells represented
by TOPCon and HJT may become the mainstream of the next generation, while the market share of P-type
cells may gradually decline.
(5) PV companies may go globally at a higher speed in the context of trade barriers and local
manufacturing capability
Photovoltaics has become one of representative industries where China bears notable advantages, and
Chinese companies have secured an absolute leading advantage along the entire industry chain including
polysilicon, wafers, cells, and modules, with global market shares in all segments exceeding 70%. However,
from the perspective of end markets, as the global energy transformation accelerates, the overseas market
space and growth continue to expand, and the localization of photovoltaic manufacturing in overseas
markets is a clear trend. At the same time, many countries have supported their local photovoltaic
manufacturing industry in recent years through the combination of “trade barriers + support for local
industries”, which has impacted domestic photovoltaic companies to some extent. Chinese photovoltaic
companies will accelerate their global development, and continuous improvement of market share through
product exports and overseas investment may become a new path for development.
(II). Development strategy of the Company
"√ Applicable" "□ Not applicable"
The Company's development strategy is to build a world-class safe food supplier and clean energy
operator. Utilizing the comprehensive strength and large-scale advantages accumulated for a long time in
scientific research, branding, comprehensive operations, and other areas, it adapts to industry development
trends, adheres to the specialization, large-scale, and industrialization process of the PV business group and
agriculture and animal husbandry business group, and optimizes and improves their respective industrial
chain, strives to promote the Company's sustainable and stable development by both endogenous and
extensional investment methods, promotes the continuous and stable development and realizes the
Company's vision of "For Better Life".
1. Agriculture and animal husbandry business group: a world-class safe food supplier
Feed industry: Adhering to Quality Policy and with a focus on the specialization and scale up of the
feed business, the Company tries to grow steadily by setting up facilities and M&A activities at home and
abroad. While focusing on the aquatic feed business, the Company makes the most of the season-based
cycle of the business by advancing the collaborative mode with large farming companies in livestock and
poultry feed, a way to increase its feed business size and market share.
Aquaculture: Based on the resources (aquaculture resources, channel resources) gained over the past
years, and making use of its unique Aquaculture-Photovoltaic Integration 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
aquatic products represented by shrimps and special aquatic foods, elevates the automation, intelligence
and environmental standards for aquaculture, advances the transformation from traditional to modern
fishery, and build state-of-the-art production bases of safe aquatic products which can be fully tracked.
Processing and trade activities: The Company accelerates the deep processing and trade of aquatic
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products and build a uniform industry chain from farmers to consumers around the growth mode of
“three-fish, one-prawn, one brand, one-platform and one-market”. Tongwei Fish, the Company's green and
safe food benchmark, has been highly recognized in the regional market, and the successful model will be
replicated in the future. At the same time, it is actively applying big data to the sale of aquatic products by
combining an online e-commerce platform (Quan Nong Hui) with an aquatic wholesale market (San Lian
Shui Chan Pin) to create a circulation system. By giving full play to Tongwei Fish, the Company focuses on
the operation of key products like Tilapia, mullet, channel catfish and Yantian shrimp, striving to cover the
entire industry chain including farming, production, processing and trade.
2. PV business group: create a world-class clean energy operator
As one of the leading manufacturers in the PV industry, the Company will continue to enhance its
advantage along the industry chain and strengthen its leading positions in all parts, 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. By continuously consolidating and
enhancing its scale, technology, and cost advantages that are leading in the high-purity polysilicon segment,
the Company strives to increase its market share, and secure a globally leading position in the segment. By
continuously strengthening the research and development, scale, and management advantages in the solar
cell segment, the Company tries to consolidate its leading profitability and market share, and secure a
globally leading position in the segment. By rapidly increasing the production capacity and market share in
the module segment, and establishing channel and brand advantages in multiple domestic and international
markets, the Company works to be one of the leading global module companies.
In the photovoltaic power generation segment, the Company firmly advances the
Aquaculture-Photovoltaic Integration mode through organic combination of its resources in agriculture and
PV, in order to create an Aquaculture-Photovoltaic Coexistence economy where feed, aquatic products and
green energy are integrated, thereby building a differentiated competitiveness for the Company.
(III). Business plan
"√ Applicable" "□ Not applicable"
In 2023, with firm adherence to the business guidelines of focus, execution and efficiency, the
Company continues securing its advantages in aquatic feed, high-purity polysilicon and solar cell while
fully leveraging the synergy effect of PV business group to rapidly increase the brand impact and market
share for the modules business. These are intended for increasing the Company's value and returns to
shareholders.
1. Agriculture and Animal Husbandry: The Company strives to increase the revenue of feed, food and
associated businesses along the industry chain by over 10% YoY.
2. PV: The Company strives to deliver 300,000 tons for high-purity polysilicon business, 70 GW
(including self-use) for solar cell business, and 35 GW for module business; for the photovoltaic power
generation business, it plans to construct an Aquaculture-Photovoltaic Integration project with a capacity of
1 GW through investment.
(IV). Possible risks
"√ Applicable" "□ Not applicable"
1. Feed industry
(1) Volatility of prices of main raw materials. In 2022, the prices of main raw materials for feed
products continued going up due to various factors such as international political and economic turbulence,
changes in production in major producing areas, and exchange rate fluctuations. From a macro perspective,
the worrying situation of high inflation and high risk in Europe and America restricts the upward space of
commodities and increases the downward risk. From the perspective of overall market supply, regional
conflicts have eased, and the decrease of soybean production in Brazil and canola production in Canada has
been relieved, so it is expected that raw materials will recover on the supply side and remain weak on the
demand side, leading to falling prices of agricultural products. Given that the situation of China's high
dependence on imported raw materials is difficult to change, and fluctuations in import prices may further
increase the operating pressure on feed companies.
Risk response measures: The Company has a professional procurement team, which closely tracks
changes in raw material prices, makes careful judgments on procurement timing, adheres to the principles
of long-term, medium-term, and short-term procurement, reasonably controls raw material inventory, and
effectively avoids large fluctuations in production costs. The Company is also actively building data-driven
systems such as self-service analysis platforms for market conditions and procurement execution, a
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management cockpit 4.0, and direct supplier data connection to assist the procurement team in making
efficient and accurate decisions. The procurement team works together with technology and quality control
teams to actively develop alternative raw materials with good quality, cost-effectiveness, and stable supply
channels. The company will adhere to its strategy of securing raw materials to ensure stable and consistent
quality of raw material supply. Additionally, it will increase the recruitment and training of outstanding
talents to enhance the capabilities of the procurement team.
(2) Market demand volatility. Feed sales are directly related to breeding activities which may be
negatively impacted by natural disasters, abnormal temperature, the spread of diseases, and policy changes,
thereby leading to fluctuations in feed demand in some regions or periods.
Risk response measures: The Company will strengthen the tracking and monitoring of natural disasters,
climate change, and animal diseases, actively guide farmers to take risk prevention and control measures,
and provide timely assistance to restore normal production. It will also enhance animal immunity through
developing immune-boosting products, promote standardized farming practices, assist in building a
high-standard epidemic prevention system, and enhance farming benefits to increase customer loyalty. With
a wide range of product categories and subsidiaries properly distributed in major farming regions, the
Company can effectively respond to risks caused by abnormal weather and natural disasters in local areas.
(3) Policy risk. After policies including Environmental Protection Law of the People's Republic of
China, Animal Husbandry Law of the People's Republic of China, Regulations on Pollution Prevention and
Control in Scaled Livestock Husbandry, Action Plan for Prevention and Control of Water Pollution, and
Guiding Opinions on Promoting the Optimization of Pig Breeding in the Southern Water Network Region
have been implemented, regions across the country have set prohibition and restriction areas and boosted
the supervision and punishment on environmental violations in the livestock husbandry sector, which has
remarkably raised the access threshold and free range farmers that do not meet the environmental
protection provisions have been exiting the industry. In addition, China has launched comprehensive
actions to reduce the use of antibiotics by replacing antibiotics or eliminating antibiotics in the livestock
industry. This, combined with strong incentives for the development of large-scale farms in various regions,
is accelerating the livestock industry to transform towards antibiotic-free, green, scalable, and intelligent
operations. This poses higher requirements for the research, production, and management of feed
companies. Failure to timely adapt to policy requirements may result in operational risks for these
companies.
Risk response measures: Guided by the “Quality Policy”, the Company relies on robust technological
capability, material procurement systems, and scalable and specialized production capability to provide
customers with cost-effective feed products, achieve rapid development of large-scale farms, and
continuously optimize the customer structure. It assists financially capable free-range farmers in
establishing scaled farms that meet environmental protection standards and disease prevention and control
requirements, promoting their smooth transition. The Company produces antibiotic-free feed and improves
product formulations, production processes, and farming models to enhance customer farming benefits
while effectively meeting the needs for greener livestock production, leading to rapid growth in sales.
(4) Exchange rate risk. Exchange rates are influenced by various factors, including the economic
development and fiscal and monetary policies of countries, international trade tensions, geopolitical
environment. In recent years, the global economic and political situation has been volatile, leading to
increased exchange rate fluctuations. With the growing demand for international raw material trade and the
expanded overseas feed business of the Company, frequent two-way fluctuations in the CNY exchange rate
will leave an obvious impact on business operations.
Risk response measures: The Company closely monitors the economic and political situations and
policies of major currency countries to assess and choose more favorable settlement currencies and
methods. It actively recruits and trains specialized personnel to strengthen research and forecasting
capabilities in the foreign exchange market, enhance import and export management, and effectively
mitigate exchange rate risks by flexibly utilizing forward foreign exchange contracts, swaps, options, and
other hedging instruments.
(5) Other risks from force majeure. In recent years, there have been frequent occurrences of
unexpected public health events, natural disasters, and geopolitical conflicts. Similar force majeure events
may continue to happen in the future, posing risks to feed companies’ operations.
Risk response measures: The Company will strengthen the analysis and prediction of force majeure
risks and take necessary measures to respond to adverse impacts on procurement, production, sales, and
other operations caused by such events.
2. PV industry
(1) Industry chain instability. The photovoltaic industry covers multiple production stages, with each
stage involving various raw and auxiliary materials. The expansion cycles of different materials vary. In
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recent years, the industry demand has been growing rapidly. The industry chain experiences alternating
mismatches and contradictions, leading to varying degrees of supply shortages for materials such as
polycrystalline silicon, encapsulant films, glass, and quartz sand. This has resulted in significant price
increases, placing pressure on supply chain management for companies.
Risk response measures: The Company will closely monitor and assess changes in the supply and
demand of raw and auxiliary materials, make efficient decisions, and ensure timely reserves. Additionally,
it will strengthen strategic cooperation with upstream and downstream partners, employing various
methods such as equity cooperation and long-term supply agreements to ensure supply chain security.
(2) Policy risk. In order to implement climate governance, promote energy transformation, improve
the environment, and drive economic development, countries are vigorously supporting the development of
the photovoltaic applications. Some still adopt subsidy and other incentive policies for photovoltaic power
generation. If these subsidies or incentives are scaled back or canceled, it may have an impact on
installation demand. In China, policies related to land used for photovoltaic powerplant projects and
market-based transactions may pose challenges in ensuring land availability and introduce uncertainties in
electricity prices, which could affect the profitability of Aquaculture-Photovoltaic Integration powerplants.
Risk response measures: The Company will closely monitor changes in relevant policies, boost cost
reduction of products, enhance product competitiveness, and maintain its competitive position. It will also
keep driving the healthy and orderly development of the industry, actively explore green certification and
green electricity transactions to safeguard its profitability.
(3) Technology updates. New battery technologies are evolving with conversion efficiency once again
reaching a historic record. In 2022, new generation crystalline silicon solar cell technologies such as
TOPCon and HJT achieved breakthroughs, and, thin-film and perovskite technologies, among others, have
also advanced. Mature technology, excellent stability, and a dominant market share allow crystalline silicon
solar cell products to remain the mainstream for the foreseeable future. Companies are accelerating the
expansion of production capacity for new battery technologies, which will advance technological upgrades
in the upstream sector. Failing to keep up with cutting-edge technologies and adapt to industry changes may
weaken business competitiveness.
Risk response measures: The Company actively performs pilot testing and application of
next-generation mainstream technology routes. Leveraging the cost-effectiveness of TOPCon technology, it
has put a 9 GW TNC (Topcon N-Type Cell) production line into operation, and another 16 GW TNC
production line under construction is expected to start production in 2023. The Company has made critical
progress in cost reduction and efficiency improvement of HJT (Heterojunction) technology and keeps
developing technologies such as back-contact and perovskite tandem cell to ensure its technological
leadership. The Company continues to increase the proportion of high-quality N-type silicon material in the
production of high-purity polysilicon, and boosts cost reduction for consolidating its core competitiveness.
(4) International trade risk. The photovoltaic application market is blooming, with rapidly increasing
installed capacity. Some countries, considering energy security and manufacturing reshoring, have decided
to increase support for their domestic PV industry, and impose barriers on import of Chinese PV products.
It is possible that similar events may continue in the future, which may impact Chinese PV industry.
Risk response measures: The Company will continue to monitor international trade situation and
develop strategies to address trade barriers, while strengthening its core competencies in product scale,
technology, and cost. By creating higher value for customers, providing more efficient services, and
enhancing its market share, the Company aims to mitigate the potential impact.
(5) Other risks from force majeure. In recent years, there have been frequent occurrences of
unexpected public health events, natural disasters, and geopolitical conflicts, which have resulted in
disruptions in logistics and transportation, prolonged installation and construction cycles, and mismatches
in supply and demand within the industry chain. Similar force majeure events may continue to happen in
the future, posing risks to feed companies’ operations.
Risk response measures: The Company will strengthen the analysis and prediction of force majeure
risks. By leveraging its industry chain resources and core competitive advantages, it will enhance supply
chain collaboration, boost customer development and maintenance efforts, and mitigate the adverse impact
of force majeure risks on its operations.
(V). Others
"□ Applicable" "√ Not applicable"
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2022 Annual Report
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. Company governance
"√ Applicable" "□ Not applicable"
In the reporting period, the Company further improved its organizational structure and governance
structure, and various internal systems, and risk management given its actual conditions in strict accordance
with the Company Law, Securities Law, Code of Corporate Governance for Publicly Listed Companies and
other legal requirements. The general meeting, the board of directors, the supervisory committee and the
management of work under clear powers and responsibilities, having formed a procedure-based governance
structure for the legal entity to ensure its smooth and efficient running in accordance with regulations.
(I) Controlling shareholder and its related parties and listed companies
The controlling shareholder of the Company behaved, exercised rights and performed obligations
under laws, did not directly or indirectly interfere with the Company's decision-making and business
activities without the participation of the general meeting. Board of directors, supervisory committee and
the management performed independently and the Company had independent businesses and was able to
operate on its own. In the reporting period, the Company did not provide any guarantee to its controlling
shareholder and/or its related parties, and the controlling shareholder did not occupy any funds of the
Company for non-operating purposes.
In the reporting period, every related-party transaction submitted to the board of directions for
discussion was approved via voting for which the voting rights of related directors were disabled. The
related transactions were priced fairly without any influence on the Company's independence or harm to the
listed company.
(II) Shareholders and general meeting
In the reporting period, the Company held one annual general meeting and two interim general
meetings. The procedures for general meeting were in compliance with the Listing Rules of the Shanghai
Stock Exchange, Articles of Association of the Company, and Rules of Procedure for General Meeting and
safeguarded the legitimate interests of the Company and its shareholders. The convening, holding, voting,
and result disclosure were strictly implemented in accordance with the above rules, which effectively
ensured shareholders’ right to information, participate, and vote on major matters of the Company, as well
as safeguarded the equal status and legitimate rights and interests of shareholders.
(III) Directors and the board
At the 2021 annual general meeting held on May 16, 2022, the eighth board of directors was elected. It
is composed of nine directors, including three independent directors and three female directors. During the
reporting period, the board held 11 meetings. All directors attended the board meetings in accordance with
the Company’s Articles of Association and Rules of Procedure of the Board of Directors, fully discussed
various proposals, and took into account the interests and expectations of small and medium investors,
thereby enhancing the proper decision-making of the board and promoting the stability and efficiency of
the Company’s production and operation. The board has four committees, namely the Strategy Committee,
Remuneration and Assessment Committee, Nomination Committee, and Audit Committee, which
performed their duties according to corresponding rules of procedure, ensuring the orderly and efficient
operation of the Company.
(IV) Supervisory committee and supervisors
The eighth supervisory committee elected at the 2021 annual general meeting on May 16, 2022
consists of three supervisors, including one employee representative and one female supervisor. During the
reporting period, the committee held nine meetings, and the supervisors strictly performed their duties in
accordance with relevant laws and regulations such as the Company Law, the Company’s Articles of
Association, and the Rules of Procedure of the Supervisory Committee. They exercised their powers
independently in accordance with the law and promoted the standard operation of the Company. The
supervisory committee fulfilled its supervisory responsibilities diligently by imposing compliant
supervision over important matters such as the use of raised funds, employee shareholding plans, and
financial conditions, effectively safeguarding the rights and interests of the Company and its shareholders.
(V) 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.
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2022 Annual Report
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
2021 - 2022 from Shanghai Stock Exchange for its great information disclosure.
In the reporting period, the Company managed insiders relating to periodical reporting and important
issues through the registration system in strict accordance with applicable regulations to ensure the fairness
principle for information disclosure and protect the legitimate rights and interests of shareholders.
(VI) Investor relationship management
The Company attaches high importance to long-term and active communications with all kinds of
investors. In the reporting period, the Company conveyed its operation philosophy, results and strategic
direction to investors through channels including general meetings, performance briefings and investor
platforms. In addition, it responded carefully and patiently to queries from investors via phone calls, emails,
visits and http://sns.sseinfo.com/, which helped investors understand and gain confidence in the Company,
and maintained the Company's image in the capital market. In 2022, the company was awarded multiple
honors, including the Top 50 Best Listed Companies by New Fortune for the fourth time, the Social
Responsibility Award, Most Valuable Investment Award, and Golden Bull Secretary Award by China
Securities Journal. The company was also recognized as one of the Top 100 Main Board Companies and
received the Annual Excellent Management Team and Sunshine Secretary awards by STCN.
(VII) Safeguard the rights and interests of shareholders
The Company highly prioritizes the rights and interests of shareholders, in particular small and
middle-sized ones and seeks for sustainable returns to shareholders. During the reporting period, the
Company strictly followed the Shareholder Dividend Return Plan for the Next Three Years (2021-2023).
After being approved at the 28th meeting of the 7th board of directors and the 2021 annual general meeting,
the 2021 Profit Distribution Plan was implemented, and on May 30, 2022, a cash dividend of 9.12 yuan
(including tax) was distributed to all shareholders for every 10 shares. According to the 2022 Profit
Distribution Proposal approved at the 10th meeting of the 8th board of directors in 2023, the Company
intended to distribute a cash dividend of 28.58 yuan (including tax) per ten shares to shareholders. This
proposal will be submitted to the 2022 annual general meeting for consideration.
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 measure 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,
actual controller and/or businesses under their control assume positions other than directors and/or
supervisor or receive payments from the Company. No financial staff of the Company takes any part-time
job in the controlling shareholder, actual controller and/or businesses under their control.
(III) Financial independence
The Company has an independent finance and audit department, and an independent accounting
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2022 Annual Report
system and financial management system, being able to make financial decisions independently. As an
independent taxpayer, the Company makes tax returns and pays taxes under laws. The Company has
independent bank accounts and a special account for the use of funds raised for projects. The Company
does not share any bank account with its controlling shareholder, actual controller and/or businesses under
their control.
(IV) Structure independence
The Company has a completed governance structure consisting of general meeting, board of directors
and board of supervisor 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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2022 Annual Report
III. Introduction to general meeting
Link to the designated
Disclosure
Session No. Session date website where the published Resolutions
date
resolutions are available
The following proposals were approved during the meeting: the 2021 Board of
Directors Work Report, 2021 Supervisory Committee Work Report, 2021 Annual
Report and Executive Summary, 2021 Year-end Closing Report, Proposal on
Profit Distribution for 2021, Independent Directors’ 2021 Performance Report,
Proposal on the Reappointment of Accounting Firm, Proposal on Comprehensive
Credit Application for 2022, Proposal on Mutual Guarantee for the Company and
Its Subsidiaries in 2022, Proposal on Providing Guarantees for Customers of the
2021 annual May 17, Company in 2022, Proposal on the Operation of the Commercial Bill Pool in
May 16, 2022 http://www.sse.com.cn
general meeting 2022 2022, Proposal on the Election of Members of the 8th Board of Directors,
Proposal on the Election of Members of the 8th Supervisory Committee, Proposal
on the Registration and Issuance of Super Short-term Commercial Papers,
Proposal on the Registration and Issuance of Medium-term Notes, Proposal on the
Adjustment of Allowances for Directors and Supervisors, Proposal on the
Revision of Articles of Association, Proposal on the Revision or Formulation of a
Series of Policies and Proposal on the Progress and Future Development Plan for
the High-purity Polysilicon and Solar Cell Business.
Proposals discussed and resolved: The Proposal on Tongwei Co., Ltd. Employee
The 1st Share Plan (Draft) 2022-2024 and its Summary, the Proposal on the Management
interim general June 02, Procedures on Tongwei Co., Ltd. Employee Share Plan 2022-2024, and the
June 01, 2022 http://www.sse.com.cn
meeting for the 2022 Proposal on Requesting the Shareholders Meeting to Authorize the Board of
year 2022 Directors to Deal with Issues Relating to Tongwei Co., Ltd. Employee Share Plan
2022-2024.
The 2nd
interim general September 26, September Proposals approved: The Proposal on Donations to the Earthquake-stricken
http://www.sse.com.cn
meeting for the 2022 27, 2022 Luding Area and the Proposal on the Election of Directors.
year 2022
Interim general meetings requested by the preferred shareholders whose voting rights have been restored
"□ Applicable" "√ Not applicable"
Note on general meetings
"□ Applicable" "√ Not applicable"
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2022 Annual Report
IV. Information of directors, supervisors and senior managers
(I). Shareholding changes and renumeration of directors, supervisors and senior management currently in office and having left office in reporting period
"√ Applicable" "□ Not applicable"
Unit: share
Total
before-tax Whether
compensation receiving
Position Opening Closing Change in Reason from the compensation
Name Gender Age Start date End date
(note) shares shares shares for change Company in from related
the reporting parties of the
period (10,000 Company
Yuan)
Liu Shuqi
Chair and
(newly F 33 March 21, 2023 May 15, 2025 80,000 80,000 0 329.76 No
CEO
appointed)
Vice Chair
Yan Hu of the Board M 59 May 09, 2016 May 15, 2025 836,650 836,650 0 413.97 No
of Directors
Liu Hanyuan Director M 58 October 23, 2000 May 15, 2025 0 0 0 466.98 No
Ding Yi Director F 58 May 12, 2020 May 15, 2025 0 0 0 6.88 No
Li Peng (newly
Director M 41 September 26, 2022 September 25, 2025 0 0 0 / No
appointed)
Xie Yi (retired) Director M 39 May 03, 2016 March 21, 2023 217,622 217,622 0 638.73 No
Wang Xiaohui
Director M 46 May 08, 2019 September 25, 2022 0 0 0 / No
(retired)
Independent
Fu Daiguo M 58 May 08, 2019 May 15, 2025 0 0 0 13.75 No
director
Jiang Yumei
Independent
(newly F 59 May 16, 2022 May 15, 2025 0 0 0 10.00 No
director
appointed)
Song Dongsheng
Independent
(newly M 60 May 16, 2022 May 15, 2025 0 0 0 10.00 No
director
appointed)
Du Kunlun Independent
M 54 January 15, 2016 May 15, 2022 0 0 0 3.75 No
(retired) director
Wang Jin Independent
M 56 May 03, 2016 May 15, 2022 0 0 0 3.75 No
(retired) director
Deng San Chair F 38 May 05, 2017 May 15, 2025 225,880 225,880 0 241.67 No
Yang Shixian Secondary
Supervisor M 50 April 30, 2007 May 15, 2022 158,100 0 -158,100 51.62 Yes
(retired) market trading
Chen Xiaohua
Supervisor M 53 May 03, 2016 May 15, 2022 0 0 0 1.13 No
(retired)
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2022 Annual Report
Cui Yong (newly
Supervisor M 40 May 16, 2022 May 15, 2025 0 0 0 3.13 Yes
appointed)
Chen Pingfu Secondary
(newly Supervisor M 57 May 16, 2022 May 15, 2025 444,730 469,730 25,000 market trading 130.86 No
appointed)
Wang Shangwen Senior
M 59 May 07, 2013 May 15, 2022 659,050 659,050 0 61.32 No
(retired) manager
Song Gangjie Senior Secondary
M 59 May 07, 2013 May 15, 2022 331,375 330,000 -1,375 106.81 No
(retired) manager market trading
Conversion of
Shen Jinzhu Senior convertible
M 57 May 09, 2016 May 15, 2022 210,300 224,898 14,598 58.98 No
(retired) manager bonds to
shares
Li Bin (newly Senior
M 57 May 16, 2022 May 15, 2025 241,888 241,888 0 8,652.91 No
appointed) manager
Xing Guoqiang
Senior
(newly M 59 May 16, 2022 May 15, 2025 0 0 0 445.45 No
manager
appointed)
Gan Jufu (newly Senior
M 51 May 16, 2022 May 15, 2025 0 0 0 2,482.53 No
appointed) manager
Senior
Guo Yizhong M 52 May 07, 2013 May 15, 2025 500,450 500,450 0 379.82 No
manager
Senior
Zhang Lu M 44 March 12, 2017 May 15, 2025 281,600 281,600 0 229.76 No
manager
Conversion of
Senior convertible
Zhou Bin M 54 May 08, 2019 May 15, 2025 55,211 59,043 3,832 615.43 No
manager bonds to
shares
Senior
Yan Ke M 38 May 08, 2019 May 15, 2025 0 0 0 227.43 No
manager
Total / / / / / 4,242,856 4,126,811 -116,045 / 15,586.42 /
Name Work experience
Male, born in 1964, EMBA of Guanghua School of Management, Peking University, senior engineer. He was the chair of the first to sixth board of directors of the Company,
and a member of the seventh board of the Company. He is the chair of the board of directors of Tongwei Group and a director of the 8th board of directors of the Company.
Liu Hanyuan
Other social positions include a member of the 11th Standing Committee of the CPPCC National Committee, deputy to the NPC (National People's Congress), a vice chair of
All-China Federation of Industry and Commerce, the executive chairman of CNECC.
Male, born in 1984, MIM from Imperial College London, UK, member of the CPC. He was the president assistance of Tongwei Group, chair of the board of directors of
Tongwei Solar (Hefei) Co., Ltd., chair of the board of directors of Tongwei Solar (Chengdu) Co., Ltd., and chair of the 8th board of directors of the Company. Other social
Xie Yi positions include, a member of the 13th Sichuan Provincial CPPCC Committee, a deputy to the 14th CPC Chengdu Congress, vice chairman of the 14th Committee of
Sichuan Youth Federation, member of the 15th CPPCC Chengdu Committee, member of the 11th CPPCC Standing Committee of Shuangliu District, Chengdu; and vice
chairman of the third council of CPIA.
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.,
Yan Hu
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
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2022 Annual Report
deputy general manager of Chengdu Yuanda Wheel and Rim Manufacturing Co., Ltd., vice president and financial director of South Hope Industrial Co., Ltd., director and
financial director of New Hope Group, and the director of New Hope Co., Ltd. After joining the Company, he has served as the chief accountant of Tongwei Group, chief
accountant, president, and secretary of the board of directors of Tongwei Co., Ltd., and a director of the board of directors (1st, 2nd, 4th, 5th, 6th, and 7th) of Tongwei Co.,
Ltd. He is the vice chair of the 8th board of directors of the Company. He is also an executive member of China Association for Public Companies (CAPCO), the legal
representative and vice-chair of Sichuan Association for Listed Companies, vice chair of Sichuan Enterprise Confederation and the Sichuan Entrepreneurs Association,
vice-chairman of China Society of Forestry, Animal Husbandry and Fishery Economics, vice chair of Sichuan Research Institute for International Tax, and vice chair of
Association of Feed Industry, and vice-chairman of Sichuan Fisheries Society.
Female, born in 1989, a bachelor from the Queen Mary University of London. She served as the assistance to President of the Company, the general manager of commerce in
Liu Shuqi
PV. She is now a supervisor of Tongwei Group, the chair of the 8th board of the Company and the Company's CEO.
Male, born in 1976, master in economics of the Guanghua School of Management in Peking University. He was an auditor of Beijing KPMG Huazhen Accounting Firm, an
industry analyst of CITIC Securities Research Department, a senior manager and director of energy industry group of Investment Banking Committee of CITIC Securities,
Wang Xiaohui
the executive general manager of M&A Department of Investment Banking Committee of CITIC Securities, the executive director of China Life Asset Management Co., Ltd.,
a director of Beijing Jingneng Power Co., Ltd. and a director of the 7th and 8th boards of the Company.
Male, born in 1982, doctor's degree in finance from School of Economics, Xiamen University. He served as a senior manager of investment banking, a deputy general
manager and senior vice president of energy and chemical industry group, and director of investment banking management committee at CITIC Securities Co., Ltd; a senior
Li Peng research analyst and responsible person for alternative investment and equity investment (secondary) at the Innovation Business Division of China Life Asset Management
Co., Ltd. He currently serves as the Head of ED (Alternative Investment) and the Equity Investment (Secondary Market) Department at China Life Asset Management Co.,
Ltd; a director of Beijing Jingneng Power, China Tea, and Oriental Wisdom (Hebei) New Energy Co., Ltd. He is director of the 8th board the Company.
Female, born in 1964, a member of the Communist Party of China, doctoral degree in economics from the Renmin University of China. She worked at Renmin University of
China, Huaneng Power International, and China Life Asset Management Co., Ltd. She served as the chair of Huaneng Capital Services Co., Ltd., Great Wall Securities and
Ding Yi
other companies. She is a director of the 8th board of directors of the Company and also serves as an independent director of Huaxia Bank Co., Ltd, Huatai Asset
Management Co., Ltd., SF International and Yuanshi New Materials Co., Ltd.
Male, born in 1969, doctor in economics, China CPA (Certified Public Accountant), China CPV (Certified Public Valuer), researcher, mentor of master candidates in Institute
Du Kunlun of Finance of Sichuan Academy of Social Sciences. He was a member of the 12th and 13th Main Board Market Issuance Examination Commission of China Securities
Regulatory Commission, and an independent director of the 5th, 6th and 7th boards of directors of the Company.
Male, born in 1966, doctor in economics from Emory University, USA and a professor. He worked in Emory University, Georgian College, Georgia Public Affairs, Federal
Reserve Bank and other institutions on a full-time or part-time basis, and served as a teacher at Renmin University of China and Shanghai University. Since March 2012, he
Wang Jin
has been the director of the International Energy Research Institute. At present, he is an independent director of Elion Energy Company Limited and Shuangdeng Cable Co.,
Ltd., and an external director of the SPIC Guangdong Electric Power Co., Ltd. He was an independent director of the 7th board of directors of the Company.
Male, born in 1964, dean of the Western Business School of Southwestern University of Finance and Economics, a professor of accounting, doctoral supervisor, and vice
president of Chengdu Accounting Society. He served as an independent director of several companies such as Sichuan Crun Co., Ltd., Lier Chemical Co., Ltd., and Ingenic
Fu Daiguo
Semiconductor Inc. He is an independent director of the 8th board of directors of the Company, and also an independent director of Maccura Biotechnology Co., Ltd. and
Sichuan Langjiu Group Co., Ltd. (which has planned its IPO).
Female, born in 1963, doctoral degree in Law, a mentor of PhD candidates a recipient of the Special Government Allowance granted by the State Council. She served as the
Deputy Director of the Law Department and Vice Dean of the Law School, Deputy Director of the Graduate School and Executive Dean of the International Business School
at Southwestern University of Finance and Economics. Currently, she serves as the executive president of the Institute of Comprehensive Research on China (Sichuan) Pilot
Free Trade Zone at Southwestern University of Finance and Economics. She is also a member of the Decision-making Advisory Committee, and a legal advisor of the
Sichuan Provincial Party Committee and Government; a member of the National Steering Committee for the Education of Applied Graduates in International Business; vice
Jiang Yumei chairman of the China Cooperation Committee for International Trade Discipline; vice chair of the China Association of Trade in Services; vice chair of the Free Trade Zone
and Port Committee of the China Academy of International Trade; vice chair of Sichuan Business Economics Association; expert of the Sichuan Trade Promotion Committee,
certified expert on economics and management by the Ministry of Education; member of the Chengdu Arbitration Commission; expert for the Advisory Committee of
Chengdu Pilot Free Trade Zone; member of the Decision-making Advisory Committee of the Luzhou Municipal Party Committee and Municipal Government; leader of
several teams, including the “Collaborative Innovation Center for Outbound Direct Investment from Inland Areas” of Sichuan Province, Innovation Team for International
Trade of Sichuan Province, and Comprehensive Reform Pilot Project for International Trade in Sichuan Province; independent director of Chengdu Xingrong Environment
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2022 Annual Report
Co., Ltd., Chengdu YMK Technology Co., Ltd., Liangshan Rural Commercial Bank Co., Ltd., and an external supervisor of Sichuan Tianfu Bank Co., Ltd. She is currently an
independent director of the Company's eighth Board of Directors.
Male, born in 1962, with a master’s degree, senior engineer, recipient of the Special Government Allowance granted by the State Council, and an arbitrator of the Beijing
Arbitration Commission. From 1981 to 1987, he worked in the Quality Section of the Technical Safety Division of the 11th Engineering and Construction Bureau of
Sino-hydro Corporation, serving as a quality inspector and deputy section chief. From 1987 to 1991, he worked Gu County Branch of the 11th Engineering and Construction
Bureau of Sino-hydro Corporation, serving as deputy chief of Technical Safety Section, a deputy chief of Technology Section, and a deputy director of Acceptance Office.
From 1991 to 1995, he worked in the 11th Engineering and Construction Bureau of Sino-hydro Corporation, serving as a deputy head of the Technology Division and a
Song director of the International Department. In 1996, he served as the Chinese representative and assistant project manager of the Xiaolangdi CGIC Joint Venture. From 1996 to
Dongsheng 2004, he was the deputy head of the 11th Engineering and Construction Bureau of Sino-hydro Corporation. From 2004 to 2019, he worked for Sino-hydro Group, serving
successively as deputy general manager, general manager, chairman, and general manager of the Sinohydro Corporation Limited, and the general manager of the Group.
From 2016 to 2019, he served as the general manager of Power China International, chair of Power China Trade, vice president of China International Contractors
Association, and chair of the International New Energy Solution. Since September 2019, he has served as an independent director of China Oil HBP Technology Co., Ltd.,
China National Complete Plant Import and Export Corporation Limited and Jiangsu Huasheng Tianlong Photoelectric Co., Ltd. He currently serves as an independent director
of the Company's 8th board of directors.
Female, born in 1984, CPC member, MBA of Sichuan University. She was the head of the secretary department of Tongwei Group, assistant to the chair of the board of
Deng San
directors of Tongwei Group, and the chair of the 6th and 7th supervisory committees of the Company. She is the chair of the 8th supervisory committee of the Company.
Male, born in 1972, master in market economics. He was the finance manager and project manager of Fuling Tongwei Feed Co., Ltd., general manager assistance and
Yang Shixian
financial manager of He'nan Tongwei Feed Co., Ltd., and a member of the 3rd to 7th supervisory committees 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 Shenghe Public
Chen Xiaohua Accounting Firm. He is the head of Sichuan Office of Beijing Xinghua Accounting Firm (special general partnership). He was a member of the 6th and 7th supervisory
committees of the Company.
Male, born in 1982, graduated from the School of Civil and Commercial Law, Southwest University of Political Science, qualified to law practice. He served as an inspector
Cui Yong at the Supervision and Inspection Department of Tongwei Group, an assistant to the head of the Department, a deputy head of the Department, and the head of the
Department. Now he is a member of the 8th supervisory committee of the Company.
Male, born in 1970, has held various positions including general manager of Jieyang Tongwei, general manager of Guangdong Tongwei, general manager of Guangdong and
Shrimp Special Materials Area at Tongwei Agriculture Development Co., Ltd. He served as the Company's general manager from October 2015 to May 2022. Since May
2022, he has served as the president of Agriculture and Animal Husbandry of the Company. He has also served as executive vice president of the 8th Council of China Feed
Guo Yizhong Industry Association and member of the Quality and Safety Work Committee, vice president of Sichuan Association of Feed Industry, vice president of Sichuan Animal
Agriculture Association, executive vice president of Frog Industry Branch of China Aquatic Products Processing and Marketing Association, vice president of China
Association for the Promotion of International Agricultural Cooperation, and entrepreneurship mentor and part-time researcher of China Livestock Feed Industry Research
Center of Renmin University of China.
Male, born in 1965, EMBA, CPA. He was the general manager of Tongwei, the general manager of Sichuan Area for Tongwei, the general manager of Vietnam Tongwei, the
Chen Pingfu general manager of Tongwei overseas business, the general manager of Vietnam Tongwei 1st Area business, the deputy general manager of Tongwei Co., Ltd, and a member
of the 4th and 5th board of directors of the Company. He is a member of the 8th supervisory committee of the Company.
Wang Male, born in 1963, MBA, doctor's degree. He served as president assistant, director of human resources, marketing director, technology director, and deputy general manager
Shangwen of the Company.
Male, born in 1964, aquaculture engineer, EMBA in Agriculture from School of Continued Education, Tsinghua University (2002-2003). He served as president assistant of
Song Gangjie the Company, deputy general manager of the Company, general manager of Chongqing Area, general manager of Jiangsu and Zhejiang Area, general manager of Yangtze
River and Huai River Area, general manager of Suzhou Tongwei Feed Co., Ltd., and general manager of Nanjing Tongwei Aquatic Products Technology Co., Ltd.
Male, born in 1966, bachelor degree, aquaculture engineer. He served as the general manager of Shashi Tongwei Feed Co., Ltd., general manager assistant of Guangdong
Shen Jinzhu Tongwei Feed Co., Ltd., general manager of Vietnam Area and general manager of Vietnam Tongwei., and deputy general manager of the Company and general manager of
Hefei branch of the Company.
Male, born in 1966, graduated from Chongqing University with a major in mining machinery, MBA from Hong Kong Finance and Economics College. He is a member of the
Li Bin
Communist Party of China and a senior mechanical engineer. He is an outstanding high-level talent in Leshan City, and has won honors such as the China Patent Excellence
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Award and the Sichuan Science and Technology Progress Award. He serves as vice president of Tongwei Co., Ltd., chair and general manager of Yongxiang Co., Ltd., and
general manager of Yongxiang New Energy Co., Ltd. His other social positions include the 8th Party Representative of Leshan City, member of the Standing Committee of
the 8th People’s Congress of Leshan City, vice chair of the 7th Executive Committee of the Leshan Federation of Industry and Commerce (Chamber of Commerce). He is a
representative of the 10th People’s Congress of Wutongqiao District, executive director of the Sichuan Strategic Emerging Industry Promotion Agency, and graduate student
supervisor of the Power Engineering Department of the College of Chemical Engineering at Sichuan University.
Male, born in 1979, post-doctoral degree and a researcher. As a recipient of the State Council Special Allowance, he is included into Chengdu Golden Panda Talent program
and Chengdu Outstanding Talent Training program. He is an expert in the evaluation of National Science and Technology Progress Awards, vice chair of the Chinese Society
of Fisheries, director of the Key Laboratory of Nutrition and Health Aquaculture of the Ministry of Agriculture and Rural Affairs, director of the Sichuan Provincial Key
Laboratory of Aquatic Animal Nutrition and Feed Science, member of the National Feed Industry Standardization Technical Committee, chair of the Feed Testing Method
Standardization Working Group of the National Feed Industry Standardization Technical Committee, deputy secretary-general of the Technical Committee on Aquatic Feed of
the National Feed Industry Standardization Technical Committee, member of the National Aquatic Standardization Technical Committee, external supervisor of master
candidates at Ocean University of China, guest professor at Nanjing Agricultural University, external supervisor of master candidates at Sichuan Agricultural University,
external supervisor of master candidates at Hunan Agricultural University, and reviewer for international journals such as Aquaculture Research and Aquaculture
Zhang Lu International. Zhang Lu has led on or participated in 16 projects, including the Blue Granary project sponsored by the Chinese Ministry of Science and Technology and other
key scientific and technological projects at the provincial and ministerial levels. Some outcomes have won one Second Prize of National Science and Technology Progress
Award, one First Prize of Chinese Agricultural Science and Technology Award, two First Prizes of Sichuan Science and Technology Progress Award, and seven other
important awards at provincial and ministerial levels. As the head of the Feed Detection Method Standardization Working Group of the National Feed Industry
Standardization Technical Committee, Zhang Lu has led on the formulation or revision of 4 national and industry standards for feed, and another 2 national standards that she
has led on have passed the preliminary review. Zhang Lu has published 16 papers as the first or corresponding author in domestic and foreign journals, including 11 SCI
papers. 12 invention patents and 14 utility model patents were granted with him as the first inventor. He edited or translated two books. He served as the Technical Director of
Fish Feed at Guangdong Yuehai Feed Group and holds positions as vice president and technology director of the Company, as well as deputy general manager of Tongwei
Agricultural Development Co., Ltd.
Male, born in 1963, holds a bachelor’s degree in physics from Peking University, a master’s degree in physics and a doctor's degree in chemistry from Rice University. He has
won the first prize of Shanghai Science and Technology Progress Award in 2004, the first prize of China Renewable Energy Society Science and Technology Progress Award
in 2019, and the first prize of Jiangsu Science and Technology Award in 2020. He was selected into the Jiangsu High-level Program for Introducing Innovative and
Xing
Entrepreneurial Talent. He holds more than 70 authorized patents in China and 28 authorized patents in the United States. He served as the leader/chief expert of some 863
Guoqiang
Projects, a member of the Photovoltaic Professional Committee of China Renewable Energy Society, and co-chair of the SEMI International Technology Roadmap for
Photovoltaic (ITRPV). He was formerly the chief technology officer and vice president of Hareon Solar Technology Co., Ltd. and senior vice president and chief technology
officer of Canadian Solar. He is currently the chief technology officer of Tongwei Solar Co., Ltd.
Male, born in 1971, MBA from Xi’an Jiaotong University. He is a member of the Communist Party of China and a senior chemical engineer. He has been honored as
excellent expert with outstanding contributions in Sichuan Province and a model individual in the science and technology community of Sichuan Province. He has twice won
the second prize of Science and Technology Progress Award in Sichuan Province, as well as the special prize, first prize of Science and Technology Progress Award in Leshan
City. He has applied for 101 patents for technological achievements in which he has served as a project leader or participant, and 66 of them have been granted, including 5
Gan Jufu inventions for which he is one of the top two inventors. He held important positions in companies such as Emei 739, Xinguang Silicon Technology, and Jiangsu Zhongneng.
He joined the Company in June 2013 and has served as the chief engineer and deputy general manager of Sichuan Yongxiang Polysilicon Co., Ltd., the general manager of
Inner Mongolia Tongwei High-purity Polysilicon Co., Ltd. He is now the director of the Technology Center (National) of Yongxiang Co., Ltd., the project director of Sichuan
Yongxiang Energy Technology Co., Ltd., the executive vice president and director of the Leshan West Silicon Materials Photovoltaic and New Energy Industry Technology
Research Center.
Male, born in 1968, bachelor degree in accounting from Shanghai University of Finance and Economics, master degree from Southwest Jiaotong University, MBA from
University of South Australia, CPA (Certified Public Accountant) and CPV (Certified Public Valuer). He was the legal representative of Sichuan Beite Certified Public
Zhou Bin
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 affairs representative. He is
Yan Ke
the secretary of the 8th board of directors of the Company.
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Other notes
"√ Applicable" "□ Not applicable"
According to the Company Law and the Articles of Association of the Company, the term of office of the seventh board of directors and supervisory committee
of the Company expired on May 15, 2022. On May 16, 2022, the Company held the annual general meeting for the year 2021, which elected the members of the
eighth board of directors and supervisory committee. On the same day, the first meeting of the eighth board of directors of was held, with the new management team
of the Company appointed. Among the above named directors, supervisors and senior managers, Liu Shuqi, Jiang Yumei, Song Dongsheng, Cui Yong, Li Bin, Xing
Guoqiang and Gan Jufu were newly appointed during the reporting period; Du Kunlun, Wang Jin, Yang Shixian, Chen Xiaohua, Wang Shangwen, Song Gangjie and
Shen Jinzhu retired during the reporting period; and Chen Pingfu took on the office as a supervisor after he left the office as a senior manager. On September 26, 2022,
the Company held its second extraordinary general meeting for the year 2022. Wang Xiaohui resigned from the board of directors due to work reasons. At the meeting,
Li Peng was elected as a director of the eighth board of directors and appointed as a member of the Strategic Committee.
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2022 Annual Report
(II). Other offices of directors, supervisors and senior management currently in office and having left
office in reporting period
1. Offices in shareholders
"√ Applicable" "□ Not applicable"
Name in office Shareholder name Title Start date End date
Chair of the
Liu Hanyuan Tongwei Group Co., Ltd. board of March 2008
directors
Liu Shuqi Tongwei Group Co., Ltd. Supervisor December 2019
Head of the
Cui Yong Tongwei Group Co., Ltd. Supervision April 2022
Department
China Life Asset Management Executive
Wang Xiaohui March 2017 September 2022
Company Limited director
Head of Equity
China Life Asset Management Investment
Li Peng August 2021
Company Limited (secondary)
Department
Note on offices
None.
in shareholders
2. Offices in other entities
"√ Applicable" "□ Not applicable"
Name in office Entity name Title Start date End date
Mentor of master
Du Kunlun Sichuan Academy of Social Sciences December 2012
candidates
International Energy Research
Head June 2012
Institute
Independent
Shuangdeng Cable Co., Ltd. August 2020
director
Wang Jin
Independent
Elion Energy Company Limited March 2021
director
SPIC Guangdong Electric Power Co.,
External director March 2020
Ltd.
Southwestern University of Finance
Professor December 2002
and Economics
Independent
Fu Daiguo Maccura Biotechnology Co., Ltd. January 2019
director
Independent
Sichuan Langjiu Co., Ltd. July 2019
director
Independent
Hua Xia Bank Co., Ltd. September 2020
director
Independent
Huatai Asset Management Co., Ltd. September 2020
director
Independent
Ding Yi S.F. Holding Co., Ltd. December 2022
director
Independent
Yuanshi New Materials Co., Ltd. November 2021
director
Xi'an Togeek Information Technology
Senior Advisor January 2022
Co., Ltd.
Wang Xiaohui Beijing Jingneng Power Co., Ltd. Director December 2017 December 2022
Beijing Xinghua Accounting Firm Head of Sichuan
Chen Xiaohua September 2012
(special general partnership) office
Independent
China Oil HBP Technology Co., Ltd. September 2019
director
China National Complete Plant
Independent
Song Dongsheng Import and Export Corporation April 2020
director
Limited
Jiangsu Huasheng Tianlong Independent
June 2020
Photoelectric Co., Ltd. director
Oriental Wisdom (Hebei) New
Director February 2022
Li Peng Energy Co., Ltd.
Beijing Jingneng Power Director December 2022
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2022 Annual Report
China Tea Director December 2019
Executive President
of the Institute of
Southwestern University of Finance Comprehensive
April 2017
and Economics Research on China
(Sichuan) Pilot Free
Trade Zone
Jiang Yumei Chengdu Xingrong Environment Co., Independent
August 2020
Ltd. director
Independent
Chengdu YMK Technology Co., Ltd. May 2022
director
Liangshan Rural Commercial Bank Independent
October 2022
Co., Ltd. director
Sichuan Tianfu Bank Co., Ltd. External supervisor May 2022
Note on offices in
None.
other entities
(III). Renumeration of directors, supervisors, and senior managers
"√ Applicable" "□ Not applicable"
In accordance relevant provisions of the Company Law, the Articles of
Association, and Working Rules on the Remuneration and Review
Committee of the Board, the compensation policies and plans for
directors are proposed by the Remuneration and Review Committee,
Procedure for determining the
considered by the board of directors, and then submitted to the general
renumerations of directors,
meeting for approval. The compensation policies and plans for
supervisors and senior managers
directors are considered by the supervisory committee, and then
submitted to the general meeting for approval. The compensation and
performance review procedures applicable to senior managers are
approved by the board for execution.
1. The renumeration of directors. supervisors and senior managers who
take specific roles in production and operation of the Company
consists of a base and a performance-based bonus. The Company
ensures the overall compensations and benefits to employees are
Basis for the renumeration of competitiveness in the industry and market through fair and
directors, supervisors, and senior appropriate payments given the specific roles, duties and
managers performances. 2. Directors and supervisors who do not hold full-time
roles in the Company received fixed allowances annually. Costs for
performance of director and/or supervisor duties are from the
Company's annual funds of board of directors and/or funds of board of
supervisors.
The renumeration to directors, supervisors and senior managers are
paid according to their performance assessed under the Performance
Actual payments to directors,
Review Management Procedures. In the reporting period, the actual
supervisors, and senior managers
payments to directors, supervisors and senior managers are consistent
with the disclosure made by the Company.
Total renumeration received by
directors, supervisors, and senior
155,864,200 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
Du Kunlun Independent director Resigned Retired after term expiry
Wang Jin Independent director Resigned Retired after term expiry
Yang Shixian Supervisor Resigned Retired after term expiry
Chen Xiaohua Supervisor Resigned Retired after term expiry
Chen Pingfu Deputy General Manager Resigned Retired after term expiry
Wang Shangwen Deputy General Manager Resigned Retired after term expiry
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2022 Annual Report
Song Gangjie Deputy General Manager Resigned Retired after term expiry
Shen Jinzhu Deputy General Manager Resigned Retired after term expiry
Wang Xiaohui Director Resigned Resigned for work reasons
Liu Shuqi Director Elected
Li Peng Director Elected
Jiang Yumei Independent director Elected
Song Dongsheng Independent director Elected
Cui Yong Supervisor Elected
Chen Pingfu Supervisor Elected
Li Bin Vice president Engaged
Director of Technology Center
Xing Guoqiang Engaged
(National) at Tongwei Solar
Director of Technology Center
Gan Jufu (National) at Yongxiang Co., Engaged
Ltd.
(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
The proposals on Clarifying the Plan for Public Issuance of Convertible Bonds, The
24th meeting of the 7th Plan for the Public Listing of Convertible Bonds issued by the Company and
February 21, 2022
board of directors Opening a Special Account for Fundraising and Signing a Regulatory Agreement
were approved.
The following proposals were approved: Proposal on Using Raised Funds to Replace
Self-Raised Funds Previously Invested, Proposal on Using Bills (including Bank
25th meeting of the 7th
March 09, 2022 Acceptance Drafts and Letters of Credit) to Pay for Projects and Replace them with
board of directors
Raised Funds, and Proposal on Using a Portion of Temporarily Idle Raised Funds to
Supplement Working Capital.
26th meeting of the 7th
March 21, 2022 The Proposal on Signing Significant Sales Contracts was passed.
board of directors
27th meeting of the 7th The Proposal on Investing into the Construction of the 32 GW High-purity Silicon
March 31, 2022
board of directors Project was approved.
The following proposals were approved during the meeting: the 2021 Board of
Directors Work Report, 2021 General Manager Work Report, 2021 Annual Report
and Executive Summary, 2021 Year-end Closing Report, Proposal on Profit
Distribution for 2021, 2021 ESG Report, 2021 Assessment Report on Internal
Controls, 2021 Audit Report on Internal Controls, Audit Committee’s Summary on
the 2021 Audit Work performed by Sichuan Huaxin (Group) CPA (Special-General
Partnership), Independent Directors’ 2021 Performance Report, Special Report on
the Storage and Use of Raised Funds for 2021, Proposal on the Provision of Asset
Impairment and Scrap of Fixed Assets for 2021, Proposal on the Changes in
Accounting Policies and Accounting Estimates, Proposal on the Reappointment of
Accounting Firm, Proposal on Comprehensive Credit Application for 2022, Proposal
28th meeting of the 7th
April 22, 2022 on Mutual Guarantee for the Company and Its Subsidiaries in 2022, Proposal on
board of directors
Providing Guarantees for Customers of the Company in 2022, Proposal on the
Operation of the Bill Pool in 2022, Proposal on the Estimation of Daily Related-party
Transactions in 2022, Proposal on Using Short-term Surplus Funds for Wealth
Management Purpose in 2022, Proposal on Hedging Business in 2022, Proposal on
Applying for Registration and Issuance of Super and Short-Term Commercial
Papers, Proposal on the Election of Members of the 8th Board of Directors, Proposal
on the Adjustment of Allowances for Directors, Proposal on the Revision of Articles
of Association, Proposal on the Revision or Formulation of a Series of Policies,
Proposal on the Progress and Future Development Plan for the High-purity
Polysilicon and Solar Cell Business, Q1 2022 Report, and Proposal on Holding the
Annual General Meeting for the Year 2021.
1st meeting of the 8th Proposals discussed and resolved: Proposal on Election of the Chair and Vice-chair
May 16, 2022
board of directors of the Company, Proposal on Election of Members of the Four Committees under the
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2022 Annual Report
8th Board of Directors, Proposal on Engagement with the Company’s Management
Level, Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2022-2024 and
its Summary, the Proposal on the Management Procedures on Tongwei Co., Ltd.
Employee Share Plan 2022-2024, the Proposal on Requesting the General Meeting to
Authorize the Board of Directors to Deal with Issues Relating to Tongwei Co., Ltd.
Employee Share Plan 2022-2024, and Proposal on Holding the 1st Interim General
Meeting in 2022.
Reviewed and approved: 2022 Semi-year Report and its Summary, the 2022
Semi-year Special Report on the Storage and Use of Funds Raised, Proposal on
2nd meeting of the 8th
August 16, 2022 Investing into 200,000-ton High-purity Polysilicon and Supporting Projects in
board of directors
Baotou, and Proposal on Investing into 200,000-ton High-purity Polysilicon and
Supporting Projects in Baoshan.
Proposals approved: the Proposal on Donations to the Earthquake-stricken Luding
3rd meeting of the 8th
September 08, 2022 Area, Proposal on Changes of Directors and Election of Directors, and Proposal on
board of directors
Holding the 2nd Interim General Meeting in 2022.
4th meeting of the 8th The Proposal on Investing into the Construction of the 25 GW High-purity Silicon
September 22, 2022
board of directors Project and Proposal on Changes in Accounting Estimates were approved.
5th meeting of the 8th
October 24, 2022 Reviewed and approved the Q3 2022 Report of the Company.
board of directors
Approved the Proposal on Using Some Idle Raised Funds to Temporarily
6th meeting of the 8th
December 12, 2022 Supplement Current Funds, and the Proposal on Investing the Project of 25GW
board of directors
High-purity Solar Modules in Nantong.
VI. Performance of duties by directors
(I). Attendances at board of directors meetings and general meetings by directors
Attendance
Attendance at board of directors meetings at general
meetings
Director Independent Number of
Number of board of Absence
name director Number general
directors meetings the In By from two
Virtual of meetings the
director should have person proxy consecutive
absences director has
attended in the year meetings
attended
Liu Hanyuan No 11 11 9 0 0 No 2
Xie Yi No 11 11 9 0 0 No 3
Yan Hu No 11 11 9 0 0 No 3
Liu Shuqi No 6 6 5 0 0 No 2
Li Peng No 2 2 2 0 0 No 0
Ding Yi No 11 11 11 0 0 No 0
Fu Daiguo Yes 11 11 9 0 0 No 1
Song
Yes 6 6 6 0 0 No 0
Dongsheng
Jiang Yumei Yes 6 6 5 0 0 No 1
Wang
Xiaohui No 9 9 9 0 0 No 0
(retired)
Du Kunlun
Yes 5 5 4 0 0 No 1
(retired)
Wang Jin
Yes 5 5 5 0 0 No 0
(retired)
Note on absence from two consecutive meetings
"□ Applicable" "√ Not applicable"
Number of board of directors meetings held in the year 11
Number of physical meetings 0
Number of virtual meetings 9
Number of virtual and physical combined meetings 2
(II). Director objections on issues of the Company
"□ Applicable" "√ Not applicable"
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2022 Annual Report
(III). Others
"□ Applicable" "√ Not applicable"
VII. Committees under the board of directors
"√Applicable" "□Not applicable"
(1).Members of committees under the board of directors
Committee Members
Audit Committee Fu Daiguo, Jiang Yumei, and Yan Hu
Nomination Committee Jiang Yumei, Liu Shuqi, and Song Dongsheng
Remuneration and Review
Song Dongsheng, Fu Daiguo and Liu Shuqi
Committee
Strategy Committee Liu Shuqi, Liu Hanyuan, Yan Hu, Song Dongsheng, and Li Peng
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2022 Annual Report
(2).Five meetings held by the Audit Committee in the reporting period
Other information on
Session date Content Important opinions and recommendations
performance of duties
Asked for the audit progress
of the annual report,
Based on the audit results before and in 2021, Tongwei Co., Ltd has been running in listened to the audit
accordance with regulations, with robust internal controls and adequate functioning of its information from project
internal audit and supervision system for effective risk prevention. managers of the accounting
According to these internal audits, due to the large number of branches and subsidiaries of the firm, emphasized the
Company, the annual financial statements and the notes to the financial statements concern a importance of external
large amount of data and text descriptions where there were a small number of data errors and auditing, in particular audit
inaccurate text expressions. These errors and inaccurate expressions are not core major discrepancies, long-term
Discussed and reviewed Issues problems whose risks can be well controlled. equity investments and
February 28, 2022 Concerned relating to the Work of The 2021 annual report must be prepared in strict accordance with Standards on Annual impairments, revenue and
2021 Annual Report Reports of Publicly Listed Company of CSRC, the Notice on 2021 Annual Reporting accounts receivable, and
Disclosure by Companies Listed in the Main Board Market of the Shanghai Stock Exchange, related-party transactions,
and relevant memos to present the rule, accurate and complete information of the Company to required that accountants
investors. responsible for annual
Given the disclosure timeline, the annual report and relevant materials of proposals to board of report audit must conduct
directors must be drafted before April 3, approved by the secretary of board of directors and their work with carefulness
the financial director, and then submitted to the Audit Committee, before submitting to the and justice, and urged the
board of directors for discussion and approval. firm to submit the audit
report within the specified
period.
Checked the auditing
Communicated with Sichuan Huaxin on the following topics: progress on annual report
1. Sichuan Huaxin declaration on its independence; on the site. Emphasized on
2. How well the audit plan is executed; the need for a good ending
Considered the Letter of 3. The key audit matters and how well the responses are executed; job to submit the audit
April 17, 2022 Communication with the Governance 4. Evaluate the implementation of responses to other material misstatement risks; report by the specified time,
Level from Huaxin Accounting Firm 5. Adjustments of audit differences; and communicated with
6. Other important issues, including changes in accounting policies, the treatment of provision audits from the accounting
for PV powerplant impairment, loss from scrap of fixed assets, goodwill impairment testing, firm regarding the audit
outward guarantee and related-party transactions. performance and the actual
conditions of the Company.
1. Considered the 2021 Annual Report 1. Passed the 2021 Annual Report of Tongwei Co., Ltd.
of Tongwei Co., Ltd. 2. Passed the Summary Report on 2021 Audit Work by Sichuan Huaxin (Group) CPA (Special
2. Considered the Summary Report on General Partnership)
April 19, 2022 2021 Audit Work by Sichuan Huaxin 3. Passed the Proposal on Renewing the Engagement with the Accounting Firm
(Group) CPA (Special General 4. Passed the Proposal on Expected Daily Related-party Transactions in 2022
Partnership) 5. Passed the Proposal on 2021 Provision for Asset Impairment and Loss from Scrap of Fixed
3. Considered the Proposal on Assets
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2022 Annual Report
Renewing the Engagement with the 6. Passed the Special Report on Storage and Actual Use of Funds Raised in 2021
Accounting Firm 7. Passed the Proposal on Changes in Accounting Policies and Accounting Estimates.
4. Considered the Proposal on 8. Passed the Proposal on Revision or Re-formulation of the Related-party Transaction Policy
Expected Daily Related-party of Tongwei Co., Ltd., the Outward Guarantee Policy of Tongwei Co., Ltd., the FX Hedging
Transactions in 2022 Management Policy of Tongwei Co., Ltd., the Fundraising Management Policy of Tongwei
5. Considered the Proposal on 2021 Co., Ltd., and the Short-term Wealth Management Policy of Tongwei Co., Ltd.
Provision for Asset Impairment 9. Passed the 2021 Performance Report by Audit Committee
Reserve and Loss from Scrap of Fixed 10. Passed the Q1 2022 Report of Tongwei Co., Ltd.
Assets
6. Considered the Special Report on
Storage and Actual Use of Funds
Raised in 2021
7. Considered the Proposal on
Changes in Accounting Policies and
Accounting Estimates
8. Considered the Proposal on
Revision or Re-formulation of the
Related-party Transaction Policy of
Tongwei Co., Ltd., the Outward
Guarantee Policy of Tongwei Co.,
Ltd., the FX Hedging Management
Policy of Tongwei Co., Ltd., the
Fundraising Management Policy of
Tongwei Co., Ltd., and the Short-term
Wealth Management Policy of
Tongwei Co., Ltd.
9. Considered the 2021 Performance
Report by Audit Committee
10. Considered the Q1 2022 Report of
Tongwei Co., Ltd.
Considered the 2022 Semi- Annual
August 02, 2022 Passed the 2022 Semi-Annual Report of Tongwei Co., Ltd.
Report of Tongwei Co., Ltd.
Considered the Q3 2022 Report of
October 14, 2022 Passed the Q3 2022 Report of Tongwei Co., Ltd.
Tongwei Co., Ltd.
(3).Two meetings held by the Strategy Committee in the reporting period
Other information on
Session date Content Important opinions and recommendations
performance of duties
Reviewed and approved: the Proposal on These projects are can help the Company leverage its
Investing into 200,000-ton High-purity comprehensive advantage in technology, cost, quality and
August 12, 2022 Polysilicon and Supporting Projects in management in terms of polysilicon sector, and further enhance
Baoshan ,and Proposal on Investing into the leading position of the Company in this sector. The Strategy
200,000-ton High-purity Polysilicon and Committee agreed the proposal which was then submitted to
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2022 Annual Report
Supporting Projects in Baotou. the board of directors for consideration.
Proper extension of its module business is aligned with the
Approved the Proposal on Investing the Company’s long-term strategic goal of becoming a world-class
September 21,
Project of 25GW High-purity Solar clean energy operator, and can help release its leadership in
2022
Modules in Yancheng high-purity polysilicon and solar cell areas, to build a PV
industrial structure with higher competitiveness.
(4).Three meetings held by the Nomination Committee in the reporting period
Other information on
Session date Content Important opinions and recommendations
performance of duties
The committee checked the eligibility of candidates for independent
directors and directors of the 8th board and made the following resolutions:
1. Mr. Liu Hanyuan, Mr. Xie Yi, Mr. Yan Hu, Ms. Liu Shuqi, Mr. Wang
Approved the Proposal on Nomination of Xiaohui and Ms. Ding Yi are nominated as the candidates for the directors
April 19, 2022
Candidates for the Directors of the 8th Board of the 8th board; 2. Mr. Fu Daiguo, Ms. Jiang Yumei and Mr. Song
Dongsheng are nominated as the candidates for the independent directors
of the 8th board. 3. The above candidates are to be considered by the
board.
Approved the Proposal on Election of the
Chair and Vice-Chair of the Board, the
Proposal on Appointment of the General
May 13, 2022 Manager, the Proposal on Appointment of Approved the meeting topics which were to be considered by the board.
the Board Secretary and the Proposal on
Appointment of the Deputy General
Manager and Financial Director
Due to the job transfer, Mr. Wang Xiaohui, the director nominated by
China Life, can no longer serve as a director of the Company’s board.
Approved the Proposal on Change of Therefore, Mr. Li Peng is nominated as a director of the Company’s board.
August 30, 2022
Directors and Election of Directors Mr. Li Peng is experienced in investment, and his experience and ability
makes him eligible for a director of the Company. It is proposed to appoint
Mr. Li Peng as a director.
(5).Two meetings held by the Remuneration and Review Committee in the reporting period
Other information on performance of
Session date Content Important opinions and recommendations
duties
Given the diligence and dedication of the directors during their tenure,
and the significant contributions they have made to the regulated
Passed the Proposal on Adjustment of the
April 19, 2022 operations, internal systems and development of the Company, and in
Allowances for Directors
light of the Company’s current scale and status, with reference to the
remuneration standards for directors of listed companies of the same size
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2022 Annual Report
in the same industry, it is proposed to adjust the allowance for each
independent director from 100,000 yuan to 160,000 yuan per year pre-tax,
and the allowance for each other director from 50,000 yuan to 80,000
yuan per year pre-tax. The above proposal is agreed to be submitted to the
board for consideration.
The 2022 compensation and performance assessment plan for
Approved the Proposal on the Compensation senior management is compliant, reasonable, and has effectively
December 30, 2022 and Performance Assessment of Senior motivated the management team, laying a solid foundation for the
Management for the Year 2022 Company’s business development in 2023. The proposal is
approved to be submitted to the board for consideration.
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2022 Annual Report
(6).Specific circumstances where objections were raised
"□ Applicable" "√ Not applicable"
VIII. Note on supervisory committee's findings of the Company's risks
"□ Applicable" "√ Not applicable"
The supervisory committee did not raise any objection to matters supervised in the reporting period.
IX. Employees of the parent company and major subsidiaries at the end of the reporting period
(I). Employees
Number of active employees of the parent company 166
Number of active employees of major subsidiaries 41,048
Total employees 41,214
Number of retirees for whom the parent and major subsidiaries must bear 67
relevant expenses
Profession structure
Profession Number of employees
Production 24,824
Sales 3,635
Technology 7,792
Finance 766
Administration 4,197
Total 41,214
Education structure
Education background Number of employees
Master's degree or higher 731
Bachelor's degree 7,892
Three-year college 9,943
Three-year college or lower 22,648
Total 41,214
(II). Compensation policy
"√ Applicable" "□ Not applicable"
Adhering to the principle of external competition and internal fairness, the Company has established a
fair, competitive and diverse salary and benefit system that motivates people for win-win results. In order to
attract outstanding external talents, motivate, develop and retain internal potential talents, the Company
continuously optimizes the salary and performance management system. By effectively linking salary to
performance, the Company leverages merit-based pay to mobilize employees, increase the overall
efficiency and profitability of the organization, and improve the income level of employees. To maintain
moderately competitive salaries, the Company conducts periodic market research and salary cost analysis,
adjusts the salary incentive strategy, and work out salaries based on factors such as job value and work
intensity, thus maximizing the internal fairness of salary incentives.
(III). Training projects
"√ Applicable" "□ Not applicable"
Talent is the most essential resource in the process of Tongwei’s development and growth. Guided by
the cultural values of striving for excellence in everything, the Company has established a comprehensive
talent development system. Continuously efforts into talent selection, use, development and retention, and
the deployment of effective incentive policies fully guarantee the retention and personal development of
talent. The Company relies on its internal training mechanism, centered on the Tongwei Learning Center, to
combine high-quality education resources from internal and external sources, consolidate internal
foundations, and obtain excellent management methods. Externally, the Company actively learns from
advanced management experience and advanced technology from the industry, and expands its own
business advantages. To meet the development needs of employees at different levels and fields, the
Company has established a complete training system that focuses on internal training and integrates all
business lines and subsidiaries and branches. The Company also encourages employees to improve their
work skills and proficiency, and provides certain economic incentives and support for their education and
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training. Talent is the key to the development of Tongwei whose future is inseparable from talent. Tongwei
will continue to innovate its talent development model, optimize training methods, and strengthen its talent
foundation, providing a continuous driver for its high-quality development across the globe.
(IV). Labor outsourcing
"□ Applicable" "√ Not applicable"
X. Proposal on profit distribution or capital reserve converted to share capital
(I). Development, execution or adjustments of cash dividend policy
"√ Applicable" "□ Not applicable"
The Shareholder Distribution Plan 2021-2023 approved at the 18th meeting of the 7th board of
directors and the 2020 annual general meeting specified that the Company preferred the cash dividend
policy with minimum dividend payout ratio to ensure the execution of the profit distribution policy.
The 2021 Profit Distribution Proposal considered at the 28th meeting of the 7th board of directors on
April 22, 2022 and approved at the 2021 annual general meeting on May 16, 2022 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
shareholders for a total cash distribution of 4,105,411,943.81 yuan. This plan was fully executed on May 30,
2022.
The 2022 Distribution Proposal approved by the board meeting on April 21, 2023 stated that based on
the total 4,501,946,097 shares, a cash dividend of 28.58 yuan (including tax) per ten shares would be paid
to all shareholders for a total cash distribution of 12,866,561,945.23 yuan. This plan will be submitted to
the 2022 annual meeting for consideration.
(II). Special note on cash dividend policy
"√ Applicable" "□ Not applicable"
Compliance with provisions of the Articles of Association or resolutions of the
"√ Yes" "□ No"
general meeting
Dividend standards and payout ratio are clear "√ Yes" "□ No"
Relevant decision-making procedures and mechanism are complete "√ Yes" "□ No"
Independent directors performed their duties and played their role "√ Yes" "□ No"
Middle and small shareholders had opportunities to fully express their views
"√ Yes" "□ No"
and needs with their legitimate rights and interests fully protected
(III). The Company should disclose the reasons and the purposes and plan of these undistributed
profit where the Company achieved profits and the profit attributable to shareholders of the
parent company was positive, but no cash dividend proposal was raised
"□ Applicable" "√ Not applicable"
(IV). Profit distribution and capital reserve converted to share capital in the reporting period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Bonus shares per 10 shares /
Dividend per 10 shares (yuan) (including tax) 28.58
Shares converted from capital reserve per 10 shares /
Cash distribution (including tax) 12,866,561,945.23
Net profit attributable to common shareholders of the listed company in the consolidated
25,726,447,236.27
financial statements for the distribution year
% of net profit attributable to common shareholders of the listed company in the consolidated
50.01
financial statements
Cash used for share repurchases that is included in the cash distribution /
Total distribution (including tax) 12,866,561,945.23
The ratio of total distribution to the net profit attributable to common shareholders of the listed
50.01
company in the consolidated financial statements
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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"
Employee share plans
"√ Applicable" "□ Not applicable"
To fully mobilize employees in enthusiasm and creativity, and align the interests among shareholders,
the Company, and employees, the Company has used employee share plans in recent years.
The Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2021-2023 and its Summary was
approved at the 17th meeting of the 7th board of directors on February 9, 2021 and the first interim general
meeting on February 25, 2021. The total size of employee shareholding under this plan is 2.7 billion yuan,
with a term of 36 months. A total of 76,499,840 shares of the Company were purchased, accounting for
1.70% of the total share capital, at an average price of 34.43 yuan per share. The lock-up period is from
May 21, 2021 to May 20, 2022. As of the end of the reporting period, this employee share plan was
unlocked but not expired.
The Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2022-2024 and its Summary was
approved at the 1st meeting of the 8th board of directors on May 16, 2022 and the first interim general
meeting on June 1, 2022. The total size of employee shareholding under this plan is 5.6 billion yuan, with a
term of 36 months. A total of 99,278,665 shares of the Company were purchased, accounting for 2.21% of
the total share capital, at an average price of 55.28 yuan per share. The lock-up period is from July 6, 2022
to July 5, 2023.
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, and the work
plan and its execution of the committee are considered at board meetings. 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 25, 2023.
Note on significant discrepancies in internal controls in the reporting period
"□ Applicable" "√ Not applicable"
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XIII. Management and control over subsidiaries in the reporting period
"√ Applicable" "□ Not applicable"
As of the end of 2022, the Company had 251 subsidiaries including 239 domestic companies and 12
overseas companies. The Company held shares directly in 34 subsidiaries and indirectly in 217 subsidiaries.
It has completed management and control policies over subsidiaries. Regarding operation and business
control, the Company has clear strategic goals. With completed organizational structure and business
processes, it has effectively made subsidiaries organic parts for its overall strategy for synergies in business
operation and for the integration, creation and sharing of resources. Also, subsidiaries submit production
and operation statements to the Company as required so that it gains an understanding of and control over
the operation and management of subsidiaries. Regarding financial control, the Company has created a
powerful financial control system consisting of clear policies and requirements on financial budgeting and
execution, funds with other parties, loans and guarantees. Subsidiaries have their financial affairs managed
in strict accordance with the Company's financial management requirements and policies. Regarding
personnel management, the Company sends directors, supervisors and senior managers to subsidiaries for
which it is the controlling shareholder to effectively supervise them. At the same time, the Company
enhances the performance review on subsidiaries to better motivate their employees, drive their
development and ensure their overall operational targets are met.
XIV. Note on relevant information on internal control audit report
"√ Applicable" "□ Not applicable"
Sichuan Huaxin engaged by the Company has audited the Company’s 2022 internal controls and
issued a report with standard unqualified opinion, details of which are in the 2022 Internal Control Audit
Report on Tongwei Co., Ltd. disclosed on http:www.sse.com.cn on April 25, 2023 by the Company.
Whether the internal control audit report was disclosed: Yes
Type of audit opinion: Standard unqualified opinion
XV. Correction of problems identified in self-check for the governance of listed companies
□ Applicable √ Not applicable
XVI. Others
"□ Applicable" "√ Not applicable"
Section V. Environmental and Social Responsibility
I. Environmental information
Environmental protection mechanisms established or not Yes
Environmental protection investment in the reporting period (unit: 10,000 Yuan) 88,814.43
(I). Note on the environmental protection by companies falling into the key waste discharge
organizations published by the environmental protection authority and their major subsidiaries
"√ Applicable" "□ Not applicable"
1. Waste release
"√ Applicable" "□ Not applicable"
In the reporting period, the Company strictly observed applicable environmental laws, and regulations
in the construction and operation of environmental facilities, wastewater, waste gas and solid waste
produced were discharged under relevant standards for clean production. Relevant environmental
information about the Company’s key polluting units and major subsidiaries is as follows:
(1) Sichuan Yongxiang Polysilicon Co., Ltd.:
① Major pollutants in the wastewater: COD, NH3-N and pH.
Release method: continuous and stable release.
Number of release outlets: 1.
Release standards: Grade one standard in Table 4 of Integrated Wastewater Discharge Standard
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(GB8978-1996) — COD ≤ 100 mg/l; NH3-N ≤ 15m g/l; 6≤pH≤9.
Release concentrations: COD: 10.45 mg/l, NH3-N: 0.433 mg/l and PH: 7.748, all of which complied with
the standards.
Approved annual release limits: No limits for COD and NH3-N.
2022 total release amounts: COD: 3.427 tons and NH3-N: 0.2085 tons.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particles.
Major pollutant in the waste gas from manufacturing process is hydrogen chloride.
Release method: continuous and stable release.
Number of release outlets: 18.
Release standards: Boiler smoke follows the special emission limits in Table 3 of the Emission Standard 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. exhaust gas from manufacturing process follows the
grade two standards in Table 2 of Integrated Emission Standard of Air Pollutants — hydrogen chloride
≤100mg/m3.
Release concentrations: boiler smoke — sulfur dioxide 0.34 mg/m nitrogen oxides 34.85 mg/mand
particles 0.85 mg/m exhaust gas from manufacturing process: Hydrogen chloride up to 0.77 mg/m all of
which complied with the standards.
Approved annual release limits: No limits for sulfur dioxide, hydrogen chloride, and particles; nitrogen
oxides ≤ 53.1 tons.
2022 total release amounts: nitrogen oxides 7.097 tons, lower than the approved amount.
(2) Sichuan Yongxiang New Energy Co., Ltd.:
① Major pollutants in the wastewater: COD, NH3-N and pH.
Release method: continuous and stable release.
Number of release outlets: 1.
Release standards: Grade one standard in Table 4 of Integrated Wastewater Discharge Standard
(GB8978-1996) — COD ≤ 100 mg/l; NH3-N ≤ 15 mg/l; 6≤pH≤9.
Release concentrations: COD 13.826 mg/l, NH3-N 2.048 mg/l and PH 6 - 9, all of which complied with the
standards.
Approved annual release limits: COD ≤ 43.96 tons and NH3-N ≤ 4.4 tons.
2022 total release amounts: COD 8.35 tons and NH3-N 1.237 tons, each of which was lower than the
approved amount.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particles.
Major pollutant in the waste gas from manufacturing process is hydrogen chloride.
Release method: continuous and stable release.
Number of release outlets: 14.
Release standards: Boiler smoke follows the special emission limits in Table 3 of the Emission Standard 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. exhaust gas from manufacturing process follows the
grade two standards in Table 2 of Integrated Emission Standard of Air Pollutants — hydrogen chloride
≤100 mg/m3.
Release concentrations: In 2022, the Company’s gas-fired boilers mainly operated during the power
restriction period in August, with an average emission limits of 1.661 mg/mfor sulfur dioxide, 55.454
mg/mfor nitrogen oxides, and 5.188 mg/mfor particles. The highest concentration of hydrogen chloride
in the process exhaust gas was 2.53 mg/m
Approved annual release limits according to the new release permit: No limits for sulfur dioxide, hydrogen
chloride, and particles; nitrogen oxides ≤ 55.017 tons.
2022 total release amounts: nitrogen oxides 0.528 tons.
(3) Inner Mongolia Tongwei High-purity Crystalline Silicon Company:
① No wastewater release.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particles.
Release method: continuous and stable release.
Number of release outlets: 10
Release standards on boiler smoke: emission limits for 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.
Release 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.
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Release standards on process exhaust gas: hydrogen chloride ≤ 100 mg/m subject to grade two standards in
the Integrated Standards for Emission of Air Pollutants (GB16297-1996).
Boiler smoke release concentrations: sulfur dioxide 0.71 mg/m nitrogen oxides 53.21 mg/mand particles
6.78 mg/mall of which complied with the standards.
Release concentrations of smoke from hydrogen production: sulfur dioxide 3.52 mg/m nitrogen oxides
42.43 mg/mand particles 4.86 mg/mall of which complied with the standards.
Release concentrations of manufacturing process exhaust: hydrogen chloride 30.6mg/mwhich complied
with the standards.
Approved annual release limits: sulfur dioxide ≤ 1.459 tons, nitrogen oxides ≤ 67.36 tons.
2022 total release amounts: sulfur dioxide 0.171 tons; nitrogen oxides 6.2378 tons, each of which was
lower than the approved amount.
(4) Yunnan Tongwei High-purity Crystalline Silicon Company:
① Major pollutants in the wastewater: COD, NH3-N, pH and SS.
Release method: intermittent release.
Number of release outlets: 1.
Release standards: Grade three standard in Table 4 of Integrated Wastewater Discharge Standard
(GB8978-1996) — COD ≤ 500 mg/l; NH3-N no requirement; 6≤pH≤9; SS: 400 mg/L.
Release concentrations: COD 32.25 mg/L; SS 11.5 mg/L; NH3-N 1.2985 mg/L.
Approved annual release limits: The wastewater is discharged to the industrial park's wastewater treatment
station without the need to assess total release amount.
② Major pollutant in the waste gas: hydrogen chloride.
Release method: continuous and stable release.
Number of release outlets: 6.
Release standards: hydrogen chloride ≤ 100 mg/m subject to grade two standards in Table 2 of Integrated
Standards for Emission of Air Pollutants;
Release concentrations: hydrogen chloride 10.2 mg/m3.
Approved annual release limits: hydrogen chloride 3.574 tons.
2022 total release amounts: hydrogen chloride 3.503139 tons.
(5) PVC and sodium hydroxide production in Yongxiang
① Major pollutants in the wastewater: COD, NH3-N and pH.
Release method: continuous and stable release.
Number of release outlets: 1.
Release standards: Table 1 of Emission Standard of Pollutants for Caustic Alkali and Polyvinyl Chloride
Industry (GB15581-2016) — COD≤60 mg/l, NH3-N ≤15 mg/l and 6≤pH≤9.
Release concentrations: COD 13.29 mg/l, NH3-N 2.77 mg/l and PH 6 - 9, all of which complied with the
standards.
Approved annual release limits: COD ≤ 39 tons and NH3-N ≤ 9.75 tons.
2022 total release amounts: COD 2.13 tons and NH3-N 0.45 tons, each of which was lower than the
approved amount.
② Major pollutants in the waste gas: particles and NMHC.
Release method: continuous and stable release.
Number of release outlets: 3.
Release standards: Table 4 of Emission Standard of Pollutants for Caustic Alkali and Polyvinyl Chloride
Industry (GB15581-2016) — Particles 60 mg/m3 and NMHC 50 mg/m3 from the waste gas from dry
outlets.
Release concentrations: Particles 2.01 mg/m3 and NMHC 4.88 mg/m3.
Approved annual release limits: particles ≤60 tons; NMHC ≤50 tons.
2022 total release amounts: particles 2.38 tons and NMHC 5.41 tons.
③ Major heavy metal pollutants is mercury (II) chloride which is mainly used as the catalyst for vinyl
chloride synthesis, and coded as HW29 in National Directory of Hazardous Substances, must be disposed
centrally to qualified suppliers for treatment and recycle.
(6) Sichuan Yongxiang New Materials Co., Ltd.:
② Major pollutants in waste gas: particles, sulfur dioxide, and nitrogen oxides.
Release method: continuous and stable release.
Number of release outlets: 2
Release standards: Emission Standard of Air Pollutants for Cement Industry (GB4915-2013) — particles
≤20 mg/m; sulfur dioxide ≤100 mg/m; and nitrogen oxides ≤320 mg/m.
Average release concentrations: particles in the kiln head 5.57 mg/m smoke in the kiln tail 3.21 mg/m
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sulfur dioxide 2.77 mg/m nitrogen oxides 54.29 mg/mall of which met the standards.
Approved annual release limits: particles 51.60 tons; sulfur dioxide 150 tons; nitrogen oxides 480 tons.
2022 total release amounts: particles from kiln head 8.91 tons; particles from kiln tail 6.82 tons; sulfur
dioxide 5.84 tons; nitrogen oxides 124.64 tons. All of them were lower than the respective approved
amount.
② Major pollutants in the wastewater: COD and NH3-N.
Release method: continuous and stable release.
Number of release outlets: 1
Release standards: Grade one standards in Integrated Wastewater Discharge Standard (GB8978-1996) —
COD ≤ 100 mg/l; NH3-N ≤ 15 mg/l;
Release concentrations: COD 25.58 mg/l and NH3-N 0.41 mg/l. Each of them met the standards.
Approved annual release limits: No limits for COD and NH3-N.
2022 total release amounts: COD 0.75 tons and NH3-N 0.01 tons.
(7) Tongwei Solar (Jintang) Co., Ltd.:
① Major pollutants in the waste gas: hydrogen chlorine, chlorine, ammonia, particles, nitrogen oxides and
VOCs; typical pollutant: fluoride.
Release method: continuous and stable release.
Number of release outlets: 14.
Release standards: Limits in Table 5 of Emission Standard of Pollutants for Battery Industry
(GB30484-2013) — hydrogen chloride ≤ 5 mg/m; fluoride ≤ 3 mg/m; chlorine ≤5 mg/m; nitrogen oxides
≤ 30 mg/m; particles ≤30 mg/m. Ammonia ≤ 20t/h (30m), 15.2kg/h (26m) subject to limits in Table 2 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).
Release concentrations: hydrogen chloride 1.43 mg/m fluoride 0.24 mg/m chloride 0.23 mg/m
ammonia 1.71 kg/h; particles 10.33 mg/m nitrogen oxides 8.63 kg/m VOCs 1.21 mg/m Each of them
met the standards.
Approved annual release limits: nitrogen oxides ≤25.61 tons, and VOCs ≤27.71 tons.
2022 total release amounts: nitrogen oxides 6.48 tons and VOCs 2.02 tons. All of them were lower than the
respective approved amount.
② Major pollutants in the wastewater: pH, COD, NH3-N and fluoride.
Release method: continuous and stable release.
Number of release outlets: 1.
Release standards: Indirect discharge standards in Table 2 of Emission Standard of Pollutants for Battery
Industry (GB30484-2013) — 6≤pH≤9; COD ≤ 150 mg/L; NH3-N ≤ 30 mg/l; fluoride ≤ 8 mg/L.
Release concentrations: pH 7.01- 7.73; COD 32 mg/L; NH3-N 13.17 mg/L; fluoride 5.15 mg/L. Each of
them met the standards.
Approved annual release limits: COD ≤ 1181.2 tons and NH3-N ≤ 236.3 tons.
2022 total release amounts: COD 69.15 tons and NH3-N 29.57 tons; each of which was lower than the
approved amount.
(8) Tongwei Solar (Chengdu) Co., Ltd.:
① Major pollutants in the waste gas: fluoride, hydrogen chloride, chlorine, sulfuric acid mist, ammonia,
particles and volatile organic compounds (VOCs).
Typical pollutant(s): fluoride.
Release method: continuous and stable release.
Number of release outlets: 27.
Release standards: ammonia ≤ 14 kg/h subject to limit in Table 2 of Emission Standards for Odor Pollutants
(GB14554-1993); VOCs ≤ 60 mg/m subject to industrial standards for electronic industry set in Table 3 of
Sichuan Control Standards for Volatile Organic Compounds (DB51/2377-2017); other pollutants subject to
limits for solar cells in Table 5 of Emission Standard of Pollutants for Battery Industry (GB30484-2013):
fluoride ≤3 mg/m, chlorine ≤5 mg/m, particles ≤30 mg/m; hydrogen chloride ≤5 mg/m and nitrogen
oxides ≤30 mg/m.
Release concentrations: fluoride 0.13 mg/m chlorine 0.85 mg/m particles 2.43 mg/m nitrogen oxides
5.24 mg/m VOCs 2.43 mg/m hydrogen chloride 1.41 mg/m ammonia 0.053 kg/h, all of which met the
standards.
2022 total release amounts: nitrogen oxides 27.97 tons and VOCs 12.58 tons.
② Major pollutants in the wastewater: general pollutants: COD, NH3-N, pH; typical pollutant(s): fluoride.
Release method: continuous and stable release.
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Number of release outlets: 2.
Release 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.
Release concentrations: CODcr 17.50 ml/L; NH3-N 3.73 mg/l; pH 7.58 and fluoride 5.39 mg/l. Each of
them met the standards.
Approved annual release limits: COD ≤ 1109.8 tons and NH3-N ≤ 221.9 tons.
2022 total release limits: CODcr 90.56 tons and NH3-N 10.08 tons, each of which was lower than the
approved amount.
(9) Tonghe New Energy (Jintang) Co., Ltd.:
① Major pollutants in the waste gas: fluoride, chlorine, hydrogen chloride, particles, nitrogen oxides and
VOCs.
Release method: continuous and stable release.
Number of release outlets: 18.
Release standards: Emission Standard of Pollutants for Battery Industry (GB30484-2013) — fluoride ≤ 3
mg/m; chlorine ≤ 5 mg/m; particles ≤ 30 mg/m; nitrogen oxides ≤ 30 mg/m; Sichuan Control Standards
for Volatile Organic Compounds (DB51/2377-2017) — VOCs ≤ 60 mg/m; standard limit in Table 2 of
Odor Pollutants (GB14554-1993) — ammonia ≤ 14 kg/h.
Release concentrations: fluoride ≤ 0.98 mg/m; hydrogen chloride ≤ 0.33 mg/m; particles ≤ 15.65 mg/m;
NOx ≤ 12 mg/m; VOCs≤ 0.47 mg/m; ammonia ≤ 0.2 kg/h, all of which met the standards. Each of them
met the standards.
2022 total release amounts: fluoride 1.19 tons; particles 3.1 tons; nitrogen oxides 0.72 tons, VOCs 2.85 tons
and ammonia 2.06 tons.
② Major pollutants in the wastewater: general pollutants: COD, NH3-N, pH, and SS; typical pollutant(s):
fluoride.
Release method: continuous and stable release.
Number of release outlets: 1.
Release standards: Emission Standard of Pollutants for Battery Industry (GB30484) — COD ≤ 150 mg/L;
NH3-N ≤ 30 mg/L; 6 ≤ pH ≤ 9; SS ≤140 mg/l; total nitrogen ≤40 mg/l; fluoride ≤ 8 mg/L.
Release concentrations: COD 102 mg/l; NH3-N 9.115 mg/l; PH 7.35; SS 4.75 mg/l; total nitrogen 11.8
mg/l, and fluoride 3.9325 mg/l. Each of them met the standards.
2022 total release amounts: COD 536.2 tons; NH3-N 54.4 tons; SS 27.59 tons; total phosphorus 57.56 tons
and fluoride 15.33 tons.
Environmental protection facilities and their operational status: Cell and wafer slicing wastewater were
treated separately due to the different nature of pollutants in the wastewater. The cell wastewater was
subject to three stages of physical and chemical treatment at the sewage treatment plant before meeting the
discharge standards, while the wafer slicing wastewater was subject to micro-sand filtration, dissolved air
flotation, hydrolysis and acidification, anaerobic treatment and six-stage aerobic treatment before meeting
the discharge standards.
(10) Tongwei Solar (Meishan) Co., Ltd.:
① Major pollutants in the waste gas: general pollutants: chlorine, particles, hydrogen chloride and VOCs;
typical pollutant: fluoride.
Release method: continuous and stable release.
Number of release outlets: 15
Release 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 ≤ ammonia ≤ 20 kg/h (manufacturing process waste gas); ammonia ≤14 kg/h(waste gas from
the wastewater station); hydrogen sulfide ≤ 0.9 kg/h; and odor gas concentration 6000; Sichuan Control
Standards for Volatile Organic Compounds (DB51/2377-2017) — VOCs ≤ 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
Release concentrations: fluoride 1.07 mg/m chlorine 0.32 mg/m particles 6.08 mg/m hydrogen chloride
0.37 mg/m VOCs 0.55 mg/m nitrogen oxides 4.38 mg/m sulfuric acid mist 0.44 mg/m ammonia 0.09
kg/h (rate), odor 296.25, all of which met the standards.
2022 total release amounts: nitrogen oxides 8.17 ton and VOCs 2.465 tons.
② Major pollutants in the wastewater: general pollutants: COD, NH3-N, pH and total nitrogen; typical
pollutant(s): fluoride.
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Release method: continuous and stable release.
Number of release outlets: 3 general wastewater discharge outlets (production wastewater outlet, general
wastewater outlet, and domestic wastewater outlet), and all these outlets are in the west part of the factory.
Discharge standards: production wastewater is subject to the indirect discharge standards in Table 2 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;
Release concentrations: COD 23.66 mg/l; NH3-N 19 mg/l; pH 8.06; total nitrogen 22.23 mg/l; and fluoride
5.39 mg/l, all of which met the standards.
2022 total release amounts: COD 113.46 tons and NH3-N 67.91 tons.
(11) Tongwei Solar (Anhui) Co., Ltd.:
① Major pollutants in the waste gas: chlorine, particles, ammonia, nitrogen oxides, hydrogen chloride,
VOCs and fluoride.
Release method: continuous and stable release.
Number of release outlets: 12.
Release standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standard 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; ammonia ≤30 mg/m; VOCs ≤ 50
mg/m subject to Emission Standards for Volatile Organic Compounds from Industrial Enterprises
(DB16297-2014).
Release concentrations: nitrogen oxides < 3 mg/m fluoride 0.39 mg/m chlorine not detected; particles
8.6 mg/m hydrogen chloride 0.52 mg/m VOCs 2.02 mg/m ammonia 0.58 mg/m all of which met the
standards.
2022 total release amounts: nitrogen oxides 0.308 tons and VOCs 3.02 tons.
② Major pollutants in the wastewater: COD, NH3-N, pH, total nitrogen and fluoride.
Release method: continuous and stable release.
Number of release outlets: 1
Release standards: Indirect discharge standards for solar cells in of Emission Standard of Pollutants for
Battery Industry (GB30484-2013) and standards for Hefei West Zutuan wastewater treatment plant; COD ≤
150 mg/L; NH3-N ≤ 30 mg/L; 6 ≤ pH ≤ 9; total nitrogen ≤ 40 mg/l; fluoride ≤ 8 mg/L.
Release concentrations: COD 32.33 mg/l; NH3-N 1.33 mg/l; PH 7.23; total nitrogen 15.47 mg/l; and
fluoride 6.76 mg/l. Each of them met the standards.
2022 total release amounts: COD 120.43 tons and NH3-N 9.73 tons.
(12) Chengdu Chunyuan Food Company Limited:
① Major pollutants in the wastewater: COD, NH3-N, PH, SS, BOD, animal fats and vegetable oils, total
phosphorus and total nitrogen.
Release method: intermittent release.
Number of release outlets: 1.
Release standards: grade three standards for livestock processing in Table 3 of Discharge Standard of Water
Pollutants for Meat Packing Industry (GD13457-1992) — COD 500 mg/l; no limit for NH3-N; PH 6.0-8.5;
SS 400 mg/L; BOD 500 mg/L; animal fat and vegetable oils 60 mg/L; no limit for total phosphorus and no
limit for total nitrogen.
Release concentrations: COD 29 mg/L; NH3-N 12.81 mg/l/L; PH 7.5; SS 11.33 mg/L; BOD 6.07 mg/L;
animal fat and vegetable oils 0.25 mg/L; total phosphorus 4.00 mg/L and total nitrogen 17.55 mg/L, all of
which met the standards.
Approved annual release limits: COD 357.5 tons, no limits on other pollutants.
2022 total release amounts: COD 3.68 tons, lower than the approved.
② Major pollutants in the waste gas: sulfur dioxide, nitrogen oxides, particles and carbon monoxide.
Release method: intermittent release.
Number of release outlets: 1.
Release standards: Emission Standard of Air Pollutants for Boilers in Chengdu; random waste gas 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 concentration ≤ 20 mg/m; hydrogen sulfide ≤
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0.06 mg/m and ammonia ≤ 1.5 mg/m.
Release concentrations: Odor <10 mg/m hydrogen sulfide 0.005 mg/m and ammonia 0.065 mg/m
Approved annual release amounts: No limits for sulfur dioxide, nitrogen oxides and particles.
(13) Chengdu Xintaifeng Agriculture Development Co., Ltd.:
① Major pollutants in the wastewater: COD, NH3-N, PH, SS, BOD, animal fats and vegetable oils, total
phosphorus and total nitrogen.
Release method: intermittent release.
Number of release outlets: 1.
Release standards: grade three limits for poultry slaughter in Table 3 of Discharge Standard of 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.
Release concentrations: COD 39 mg/L; NH3-N 1.09 mg/l/L; PH 7.21; SS 8 mg/L; BOD 12.2 mg/L; 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 release limits: COD 306 tons, no limits on other pollutants.
2022 total release amounts: COD 3.016 tons, lower than the approved.
② Major pollutants in the waste gas: sulfur dioxide, nitrogen oxides and particles.
Release method: continuous and stable release.
Number of release outlets: 1.
Release standards: Emission Standard of Air Pollutants for Boilers in Chengdu — odor ≤ 20 mg/m
hydrogen sulfide ≤ 0.06 mg/m; ammonia ≤ 1.5 mg/m.
Boilers have been replaced with central heating; therefore, waste gas was not monitored. The waste
discharge permit only requires self-monitoring of odor concentration at facility boundaries, ammonia
concentration at facility boundaries and hydrogen sulfide concentration once per half a year. Random waste
gas emission at facility boundaries is subject to new construction and expansion standards of grade two in
Table 1 of Emission Standards for Odor Pollutants (GB14554-1993).
Release concentrations: odor 10 mg/m hydrogen sulfide 0.01 mg/m and ammonia 0.02 mg/m
Approved annual release amounts: No limits for sulfur dioxide, nitrogen oxides and particles.
(14) Tongwei (Hainan) Aquatic Products Co., Ltd.:
Major pollutants in the wastewater are COD, NH3-N, PH, total phosphorus and total nitrogen.
Release method: intermittent release.
Number of release outlets: 1.
Release standards: Standards of Connection to Wastewater Network of Old Downtown 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.
Release concentrations: COD 40.3 mg/l; NH3-N 2.98 mg/l; total nitrogen 13.6 mg/l; and total phosphorus
0.44 mg/l; all of which met the standards.
Approved annual release limits: No limits for COD, NH3-N, SS, total nitrogen, and total phosphorus.
2022 total release amounts: COD 18.61 tons, NH3-N 1.37 tons, total phosphorus 0.2 tons and total nitrogen
6.28 tons.
2. Construction and operation of pollution prevention and treatment facilities
"√ Applicable" "□ Not applicable"
Each of the Company’s key polluting units has constructed environmental protection facilities in
accordance with environmental assessment and regulatory requirements. During the reporting period, all
facilities operated normally, and environment staff performed periodical inspections and maintenance of the
facilities to ensure that pollutants were released in compliance with standards. Details are as below:
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:
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(1) Wastewater control facilities include domestic wastewater treatment device, multi-stage physiochemical
+ biochemical pre-treatment + two stage A/O wastewater treatment system, all of which operated normally;
(2) Waste gas control facilities include active carbon + low-temperature plasma treatment system,
reduction-based scrubber, acid-alkali scrubber, and combustion chamber, all of which operated normally.
Agriculture, Animal Husbandry and Food Business Group:
(1) Wastewater treatment measures: Septic tanks for domestic sewage, 2,500-ton sewage stations,
phosphorus removal and dosing facilities, sludge pressure filter systems, and online monitoring facilities
for sewage.
(2) Solid-waste facilities: temporary sludge storage room and temporary storage room of hazardous wastes,
all of which were managed subject to environmental protection requirements. Solid waste was transported
and disposed by qualified third parties.
3. Environmental impact assessments and other administrative permits on construction projects
"√ Applicable" "□ Not applicable"
Environmental impact assessments and other administrative permits on construction projects
undertaken by the Company during the reporting period:
Tongwei Solar:
(1) Jintang Solar: The Environmental Impact Environmental Assessment Report on the project on the
application of intelligent connected factory powered by efficient silicon-based solar cells with an annual
capacity of 7.5 GW was approved on June 15, 2020 by Chengdu Bureau of Ecology and Environment
(CHPS [2020] No.42), and the updated report was approved on June 28, 2021 by Chengdu Bureau of
Ecology and Environment (CHPS [2021] No.39); the environmental protection acceptance on completion
was issued on December 16, 2021 with the acceptance report made public on January 10, 2022. The
Environmental Impact Environmental Assessment Report on demonstration project for the application of
core technologies in domestic equipment for high-efficiency solar cells was approved on July 18, 2022 by
Chengdu Bureau of Ecology and Ministry (CHPS (committed) [2022] No. 24). The environmental
protection facilities for above projects have been designed, constructed, and developed in accordance with
environmental laws, regulations, and environmental impact assessment requirements. Currently, the
self-acceptance is underway. The pollutant release permit no: 91510121MA69DM7440001U;
(2) Tonghe Solar: The environmental impact assessments on Tonghe wafer slicing and solar cells projects
have been approved by Chengdu Bureau of Ecology and Environment, and the environmental protection
acceptance on completion was completed. The approval for solar cells project is CHPS (committed) [2021]
No.19; for wafer slicing project is CHPS (committed) [2021] No. 73. Self-acceptance was organized for
and successfully completed for the two projects on May 26, 2022. The pollutant release permit (No.
91510121MA662CJD4R001U) was obtained on December 13, 2021;
(3) Meishan Solar Cell: The Meishan phase III project on the application of homemade intelligent
equipment (system) powered by efficient silicon-based solar cells with an annual capacity of 7.5 GW was
registered with Meishan Development and Reform Commission on April 20, 2022 (CTZB
[2204-511400-04-01-940169]) with No. FGQB-0061. The environmental impact assessment on the project
was approved by Meishan Bureau of Ecology and Environment on December 23, 2022 (MSHJH [2022] No.
91).
Yongxiang:
(1) Sichuan Yongxiang New Energy Co., Ltd.: Environmental impact assessment on the phase I capacity
balance project was approved by Leshan Bureau of Ecology and Environment on May 30, 2022 (LSHP
[2022] No.18);
(2) Sichuan Yongxiang Energy Technology Co., Ltd.: Environmental impact assessment on the phase I
high-purity polysilicon project was approved by Leshan Bureau of Ecology and Environment on September
27, 2022 (LSHP [2022] No.34);
(3) Yunnan Tongwei high-purity polysilicon Company Limited: The pollutant release permit (No.
91530524MA6PEG4C47001V) for the phase I 50,000-ton high-purity polysilicon project was granted by
Baoshan Bureau of Ecology and Environment on March 18, 2022;
(4) The PVC and sodium hydroxide production in Yongxiang: the valid period of pollutant release permit
(No. 915111127446516660002L) was extended.
4. Environmental-related emergency response plans
"√ Applicable" "□ Not applicable"
In order to prevent and reduce environmental events, standardize the emergency management and
emergency response procedures of the Company for environmental emergencies, establish an emergency
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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 bureaus of ecology and environment. Registration numbers:
(1) Environmental Emergency Response Plan of Sichuan Yongxiang New Energy Co. Ltd. (511112 - 2022 -
018 - H);
(2) Environmental Emergency Response Plan of Yunnan Tongwei High-purity Crystalline Silicon Company
(530502 - 2022 - 01 - L);
(3) Environmental Emergency Response Plan of Sichuan Yongxiang New Materials Co., Ltd. (511112 -
2022 - 031);
(4) Environmental Emergency Response Plan of Tongwei Solar (Jintang) Co., Ltd. (510121 - 2023 - 011 -
H);
(5) Environmental Emergency Response Plan of Tongwei Solar (Chengdu) Co., Ltd. (510122 - 2022 - 1646
- M);
(6) Environmental Emergency Response Plan of Tonghe New Energy (Jintang) Co., Ltd. (510121 - 2022 -
082 - M);
5. Self-monitoring plans
"√ Applicable" "□ Not applicable"
Major subsidiaries have established safety and environment departments or management teams,
equipped with sufficient personnel and advanced monitoring equipment. Various methods such as real-time
monitoring by environmental monitoring equipment, regular manual monitoring, and third-party
monitoring ensure the compliance with environmental management requirements.
(1) Yongxiang:
It has established a safety and environment department. Online waste gas monitoring systems are set at
emission outlets of boilers and cement kilns and at main wastewater discharge outlets at each site. 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 environmental protection authorities in a real-time manner.
(2) Tongwei Solar:
It has established a safety and environment department supported by sufficient personnel and advanced
monitoring and detection instruments.
Online testing devices are installed at general wastewater discharge outlets to detect pollutants like COD,
NH3-N, PH and fluoride in a real-time manner, with detection data sent to the environmental protection
information platform on a regular basis. The wastewater treatment station is equipped with a wastewater
testing laboratory, where laboratory technicians conduct regular tests on various stages of wastewater
treatment to ensure that the discharged wastewater meets the required standards. In addition, the company
has developed an annual environmental monitoring plan. In accordance with the requirements of the
environmental impact assessment report and pollution discharge permit, third-party testing agencies are
commissioned to test the company’s exhaust gas, wastewater, noise, plant boundary exhaust gas,
groundwater and other environmental aspects.
(3) Agriculture, Animal Husbandry and Food Business Group:
The Company has developed a self-monitoring plan for the environment. Qualified third parties have been
commissioned to conduct quarterly tests on various indicators such as COD, pH, and suspended solids in
the wastewater, and issue testing reports accordingly, and conduct semi-annual tests on kitchen exhaust,
plant boundary exhaust gas, and noise levels, and issues testing reports accordingly. All online monitoring
instruments are connected to the environmental protection authorities, and all monitoring data is
transmitted in real-time to pollution source monitoring system of the authorities. Company has also
implemented manual monitoring. In accordance with regulatory standards, it commissions qualified
third-party testing agencies to conduct annual monitoring on exhaust gas and plant boundary noise, and
provides testing 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, and Xiamen Tongwei were fined for the facility-boundary odor and water pollutants
exceeding the limits. These are no significant penalties for environmental pollution. All corrective actions
were completed in the reporting period and no materially adverse impact was caused to the Company.
2. Other environmental disclosure with reference to key pollutant discharge units
"√ Applicable" "□ Not applicable"
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. 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 relating to protecting ecology, preventing pollution and fulfilling environmental
obligation
"√ 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.
In terms of air pollution prevention and control, the Company strictly complies with national
environmental protection standards such as Emission Standards for Odor Pollutants (GB14554-1993),
actively promotes special treatment of odor emissions, and conducts in-depth research on feed gas
treatment technologies. It adopts various measures, including internal recycling of waste gas, multiphase
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oxidation technology, and deep dust and fog removal technology. As a result, the organized emission of
odor after waste gas treatment is below 200, which is much lower than specified limit (GB14554-1993) of
2000. The treatment effect has reached the leading level in the industry.
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 actively drives 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.
The Company has set up an Energy Management Committee, and has created a three-level governance
structure where the board of directors makes decisions, the Energy Management Committee coordinates the
management, and Energy Management Working Groups execute tasks. This was to enhance the awareness
of ESG and sustainable development among all departments, improve the Company's ESG management
and steadily elevate the ESG governance system. The Company’s 2022 Environmental, Social and
Governance Report approved at the 10th meeting of the 8th board of directors and the 8th meeting of the
8th supervisory committee was disclosed on the website of Shanghai Stock Exchange and other appointed
media on April 25, 2023. The report has described the Company's practices and performances in economy,
environment, society and company governance over the year of 2022.
(IV). Emission reduction actions during the reporting period and the effect
Carbon reduction actions taken or not Yes
Carbon emission reduction (tCO2e) 8,248,455
Types of carbon reduction actions (such as During the reporting period, the Company achieved its
use clean energy for power generation, use carbon reduction targets through various measures such as
decarbonization technologies in production purchasing clean energy, actively developing photovoltaic
process and develop new products that help power generation, optimizing waste heat recovery and
reduce carbon footprint) upgrading equipment and processes.
Specific description
"√ Applicable" "□ Not applicable"
At the end of 2021, the Central Committee of the CPC issued the Working Guidance for Carbon
Dioxide Peaking and Carbon Neutrality in Full and Faithful Implementation of the New Development
Philosophy, which clearly requires the comprehensive green transformation of economic and social
development, the key to which is low-carbon development of energy. The Company, as a leading player in
the photovoltaic industry in China, is committed to becoming a global clean energy supplier and pursuing a
“dual development” path underpinned by green energy and green agriculture. It contributes to the
achievement of the country's dual-carbon goals, the development of a green economy, and the
transformation of the world's energy structure.
The Company is dedicated to ecological protection and actively responds to the national call for
carbon reduction. It established an Energy Management Committee at the end of 2021, and an Energy
Management Execution Working Group at the head office and Sustainability Supervision Teams at
branches and subsidiaries to coordinate the efforts into energy consumption management and emission
reduction. The Company will always be committed to the sustainable development of the whole society.
It is improving its overall work plan, direction, and objectives for achieving carbon emissions targets,
strengthening carbon emission management, optimizing and upgrading the clean energy supply system
through among others carbon offset, energy conservation, and carbon footprint certification, promoting
green transformation, establishing an image of green development, and achieving sustainable development.
The Company has measured and calculated the carbon emissions of its silicon material and solar cell over
their life cycles in accordance with the Environmental Management — Life Cycle Assessment —
Requirements and Guidelines and Greenhouse Gases — Carbon Footprint of Products — Requirements and
Guidelines for Quantification. It is an industry leader in terms of carbon footprint. The Yongxiang business
group has established a carbon asset management department which is responsible for ensuring the
implementation of Yongxiang carbon neutrality work plan, and the timely achievement of carbon neutrality
goals. The Company has successfully developed key technologies, such as large-scale energy-saving
reduction furnaces, energy efficiency cold hydrogenation, and high-efficiency coupled distillation through
independent research and development, and has created an internationally leading Yongxiang Method for
producing high-purity crystalline silicon. It has also implemented a by-product steam cascade utilization
technology which fully uses waste heat steam to replace gas boilers for steam supply, with continuous
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effort to upgrade, to solidly promote the quality and efficiency save energy and reduce carbon emissions for
the high-purity crystalline silicon production. In terms of solar cell production, the Company actively
develops photovoltaic power generation by deploying photovoltaic panels in factories to increase the use of
green energy, and upgrading production equipment and processes to achieve energy-saving and emission
reduction in multiple processes.
II. Social responsibility
(I). Whether or not separate disclosure of social responsibility report, sustainable development or
ESG report
"√ Applicable" "□ Not applicable"
Refer to the 2022 Environmental, Social and Governance Report of Tongwei Co., Ltd. disclosed on
http://www.sse.com.cn on April 25, 2023 for details.
(II). Social responsibility practices
"√ Applicable" "□ Not applicable"
Outward donations and public interest Amount/description Note
projects
Total investment (10,000 yuan) Donations to earthquake-stricken areas
5,788.98
and others
In which: cash (10,000 yuan) 5,639.85
In-kind donations (10,000 yuan) 149.13
Number of benefited persons /
Specific description
"√ Applicable" "□ Not applicable"
As a company with environmental, social, and corporate governance (ESG) into its DNAs, the
Company fully understand the benefits that the concept of sustainable development has brought, and is
aware that practicing ESG is the only way to become a world-class safe food supplier and world-class clean
energy operator. Therefore, it is firmly committed to deeply mainstreaming ESG into operations and
management.
The Company has developed a sustainable development strategy covers both internal and external
activities, based on the principles of building together, governing together, and sharing together. Focusing
on important ESG issues such as business ethics, environmental protection, human rights and labor, and
conflict minerals in the supply chain, the Company commits to self-reflection and self-improvement, while
also driving suppliers and partners to strive towards a sustainable future.
To manage its ESG practices, the Company has established a three-level “decision-making,
management, and execution” framework that includes the board of directors, energy management
committee, functional departments, and business groups. By fully leveraging the power of each level, it has
created a combined force for sustainable management, and comprehensively, systematically, and effectively
implements the philosophy of sustainable development.
In terms of working mechanisms, ESG work progress is reported to the board of directors and core
management, and ESG analysis, discussions, and training sessions are organized in departments and
business on a monthly basis. The company also keeps track of its progress and performance in ESG-related
work, and uses ESG reports as a tool to promote ESG management. The goal is to establish a long-term,
effective ESG management mechanism that covers all employees and processes.
In terms of performance management, the Company promotes linking key ESG performance
indicators with the performance of the heads of relevant business groups. Outstanding projects and
individuals are recognized and rewarded, while departments and individuals who fail to meet the evaluation
criteria are ineligible for participating in the selection of great projects and individuals for that year.
In terms of employee training, the Company incorporates ESG-related information into training
programs for management personnel, key business personnel, and frontline employees to enhance ESG
management capabilities across all business groups. In the reporting period, the Company held 10 ESG
thematic training sessions which covered over 300 participants.
In 2022, with total employee involvement in ESG, the Company achieved a year-on-year decrease of
19.69% in greenhouse gas emissions per million yuan revenue and a year-on-year increase of 113% in
clean energy power usage. It also participated in COP27 and contributed to the development of multiple
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carbon-related standards, actively practicing actions to address climate change. In terms of social
responsibility, the Company donated 50 million yuan to the Red Cross Society of Ya'an City and Ganzi
Prefecture through the Sichuan Guangcai Charity Promotion Association to support emergency relief,
transitional resettlement, and post-disaster reconstruction in the earthquake-stricken area in Luding,
fulfilling its social responsibilities. In terms of corporate governance, board members are selected based on
the principle of diversity, taking into account the Company's actual situation, business model, and
operational needs. As of the end of 2022, the share of female members in the board increased significantly,
reaching one third, compared to the previous year.
The Company is deeply aware of the need on our path to development. This is integrating the
Company's development with national expectations and social needs while achieving high-quality business
development. We uphold the purpose of pursuing excellence and dedicating to society, enhancing its
resilience against crises or uncertainties, and working together with all stakeholders to achieve a balanced
development of the Company, society, and environment, and create a sustainable future for the earth and
human society.
III. Work relating to poverty relief and rural revitalization
"√ Applicable" "□ Not applicable"
Poverty-alleviation and rural revitalization projects Amount/description Note
Total investment (10,000 yuan) 1,420.28
In which: cash (10,000 yuan) 1,418.78
In-kind donations (10,000 yuan) 1.50
Number of benefited persons /
Poverty relief forms (such as through industry development,
employment and education）
Specific description
"√ Applicable" "□ Not applicable"
Photovoltaic-based targeted poverty alleviation is a targeted and precise approach that combined 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 area of rural revitalization, Tongwei has pioneered the Aquaculture-Photovoltaic Integration
model by integrating photovoltaic power generation with modern organic fisheries. This innovative model
produces green energy on the water surface while cultivating green food under the water. Aligned with the
national strategy of rural revitalization, the Company has moderately introduced elements of rural tourism,
striving to create a "new fishery, new energy, and new rural" project that integrates the primary, secondary,
and tertiary industries perfectly.
The Company will continue to fulfill its corporate social responsibility, and combine photovoltaic
industry with Aquaculture-Photovoltaic Integration to continue the photovoltaic-based poverty alleviation.
It will build a sustainable and positive industry ecosystem with the unique characteristics of Tongwei,
promote local industrial development, improve the environment, and achieve efficient synergy between
industrial development and ecological improvement. The development of the photovoltaic industry can also
help address rural poverty in China, promote the construction of new rural areas and rural revitalization,
and contribute to achieving the goal of carbon neutrality.
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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 acquirers in or by the reporting period
"√ Applicable" "□ Not applicable"
Fulfilled
Fulfillment Specific
properly Next steps to
Commitment Commitment duration reasons for
Background Commitment party Time and duration and in correct the
type Content provided or non-fulfillment
time or non-fulfillment
not in time
not
Liu Hanyuan, Tongwei Group and entities
under their control do not have horizontal
competition with the target company. Liu
Hanyuan, Tongwei Group and entities under
their control will not conduct any operation
activity that is identical, similar to or competes
with the existing business or product of the
target company, including but not limited to
through creation of, investment into, purchase
of, merger of any domestic or overseas
Solve This commitment
Liu Hanyuan and company whose business and/or product is
horizontal remains valid and is No Yes Not applicable Not applicable
Tongwei Group identical or similar to that of the target
competition being fulfilled.
company, and will not generate any horizontal
competition of any kind in any form of
Commitments economic organization. Liu Hanyuan and
relating to Tongwei Group promise to properly fulfill the
restructuring said commitment, and will be liable for
of material damages under laws if the interests and rights
assets 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.
Liu Hanyuan, Tongwei Group and entities
under their control do not any related-party
transaction with the target company. After this
transaction, Liu Hanyuan, Tongwei Group and
Solve entities under their control will try every mean This commitment
Liu Hanyuan and
related-party to avoid or reduce related-party transactions remains valid and is No Yes Not applicable Not applicable
Tongwei Group
transactions with the target company; for any related-party being fulfilled.
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
75 / 241
2022 Annual Report
approval procedures will be completed under
applicable laws, regulations, provisions, listing
rules and other normative documents as well as
the articles of association of Tongwei; any
transaction with Tongwei and/or its subsidiaries
will be performed at the fair value, such
transactions will not be used to do anything that
is harmful to Tongwei and/or its subsidiaries;
the information disclosure obligation relating to
related-party transactions will be performed in
accordance with applicable laws, regulations,
listing rules and the articles of association of
Tongwei. Liu Hanyuan and Tongwei Group
promise to properly fulfill the said
commitment, and will be liable for damages
under laws if the interests and rights of
Tongwei or the target company are harmed due
to any breach of the said commitment by Liu
Hanyuan, Tongwei Group and/or any entity
under their control.
Liu Hanyuan and Tongwei Group will not harm
the independence of Tongwei due to this
restructuring, keep separated from Tongwei in
terms of assets, personnel, finance,
organizational structure and business, strictly
observe relevant provisions of the CSRC on
independence of listed companies, not use
Tongwei as guarantee in breach of provisions,
not occupy funds of Tongwei in breach of This commitment
Liu Hanyuan and
Others provisions, and maintain the independence of remains valid and is No Yes Not applicable Not applicable
Tongwei Group
Tongwei. This commitment will remain valid as being fulfilled.
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, This commitment
Others Tongwei Group funds or other resources of Tongwei; for any remains valid and is No Yes Not applicable Not applicable
funds transfer between Tongwei Group and being fulfilled.
Tongwei, Tongwei Group will strictly observe
76 / 241
2022 Annual Report
requirements in applicable laws and
regulations, administrative rules and the articles
of associations (including but not limited to
provisions on related-party transactions).
Tongwei Group will not and will procure its
affiliates not to by itself or together with, for
the behalf of any person, firm or entity develop,
operate or facilitate the operation of, participate
Solve This commitment
in, or be engaged in any business that causes or
horizontal Tongwei Group remains valid and is No Yes Not applicable Not applicable
may cause indirect or direct competition with
competition being fulfilled.
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.
Commitments Solve Liu Hanyuan and Guan Yamei will not invest This commitment
Liu Hanyuan,
relating to IPO horizontal into any company whose business is identical remains valid and is No Yes Not applicable Not applicable
Guan Yamei
competition or similar to the business of the Company. being fulfilled.
Tongwei Group will not occupy without
payment and/or use with payment the assets,
funds or other resources of Tongwei; for any
funds transfer between Tongwei Group and This commitment
Others Tongwei Group Tongwei, Tongwei Group will strictly observe remains valid and is No Yes Not applicable Not applicable
requirements in applicable laws and being fulfilled.
regulations, administrative rules and the articles
of associations (including but not limited to
provisions on related-party transactions).
Before using up the raised funds or within 36
months after the raised funds are in place, Before the raised
Commitments Tongwei shall not inject funds into similar funds are used up or
related to Others Tongwei Co., Ltd. financial services nor into Tongwei Agricultural within 36 months Yes Yes Not applicable Not applicable
refinancing Finance Guarantee Co., Ltd. (including capital after the raised
increase, borrowing, guarantee and other forms funds are in place.
of capital investment) shall not be allowed.
Tongwei employee
share plan “China
Life Asset
Management -
Commitments
Restricted Advantage Select Shares may not be transferred within 12 months May 21, 2021 to
related to share Yes Yes Not applicable Not applicable
shares 2110 since the completion of the purchase. May 20, 2022
incentive
Insurance-based
Asset Management
Product” and
“China Life Asset
77 / 241
2022 Annual Report
Management -
Advantage Select
2108
Insurance-based
Asset Management
Product”
Tongwei Co., Ltd.
Employee share
plans: China Life
Asset Management
Company Limited
- Dingkun
Advantage Select
2246 Insurance
Asset Management
Product, China
Life Asset
Management
Company Limited
- Dingkun
Advantage Select
2247 Insurance
Asset Management
Restricted Shares may not be transferred within 12 months July 06, 2022 to
Product, Dingkun Yes Yes Not applicable Not applicable
shares since the completion of the purchase. July 05, 2023
Advantage Select
2257 Insurance
Asset Management
Product, Dingkun
Advantage Select
2258 Insurance
Asset Management
Product, Dingkun
Advantage Select
2260 Insurance
Asset Management
Product, and
Dingkun
Advantage Select
2271 Insurance
Asset Management
Product
78 / 241
2022 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"
1. Changes in accounting estimates: On April 22, 2022, the 28th meeting of the 7th board of
directors and the 27th meeting of the 7th supervisory board were held, during which the Proposal on
Changes in Accounting Policies and Accounting Estimates was approved. Due to the accelerated
technological upgrading in the photovoltaic industry, the current depreciation period applied to machinery
and equipment used by the Company no longer properly reflects the actual usage status of fixed assets. In
order to more fairly reflect the financial status and operating results, and improve the quality of accounting
information, out of prudence, the Company has adjusted the depreciation period applied to machinery and
equipment in the solar cell and related processes from 10 years to 6 years, effective from January 1, 2022.
Changes in accounting estimates are accounted for using the prospective approach. This change will
not have any impact on the financial position and operating results of the Company for 2021 and prior
years, and therefore, there is no need for retrospective adjustments. However, the aforementioned
accounting estimate changes will increase the depreciation of fixed assets provided by the company for the
year 2022.
On September 22, 2022, the 4th meeting of the 8th board of directors and the 3th meeting of the 8th
supervisory committee were held, during which the Proposal on Changes in Accounting Estimates was
approved. Against the backdrop of global carbon neutrality, leveraging on the leading advantages in
high-purity polysilicon and solar cell areas, as well as the accumulated technology and market foundation
in solar modules over the years, the Company is aligned with national dual-carbon targets and industry
development trends, planning to make appropriate expansions in the module area, so as to further enhance
its overall competitiveness. Given that the Company has planned to expand its module business, in order to
provide assured after-sales service for module customers, the Company has intended to provide module
quality guarantee deposit at 1% of module sales revenue in accordance with the relevant provisions of
Accounting Standard for Business Enterprises No. 13 - Contingencies, and with reference to practices of
major peer companies.
The accounting estimate change involving the provision of quality warranty deposits is effective from
the date of approval by the board of directors, and there is no need to retrospectively adjust previously
disclosed financial statements. This change will not affect the financial condition and operating results of
the Company for previous years.
2. Changes in accounting policies: On December 13, 2022, the Ministry of Finance and the Ministry
of Emergency Management jointly issued the Management Measures for Workplace Safety Costs, which
79 / 241
2022 Annual Report
expanded the scope of application and revised some of the standards for providing safety costs for
companies.
This accounting policy change is concerned with the provision of workplace safety costs and selective
application of hedging accounting. The Company implemented the latest requirement on provision and use
of workplace safety costs from December 2022. The accounting policy change has no material effect on the
profit, total assets and net assets of the Company, and for which the prospective application is used. There
is no need to retrospectively adjust previously disclosed financial statements. This change will not affect
the financial condition and operating results of the Company for previous years.
(II). Analysis and note by the Company on reasons and effect of corrections of material accounting
errors
"□ Applicable" "√ Not applicable"
(III). Communication with former accounting firm
"□ Applicable" "√ Not applicable"
(IV). Other notes
"□ Applicable" "√ Not applicable"
VI. Engagement and dismissal of accounting firm
Unit: 10,000 Yuan Currency: CNY
Engaged
Name of domestic accounting firm Sichuan Huaxin (Group) CPA (Special General
Partnership)
Remuneration of domestic accounting firm 491
Audit period of domestic accounting firm 22
CPA names of domestic accounting firm Li Wulin, Tang Fangmo, and Xia Hongbo
Consecutive years of service provided by CPAs of 2 years by Li Wulin, 2 years by Tang Fangmo, and
domestic accounting firm 2 years by Xia Hongbo
Name Remuneration
Sichuan Huaxin (Group) CPA (Special
Internal control auditing firm 1.52 million yuan
General Partnership)
Sponsor China Securities Co., Ltd 8.4 million yuan
Note on engagement and dismissal of accounting firm
"√ Applicable" "□ Not applicable"
As approved by 2021 general meeting on May 16, 2022, the Company renewed the appointment of Sichuan
Huaxin to provide 2022 annual audit and internal control audit.
Note on change of accounting firm in the audit period
"□ Applicable" "√ Not applicable"
VII. Situations that cause suspension of trading risk
(I). Reasons for suspension of trading warning
"□ Applicable" "√ Not applicable"
(II). Proposed actions by the Company
"□ Applicable" "√ Not applicable"
(III). Situations and reasons for termination of trading
"□ Applicable" "√ Not applicable"
80 / 241
2022 Annual Report
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"
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"
81 / 241
2022 Annual Report
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"
82 / 241
2022 Annual Report
(II). Guarantee
"√Applicable" "□Not applicable"
Unit: 10,000 Yuan Currency: CNY
Outward guarantees by the Company (excluding guarantees for subsidiaries)
Relation Date Guarantee Relation
Guarantee Guarantee Guarantee Related-party
between Guaranteed Guaranteed (agreement Guarantee Collateral fulfilled Overdue with the
Guarantor the Maturity overdue Counter-guarantee guarantee or
guarantor and party amount execution type (if any) completely amount related
guarantee date or not not
the Company date) or not party
Tongwei
Agricultural Farmers Joint and
Wholly-owned January May 31,
Finance (rooftop 1,792.11 several No No 0.00 No
subsidiary 12, 2018 2028
Guarantee powerplants) guarantee
Co., Ltd.
Joint and
Tongwei Farmers and July 13, April 15,
Head office 5,400.00 several No No 0.00 No
Co., Ltd. dealers 2022 2023
guarantee
Tongwei
Agricultural Joint and
Wholly-owned Farmers and March 04, December
Finance 12,985.20 several No Yes 1,855.20 No
subsidiary dealers 2022 16, 2023
Guarantee guarantee
Co., Ltd.
Total guaranteed amount in the reporting period (excluding guarantees for subsidiaries) 55,670.46
Total balance of guaranteed amount at the end of the reporting period (A) (excluding guarantees for subsidiaries) 20,177.31
Guarantees by the Company and its subsidiaries for other subsidiaries
Total guaranteed amount for subsidiaries in the reporting period 634,722.54
Total guaranteed amount for subsidiaries at the end of the reporting period (B) 1,138,383.79
Total guaranteed amount by the Company (including guarantees for subsidiaries)
Total guaranteed amount (A+B) 1,158,561.10
Ratio of total guaranteed amount to net assets of the Company (%) 15.82%
Including:
Amount for shareholders, actual controller and its related parties (C) 0.00
Indirect or direct guaranteed amount for parties whose debt-ratio is over 70% (D) 418,776.78
Amount out of the total guaranteed amount that exceeds 50% of the net assets (E) 0.00
Total of the above three items (C+D+E) 418,776.78
Note on unexpired guarantees for which the Company may bear joint liability for repayment
Note on guarantees The overdue guaranteed amount means the unrecovered balance of
repayments made for behalf of the guaranteed parties at the end of the
reporting period
83 / 241
2022 Annual Report
(III). Entrusted cash management
1. Entrusted wealth management
(1) Overview of entrusted wealth management products
"√ Applicable" "□ Not applicable"
Unit: 10,000 Yuan Currency: CNY
type Sources of funds Amount change Balance not overdue Overdue amount
Structured deposits The Company's own funds 1,861,000.00 426,000.00
Others
"□ Applicable" "√ Not applicable"
(2) Individual entrusted wealth management products
"√ Applicable" "□ Not applicable"
Unit: 10,000 Yuan Currency: CNY
Amount of
Future
Annualized Expected Statuary provision
Source of How to Actual entrusted
Purpose of rate of return Actual procedure for
Trustee Type Amount Start date End date funds determine gain wealth
funds return (If any) recovery completed impairment
method or loss management
or not reserve (if
plan or not
any)
“Furong
The
Bank of Chengdu Keji Jincheng” Entity March 10, March 30, Structured Floating
100,000.00 Company's 3.55% 197.22 100,000.00 Yes
Branch Structured 2022 2022 deposits income
own funds
Deposit
Ping An Bank
Business
Structured
Chongqing Branch, The
Deposit (100% March 11, June 13, Structured Floating
Ping An Bank Co., 20,000.00 Company's 3.25% 167.40 20,000.00 Yes
principal 2022 2022 deposits income
Ltd. own funds
protection and
link to exchange
rate)
CBC Yuntong
Wealth
Chengdu Xin’du
Fixed-term The
Sub-branch, Bank of March 16, May 23, Structured Floating
Structured 20,000.00 Company's 3.4% 126.68 20,000.00 Yes
Communications Co., 2022 2022 deposits income
Deposit 68 Days own funds
Ltd.
(bullish and
linked to gold)
CBC Yuntong
Wealth
Chengdu Xin’du
Fixed-term The
Sub-branch, Bank of March 16, April 25, Structured Floating
Structured 100,000.00 Company's 3.4% 372.60 100,000.00 Yes
Communications Co., 2022 2022 deposits income
Deposit 40 Days own funds
Ltd.
(bullish and
linked to gold)
Chengdu Branch, Liduoduo 20,000.00 March 11, April 11, The Structured Floating 3.09% 51.50 20,000.00 Yes
84 / 241
2022 Annual Report
Shanghai Pudong Corporate Stable 2022 2022 Company's deposits income
Development Bank Rate 22JG6293 own funds
(bullish on
three-level) CNY
Business
Structured
Deposit
Gongying Zhixin
Chengdu Donghu Exchange
The
Sub-branch, China Rate-linked CNY March 16, June 16, Structured Floating
50,000.00 Company's 3.10% 390.68 50,000.00 Yes
CITIC Bank Structured 2022 2022 deposits income
own funds
Corporation Ltd. Deposit 08872
Series
ICBC Exchange
Rate-linked
Range
Chengdu Chunxi Accumulative
The
Sub-branch, Industrial Corporate CNY March 17, July 07, Structured Floating
50,000.00 Company's 1.72% 264.41 50,000.00 Yes
and Commercial Bank Structured 2022 2022 deposits income
own funds
of China Deposit - Special
Account Series
102 Type C 2022
(112 Days)
Juying Exchange
Chengdu Branch, Rate-linked
The
China Minsheng USD/JPY March 25, June 24, Structured Floating
30,000.00 Company's 3.15% 235.42 30,000.00 Yes
Banking Corporation Structured 2022 2022 deposits income
own funds
Ltd. Deposit
(SDGA220070Z)
Tianli Short-term
Chengdu Branch, The
Net Wealth March 30, April 01, Fixed-income Floating
Industrial Bank Co., 110,000.00 Company's 3.09% 18.87 110,000.00 Yes
Management 2022 2022 assets income
Ltd. own funds
Product
“Furong
The
Bank of Chengdu Keji Jincheng” Entity April 01, June 10, Structured Floating
100,000.00 Company's 3.61% 701.94 100,000.00 Yes
Branch Structured 2022 2022 deposits income
own funds
Deposit
Linked
Chengdu Shuangnan Structured The
April 14, July 15, Structured Floating
Sub-branch, Bank of Deposit 5,500.00 Company's 1.50% 20.79 5,500.00 Yes
2022 2022 deposits income
China Ltd. (Institutional own funds
Client)
Linked
Chengdu Shuangnan Structured The
April 14, July 15, Structured Floating
Sub-branch, Bank of Deposit 4,500.00 Company's 3.43% 38.90 4,500.00 Yes
2022 2022 deposits income
China Ltd. (Institutional own funds
Client)
Liduoduo
Corporate Stable
Chengdu Branch, The
Rate 22JG6479 April 18, May 18, Structured Floating
Shanghai Pudong 20,000.00 Company's 3.25% 54.17 20,000.00 Yes
(bullish on 2022 2022 deposits income
Development Bank own funds
three-level) CNY
Business
85 / 241
2022 Annual Report
Structured
Deposit
Industrial Bank
Chengdu Branch, The
Business Finance April 20, May 20, Structured Floating
Industrial Bank Co., 30,000.00 Company's 2.98% 73.48 30,000.00 Yes
CNY Structure 2022 2022 deposits income
Ltd. own funds
Deposit
CBC Yuntong
Wealth
Chengdu Xin’du
Fixed-term The
Sub-branch, Bank of April 28, June 06, Structured Floating
Structured 70,000.00 Company's 3.30% 246.82 70,000.00 Yes
Communications Co., 2022 2022 deposits income
Deposit 39 Days own funds
Ltd.
(bullish and
linked to gold)
Juying Exchange
Chengdu Branch,
Rate-linked The
China Minsheng April 28, May 30, Structured Floating
USD/JPY 20,000.00 Company's 3.20% 56.11 20,000.00 Yes
Banking Corporation 2022 2022 deposits income
Structured own funds
Ltd.
Deposit
Liduoduo
Corporate Stable
Rate 22JG6888
Chengdu Branch, The
(bullish on May 05, June 06, Structured Floating
Shanghai Pudong 50,000.00 Company's 3.29% 146.39 50,000.00 Yes
three-level) CNY 2022 2022 deposits income
Development Bank own funds
Business
Structured
Deposit
Industrial Bank
Golden Snow
Chengdu Branch, Ball Stable Rate The
May 17, November Fixed-income Floating
Industrial Bank Co., Series 1 Type B 5,000.00 Company's 2.70% 69.04 5,000.00 Yes
2022 17, 2022 assets income
Ltd. Net Wealth own funds
Management
Product
ICBC Exchange
Rate-linked
Range
Chengdu Chunxi
Accumulative The
Sub-branch, Industrial June 06, December Structured Floating
Corporate CNY 25,000.00 Company's 2.70% 381.30 25,000.00 Yes
and Commercial Bank 2022 29, 2022 deposits income
Structured own funds
of China
Deposit - Special
Account Series
205 Type C 2022
Ping An Trust
Chengdu
Fixed Income The
Majiahuayuan Office, June 08, July 08, Fixed-income Floating
Connect No. 5,000.00 Company's 4.25% 17.70 5,000.00 Yes
China Securities Co., 2022 2022 assets income
1M-8 Collective own funds
Ltd.
Investment Trust
Chengdu Chunxi ICBC Series 3
The Transferable
Sub-branch, Industrial 2022 Certificates June 06, June 05, Floating
30,000.00 Company's certificates of 3.25% Yes
and Commercial Bank of Deposit for 2022 2023 income
own funds deposit
of China Corporate Client
Chengdu Chunxi ICBC Exchange June 13, December The Structured Floating
40,000.00 3.27% 714.15 40,000.00 Yes
Sub-branch, Industrial Rate-linked 2022 29, 2022 Company's deposits income
86 / 241
2022 Annual Report
and Commercial Bank Range own funds
of China Accumulative
Corporate CNY
Structured
Deposit - Special
Account Series
214 Type L 2022
“Furong
The
Bank of Chengdu Keji Jincheng” Entity June 10, September Structured Floating
100,000.00 Company's 3.36% 910.43 100,000.00 Yes
Branch Structured 2022 10, 2022 deposits income
own funds
Deposit
CBC Yuntong
Wealth
Chengdu Xin’du
Fixed-term The
Sub-branch, Bank of June 15, December Structured Floating
Structured 30,000.00 Company's 3.25% 480.82 30,000.00 Yes
Communications Co., 2022 12, 2022 deposits income
Deposit 180 own funds
Ltd.
Days (bullish and
linked to gold)
CBC Yuntong
Wealth
Chengdu Xin’du
Fixed-term The
Sub-branch, Bank of June 15, January 17, Structured Floating
Structured 40,000.00 Company's 1.85%/3.3% Yes
Communications Co., 2022 2023 deposits income
Deposit 216 own funds
Ltd.
Days (bullish and
linked to gold)
Ping An Trust
Chengdu
Fixed Income The
Majiahuayuan Office, June 17, December Fixed-income Floating
Connect No. 10,000.00 Company's 0.19% 9.58 10,000.00 Yes
China Securities Co., 2022 20, 2022 assets income
6M-31 Collective own funds
Ltd.
Investment Trust
Gongying Zhixin
Chengdu Donghu Exchange
The
Sub-branch, China Rate-linked CNY June 17, July 18, Structured Floating
50,000.00 Company's 3.10% 131.64 50,000.00 Yes
CITIC Bank Structured 2022 2022 deposits income
own funds
Corporation Ltd. Deposit 10199
Series
“Furong
The
Bank of Chengdu Keji Jincheng” Entity June 20, September Structured Floating
30,000.00 Company's 3.60% 276.00 30,000.00 Yes
Branch Structured 2022 20, 2022 deposits income
own funds
Deposit
Liduoduo
Corporate Stable
Rate 22JG7156
Chengdu Branch, The
(bearish on June 24, September Structured Floating
Shanghai Pudong 60,000.00 Company's 3.25% 487.50 60,000.00 Yes
three-level) CNY 2022 23, 2022 deposits income
Development Bank own funds
Business
Structured
Deposit
Juying Exchange
Chengdu Branch,
Rate-linked The
China Minsheng July 21, October 21, Structured Floating
Yield-to-Maturity 35,000.00 Company's 2.63% 232.43 35,000.00 Yes
Banking Corporation 2022 2022 deposits income
of 10Y own funds
Ltd.
Government
87 / 241
2022 Annual Report
Bonds Structured
Deposit
(SDGA220494Z)
Ping An Trust
Chengdu
Fixed Income The
Majiahuayuan Office, July 23, October 24, Fixed-income Floating
Connect No. 3,000.00 Company's 4.08% 30.57 3,000.00 Yes
China Securities Co., 2022 2022 assets income
1M-9 Collective own funds
Ltd.
Investment Trust
Liduoduo
Corporate Stable
Rate 22JG7413
Chengdu Branch, The
(bullish on July 26, October 25, Structured Floating
Shanghai Pudong 30,000.00 Company's 3.08% 233.63 30,000.00 Yes
three-level) CNY 2022 2022 deposits income
Development Bank own funds
Business
Structured
Deposit
Gongying Zhixin
Chengdu Donghu Exchange
The
Sub-branch, China Rate-linked CNY July 25, October 25, Structured Floating
50,000.00 Company's 3.5% 441.10 50,000.00 Yes
CITIC Bank Structured 2022 2022 deposits income
own funds
Corporation Ltd. Deposit 10837
Series
Ping An Trust
Chengdu
Fixed Income The
Majiahuayuan Office, August November Fixed-income Floating
Connect No. 2,000.00 Company's 3.44% 18.17 2,000.00 Yes
China Securities Co., 15, 2022 15, 2022 assets income
3M-31 Collective own funds
Ltd.
Investment Trust
“Furong
The
Bank of Chengdu Keji Jincheng” Entity September December Structured Floating
100,000.00 Company's 3.55% 897.36 100,000.00 Yes
Branch Structured 19, 2022 19, 2022 deposits income
own funds
Deposit
Liduoduo
Corporate Stable
Rate 22JG7766
Chengdu Branch, The
(bullish on September December Structured Floating
Shanghai Pudong 60,000.00 Company's 3.30% 495.00 60,000.00 Yes
three-level) CNY 26, 2022 26, 2022 deposits income
Development Bank own funds
Business
Structured
Deposit
Liduoduo
Corporate Stable
Rate 22JG7968
Chengdu Branch, The
(bearish on October January 30, Structured Floating
Shanghai Pudong 50,000.00 Company's 1.3%/3.1%/3.3% Yes
three-level) CNY 31, 2022 2023 deposits income
Development Bank own funds
Business
Structured
Deposit
Gongying Zhixin
Chengdu Donghu Exchange
The
Sub-branch, China Rate-linked CNY November January 30, Structured Floating
30,000.00 Company's 1.3%/2.95%/3.35% Yes
CITIC Bank Structured 01, 2022 2023 deposits income
own funds
Corporation Ltd. Deposit 12284
Series
88 / 241
2022 Annual Report
Changjiang Asset Redemption
Management depending
Fujian Branch, The
Yueyueying No.1 November on the Fixed-income Floating
Changjiang Securities 1,000.00 Company's 0%-3.2% Yes
Collective Asset 14, 2022 product's assets income
Co., Ltd. own funds
Management operation
Plan status
Industrial Bank
Golden Snow
Chengdu Branch, Ball Stable Rate The
November May 16, Fixed-income Floating
Industrial Bank Co., Series 1 Type B 15,000.00 Company's 0%-3.8% Yes
16, 2022 2023 assets income
Ltd. Net Wealth own funds
Management
Product
Industrial Bank
Golden Snow
Chengdu Branch, Ball Stable Rate The
November August 16, Fixed-income Floating
Industrial Bank Co., Series 1 Type G 10,000.00 Company's 0%-3.8% Yes
16, 2022 2023 assets income
Ltd. Net Wealth own funds
Management
Product
CBC Yuntong
Wealth
Chengdu Xin’du
Fixed-term The
Sub-branch, Bank of December May 10, Structured Floating
Structured 50,000.00 Company's 1.75%-3.2% Yes
Communications Co., 01, 2022 2023 deposits income
Deposit 160 own funds
Ltd.
Days (bullish and
linked to gold)
“Furong
The
Bank of Chengdu Keji Jincheng” Entity December March 14, Structured Floating
30,000.00 Company's 1.54%-3.50% Yes
Branch Structured 13, 2022 2023 deposits income
own funds
Deposit
“Furong
The
Bank of Chengdu Keji Jincheng” Entity December March 20, Structured Floating
100,000.00 Company's 1.54%-3.50% Yes
Branch Structured 19, 2022 2023 deposits income
own funds
Deposit
“Furong
The
Bank of Chengdu Keji Jincheng” Entity December March 28, Structured Floating
60,000.00 Company's 1.54%-3.45% Yes
Branch Structured 27, 2022 2023 deposits income
own funds
Deposit
Bank of Chengdu
“Furong
Jincheng” 3M
The
Bank of Chengdu Keji No.6 Fixed-Term December April 13, Fixed-income Floating
10,000.00 Company's 0%-3.95% Yes
Branch Open CNY Net 29, 2022 2023 assets income
own funds
Wealth
Management
Product
Others
"□ Applicable" "√ Not applicable"
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2022 Annual Report
(3) Impairment reserve for entrusted wealth management
"□ Applicable" "√ Not applicable"
2. Entrusted loans
(1) Overview of entrusted loans
"□ Applicable" "√ Not applicable"
Others
"□ Applicable" "√ Not applicable"
(2) Individual entrusted loans
"□ Applicable" "√ Not applicable"
Others
"□ Applicable" "√ Not applicable"
(3) Impairment reserve for entrusted loans
"□ Applicable" "√ Not applicable"
3. Others
"□ Applicable" "√ Not applicable"
(IV). Other material contracts
"□ Applicable" "√ Not applicable"
XIV. Notes on material matters that have significant impact on value judgment and investment decisions of investors
"□ Applicable" "√ Not applicable"
Section VII. Share Changes and Shareholders
I. Change in share capital
(I). Share changes
1. Share changes
Unit: share
Before the change Change (+, -) After the change
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2022 Annual Report
Capital reserve
Percent New Bonus Percent
Number converted to Others Sub-total Number
(%) issue issue (%)
shares
I. Restricted shares
1. Shares held by the state
2. Shares held by the state-owned legal entities
3. Shares held by other domestic investors
Including shares held by domestic investors
other than state-owned legal entities
Shares held by domestic natural persons
4. Shares held by overseas investors
Including shares held by overseas legal entities
Shares held by overseas natural persons
II. Floating shares 4,501,548,184 100 0 0 0 397,913 397,913 4,501,946,097 100
1. CNY common shares 4,501,548,184 100 0 0 0 397,913 397,913 4,501,946,097 100
2. Foreign shares listed in Chinese mainland
3. Foreign shares listed outside Chinese
mainland
4. Others
III. Total shares 4,501,548,184 100 0 0 0 397,913 397,913 4,501,946,097 100
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2022 Annual Report
2. Notes on share changes
"√ Applicable" "□ Not applicable"
On February 24, 2022, the Company issued convertible bonds (“Tong22 Convertible Bonds”) which
entered the conversion period on September 2, 2022. As of December 31, 2022, a total of 397,913 shares
had been converted, and the total share capital of the Company increased from 4,501,548,184 shares to
4,501,946,097 shares.
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"
During the reporting period, due to the conversion of convertible bonds into shares, the total share
capital of the Company increased from 4,501,548,184 shares to 4,501,946,097 shares. This share capital
change resulted in the dilution of earnings per share and net assets per share attributable to the listed
company in 2022.
4. Other disclosures the Company thinks necessary or required by the CSRC
"□ Applicable" "√ Not applicable"
(II). Change in restricted shares
"□ Applicable" "√ Not applicable"
II. Issuance and listing of securities
(I). Issuance in reporting period
"√ Applicable" "□ Not applicable"
Unit: share Currency: CNY
Approved
Type of stock and its
Issue price (or Issue quantity to Transaction
derivative Issue date Listing date
interest rate) size trade on end date
securities
market
Convertible bonds, detachable convertible bonds
0.20% in the 1st
year, 0.40% in the
2nd year, 0.60%
in the 3rd year, 120
Tong22 Convertible February 24, March 18, 120 million February
1.50% in the 4th million
Bonds 2022 2022 units 23, 2028
year, 1.80% in the units
5th year, and
2.00% in the 6th
year
Note on issuance of securities in the reporting period (bonds with different interest rates and within the
duration should be specified individually):
"√ Applicable" "□ Not applicable"
Approved by the CSRC in the 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. The duration of these convertible bonds is 6 years from February 24, 2022
to February 23, 2028, the coupon rate is 0.20% in the 1st year, 0.40% in the 2nd year, 0.60% in the 3rd year,
1.50% in the 4th year, 1.80% in the 5th year, and 2.00% in the 6th year. One interest payment is made on
Tong22 Convertible Bonds each year, and the value date is the first day of the issuance (i.e., February 24,
2022). Convertible bonds converted into shares before (including) the record date for creditors are not
entitled to interest for the current and subsequent interest calculation years.
According to the relevant provisions of the Listing Rules of the Shanghai Stock Exchange and the
provisions of the Prospectus for the Public Offering of Convertible Bonds by Tongwei Co., Ltd., the
Tong22 Convertible Bonds issued by the Company can be converted into shares from September 2, 2022.
The initial conversion price of Tong22 Convertible Bonds was 39.27 yuan per share, and the latest price is
38.36 yuan per share.
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2022 Annual Report
(II). Changes in total shares and shareholding structure and change in the asset-liability structure
"√ Applicable" "□ Not applicable"
In the reporting period, the Company had a total of 4,501,946,097 shares, an increase of 397,913 shares.
As of the end of the reporting period, Tongwei Group, the controlling shareholder, held 43.85% of shares in
the Company.
As of the end of the reporting period, the total assets were 145.244 billion yuan and total liabilities were
71.999 billion yuan for a L/A ratio of 49.57%.
(III). Current employee shares
"□ Applicable" "√ Not applicable"
III. Shareholders and actual controller
(I). Total shareholders
Total common shareholders at the end of the reporting period 358,703
Total common shareholders at the end of the month prior to the
421,656
disclosure date of annual report
Total preference shareholders at the end of the reporting period 0
Total preference shareholders with voting rights restored at the end
0
of the month prior to the disclosure date of annual report
93 / 241
2022 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
Change in the Pledge, mark or freeze
Shareholder name Percent Restricted Shareholder
reporting Closing shares
(Full name) (%) shares Status Number type
period
Domestic
investor other
Tongwei Group Co., Ltd. 0 1,974,022,515 43.85 0 Pledged 437,000,000 than
state-owned
legal entities
Hong Kong Securities Clearing Company Ltd. 3,892,227 261,994,907 5.82 0 None. Unknown
China Life Asset Management Company Limited -
Bank of China - China Life Asset - Advantage Select 0 52,099,840 1.16 0 None. Unknown
2108 Insurance Asset Management Fund
National Social Security Fund 110 Combination 20,241,336 42,366,732 0.94 0 None. Unknown
Yang Lin 14,111,700 32,552,100 0.72 0 None. Unknown
Bank of China - Huatai PineBridge Investments
Zhongzheng PV Industry Trade Open-ended Index 2,452,761 27,013,213 0.60 0 None. Unknown
Investment Fund
CMB - Ruiyuan Growth Value Mixed Investment
16,974,788 24,668,900 0.55 0 None. Unknown
Fund
China Life Asset Management Company Limited -
Industrial Bank of China - China Life Asset -
0 24,400,000 0.54 0 None. Unknown
Advantage Select 2110 Insurance Asset Management
Fund
Dacheng Fund - Huaneng Trust Jiayue No.7 Fund
Trust - Dacheng Fund Excellence No. 2 Single Asset -264,400 22,815,914 0.51 0 None. Unknown
Management Plan
China Life Asset Management Company Limited -
CGB - China Life Asset - Dingkun Advantage Select 21,707,578 21,707,578 0.48 0 None. Unknown
2258 Insurance Asset Management Product
Top ten shareholders without restricted shares
Type and number of shares
Shareholder name Floating shares
Type Number
Tongwei Group Co., Ltd. 1,974,022,515 CNY common share 1,974,022,515
Hong Kong Securities Clearing Company Ltd. 261,994,907 CNY common share 261,994,907
China Life Asset Management Company Limited - Bank of China - China Life Asset - Advantage Select 2108 Insurance
52,099,840 CNY common share 52,099,840
Asset Management Fund
National Social Security Fund 110 Combination 42,366,732 CNY common share 42,366,732
Yang Lin 32,552,100 CNY common share 32,552,100
Bank of China - Huatai PineBridge Investments Zhongzheng PV Industry Trade Open-ended Index Investment Fund 27,013,213 CNY common share 27,013,213
CMB - Ruiyuan Growth Value Mixed Investment Fund 24,668,900 CNY common share 24,668,900
94 / 241
2022 Annual Report
China Life Asset Management Company Limited - Industrial Bank of China - China Life Asset - Advantage Select 2110
24,400,000 CNY common share 24,400,000
Insurance Asset Management Fund
Dacheng Fund - Huaneng Trust Jiayue No.7 Fund Trust - Dacheng Fund Excellence No. 2 Single Asset Management Plan 22,815,914 CNY common share 22,815,914
China Life Asset Management Company Limited - CGB - China Life Asset - Dingkun Advantage Select 2258 Insurance
21,707,578 CNY common share 21,707,578
Asset Management Product
Note on application for special repurchase accounts among top ten shareholders Not applicable
Note on delegation of voting rights to or by, or wavier of voting rights by the said shareholders Not applicable
No relationship exists between Tongwei Group and any of the other shareholders. China Life Asset Management - Bank of China-
China Life Asset - Advantage Select 2108 Insurance Asset Management Product, China Life Asset Management - Industrial Bank of
Note on the said shareholders’ relationship or acting in
China - China Life Asset - Advantage Select 2110 Insurance Asset Management Product, and China Life Asset Management Company
concert
Limited - CGB - China Life Asset - Dingkun Advantage Select 2258 Insurance Asset Management Product are created for employee
share plan and they act in concert. Whether or not other shareholders have relationships or act in concert is not known.
Note on preference shareholders with voting rights
Not applicable
restored and number of shares they hold
Number of restricted shares held by top ten restricted shareholders and the restrictions
"□ Applicable" "√ Not applicable"
95 / 241
2022 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 entity
"√ Applicable" "□ Not applicable"
Name Tongwei Group Co., Ltd.
Person in charge or legal
Guan Yamei
representative
Date of incorporation October 14, 1996
Wholesale and retail of goods; livestock husbandry; services for
promoting and applying technologies; services for software and
information technology; development and operation of real
Main businesses
properties; property management; lease; advertising; PV
generation (excluding items requiring prior licenses; items
requiring post licenses are subject to licenses or approvals)
Other companies listed within or
outside Chinese mainland that held
None.
shares in the Company in the
reporting period
Other notes None.
2 Natural person
"□ Applicable" "√ Not applicable"
3 Special note on the fact that the Company has no controlling shareholder
"□ Applicable" "√ Not applicable"
4 Note on change of controlling shareholder in the reporting period
"□ Applicable" "√ Not applicable"
5 Box diagram specifying the ownership and control relationship between the Company and its
controlling shareholder
"√ Applicable" "□ Not applicable"
(II). Actual controller
1 Legal entity
"□ Applicable" "√ Not applicable"
96 / 241
2022 Annual Report
2 Natural person
"√ Applicable" "□ Not applicable"
Name Liu Hanyuan
Nationality China
Residence right in another country/region No
Chair of the board of directors of Tongwei Group,
member of the 8th board of directors of the
Company, member of the 11th Standing Committee
Main professions and titles of the CPPCC National Committee, deputy to the
NPC, vice-chair of Standing Committee of
All-China Federation of Industry and Commerce,
executive chair of CNECC, and others
Listed companies within and outside Chinese
mainland controlled by the actual controller in 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"
6 Actual controller controls the Company via trust or other asset management approaches
"□ Applicable" "√ Not applicable"
(III). Other information about the controlling shareholder and actual controller
"□ Applicable" "√ Not applicable"
V. The cumulative shares pledged by controlling shareholder or the largest shareholders and their
persons acting in concert account for over 80% of the total shares they hold
"□ Applicable" "√ Not applicable"
VI. Other legal entities holding over ten percent of the total shares
"□ Applicable" "√ Not applicable"
97 / 241
2022 Annual Report
VII. Note on restricting sale of shares
"□ Applicable" "√ Not applicable"
VIII.Specific implementation of share repurchases in the reporting period
"□ Applicable" "√ Not applicable"
Section VIII. Preference Shares
"□ Applicable" "√ Not applicable"
Section IX. Bonds
I. Enterprise bonds, company bonds and non-financial enterprise debt-financing instruments
"√ Applicable" "□ Not applicable"
(I). Enterprise bonds
"□ Applicable" "√ Not applicable"
(II). Company bonds
"□ Applicable" "√ Not applicable"
(III). Non-financial enterprise debt-financing instruments in inter-bank bond market
"√Applicable" "□Not applicable"
1. Basic information on non-financial enterprise debt-financing instruments
Unit: 100 million yuan Currency: CNY
Investor
Balance Interest Risk of
Short Issue Value Maturity Payment Trading appropriateness Trading
Bond name Code of rate termination
name date date date method venue arrangement (if mechanism
bonds (%) of trading
any)
Transactions
are concluded
with
counterparties
Installment
trade by trade
2020 interest
China over the
Middle-Term 20 June June payments
June 19, Interbank counter
Note Series Tongwei 102001216 17, 19, 1.45 3.20 and None. No
2023 Bond through the
1 of Tongwei MTN001 2020 2020 principal
Market CNY trading
Co., Ltd. repaid on
system in
maturity
China
Foreign
Exchange
Trade System
Transactions
are concluded
with
counterparties
2022 Super Interest is
trade by trade
& paid
China over the
Short-term 22Tongwei May June together
November Interbank counter
Commercial SCP001 12281990 31, 02, 0.00 2.50 with the None. No
29, 2022 Bond through the
Paper Series (green) 2022 2022 principal
Market CNY trading
1 of Tongwei in full at
system in
Co., Ltd. maturity.
China
Foreign
Exchange
Trade System
Response actions against risk of termination of trading
"□ Applicable" "√ Not applicable"
Overdue bonds
"□ Applicable" "√ Not applicable"
98 / 241
2022 Annual Report
Interest payment and principal repayment on bonds in the reporting period
"√ Applicable" "□ Not applicable"
Bond name Note on interest payment and
principal repayment
2020 Middle-Term Note Series 1 of Tongwei Co., Ltd. Interest paid normally
2022 Green Super & Short-term Commercial Paper Series 1 of Tongwei Co.,
Paid
Ltd.
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
Signatory
Intermediary name Office location Contact Telephone
accountants
Zheng Yarong, Lei
Postal Savings Bank No. 3 Jinrong Street, Xicheng 010-68857443
Lufan, and Li
of China Co., Ltd. District, Beijing 010-68857440
Jiejuan
9/F, Building B and E, Kaiheng Li Puhai, Pu Fei,
China Securities Co.,
Center, No. 2 Chaonei Street, Yang Junwei and 028-68850820
Ltd
Dongcheng District, Beijing Wen Bingyi
Industrial Bank Building, No.
Industrial Bank Co., Li Jie, and Fan
398 Middle Jiangbin Avenue, 028-84179143
Ltd. Weikai
Taijiang District, Fuzhou, Fujian
China Minsheng Minsheng Bank Building, No. 2
Shuchang, and
Banking Corporation Fuxingmen Inner Street, Xicheng 010-58560666
Yang Xi
Ltd. District, Beijing
40/F, Building A, Caifu Center,
Beijing Jindu Law Liu Rong and Lu
No.7, Middle Third-Ring Road, 028-86203818
Firm Yong
Chaoyang District, Beijing
Sichuan Huaxin 28/F, Jinmao Lidu South, No. 18 Li Wulin, Tang
(Group) CPA (Special Ximianqiao Street, Chengdu, Fangmo, and Zhang Lan 028-85560449
General Partnership) Sichuan Xia Hongbo
7/F, Building D, Zhaoshang
CCIX Credit Rating International Financial Center, Yu Qian and Liu
010-66428877
Co., Ltd. No. 156 Fuxingmen Inner Street, Qing
Xicheng District, Beijing
33-34/F, Oriental Financial
Shanghai Clearing Xie Chenyan and 021-23198708
Plaza, No. 318 South Zhongshan
House Chen Gongrong 021-23198682
Road, Shanghai
Beijing Financial No. 17 Jinrong Street Yi, 010-57896722
Issue Department
Assets Exchange Xicheng District, Beijing 010-57896516
Changes in the above intermediaries
"□ Applicable" "√ Not applicable"
4. Use of raised funds at the end of the reporting period
"□ Applicable" "√ Not applicable"
Progress and benefits of construction projects where the raised funds were used
"□ Applicable" "√ Not applicable"
Note on changes in the said purposes of funds raised through bond issuing
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
99 / 241
2022 Annual Report
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 for
Major indicators 2022 2021 Change YoY (%)
change
Net profit net of non-recurring gain
and loss attributable to shareholders of 26,547,373,729.76 8,387,692,913.89 216.50
the listed company
Current ratio 2.08 1.01 105.94
Quick ratio 1.77 0.81 118.52
L/A ratio (%) 49.57 53.01 -3.44 ppts
EBITDA/Total debt 1.42 0.75 89.33
Interest coverage ratio 30.99 14.07 120.26
Cash coverage ratio 80.13 21.72 268.92
EBITDA coverage 36.43 19.96 82.52
Repayment ratio (%) 100.00 100.00 0.00
Interest repayment ratio (%) 100.00 100.00 0.00
II. Convertible bonds
"√ Applicable" "□ Not applicable"
(I). Offering of convertible bonds
"√ Applicable" "□ Not applicable"
On February 21, 2022, proposals including the Proposal on Clarifying the Plan for Public Offering
A-share Convertible Bonds were approved at the 24th meeting of the 7th board of directors where matters
relating to the offering of convertible bonds were discussed and decided. On February 24, 2022, the
Company publicly issued convertible bonds of 12 billion yuan (“Tong22 Convertible 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. The funds raised net of issuing fee will be used for the renovation project for the
100 / 241
2022 Annual Report
manufacturing of PV silicon materials (Yongxiang New Energy's Phase II 50,000-ton High-purity
Polysilicon Project), for the manufacturing project of PV silicon materials (Inner Mongolia Tongwei’s
Phase II 50,000-ton High-purity Polysilicon Project), the 15 GW monocrystalline Rod Pulling and Cutting
Project as well as for supplementing current funds.
On March 7, 2022, the registration and custody procedures for “Tong22 Convertible Bond” were
completed in CSDC Shanghai. On March 18, 2022, “Tong22 Convertible Bond” was listed in the bond
market. According to the relevant provisions of the Listing Rules of the Shanghai Stock Exchange and the
provisions of the Prospectus for the Public Offering of Convertible Bonds by Tongwei Co., Ltd., the
Tong22 Convertible Bonds issued by the Company can be converted into shares from September 2, 2022.
The initial conversion price of Tong22 Convertible Bonds was 39.27 yuan per share, and the latest price is
38.36 yuan per share.
(II). Convertible bond holders and guarantors in the reporting period
"√Applicable" "□Not applicable"
Name of convertible bond Tong22 Convertible Bonds
Number of holders at the period-end 67,178
Guarantor of the Company's convertible bonds None.
Top ten holders of convertible bonds:
Bonds held at the end of Bond holding
Convertible bonds holders
the period (yuan) percent (%)
Tongwei Group Co., Ltd. 3,251,080,000 27.13
Haitong Securities Asset Management - CITIC Bank - Haitong Asset
Management Ruifeng Huicheng No. 3 Collective Asset Management 809,690,000 6.76
Plan
ICBC - Boshi Credit Bond Investment Fund 192,892,000 1.61
CMB - Ruiyuan Wenjin Allocation 2Y Mixed Security Investment
190,226,000 1.59
Fund
Happy Life Insurance Co., Ltd. - Distribution 153,343,000 1.28
CNPC Business Annuity Plan - ICBC 126,208,000 1.05
Fuguo Fuyi Aggressive Fixed Income Pension Product - ICBC 125,841,000 1.05
China Construction Bank - E-Fund Dual-bond Enhanced Bond
122,285,000 1.02
Investment Fund
E-Fund Anxin Fixed Income Pension Product - ICBC 114,610,000 0.96
Ping An Bank - Changxin Convertible Bond Investment Fund 113,367,000 0.95
(III). Changes in convertible bonds in the reporting period
"□ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change
Bond name Before the change Converted to After the change
Redemption Sell back
share capital
Tong22
Convertible 12,000,000,000.00 15,270,000.00 11,984,730,000.00
Bonds
Cumulative conversion to shares in the reporting period
"√Applicable" "□Not applicable"
Name of convertible bond Tong22 Convertible Bonds
Amount converted in the reporting period (yuan) 15,270,000.00
Shares converted in the reporting period 397,913
Accumulated shares converted 397,913
Ratio of accumulated shares converted to the total shares issued by the Company
0.00884
before the conversion (%)
Amount that has not converted (yuan) 11,984,730,000.00
Ratio of balance convertible bonds to total convertible bonds issued (%) 99.87275
(IV). Adjustments of conversion prices
"√Applicable" "□Not applicable"
101 / 241
2022 Annual Report
Unit: Yuan Currency: CNY
Name of convertible bond Tong22 Convertible Bonds
Conversion price
Adjustment date Disclosure date Disclosure media Remarks
after adjustment
China Securities
The Company paid cash
Journal, Shanghai
distribution of 9.12 yuan
May 30, 2022 38.36 yuan/share May 31, 2022 Securities News,
for per 10 shares
Securities Daily,
(including tax)
and STCN
The latest conversion price as of the end of
38.36 yuan/share
the reporting period
(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.
II. Financial Statements
Consolidated balance sheet
December 31, 2022
Prepared by: Tongwei Co., Ltd.
Unit: Yuan Currency: CNY
December 31, December 31,
Item Notes
2022 2021
Current assets:
Cash at bank and on hand 36,841,572,130.01 3,001,930,882.38
Settlement provisions
Lending to banks and other financial institutions
Held-for-trading financial assets 4,298,524,475.70 10,617,668.58
Derivative financial assets
Notes receivable 2,450,913,663.89 1,576,925,682.02
Accounts receivable 4,501,362,630.14 2,915,527,149.08
Receivables financing 13,066,496,368.98 11,406,947,347.71
Prepayments 1,487,172,992.72 1,606,545,040.83
Premium receivable
Reinsurance receivable
Reinsurance contract reserve receivable
Other receivables 477,514,347.63 611,985,134.57
Including: Interest receivable
Dividend receivable
Buy-back of financial assets
Inventories 11,002,649,108.38 5,682,791,568.04
Contract assets 597,931,195.59 715,103,024.30
Assets held for sale
Non-current assets due within one year
Other current assets 786,407,734.06 1,220,643,137.83
Total current assets 75,510,544,647.10 28,749,016,635.34
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2022 Annual Report
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 390,587,150.21 455,798,325.58
Other equity investments 154,196,557.28 153,551,598.71
Other non-current financial assets 3,146,248.25 3,146,248.25
Investment properties 107,712,227.79 112,342,965.02
Fixed assets 53,291,968,869.20 36,958,671,998.09
Construction in progress 3,997,396,999.92 10,610,819,753.03
Productive biological assets 9,069,395.61 3,637,671.91
Oil and gas assets
Right-of-use assets 4,063,421,131.88 4,376,242,263.30
Intangible assets 2,455,828,500.38 2,410,841,890.16
R&D cost
Goodwill 603,006,493.02 746,573,277.73
Deferred expenses 359,564,900.07 261,810,537.42
Deferred tax assets 1,593,765,733.23 612,117,399.13
Other non-current assets 2,703,584,777.25 2,440,626,665.32
Total non-current assets 69,733,248,984.09 59,146,180,593.65
Total assets 145,243,793,631.19 87,895,197,228.99
Current liabilities:
Short-term borrowings 87,767,124.22 1,375,230,141.70
Borrowings from central bank
Borrowings from banks and other financial
institutions
Held-for-trading financial liabilities 64,351,114.48
Derivative financial liabilities
Notes payable 8,851,423,365.95 9,957,923,070.67
Accounts payable 11,018,161,537.30 8,151,270,076.21
Advances from customers 36,467,894.64 102,259,825.29
Contract liabilities 5,405,872,108.61 3,112,027,804.79
Sale of financial assets to be repurchased
Inward deposits
Payments from sale and purchase of securities on
behalf of customers
Payments from underwriting securities on behalf
of customers
Employee benefits payable 3,141,064,588.92 1,388,757,870.41
Taxes payable 2,974,081,003.57 815,986,908.56
Other payables 2,142,680,307.16 761,620,932.59
Including: Interest payable
Dividend payable
Service charge and commission payable
Reinsurance receivable
Liabilities held for sale
Non-current liabilities due within one year 2,212,098,569.45 2,487,029,263.29
Other current liabilities 423,380,299.96 207,540,516.40
Total current liabilities 36,357,347,914.26 28,359,646,409.91
Non-current liabilities:
Reinsurance contract reserve
Long-term borrowings 15,409,335,995.67 11,441,029,860.16
Bonds payable 10,276,944,561.67 410,493,072.19
Including: preference share
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2022 Annual Report
Perpetual bond
Lease liabilities 2,906,711,682.49 2,500,641,465.80
Long-term payables 974,391,127.03 1,648,303,239.69
Long-term employee benefits payable 3,805,815,900.20 649,891,600.00
Estimated liabilities 177,993,077.06
Deferred income 867,530,196.50 900,673,699.85
Deferred tax liability 1,222,489,360.55 682,712,636.40
Other non-current liabilities
Total non-current liabilities 35,641,211,901.17 18,233,745,574.09
Total liabilities 71,998,559,815.43 46,593,391,984.00
Owners’ equity (or shareholders' equity)
Paid-up capital (or share capital) 4,501,946,097.00 4,501,548,184.00
Other equity instruments 1,965,085,659.43
Including: Preference share
Perpetual bond
Capital reserve 16,144,302,399.09 16,107,859,721.40
Less: Treasury shares
Other comprehensive income -108,859,803.29 -82,307,403.96
Special reserve 33,751,973.14 15,918,034.03
Surplus reserve 2,407,355,585.45 1,414,948,005.57
General risk reserve
Undistributed profit 35,853,681,478.39 15,225,053,765.81
Total equity attributable to owners or
60,797,263,389.21 37,183,020,306.85
shareholders of parent company
Minority interest 12,447,970,426.55 4,118,784,938.14
Total owners’ equity (or shareholders' equity) 73,245,233,815.76 41,301,805,244.99
Total liabilities and owners’ equity (or
145,243,793,631.19 87,895,197,228.99
shareholders' equity)
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
Parent balance sheet
December 31, 2022
Prepared by: Tongwei Co., Ltd.
Unit: Yuan Currency: CNY
December 31,
Item Notes December 31, 2022
2021
Current assets:
Cash at bank and on hand 34,996,954,215.09 1,970,060,333.61
Held-for-trading financial assets 4,290,735,647.46
Derivative financial assets
Notes receivable
Accounts receivable 40,695,659.25
Receivables financing 36,154,999.85 109,493,387.71
Prepayments 4,363,885.53 108,614,897.08
Other receivables 22,391,469,716.10 20,560,977,497.02
Including: Interest receivable
Dividend receivable
Inventories 14,343,230.10 261,237,746.52
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 338,226.78 2,541,944.34
Total current assets 61,734,359,920.91 23,053,621,465.53
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2022 Annual Report
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 4,441,414,203.45 3,779,357,407.99
Long-term equity investments 21,181,430,718.04 17,409,956,118.46
Other equity investments 154,196,557.28 153,551,598.71
Other non-current financial assets
Investment properties 35,202,472.92 36,946,716.47
Fixed assets 41,873,569.27 318,040,343.39
Construction in progress 9,222,801.67 32,573,013.72
Productive biological assets
Oil and gas assets
Right-of-use assets 95,863,377.40 186,547,779.55
Intangible assets 9,611,894.35 59,947,661.65
R&D cost
Goodwill
Deferred expenses 9,951,422.32 28,608,471.43
Deferred tax assets 11,881.09 1,718,240.52
Other non-current assets 629,339.86
Total non-current assets 25,979,408,237.65 22,007,247,351.89
Total assets 87,713,768,158.56 45,060,868,817.42
Current liabilities:
Short-term borrowings 1,000,952,777.78
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 100,599,628.21 210,000,000.00
Accounts payable 2,668,604.48 192,746,374.17
Advances from customers 980,272.02
Contract liabilities 133,018,997.22
Employee benefits payable 134,030,997.42 75,932,124.36
Taxes payable 11,295,059.26 6,854,246.18
Other payables 30,293,482,060.86 7,261,257,606.36
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one year 686,154,965.70 180,364,861.73
Other current liabilities 500.83
Total current liabilities 31,228,231,315.93 9,062,107,760.65
Non-current liabilities:
Long-term borrowings 6,675,680,000.00 4,066,980,000.00
Bonds payable 10,276,944,561.67 410,493,072.19
Including: Preference share
Perpetual bond
Lease liabilities 97,681,720.48 175,574,283.65
Long-term payables 875,898,885.36 875,898,885.36
Long-term employee benefits payable 328,435,130.02 37,740,000.00
Estimated liabilities
Deferred income
Deferred tax liability
Other non-current liabilities
Total non-current liabilities 18,254,640,297.53 5,566,686,241.20
Total liabilities 49,482,871,613.46 14,628,794,001.85
Owners’ equity (or shareholders' equity)
Paid-up capital (or share capital) 4,501,946,097.00 4,501,548,184.00
Other equity instruments 1,965,085,659.43
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2022 Annual Report
Including: preference share
Perpetual bond
Capital reserve 17,097,876,701.86 17,082,993,947.39
Less: Treasury shares
Other comprehensive income 6,914,433.08 7,122,885.47
Special reserve
Surplus reserve 2,407,355,585.45 1,414,948,005.57
Undistributed profit 12,251,718,068.28 7,425,461,793.14
Total owners’ equity (or shareholders' equity) 38,230,896,545.10 30,432,074,815.57
Total liabilities and owners’ equity (or
87,713,768,158.56 45,060,868,817.42
shareholders' equity)
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
Consolidated Profit Statement
Jan to Dec, 2022
Unit: Yuan Currency: CNY
Item Notes 2022 2021
I. Total operating revenue 142,422,517,994.99 64,829,996,083.91
Including: Operating revenue 142,422,517,994.99 64,829,996,083.91
Interest income
Earned premium
Service charge and commission income
II. Total operating cost 100,427,612,658.05 54,191,904,775.91
Including: Operating cost 88,059,961,179.23 48,382,829,594.08
Interest expense
Service charge and commission expense
Cash surrender value
Net claims
Net appropriation of claims reserve
Policy dividend expense
Reinsurance expense
Tax and surcharge 911,375,125.67 275,955,240.38
Sales expense 1,434,770,892.87 919,009,792.93
Management expense 7,867,914,704.37 2,951,233,971.46
R&D cost 1,464,443,543.84 1,025,715,488.68
Financial expense 689,147,212.07 637,160,688.38
Including: Interest expense 1,184,822,793.36 680,586,204.87
Interest income 458,574,423.96 111,780,056.77
Add: Other income 397,490,494.89 359,499,729.72
Investment gain or loss (“-” for loss) -421,003,980.91 42,536,586.67
Including: Gains or losses from investments
-62,827,359.84 -14,159,521.52
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 (“-” for
-36,444,307.36 5,754,600.46
loss)
Credit impairment loss (“-” for loss) -135,768,734.15 -123,656,047.25
Asset impairment loss (“-” for loss) -2,211,875,357.07 -129,121,084.08
Gain or loss from disposal of assets (“-” for
-13,438,161.21 -78,230,632.51
loss)
III. Operating profit (“-” for loss) 39,573,865,291.13 10,714,874,461.01
Add: Non-operating revenue 31,419,391.34 19,939,910.39
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2022 Annual Report
Less: Non-operating expense 1,266,474,529.33 464,366,862.21
IV: Total profit (“-” for loss) 38,338,810,153.14 10,270,447,509.19
Less: Income tax expense 5,965,924,612.33 1,648,944,454.00
V. Net profit (“-” for net loss) 32,372,885,540.81 8,621,503,055.19
(I) By continuation
1. Going Concern profit (“-” for net loss) 32,372,885,540.81 8,621,503,055.19
2. Discontinuation profit (“-” for net loss)
(II) By ownership attribution
1. Net profit attributable to shareholders of the
25,726,447,236.27 8,109,125,091.40
parent company (“-” for net loss)
2. Gain or loss to minority shareholders (“-” for
6,646,438,304.54 512,377,963.79
net loss)
VI. Other comprehensive income after tax -25,773,410.24 -8,662,660.90
(I) Other comprehensive income after tax
-26,552,399.33 -8,393,182.24
attributable to owners of the parent company
1. Other comprehensive income that cannot be
644,958.57 106,497.86
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 investments 644,958.57 106,497.86
(4) Change in fair value of the Company's own
credit risk
2. Other comprehensive income that will be -27,197,357.90 -8,499,680.10
reclassified into profit or loss
(1) Other comprehensive income that can be -1,120,566.26 259,086.76
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 -26,076,791.64 -8,758,766.86
(7) Others
(II) Other comprehensive income after tax
778,989.09 -269,478.66
attributable to minatory shareholders
VII. Total other comprehensive income 32,347,112,130.57 8,612,840,394.29
(I) Total other comprehensive income attributable to
25,699,894,836.94 8,100,731,909.16
owners of the parent company
(II) Total other comprehensive income attributable
6,647,217,293.63 512,108,485.13
to minatory shareholders
VIII. Earnings per share:
(I) Basic earnings per share (yuan/share) 5.7149 1.8014
(II) Diluted earnings per share (yuan/share) 5.4889 1.8014
The net income realized by the acquired business before business combinations under common control is 0
yuan, the net income realized by the acquired business in the previous period is 0 yuan.
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
Parent profit statement
Jan to Dec, 2022
Unit: Yuan Currency: CNY
Item Notes 2022 2021
I. Operating revenue 3,367,210,659.32 4,745,062,369.13
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2022 Annual Report
Less: Operating cost 2,981,184,608.14 4,138,074,509.01
Tax and surcharge 8,347,289.08 9,442,554.93
Sales expense 95,730,597.83 136,155,655.40
Management expense 590,606,402.95 284,114,028.78
R&D cost 129,328,520.57 123,549,069.00
Financial expense 308,179,111.19 43,467,537.55
Including: Interest expense 1,052,683,104.01 346,428,748.95
Interest income 851,330,246.98 313,377,278.23
Add: Other income 18,601,098.59 15,780,831.45
Investment gain or loss (“-” for loss) 10,806,401,329.43 5,126,983,146.04
Including: Gains or losses from investments into
1,006,754.59 -10,820,494.85
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
30,735,647.46
loss)
Credit impairment loss (“-” for loss) -56,886,334.13 -233,666,771.33
Asset impairment loss (“-” for loss) -86,073,100.00 -24,020,900.00
Gain or loss from disposal of assets (“-” for loss) 3,953,723.06 373,738.64
II. Operating profit (“-” for loss) 9,970,566,493.97 4,895,709,059.26
Add: Non-operating revenue 3,981,779.45 3,088,115.30
Less: Non-operating expense 50,998,355.60 2,648,476.27
III. Total profit (“-” for loss) 9,923,549,917.82 4,896,148,698.29
Less: Income tax expense -525,881.01 -107,732.97
IV. Net profit (“-” for net loss) 9,924,075,798.83 4,896,256,431.26
(I) Net going concern profit (“-” for net loss) 9,924,075,798.83 4,896,256,431.26
(II) Net discontinuation profit (“-” for net loss)
V. Other comprehensive income after tax -208,452.39 365,584.62
(I) Other comprehensive income that cannot be
644,958.57 106,497.86
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 investments 644,958.57 106,497.86
4. Change in fair value of the Company's own credit
risk
(II) Other comprehensive income that will be
-853,410.96 259,086.76
reclassified into profit or loss
1. Other comprehensive income that can be
-853,410.96 259,086.76
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 9,923,867,346.44 4,896,622,015.88
VII. Earnings per share:
(I) Basic earnings per share (yuan/share)
(II) Diluted earnings per share (yuan/share)
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
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2022 Annual Report
Consolidated cash flow statement
Jan to Dec, 2022
Unit: Yuan Currency: CNY
Item Notes 2022 2021
I. Cash flow generated from operating activities:
Cash received from sales of goods and rendering of
129,778,869,793.04 57,872,243,385.87
services
Net increase in customer deposits and interbank
deposits
Net increase in borrowings from central bank
Net increase in borrowings from other financial
institutions
Cash received from premium receipts for original
insurance contracts
Net cash received from re-insurance service
Net increase in deposits and investments from
policyholders
Cash received from interest, service charge and
commission
Net increase in borrowings from others
Net increase in repo service
Net cash received from sale and purchase of
securities on behalf of customers
Tax refunds received 3,233,928,616.99 590,036,800.90
Other cash received relating to operating activities 1,667,360,720.28 1,174,476,733.25
Subtotal of cash inflows from operating activities 134,680,159,130.31 59,636,756,920.02
Cash paid for purchase of goods and services 72,510,726,290.58 46,141,587,117.16
Net increase in customer loans and advances
Net increase in deposits in central bank and other
banks
Cash paid for claims of original insurance contracts
Net increase in lending to other banks
Cash paid for interest, service charge and
commission
Cash paid for policy dividend
Cash paid to and for employees 5,677,680,301.33 3,196,053,127.99
Taxes paid 11,250,865,083.20 1,796,494,444.14
Other cash paid relating to operating activities 1,422,977,823.50 1,028,228,797.40
Subtotal of cash outflows from operating
90,862,249,498.61 52,162,363,486.69
activities
Net cash flow generated from operating
43,817,909,631.70 7,474,393,433.33
activities
II. Cash flow generated from investing activities:
Cash received due to recovery of investments 15,351,122,402.01 4,833,376,932.32
Cash received from investment income 90,168,401.31 123,201,544.94
Net cash recovered from disposal of fixed assets,
32,745,081.47 123,667,405.09
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries and
1,225,758.29
other operations
Other cash received relating to investing activities 702,279,499.81 467,644,949.90
Subtotal of cash inflows from investing activities 16,176,315,384.60 5,549,116,590.54
Cash paid for acquisition or construction of fixed
15,217,915,448.02 13,831,244,643.76
assets, intangible assets and other long-term assets
Cash paid for investments 21,257,542,308.85 3,398,650,423.15
Net increase in pledge loans
Net cash paid by subsidiaries and other operations 1,259,384,961.47
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2022 Annual Report
Other cash paid relating to investing activities 507,009,192.23 506,985,472.09
Subtotal of cash outflows from investing
36,982,466,949.10 18,996,265,500.47
activities
Net cash flow generated from investing
-20,806,151,564.50 -13,447,148,909.93
activities
III. Cash flow generated from financing activities:
Cash received from investors 2,032,310,000.00 2,731,415,000.00
Including: Cash received by subsidiaries from
2,032,310,000.00 2,731,415,000.00
minority shareholders
Cash received from borrowings 24,315,537,980.34 13,172,158,951.98
Other cash received relating to financing activities 457,955,650.47 343,181,178.57
Subtotal of cash inflows from financing activities 26,805,803,630.81 16,246,755,130.55
Cash paid for debt repayment 9,946,780,729.20 9,310,054,630.44
Cash paid for dividend or profit distribution, or
5,058,764,723.29 1,726,682,632.19
interest payment
Including: Dividend and profit paid by subsidiaries
352,297,232.96 217,972,571.50
to minority shareholders
Other cash paid relating to financing activities 2,553,984,080.73 2,308,373,440.84
Subtotal of cash outflows from financing
17,559,529,533.22 13,345,110,703.47
activities
Net cash flow generated from financing
9,246,274,097.59 2,901,644,427.08
activities
IV. Effect of exchange rate changes on cash and
32,930,746.69 -11,852,850.31
cash equivalents
V. Net increase in cash and cash equivalents 32,290,962,911.48 -3,082,963,899.83
Add: Opening cash and cash equivalents 2,903,078,719.63 5,986,042,619.46
VI. Closing cash and cash equivalents 35,194,041,631.11 2,903,078,719.63
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
Parent cash flow statement
Jan to Dec, 2022
Unit: Yuan Currency: CNY
Item Notes 2022 2021
I. Cash flow generated from operating activities:
Cash received from sales of goods and rendering of
3,340,807,926.80 4,719,527,304.66
services
Tax refunds received
Other cash received relating to operating activities 503,273,895.96 119,239,810.87
Subtotal of cash inflows from operating activities 3,844,081,822.76 4,838,767,115.53
Cash paid for purchase of goods and services 2,992,277,754.28 4,170,583,130.41
Cash paid to and for employees 278,171,429.61 335,195,029.61
Taxes paid 10,497,939.50 11,870,127.73
Other cash paid relating to operating activities 223,948,983.50 212,211,511.38
Subtotal of cash outflows from operating activities 3,504,896,106.89 4,729,859,799.13
Net cash flow generated from operating activities 339,185,715.87 108,907,316.40
II. Cash flow generated from investing activities:
Cash received due to recovery of investments 14,539,599,013.42 4,665,314,477.11
Cash received from investment income 10,871,381,001.31 5,075,416,248.29
Net cash recovered from disposal of fixed assets,
13,541,176.21 2,789,338.88
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries and
other operations
Other cash received relating to investing activities 816,474.70
Subtotal of cash inflows from investing activities 25,424,521,190.94 9,744,336,538.98
Cash paid for acquisition or construction of fixed 21,513,848.16 110,423,219.68
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2022 Annual Report
assets, intangible assets and other long-term assets
Cash paid for investments 23,556,047,295.90 6,697,701,017.73
Net cash paid by subsidiaries and other operations
Other cash paid relating to investing activities 855,177.47
Subtotal of cash outflows from investing activities 23,578,416,321.53 6,808,124,237.41
Net cash flow generated from investing activities 1,846,104,869.41 2,936,212,301.57
III. Cash flow generated from financing activities:
Cash received from investors
Cash received from borrowings 19,835,576,945.97 5,490,022,450.94
Other cash received relating to financing activities 23,008,374,092.93 3,228,660,151.11
Subtotal of cash inflows from financing activities 42,843,951,038.90 8,718,682,602.05
Cash paid for debt repayment 6,217,188,719.97 5,927,154,780.94
Cash paid for dividend or profit distribution, or
4,334,627,138.79 1,317,238,048.86
interest payment
Other cash paid relating to financing activities 3,065,756,083.26 7,989,717,459.15
Subtotal of cash outflows from financing activities 13,617,571,942.02 15,234,110,288.95
Net cash flow generated from financing
29,226,379,096.88 -6,515,427,686.90
activities
IV. Effect of exchange rate changes on cash and cash
299,949.33 74,502.26
equivalents
V. Net increase in cash and cash equivalents 31,411,969,631.49 -3,470,233,566.67
Add: Opening cash and cash equivalents 1,959,806,333.61 5,430,039,900.28
VI. Closing cash and cash equivalents 33,371,775,965.10 1,959,806,333.61
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
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2022 Annual Report
Consolidated statement of owner's equity
Jan to Dec, 2022
Unit: Yuan Currency: CNY
2022
Equity attributable to owners of parent company
Item Total owner’s
Minority interest
Other equity instruments Less: Other General equity
Paid-up capital Undistributed
Capital reserve Treasury comprehensive Special reserve Surplus reserve risk Others Sub-total
(or share capital) Preference Perpetual Others profit
share bond shares income reserve
I. Closing balance of the
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
previous year
Add: Changes in
-319,550,651.51 -319,550,651.51 -35,244,241.66 -354,794,893.17
accounting policies
Correction of
previous errors
Business
combination under
common control
Others
II. Opening balance of
4,501,548,184.00 16,107,859,721.40 -82,307,403.96 15,918,034.03 1,414,948,005.57 15,225,053,765.81 37,183,020,306.85 4,118,784,938.14 41,301,805,244.99
the current year
III. Change in current
397,913.00 - - 1,965,085,659.43 36,442,677.69 - -26,552,399.33 17,833,939.11 992,407,579.88 20,628,627,712.58 - 23,614,243,082.36 8,329,185,488.41 31,943,428,570.77
period (“-” for decrease)
(I) Total comprehensive
-26,552,399.33 25,726,447,236.27 25,699,894,836.94 6,647,217,293.63 32,347,112,130.57
income
(II) Capital invested and
397,913.00 1,965,085,659.43 15,050,495.92 1,980,534,068.35 2,032,310,000.00 4,012,844,068.35
decreased by owners
1. Common shares
2,032,310,000.00 2,032,310,000.00
invested by owners
2. Capital invested by
holders of other equity 397,913.00 1,965,085,659.43 15,050,495.92 1,980,534,068.35 1,980,534,068.35
instruments
3. Amount of share
payment recorded into
owner's equity
4. Others
(III) Profit distribution 992,407,579.88 -5,097,819,523.69 -4,105,411,943.81 -352,297,232.96 -4,457,709,176.77
1. Withdrawal from
992,407,579.88 -992,407,579.88
surplus reserve
2. Withdrawal from
general risk reserve
3. Distribution to owners
-4,105,411,943.81 -4,105,411,943.81 -352,297,232.96 -4,457,709,176.77
(or shareholders)
4. Others
(IV) Internal carryover of
owner's equity
1. Capital reserve
converted to capital (or
share capital)
2. Surplus reserve
converted to capital (or
share capital)
112 / 241
2022 Annual Report
3. Surplus reserve offset
loss
4. Change in defined
benefit plan converted to
retained earnings
5. Other comprehensive
income converted to
retained earnings
6. Others
(V) Special reserve 17,833,939.11 17,833,939.11 8,458,633.63 26,292,572.74
1. Withdrawal in the
140,169,711.16 140,169,711.16 24,864,389.98 165,034,101.14
current period
2. Use in the current
122,335,772.05 122,335,772.05 16,405,756.35 138,741,528.40
period
(VI) Others 21,392,181.77 21,392,181.77 -6,503,205.89 14,888,975.88
IV. Closing balance of the
4,501,946,097.00 - - 1,965,085,659.43 16,144,302,399.09 - -108,859,803.29 33,751,973.14 2,407,355,585.45 35,853,681,478.39 60,797,263,389.21 12,447,970,426.55 73,245,233,815.76
current period
2021
Equity attributable to owners of parent company
Item Less: Other General Total owner’s
Paid-up capital Other equity instruments Undistributed Minority interest
Capital reserve Treasury comprehensive Special reserve Surplus reserve risk Others Sub-total equity
(or share capital) Preference Perpetual Others profit
share bond shares income reserve
I. Closing balance of the
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
previous year
Add: Changes in
-375,926,424.61 -375,926,424.61 -17,567,039.46 -393,493,464.07
accounting policies
Correction of
previous errors
Business
combination under
common control
Others
II. Opening balance of the
4,501,548,184.00 16,105,693,787.44 -73,914,221.72 16,401,063.07 925,322,362.44 8,690,427,429.89 30,165,478,605.12 984,974,241.00 31,150,452,846.12
current year
III. Change in current
2,165,933.96 -8,393,182.24 -483,029.04 489,625,643.13 6,534,626,335.92 7,017,541,701.73 3,133,810,697.14 10,151,352,398.87
period (“-” for decrease)
(I) Total comprehensive
-8,393,182.24 8,109,125,091.40 8,100,731,909.16 512,108,485.13 8,612,840,394.29
income
(II) Capital invested and
2,731,415,000.00 2,731,415,000.00
decreased by owners
1. Common shares
2,731,415,000.00 2,731,415,000.00
invested by owners
2. Capital invested by
holders of other equity
instruments
3. Amount of share
payment recorded into
owner's equity
4. Others
(III) Profit distribution 489,625,643.13 -1,574,498,755.48 -1,084,873,112.35 -217,972,571.50 -1,302,845,683.85
1. Withdrawal from
489,625,643.13 -489,625,643.13
surplus reserve
2. Withdrawal from
general risk reserve
3. Distribution to owners
-1,084,873,112.35 -1,084,873,112.35 -217,972,571.50 -1,302,845,683.85
(or shareholders)
113 / 241
2022 Annual Report
4. Others
(IV) Internal carryover of
owner's equity
1. Capital reserve
converted to capital (or
share capital)
2. Surplus reserve
converted to capital (or
share capital)
3. Surplus reserve offset
loss
4. Change in defined
benefit plan converted to
retained earnings
5. Other comprehensive
income converted to
retained earnings
6. Others
(V) Special reserve -483,029.04 -483,029.04 -483,029.04
1. Withdrawal in the
67,672,255.14 67,672,255.14 67,672,255.14
current period
2. Use in the current
68,155,284.18 68,155,284.18 68,155,284.18
period
(VI) Others 2,165,933.96 2,165,933.96 108,259,783.51 110,425,717.47
IV. Closing balance of the
4,501,548,184.00 16,107,859,721.40 -82,307,403.96 15,918,034.03 1,414,948,005.57 15,225,053,765.81 37,183,020,306.85 4,118,784,938.14 41,301,805,244.99
current period
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin Head of Accounting Department: Gan Lu
Parent statement of owner's equity
Jan to Dec, 2022
Unit: Yuan Currency: CNY
2022
Other equity instruments Less: Other
Item Paid-up capital (or Special Undistributed
Capital reserve Treasury comprehensive Surplus reserve Total owner’s equity
share capital) Preference Perpetual reserve profit
Others shares income
share bond
I. Closing balance of the previous year 4,501,548,184.00 17,082,993,947.39 7,122,885.47 1,414,948,005.57 7,425,461,793.14 30,432,074,815.57
Add: Changes in accounting policies
Correction of previous errors
Others
II. Opening balance of the current year 4,501,548,184.00 17,082,993,947.39 7,122,885.47 1,414,948,005.57 7,425,461,793.14 30,432,074,815.57
III. Change in current period (“-” for decrease) 397,913.00 1,965,085,659.43 14,882,754.47 -208,452.39 992,407,579.88 4,826,256,275.14 7,798,821,729.53
(I) Total comprehensive income -208,452.39 9,924,075,798.83 9,923,867,346.44
(II) Capital invested and decreased by owners 397,913.00 1,965,085,659.43 15,050,495.92 1,980,534,068.35
1. Common shares invested by owners
2. Capital invested by holders of other equity instruments 397,913.00 1,965,085,659.43 15,050,495.92 1,980,534,068.35
3. Amount of share payment recorded into owner's equity
4. Others
(III) Profit distribution 992,407,579.88 -5,097,819,523.69 -4,105,411,943.81
1. Withdrawal from surplus reserve 992,407,579.88 -992,407,579.88
2. Distribution to owners (or shareholders) -4,105,411,943.81 -4,105,411,943.81
3. Others
(IV) Internal carryover of owner's equity
1. Capital reserve converted to capital (or share capital)
2. Surplus reserve converted to capital (or share capital)
3. Surplus reserve offset loss
114 / 241
2022 Annual Report
4. Change in defined benefit plan converted to retained
earnings
5. Other comprehensive income converted to retained
earnings
6. Others
(V) Special reserve
1. Withdrawal in the current period
2. Use in the current period
(VI) Others -167,741.45 -167,741.45
IV. Closing balance of the current period 4,501,946,097.00 1,965,085,659.43 17,097,876,701.86 6,914,433.08 2,407,355,585.45 12,251,718,068.28 38,230,896,545.10
2021
Other equity instruments Less: Other
Item Paid-up capital (or Special
Capital reserve Treasury comprehensive Surplus reserve Undistributed profit Total owner’s equity
share capital) Preference reserve
Perpetual bond Others shares income
share
I. Closing balance of the previous year 4,501,548,184.00 17,084,837,736.04 6,757,300.85 925,322,362.44 4,107,010,606.38 26,625,476,189.71
Add: Changes in accounting policies -3,306,489.02 -3,306,489.02
Correction of previous errors
Others
II. Opening balance of the current year 4,501,548,184.00 17,084,837,736.04 6,757,300.85 925,322,362.44 4,103,704,117.36 26,622,169,700.69
III. Change in current period (“-” for decrease) -1,843,788.65 365,584.62 489,625,643.13 3,321,757,675.78 3,809,905,114.88
(I) Total comprehensive income 365,584.62 4,896,256,431.26 4,896,622,015.88
(II) Capital invested and decreased by owners
1. Common shares invested by owners
2. Capital invested by holders of other equity instruments
3. Amount of share payment recorded into owner's equity
4. Others
(III) Profit distribution 489,625,643.13 -1,574,498,755.48 -1,084,873,112.35
1. Withdrawal from surplus reserve 489,625,643.13 -489,625,643.13
2. Distribution to owners (or shareholders) -1,084,873,112.35 -1,084,873,112.35
3. Others
(IV) Internal carryover of owner's equity
1. Capital reserve converted to capital (or share capital)
2. Surplus reserve converted to capital (or share capital)
3. Surplus reserve offset loss
4. Change in defined benefit plan converted to retained
earnings
5. Other comprehensive income converted to retained
earnings
6. Others
(V) Special reserve
1. Withdrawal in the current period
2. Use in the current period
(VI) Others -1,843,788.65 -1,843,788.65
IV. Closing balance of the current period 4,501,548,184.00 17,082,993,947.39 7,122,885.47 1,414,948,005.57 7,425,461,793.14 30,432,074,815.57
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin Head of Accounting Department: Gan Lu
115 / 241
2022 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 general meeting of Tongwei Co., Ltd. on
non -tradable share reform on February 20, 2006. According to the plan, floating shareholders would get a
consideration of 1.5 shares from non-floating shareholders for each 10 floating shares they hold. As such,
floating shareholders obtained 9 million shares as the consideration. The registration of shares as result of
the reform was completed on March 3, 2006.
On May 25, 2006, the Company increased its share capital through capital reserve (5 shares per 10
shares) and share bonus (5 shares per 10 shares). As a result of the conversion and bonus, the Company had
a total of 343.76 million shares; on May 23, 2007, the Company again increased its share capital through
capital reserve (7 shares per 10 shares) and share bonus (3 shares per 10 shares), leading to a total of 687.52
million shares.
On July 4, 2013, the Company issued 129,589,632 shares to Tongwei Group Co., Ltd. After that, the
Company had a total of 817,109,600 shares.
With the approval of the Reply on Approving Tongwei Co., Ltd. to Purchase Assets and Raise
Supporting Funds by Issuing Shares to 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 reserve (4 shares per 10
shares) and share bonus (6 shares per 10 shares). As a result of the conversion and bonus, the Company had
a total of 2,110,869.024 shares.
On June 22, 2016, the Company issued 350,262,697 shares to 8 institutions including Tianhong Fund
Management Co., Ltd. After that, the Company had a total of 2,461,131,721 shares.
With the approval of the Reply on Approving Tongwei Co., Ltd. to Purchase Assets and Raise
Supporting Funds by Issuing Shares to Tongwei Group Co., Ltd. (ZJXK [2016] No. 2054) from the CSRC
on September 08, 2016, the Company issued common shares of 922,901,629 yuan to Tongwei Group Co.,
Ltd. The 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
bonds of 5 billion yuan on March 18, 2019, with a term of 6 years; after approved in (ZLJGJDS [2019]
No.052) from the Shanghai Stock Exchange, the convertible bonds were listed for trading on the Shanghai
Stock Exchange from April 10, 2019; the bonds are named as Tongwei Convertible 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 sixth meeting of the seventh board of directors approved the Company to exercise the
early redemption right to redeem all "Tongwei Convertible Bonds" registered on the "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
116 / 241
2022 Annual Report
shares. After that, the Company had a total of 4,287,855,684 shares.
On November 20, 2020, the Company issued 213,692,500 shares to 16 institutions including Changdu
Tongrui Industrial Partnership (Limited Partnership) Co., Ltd. After that, the Company had a total of
4,501,548,184 shares.
As approved by CSRC in its ZJXK [2021] No. 4028, the Company publicly issued 120 million
convertible bonds valued 12 billion yuan for a term of 6 years. As agreed by the Shanghai Stock Exchange
in the Self-Discipline Regulation Decision 2022 [No.61], the convertible bonds were listed on Shanghai
Stock Exchange on March 18, 2022. The short name of the bond is “Tong22 Convertible Bonds” (code
110085). The Tong22 Convertible Bonds can be converted to the Company's shares from September 2,
2022. From September 2, 2022 when Tong22 Convertible Bonds entered the conversion period, to
December 31, 2022, a total of 152,700 Tong22 Convertible Bonds were converted into the Company's A
shares, with a cumulative conversion of 15,270,000.00 yuan or 397,913 shares. After the conversion, the
total number of shares is 4,501,946,097.
(2) Registered address, organizational form and headquarters address
The registered address of the Company is No. 588 Middle Section Tianfu Avenue, High-Tech Zone,
Chengdu, and its organizational form is Limited Liability Company. Its headquarters is located at No. 588,
Tianfu Avenue Middle Section, High-Tech Zone, Chengdu.
(3) Business nature and main operating activities
1) Business nature
The Company is engaged in agriculture, forestry, livestock husbandry and fishery. After 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 polycrystalline 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 statements
for the current period were approved by the 10th meeting of the 8th board of directors on April 21, 2023.
2. Scope of consolidation
"√ Applicable" "□ Not applicable"
(1) The 37 first-level subsidiaries consolidated in the current period are listed as follows:
Number of Voting
Shareholding
No. Subsidiary name Short name its interest
percentage (%)
subsidiaries (%)
1 Yongxiang Co., Ltd. Yongxiang 10 100 100
2 Tongwei Solar (Hefei) Co., Ltd. Hefei Solar 10 100 100
Tongwei New
3 Tongwei New Energy Co., Ltd. 110 100 100
Energy
4 Tongwei Solar (Hainan) Co., Ltd. Hainan Solar 2 100 100
Tongwei Solar (Singapore) PTE.
5 Singapore Solar 3 100 100
Ltd.
6 Sichuan Tongwei Food Co., Ltd. Sichuan Food 11 80 80
7 Tongwei Agriculture Development Tongwei AD 70 100 100
117 / 241
2022 Annual Report
Co., Ltd.
Panzhihua
8 Panzhihua Tongwei Feed Co., Ltd. 100 100
Tongwei
9 Zaozhuang Tongwei Feed Co., Ltd. Zaozhuang Feed 100 100
10 Nanning Tongwei Feed Co., Ltd. Nanning Feed 100 100
11 Qianxi Tongwei Feed Co., Ltd. Qianxi Feed 100 100
12 Foshan Tongwei Feed Co., Ltd. Foshan Feed 100 100
13 Tongwei (Dafeng) Feed Co., Ltd. Dafeng Feed 51 51
Fuzhou Tongwei William Feed Co.,
14 Fuzhou Feed 65 65
Ltd.
Ningxia Yinchuan Tongwei Feed
15 Yinchuan Feed 100 100
Co., Ltd.
Sichuan Tongguang Construction Tongguang
16 100 100
Engineering Co., Ltd. Construction
17 Qingyuan Tongwei Feed Co., Ltd. Qingyuan Feed 100 100
Chengdu
Chengdu Tongwei Fishery-PV
18 Fishery-PV 100 100
Technology Co., Ltd.
Technology
Shenyang Tongwei Biotechnology Shenyang
19 100 100
Co., Ltd. Biotechnology
Zhejiang Tongwei Solar Technology
20 Zhejiang Solar 100 100
Co., Ltd.
Sichuan Chunyuan Ecological Chuanyuan
21 100 100
Farming Co., Ltd. Farming
22 Zibo Tongwei Food Co., Ltd. Zibo Food 100 100
Tianmen Tongwei Aquaculture Tianmen
23 100 100
Technology Co., Ltd. Technology
24 Sichuan Fusion Link Co., Ltd. Fusion Link 60 60
Chengdu Tongwei Aquaculture Chengdu
25 100 100
Technology Co.,Ltd. Technology
Nanjing Tongwei Aquaculture Nanjing
26 100 100
Technology Co.,Ltd. Technology
Foshan Nanhai Tongwei Aquatic Foshan
27 100 100
Products Technology Co., Ltd. Technology
Chengdu Tongwei Aquatic Seed
28 Chengdu Seed 100 100
Co., Ltd.
Hefei Tongwei Biotechnology Co., Hefei
29 100 100
Ltd. Biotechnology
Shaoxing Tongwei Biotechnology Shaoxing
30 100 100
Co., Ltd. Biotechnology
Huizhou Tongwei Biotechnology Huizhou
31 100 100
Co., Ltd. Biotechnology
Changde Tongwei Biotechnology Changde
32 100 100
Co., Ltd. Biotechnology
Huanggang Tongwei Biotechnology Huanggang
33 100 100
Co., Ltd. Biotechnology
34 Nanchang Tongwei Feed Co., Ltd. Nanchang Feed 100 100
Chengdu Tongwei Biotechnology Chengdu
35 100 100
Co., Ltd. Biotechnology
36 Tongwei Industrial (Tibet) Co., Ltd. Tibet Industrial 100 100
37 Hengshui Tongwei Feed Co., Ltd. Hengshui Feed 100 100
Total 216
(2) New first-level subsidiaries consolidated in the current period
Subsidiary name Reason for change
Tongwei Solar (Hainan) Co., Ltd. New establishment through investment
Tongwei Solar (Singapore) PTE. Ltd. New establishment through investment
118 / 241
2022 Annual Report
Tongwei Agriculture Development Co., Ltd. New establishment through investment
Hefei Tongwei Biotechnology Co., Ltd. New establishment through investment
Shaoxing Tongwei Biotechnology Co., Ltd. New establishment through investment
Huizhou Tongwei Biotechnology Co., Ltd. New establishment through investment
Changde Tongwei Biotechnology Co., Ltd. New establishment through investment
Huanggang Tongwei Biotechnology Co., Ltd. New establishment through investment
Nanchang Tongwei Feed Co., Ltd. New establishment through investment
Chengdu Tongwei Biotechnology Co., Ltd. New establishment through investment
(3) First-level subsidiaries canceled in the current period
Subsidiary name Reason for change
Tongwei Industrial (Tibet) Co., Ltd. Revoke window
Hengshui Tongwei Feed Co., Ltd. Revoke window
(4) First-level subsidiaries merged through absorption or disposed in the current period
None.
(5) First-level subsidiaries over which the control was moved to other subsidiaries of the Company in
the current period
1) Tongwei (Hainan) Aquatic Products Co., Ltd., a previous first-level subsidiary of the Company
become a subsidiary of Sichuan Tongwei Food Co., Ltd. in the current period.
2) The following 54 companies over which the control was moved from the Company to Tongwei
Agriculture Development Co., Ltd.:
Subsidiary name Subsidiary name Subsidiary name
Chongqing Tongwei Feed Co., Chongqing Changshou Sichuan Willtest Technology Co.,
Ltd. Tongwei Feed Co., Ltd. Ltd.
Wuxi Tongwei Biotechnology Co.,
Shandong Tongwei Feed Co., Ltd. Nantong Bada Feed Co., Ltd.
Ltd.
Shashi Tongwei Feed Co., Ltd. Zibo Tongwei Feed Co., Ltd. Sichuan Tongwei Feed Co., Ltd.
Chengdu Tongwei Animal Kunming Tongwei Feed Co., Qingdao Hairen Aquatic Seed
Nutrition Technology Co., Ltd. Ltd. Industry Technology Co., Ltd.
Foshan Gaoming Tongwei Zhanjiang Haixianfeng Bio-tech
Yuanjiang Tongwei Feed Co., Ltd.
Feed Co., Ltd. Co., Ltd.
Changchun Tongwei Feed Co., Tianmen Tongwei Nanchang Tongwei Biotechnology
Ltd. Biotechnology Co., Ltd. Co., Ltd.
Binyang Tongwei Feed Co., Yangjiang Haiyi Biotechnology Co.,
He’nan Tongwei Feed Co., Ltd.
Ltd. Ltd.
Guangdong Tongwei Feed Co., Chengdu Tongwei Sanxin Nanning Tongwei Biotechnology
Ltd. Pharmaceutical Co. Ltd. Co., Ltd.
Tongwei Agricultural Finance Maoming Tongwei Biotechnology
Xiamen Tongwei Feed Co., Ltd.
Guarantee Co., Ltd. Co., Ltd.
Chengdu Tongwei Automation Ningbo Tech-bank Feed Technology
Wuhan Tongwei Feed Co., Ltd.
Equipment Co., Ltd. Co., Ltd.
Haerbin Tongwei Feed Co., Qingdao Qihao Biotechnology Co.,
Tianjin Tongwei Feed Co., Ltd.
Ltd. Ltd.
Zhuhai Haiyi Aquatic Products Ningbo Tech-bank Biotechnology
Huaian Tongwei Feed Co., Ltd.
Feed Co., Ltd. Co., Ltd.
Hainan Haiyi Aquatic Seed Yancheng Tech-bank Feed
Jieyang Tongwei Feed Co., Ltd.
Co., Ltd. Technology Co., Ltd.
Chengdu Ronglai Tongwei Feed
Tongwei Holdings PTE. Ltd. Nanning Aigefei Feed Co., Ltd.
Co., Ltd.
Chizhou Tongwei Feed Co., Bengbu Tech-bank Feed
Langfang Tongwei Feed Co., Ltd.
Ltd. Technology Co., Ltd.
Hainan Haiyi Aquatic Products Honghu Tongwei Feed Co.,
Hubei Tech-bank Feed Co., Ltd.
Feed Co., Ltd. Ltd.
Hainan Tongwei Dongying Tech-bank Feed
Yangzhou Tongwei Feed Co., Ltd.
Biotechnology Co., Ltd. Technology Co., Ltd.
Lianyungang Tongwei Feed Co., Hanshou Tongwei Feed Co., Guangdong Tongwei Biotechnology
119 / 241
2022 Annual Report
Ltd. Ltd. Co., Ltd.
Please refer to “Change in Scope of Consolidation” and “Rights and Interests in Other Entities” for
details on the changes in scope of consolidation and specific changes.
IV. Basis of preparation for financial statements
1. Basis of preparation
The Company's financial statements are prepared based on the assumption of going concern and 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:
"√ Applicable" "□ Not applicable"
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, 2022 and the operation results, cash flow and other necessary information of
the Company for the year of 2022. 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 1st to the December 31st of the same year.
3. Operating cycle
"√ Applicable" "□ Not applicable"
The operating cycle is the average period of time required for the Company from purchase of assets
used for processing to realization of cash and cash equivalents. For the Company, 12 months/year constitute
an operating cycle which is used as a criterion for determining the liquidity of assets and liabilities.
4. Reporting currency
The reporting currency used by the Company is CNY.
5. 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
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combining entities on the acquisition date is called acquirer and other called acquiree(s). Acquisition date is
when the acquirer actually obtains the control of the acquiree.
The share of owner’s equity of the acquiree in the carrying value recorded in the consolidated financial
statements of the ultimate controller is used to calculate the initial cost of long-term equity investment. An
excess of consideration paid (or the total par value of shares issued) for the combination over the carrying
value of net assets obtained from the acquisition is allocated to capital reserve (share premium) first with
any remaining excess charged entirely to retained earnings.
Expenses directly incurred by the acquirer that are attributed to the combination are carried into
current profit 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 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
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in the change arising from the acquiree’s re-measurement of net liabilities or net assets of defined benefit
plan under equity method, the rest will be carried into investment income of the period in which the
acquisition data fall).
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 flow 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 flow 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 flow 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
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
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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” and “Losing control of a subsidiary due to partial disposal of equity
investment or other reasons” 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 forms a
business, hereinafter the same) into or purchases assets from the joint operation, before such assets are sold
to a third party by the joint operation, the Company only recognizes the share of profit 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 cash and cash equivalents
Cash equivalents are defined as short-term investments (not greater than three months between the
purchase date and the maturity date) that have strong liquidity, are easy to be converted into cashes and are
unlikely to subject to value change risk.
Restricted bank deposits are not cash and cash equivalents in the cash flow statement.
9. Foreign currency transactions and foreign currency translation
"√ Applicable" "□ Not applicable"
(1) Accounting for foreign currency transactions:
A foreign currency transaction is recorded in reporting currency converted from the 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 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:
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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 flow and cash flow 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 flow;
and ② the contract terms for the financial assets provided for that a cash flow generated on a certain date
is only the payment for any principal or any interest on any outstanding principal.
Financial assets meeting the following conditions are classified into financial asset measured at fair
value through other comprehensive income: ① the business model to manage the financial assets is to
collect contractual cash flow and sell financial assets; and ② the contract terms for the financial assets
provided for that a cash flow generated on a certain date is only the payment for any principal or any
interest on any outstanding principal.
Financial assets other than these measured at amortized cost and these assets measured at fair value
through other comprehensive income are classified into financial assets measured at fair value through
current profit 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 costs are carried
into initial recognition amount. All accounts receivable or notes receivable generated through sales of
products or rendering of services, which do not contain a significant financing component or for which the
significant financing component is not considered, are measured at the considerations to which the
Company expects to be entitled upon initial recognition. Subsequent measurement of a financial
instruments depends on its category.
1) Assets measured at amortized cost
Financial assets measured at motorized cost are subsequently measured at amortized cost under
effective interest method. A gain or loss on a financial asset that is measured at amortized cost and is not
part of a hedging relationship is carried into current profit and loss when the financial asset is derecognized,
reclassified, through the amortization process or in order to recognize impairment gains or losses.
2) Investments measured at fair value through other comprehensive income
Financial assets of this category are subsequently measured at fair value. A gain or loss on a financial
asset of this category shall be recognized in other comprehensive income, except for interest calculated
under effective interest method, impairment gains or losses and foreign exchange gains and losses. When
the financial asset is derecognized the cumulative gain or loss previously recognized in other
comprehensive income is reclassified to current profit or loss.
3) Held for trading equity investments measured at fair value through other comprehensive income
Financial assets of this category are subsequently measured at fair value. A gain or loss (including
exchange gain or loss) on a financial asset of this category shall be recognized in other comprehensive
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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) 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 flow receivable and cash flow that are expected to be
collected, with default risk as the weight, by considering reasonable and supportable information, including
past events, current conditions, and forecasts.
On each balance sheet date, the Company measures the expected credit loss 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 groups are as follows:
Group
Group type Basis Provision method
category
Notes or letters of credit receivable (excluding
commercial acceptance bills), performance bonds
receivable during the settlement period; use of
Group 1 petty cash by construction projects that will be Payment type No provision
reimbursed and offset by project expenditure, and
other receivables for which sufficient evidence
showing no risk is available
Credit risk
Accounts receivable from relevant government Expected credit
Group 2 characteristics
departments loss
note 1
Accounts receivable from related parties within
the scope of consolidation and accounts
Group 3 receivable from joint ventures temporarily Payment type No provision
formed for coordinated use of the Company's
operating funds
Credit risk
Expected credit
Group 4 Accounts receivable other than above items characteristics
loss
note 2
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
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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 after 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.
Age Provision (%)
Within 1 year 5.00
1- 2 years 10.00
2- 3 years 50.00
Over 3 years 100.00
The Company recognizes an impairment loss that has been provided or reversed into current profit 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 flow has expired; or ② if it has been transferred and the Company
has transferred substantially all the risks and rewards of ownership of the financial asset to the recipient; or
③ if it has been transferred and the Company has surrendered control over the financial asset although it
neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset.
If the Company has neither retained nor transferred substantially all of the risks and rewards of the
asset, and has retained control of the asset, then the Company continues to recognize the asset to the extent
to which it has a continuing involvement in the asset and recognizes relevant liability. Continuing
involvement in the asset means the risk level caused by the change in the asset value to which the Company
will be exposed.
Where a transfer of financial asset in its entirety qualifies for derecognition, the difference between (1)
the carrying value of the asset and (2) the consideration received for transfer and cumulative change in fair
value previously recognized into other comprehensive income is recognized into current profit 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) Liabilities measured at fair value through current profit and loss
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 obligation for a financial liability has 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.
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Where a financial liability is de-recognized in whole or in party, the difference between the carrying
value of and the consideration paid (including the non-cash asset transferred or the new financial liability
assumed) for the de-recognized part is carried into current profit 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 notes receivable
"√ 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
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
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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"
A non-current asset or disposal group is classified as held for sale if most of its carrying value is
expected to be recovered via future cash flow from the sale (including non-monetary exchange with
commercial substance) of the asset or disposal group rather than future cash flow from use.
The following conditions must be met for an asset or disposal group to be classified as held for sale:
(1) the asset or disposal group must be available for immediate sale in its present condition subject to
terms that are usual and customary for sales of such assets (or disposal groups); and
(2) the sale must be highly probable, i.e., the Company has been committed to a plan to sell the asset
or disposal group and obtained a firm purchase commitment and the sale is expected to be completed
within one year. Relevant approvals have been obtained from relevant authorities or regulators.
The Company measures a non-current asset (or disposal group) classified as held for sale at the lower
of its carrying value and fair value less costs to sell. Where the carrying value is higher than the fair value
less costs to sell, the carrying value is written down to fair value less costs to sell, and the written down
amount is recognized into asset impairment loss and carried into current profit and loss, and the provision
for the asset held-for-sale impairment loss is established accordingly. The company recognizes a current
gain for any subsequent increase in fair value less costs to sell of an asset or disposal group held-for-sale,
but not in excess of the cumulative impairment loss that has been recognized after the asset is classified
into an asset held-for-sale. The carrying value of goodwill of a disposal group held-for-sale that has been
written down, and the impairment loss of a non-current asset held-for-sale recognized before it is classified
into an asset held-for-sale may not be reversed.
Non-current assets or disposal groups that are classified as held for sale are not depreciated or
amortized. Interest and other expenses attributable to the liabilities of a disposal group classified as held for
sale shall continue to be recognized.
A non-current asset or disposal group no longer classified as held for sale because it no longer meets
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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
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 accounting of long-term share investments
Under the cost method of accounting, a long-term equity investment is measured at initial investment
cost, except for the actually paid price for obtaining the investment or any cash dividend or profit declared
but not distributed that is included into the actually paid price or consideration upon investment, current
investment income is recognized as the cash dividend or profit that has been declared by the investee to
which the Company is entitled.
(2) Equity method accounting of long-term share investments
Under the equity method of accounting, when the initial investment cost is greater than the Company's
share of the fair value of net identifiable assets of the investee upon investment, the initial investment cost
of the long-term equity investment is not adjusted; when the initial investment cost is smaller than the
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Company's share of the fair value of the net identifiable assets of the investee upon investment, such
difference shall be carried into current profit/loss and the cost of the long-term equity investment is
adjusted.
Under the equity method of accounting, the current investment income shall be the Company's share
of the net profit or loss realized by the investee during the year. The fair value of net identifiable assets of
the invested upon investment is the basis for recognition of the Company's share of the net profit/loss of the
investee, and such recognition is performed after the net profit of the investee is adjusted in accordance
with Company's accounting policies and for the applicable accounting period. Unrealized profits and losses
resulting from transactions between the Company and its associate and joint venture are eliminated to the
extent of the Company's interest in the associate or joint venture, and then the investment profit or loss is
recognized. However, unrealized losses between the Company and the investee are not eliminated to the
extent that such losses 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 owner's 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 reserve 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 (or combination date), and if the capital reserve is insufficient, the retained earnings are
adjusted accordingly.
4) Disposal of long-term equity investments
After a partial disposal of a long-term equity investment while the control is retained, in the
consolidated financial statements, the difference between the disposal price and the Company's share of the
net asset of the subsidiary in respect of the disposed part is recorded into shareholders’ equity. After a
partial disposal of a long-term equity investment that leads to control loss, refer to relevant accounting
policies described in “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 its carrying value, and subject to subsequent measurement
according to the aforesaid accounting policies for long-term equity investments or financial assets. A
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 company bonds convertible in the current period and warrants
exercisable in the 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
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equity investments 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 are associated
with the investment property will flow to the Company and the cost of the investment property can be
measured reliably.
The cost of an investment property purchased from other parties includes the purchase price and
relevant taxes directly attributable to the asset;
The cost of an investment property constructed by the Company consists of necessary expenditure
incurred before the asset reaches expected usable condition.
The cost of an investment property obtained in another way is recognized under applicable accounting
standards.
2) Subsequent measurement
Generally, subsequent expenditures on an investment property are measured at cost in subsequent
periods. An investment property is depreciated or amortized under accounting policies that the Company
applies to fixed assets or intangible assets.
An investment property is subsequently measured at fair value if conclusive evidence indicates that
the fair value of the investment property can be reliably obtained on an ongoing basis. An investment
property measured subsequently at fair value may not be depreciated or amortized; its carrying value is
adjusted to the fair value on balance sheet date and the difference between fair value and original carrying
value is carried into current profit and loss.
(3) An investment property which the Company has changed its purpose is reclassified into other
properties.
23. Fixed assets
(1). Recognition criteria
"√ Applicable" "□ Not applicable"
Fixed assets refer to property, plant, and equipment with a useful life of over one year, held for use in
the production or supply of goods or services, rental to others, or administrative purposes. When economic
benefits relating to a fixed asset are likely to flow into the Company and its costs can be reliably measured,
the fixed asset is recognized.
(2). Depreciation method
"√ Applicable" "□ Not applicable"
Depreciation Useful life Residual Annual
Category
method (years) value rate depreciation rate
Straight-line
Premises and buildings 5—35 5% 19—2.71%
method
Including: overseas private
No amortization Long term
land (note)
Straight-line
Machinery equipment 5—12 5% 19—7.92%
method
Straight-line
PV generation equipment 25 5% 3.8%
method
Transportation equipment Straight-line 4—5 5% 23.75—19%
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method
Straight-line
Office equipment 4—5 5% 23.75—19%
method
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 its carrying value (i.e., the original cost less
cumulative depreciation and provision for impairment) and its remaining useful life.
A fixed asset is measured at the lower of its carrying value and its recoverable amount on the balance
sheet date.
(3). Recognition, measurement, and depreciation of fixed assets acquired under finance leases
"√ Applicable" "□ Not applicable"
If payment for a fixed asset is deferred beyond normal credit terms so that it is a financing activity, its
cost is the equivalent cash price. 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.
(4) Provision for impairment of fixed assets
A fixed asset is measured at the lower of its carrying value and its recoverable amount on the balance
sheet date.
The Company assesses at each balance sheet date whether there is an indication that a long-term
equity investments may be impaired by assessing whether the following conditions are met:
1) During the period, an asset's market value has declined significantly more than would be expected
as a result of the passage of time or normal use.
2) Significant negative changes (have occurred or are expected) in the technological, market,
economic or legal environment where the Company operates, and the market where an asset is located.
3) Market interest rates or other market rates of return on investments have increased (which impact
the discount rate used in calculating an asset’s expected future cash flow and lead to a significant decline of
the asset's recoverable amount).
4) Evidence is available of obsolescence or physical damage of an asset.
5) Assets have been or will be idle, discontinued or the assets will be disposed before the previously
expected date.
6) Evidence is available from internal reporting that indicates the economic performance of an asset is,
or will be, worse than expected; for example, the net cash flow created or operating profit (loss) achieved
by the asset is much lower (or higher) than expected amount.
7) Other signals that indicate the possible impairment of assets.
If any such indication exists, Company shall estimate the recoverable amount of the asset. If carrying
value of the asset is greater than its recoverable amount, an impairment provision equaling to the difference
of the two shall be established.
Once recognized, the impairment loss will not be reversed in subsequent periods.
24. Construction in progress
"√ Applicable" "□ Not applicable"
(1) Measurement of construction in progress
A construction in progress is measured at cost which includes borrowing interest and expense incurred
before the end of a construction period that should be capitalized.
When a construction in progress reaches its intended purpose and is delivered for use, a fixed asset is
recognized at actual cost; for construction in progress that has been delivered but the final account is not
performed, a fixed asset is recognized at the estimated cost of construction budget, costing or actual
construction cost with depreciation established. After the final account is completed, the original estimate
and deprecation are adjusted accordingly.
A construction in progress is measured at the lower of its carrying value and its recoverable amount on
the balance sheet date.
(2) Provision for impairment of construction in progress
A provision for impairment of a construction in progress is established at carrying value less
recoverable amount at the end of the construction period if one or more of the following circumstances
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exist. Once recognized, the impairment loss will not be reversed in subsequent periods.
1) The construction is suspended for a long term and the suspension is expected to remain in next 3
years;
2) The construction has been outdated in performance and technology and the economic benefits
brought to the Company is largely uncertain;
3) Other circumstance that indicate the construction in progress has been impaired.
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: ①
expenditures are incurred, ② borrowing costs are incurred, and ③ the activities necessary to prepare the
asset for its intended use or sale are in progress; and ends when the fixed asset reaches its intended use. The
capitalization should be suspended during periods in which acquisition or construction of the fixed asset is
interrupted for over consecutive three months; in this case, the borrowing costs are recognized as current
expense.
The method for calculating cost to be capitalized is as follows. To the extent that the Company
borrows funds specifically for the purpose of obtaining a qualifying asset, it is calculated as the actual
borrowing costs incurred on that borrowing during the period, less the interest on unused borrowings
deposited in banks or any investment income on the temporary investment of those borrowings. To the
extent that the Company uses funds from general borrowings for the purpose of obtaining a qualifying asset,
it is calculated by the weighted average of the excess of cumulative asset expenditure over the asset
expenditure from special borrowings, multiplied the capitalization rate applicable to used general
borrowings. The capitalized interest in each period is limited to the actual interest on relevant borrowings
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 cos 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 productive biological assets
Productive biological assets of the Company include boar, drake, male fish (and male pawn) and
others.
(2) Initial measurement of productive biological assets
1) Cost for purchasing a productive biological asset includes the purchase price, relevant tax,
transportation cost, insurance cost and all other expenditures that are directly attributable to purchase
of the asset.
2) Cost for constructing or generating a productive biological asset includes the feed cost, labor cost,
indirect expense that should be amortized and other necessary expenditures before the asset reaches its
intended production/operation (mature age).
(3) Subsequent measurement of productive biological assets
Depending on the nature, use and expected realization of relevant economic benefits of productive
biological assets, the useful life, residual value rate and depreciation rate of each productive biological asset
are determined as follows:
Category Useful life (years) Residual value rate Annual depreciation rate
Male fish 3 5% 31.67%
Amortization completed in
Male pawn 7 months 0%
the breeding season
A productive biological asset is measured at the lower of its carrying value and its recoverable amount
on the balance sheet date.
27. Oil and gas assets
"□ Applicable" "√ Not applicable"
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28. Right-of-use assets
"√ Applicable" "□ Not applicable"
(1) A right-of-use asset is recognized on the commencement date of the lease except for short-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) amount of the initial measurement of the lease liability;
2) payments made at or before the commencement date of the lease, less any lease incentives received
(if any);
3) initial direct costs incurred by the Company;
4) an estimate of costs to be incurred when the Company removes the asset, restore the place where
the asset is installed or restore 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 its carrying value and its recoverable amount on the
balance sheet date.
(2). Accounting policies for internal R&D cost
"√ Applicable" "□ Not applicable"
All expenditure incurred at the research stage should be carried into current profit and loss 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) the intangible asset will generate probable future economic benefits, including the Company can
demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or,
if it is used internally, the usefulness of the intangible asset;
4) availability of adequate technical, financial and other resources to complete the development and to
use or sell the intangible asset;
5) expenditure attributable to the intangible asset during its development stage can be reliably
measured.
30. Impairment of long-term assets
"√ Applicable" "□ Not applicable"
The Company assesses at each balance sheet date whether there is an indication of impairment for
fixed assets, right-of-use assets, construction in progress, intangible assets with finite useful lives,
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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 book value of an asset is greater than its recoverable amount, an
impairment provision equaling to the difference of the two shall be established and recorded into
impairment loss. Recoverable amount of an asset is the greater of fair value less cost of disposal and the
present value of future cash flow expected to be derived from the asset. Fair value of an asset is based on
the price set forth in the sale agreement entered in a fair transaction; if no such sale agreement exists but an
active market for the asset exists, the fair value is based on the offer given by the buyer; if neither of the
two exists, the fair value is estimated according to the best knowledge. Costs of disposal include legal costs,
relevant taxes, and handling costs relating to disposal of an asset, and all direct expenses incurred to bring
an asset into condition for its sale. The present value of expected future cash flow of an asset is calculated
as the expected future cash flow to be deprived from continuing use and disposal of the asset properly
discounted. Impairment provision is calculated and recognized for each individual asset. If it is difficult to
estimate the recoverable amount of an individual asset, recoverable amount of the cash-generating unit
(CGU) to which the asset belongs is determined. A CGU is the minimum unit of assets that can generate
cash inflows.
In impairment test, the carrying value of goodwill which is separately listed in the financial statements
is shared among the CGU or the group of CGUs which are expected to be benefited from synergies of
business combination. If the impairment test indicates that book value of a CGU or a group of CGUs,
which takes a share of the goodwill, is greater than its recoverable amount, the corresponding impairment
loss is recognized. An impairment loss amount calculated for a CGU or a group of CGUs should be
allocated to the CGU or the group's individual assets - first of all to goodwill allocated to the CGU or the
group, and then to the other assets of the CGU on a pro rata basis according to the book amount of each
asset in the CGU or the group.
If fair value of an impaired goodwill recovers after an impairment has been recognized, the
impairment may not be reversed in a subsequent period.
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 period, the amortized value is recognized into current profit and loss.
32. Contract liabilities
(1). Recognition of contract liabilities
"√ Applicable" "□ Not applicable"
A contract liability is the Company’s obligation to transfer goods or services to a customer for which it
has received consideration from the customer. If a customer pays consideration or the Company has a right
to an amount of consideration that is unconditional before the Company transfers a good or service to the
customer, the Company shall present the payment as a contract liability when the payment is made or the
payment is due (whichever is earlier). Contract assets and contract liabilities under the same contract are
presented after on a netting basis; and contract assets and contract liabilities under different contracts are
presented separately.
33. Employee benefits
(1). Accounting of short-term employee benefits
"√ Applicable" "□ Not applicable"
Short-term employee benefits include salaries, bonuses, allowances and subsidies, benefit expense,
medical insurance costs, maternity insurance costs, work injury insurance costs, house provident fund
expenses, labor union expense and education expense, and non-monetary benefits. The Company
recognizes the short-term employee benefits that are incurred during an accounting period in which the
corresponding services are rendered as liabilities and carry them into current profit/loss or relevant cost of
an asset. All non-monetary benefits are measured at fair value.
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(2). Accounting of 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.
The defined benefit plan 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.
(3). Accounting of termination benefits
"√ Applicable" "□ Not applicable"
Termination benefits are compensations provided for employees to terminate employment before
expiry or to encourage employees to leave service voluntarily. Termination benefits are carried into
employee benefits liability and into current profit 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 sad termination benefits.
Salaries and social insurance premiums to be paid by Group 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 of 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 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.
After the commencement date of 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 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.
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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 adjust
the carrying value at the current best estimate if conclusive evidence indicates that the carrying value
cannot truly reflect the current best estimate.
Given that the Company has planned to expand its module business, in order to provide assured
after-sales service for module customers, the Company provides module quality guarantee deposit at 1% of
module sales revenue in accordance with the relevant provisions of Accounting Standard for Enterprises No.
13 - Contingencies, and with reference to practices of major peer companies. These deposits are recognized
as an estimated liability when the aforesaid conditions for recognition of estimated liabilities are met.
36. Share-based payment
"□ Applicable" "√ Not applicable"
37. Other financial instruments including preference share and perpetual bond
"□ Applicable" "√ Not applicable"
38. Revenue
(1). Accounting policies for revenue recognition and measurement
"√ Applicable" "□ Not applicable"
(1) principles for recognition of revenues
Revenue is the total inflow of economic benefits formed in the daily operating activities of the
Company, which will lead to the increase of owner's equity and is not related to the capital invested by
owners.
The Company recognizes a revenue when it satisfies the performance obligation in the contract, i.e.,
the customer obtains control of the good or service.
Where two or more performance obligations are included in the contract, the Company allocates the
transaction price to each performance obligation on the basis of the relative stand-alone selling prices of
each distinct good or service promised in the contract, and then measures revenue at the transaction price
allocated to each performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled in
exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf
of third parties. The Company recognizes the transaction price to the extent that it is probable that a
significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty
associated with the variable consideration is subsequently resolved. Amounts expected to be refunded to a
customer is not included into the transaction price. For a contract with a significant financing component,
the Company calculates the transaction price as the amounts payable in cash by the customer when it would
obtain control of the good or service. The difference between such amount and the contract consideration is
amortized over the contract term with effective interest method. The significant financing component is not
considered if on the start date of the contract Company expects that the period from the customer obtains
control over the good or service to the customer pays the price is 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:
1) customer receives and consumes the economic benefits from the Company's satisfaction of the
performance obligation as it is satisfied by the Company;
2) customer is able to control work-in-process created by the Company in satisfying the performance
obligation;
3) goods created by the Company during the obligation performance does not have an alternative use
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and the Company has an enforceable right to payment for performance completed to date.
For a performance obligation satisfied over a period of time, the Company recognizes the revenue
based on the performance progress over the period. If no reasonable and reliable measure of progress can
be made, revenue is generally recognized to the extent of costs incurred until a reasonable method can be
determined if the costs incurred are expected to be compensated.
The Company recognizes a revenue when it satisfies the performance obligation at the point in time
when control of the good or service is transferred to the customer. A customer obtains control of a good or
service if the following indicators are met:
1) the Company presents right to payment for the good or service;
2) the Company has transferred physical possession of the good or service to the customer;
3) the Company has transferred to the customer the significant risks and rewards of ownership of the
good;
4) customer has accepted the good or services.
The Company’s unconditional right (only conditional on the passage of time) to consideration is
presented as an account receivable. The Company’s right to consideration in exchange for goods or services
that the Company has transferred to a customer, when that right is conditioned on something other than the
passage of time is presented as a contract asset; a provision for impairment on a contract asset is established
at the expected credit loss. The Company’s obligation to transfer goods or services to a customer when it
has received the consideration is presented as a contract liability.
(2) Recognition methods
1) Revenue from sale of goods
A revenue is recognized when control of goods is transferred to a customer.
The Company mainly produces and sells high-purity polysilicon, cells and modules, polyvinyl
chloride, sodium hydroxide and cement, feed, fish, pigs, ducks and other products, which belong to the
performance obligations satisfied at a point in time.
Criteria for revenue recognition for products sold in Chinese mainland: the Company has delivered
products to the purchaser under the contract and the products have been received via signature by the
purchaser or the shipping company engaged by the purchase; the sale amount is determined; the collection
has occurred or the Company has received the certificate of right to collect; relevant inflow economic
benefits are probable; and the cost of products can be reliably measured.
Criteria for revenue recognition for products sold outside Chinese mainland: under International Rules
for the Interpretation of Trade Term and given revenue recognition principles and the Civil Code, a revenue
is recognized at the point in time when control of the products is transferred to a customer.
The Company sells electricity generated by PV powerplants and recognizes a revenue when the
electricity connected to the grid is confirmed with the grid company.
2) Revenue from rendering of services
The Company renders services including construction and equipment installation that fall into the
scope of performance obligations over a period of time. The Company recognizes revenue over time by
measuring the progress toward complete satisfaction of that performance obligation, with the progress
calculated at the percent of costs incurred to the budget costs. Revenue should be recognized only to the
extent of costs incurred are expected to be compensated. Otherwise, the costs incurred are carried into
current profit and loss.
3) Revenue from transfer of right-of-use assets
The revenue is recognized over the period of a right-of-use asset under the straight line method.
(2). Accounting policies for revenue recognition of the same class of operating activities differ by
operating models
"□ Applicable" "√ Not applicable"
39. Contract costs
"√ Applicable" "□ Not applicable"
Contract costs are classified into costs to obtain a contract and costs to fulfill a contract.
(1) Costs to fulfill a contract
The costs to fulfill a contract is recognized as an asset when the following criteria are met:
1) The costs relate directly to a contract or an anticipated contract, including direct labor, 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
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in the future.
3) The costs are expected to be recovered.
The asset is presented in either inventories or other current assets depending on whether the
amortization period determined upon initial recognition is over a normal operating cycle.
(2) Costs to obtain a contract
The costs of obtain a contract is recognized as an asset if the Company expects to recover the
incremental costs of obtaining a contract.
The incremental costs are those costs that the Company incurs to obtain a contract with a customer
that it would not have incurred if the contract had not been obtained (for example, a sales commission). The
costs are carried into current profit 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 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 its carrying value on the reversal date should the provision
was not established.
40. Government grants
"√ Applicable" "□ Not applicable"
(1) Judgment basis for and accounting treatment for grants related to assets
Grants related to assets are government grants which the Company obtains to purchase, construct 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) Judgment basis for and accounting treatment for grants related to income
Grants related to income are government grants other than those related to assets.
Accounting treatment:
1) Grants related to income are recognized as deferred income if they are used to compensate relevant
expenses or losses to be incurred; and they are carried into current profit 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 has incurred.
3) When should grants are recognized
A government grant is recognized when the Company complies with the conditions attaching to it and
the grant will be received.
4) Measurement of grants
If a grant is a monetary asset, it is measured at the amount received or receivable; if a government
grant is a non-monetary asset, it is measured at fair value, or at nominal value if the fair value cannot be
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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 the current and prior periods are
measured are measured at the amount expected to be paid to (recovered from) taxation authorities; deferred
tax assets and deferred tax liabilities are measured on the balance sheet date at tax rates applicable to the
periods during which such assets are expected to be recovered or such liabilities are expected to be
discharged.
The carrying values of deferred tax assets and deferred tax liabilities are reviewed on the balance sheet
date. Current and deferred tax is recognized as income or expense and included in profit or loss for the
period, except to the extent that the tax arises from transactions or events that are recognized directly in
owner's equity and business combinations.
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) Company as lessee
1) Initial measurement
On the commencement date of a lease, the Company recognizes a right-of-use asset for the asset that it
can use over the lease period and a lease liability for the present value of lease payments that it has not
maid, 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:
① the amount of the initial measurement of the lease liability;
② payments made at or before the commencement date of the lease, less any lease 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, restore the place where
the asset is installed or restore 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:
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 a rate;
③ the purchase 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.
2) Subsequent measurement
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The depreciation of right-of-use assets are established under Accounting Standard for Business
Enterprises No. 4 - Fixed Assets. 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 is included into current
profit and loss or relevant costs of asset when incurred.
After the commencement date of lease, the Company will re-measure the lease liability at the 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.
3) Short-term leases and low-value leases
A short-term lease is a lease that, at the date of commencement, has a term of 12 months or less, 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.
4) 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 he date on which both parties agree to the lease modification.
The Company accounts for a lease modification as a separate lease if both of the following conditions
exist:
① 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
② 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-determine the lease term, and re-measure 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
include 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) Company as lessor
A lease is classified into either a financial lease or an operating lease on the commencement of the
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.
1) 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.
2) 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
un-guaranteed 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
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not included into the measurement of the net investment in a lease is included into current profit and loss
when incurred.
(3) Leaseback
1) Company as seller and lessee
The Company determines whether the transfer of the asset in a leaseback qualifies as a sale.
① If the transfer does not qualify as a sale, the Company continues to recognize the asset on its
balance sheet and accounts the received cash as a financial liability subject to the Accounting Standard for
Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments (2017).
② If the transfer qualifies as a sale, the Company measures the right-of-use asset from the 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;
A. Any below-market terms shall be accounted for as a prepayment of lease payments; and
B. Any above-market terms shall be accounted for as additional financing provided by the buyer-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:
A. difference between the fair value of the consideration for the sale of the asset and the fair value of
the asset;
B. difference between the present value of the payments for the lease and the present value of the rent
at market rates.
2) Company as buyer and lessor
If the transfer does not qualify as a sale, the Company does not recognize the asset, but accounts 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"
Approval Notes (names and amounts
Changes in accounting policies and reasons
procedures significantly impacted)
The Ministry of Finance issued the “Interpretation No. 15
of Accounting Standard for Business Enterprises” (Cai
28th meeting
Kuai [2021] No. 35) (“Interpretation No. 15”) on
of the 7th
December 31, 2021, which clarifies the accounting
board of
treatment of products or by-products produced by
directors, and Refer to other notes for
enterprises for sales before the fixed assets reach the
27th meeting details
intended usable state or during the research and
of the 7th
development process. According to relevant provisions of
supervisory
Interpretation No. 15, the Company implemented the
committee
relevant provisions of Interpretation No. 15 and make
retrospective adjustments from January 1, 2022.
The newly revised
On December 13, 2022, the Ministry of Finance and the 7th meeting of Management Measures for
Ministry of Emergency Management jointly issued the the 8th board Workplace Safety Costs by
Management Measures for Workplace Safety Costs (Cai Zi of directors, the Ministry of Finance and
[2022] No. 136), which expanded the scope of application and 6th the Ministry of Emergency
and revised some of the standards for providing safety meeting of the Management shall be
costs for companies. The Company implemented the latest 8th implemented from the date of
requirement on provision and use of workplace safety supervisory issuance. This requires a
costs from December 2022. committee prospective application
without the need for
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2022 Annual Report
retrospective adjustments,
and will not affect the
Company's financial status
and operating results in
previous years.
Other notes
Prior to the change in accounting policies, for the sale of products or by-products produced and sold
before the fixed assets reached their planned usable state, the Company recognized these fixed assets as
"construction in progress"; after the change, the sale revenue and sale cost will be separately recognized as
"operating revenue" and "operating cost". Prior to the change in accounting policies, the Company
recognized costs of sale of products or by-products from research and development process as "R&D cost";
after the change, such costs will be recognized as "operating cost".
The said changes in accounting policies have no impact on the comparative financial statements of the
parent company for previous periods. The retrospective adjustments of comparative consolidated financial
statements are as follows:
(1) Consolidated balance sheet
Unit: Yuan Currency: CNY
Balance on December 31, 2021
Item
Before adjustment After adjustment Adjustment
Fixed assets 37,299,171,038.78 36,958,671,998.09 -340,499,040.69
Construction in
10,636,400,885.06 10,610,819,753.03 -25,581,132.03
progress
Deferred tax assets 600,832,119.58 612,117,399.13 11,285,279.55
Undistributed profit 15,544,604,417.32 15,225,053,765.81 -319,550,651.51
Minority interest 4,154,029,179.80 4,118,784,938.14 -35,244,241.66
(2) Consolidated profit statement
Unit: Yuan Currency: CNY
2021 amount
Item
Before adjustment After adjustment Adjustment
Operating revenue 63,491,070,520.12 64,829,996,083.91 1,338,925,563.79
Operating cost 45,918,101,338.17 48,382,829,594.08 2,464,728,255.91
Sales expense 918,970,450.73 919,009,792.93 39,342.20
Management expense 2,947,649,906.71 2,951,233,971.46 3,584,064.75
R&D cost 2,035,847,045.43 1,025,715,488.68 -1,010,131,556.75
Income tax expense 1,647,522,380.67 1,648,944,454.00 1,422,073.33
Net profit attributable to owners
8,207,920,822.18 8,109,125,091.40 -98,795,730.78
of the parent
Gain and loss of minatory
534,298,848.66 512,377,963.79 -21,920,884.87
interest
（3) Consolidated cash flow statement
Unit: Yuan Currency: CNY
2021 amount
Item
Before adjustment After adjustment Adjustment
Cash received from sales of goods
56,533,317,822.08 57,872,243,385.87 1,338,925,563.79
and rendering of services
Cash paid for purchase of goods and
44,658,781,109.98 46,141,587,117.16 1,482,806,007.18
services
Cash paid for acquisition or
construction of fixed assets,
13,975,125,087.15 13,831,244,643.76 -143,880,443.39
intangible assets and other long-term
assets
No other changes in significant accounting policies occurred in the reporting period except for the said
change.
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2022 Annual Report
(2). Changes in significant accounting estimates
"√Applicable" "□Not applicable"
Starting Notes (names and
Changes in accounting estimates and reasons Approval
time of amounts significantly
for change procedures
application impacted)
Due to updated photovoltaic industry with
For this change in
accelerated technological upgrading, the
accounting estimate, the
current depreciation period applied to
prospective application
machinery and equipment used by the
28th meeting of will be used. This
Company no longer properly reflects the
the 7th board of change will not have
actual usage status of fixed assets. In order to
directors, and any impact on the
more fairly reflect the financial status and January 1,
27th meeting of financial position and
operating results, and improve the quality of 2022
the 7th operating results of the
accounting information, out of prudence, the
supervisory Company for prior
Company has adjusted the depreciation
committee years, and therefore,
period applied to machinery and equipment
there is no need for
in the solar cell and related processes from 10
retrospective
years to 6 years, effective from January 1,
adjustments.
2022.
Against the backdrop of global carbon
neutrality, leveraging on the leading
advantages in high-purity polysilicon and
solar cell areas, as well as the accumulated For this change in
technology and market foundation in solar accounting estimate, the
modules over the years, the Company is prospective application
aligned with national dual-carbon targets and will be used. This
4th meeting of
industry development trends, planning to change will not have
the 8th board of
make appropriate expansions in the module any impact on the
directors, and
area, so as to further enhance its overall September financial position and
3th meeting of
competitiveness. Given that the Company has 22, 2022 operating results of the
the 8th
planned to expand its module business, in Company for prior
supervisory
order to provide assured after-sales service years and for prior
committee
for module customers, the Company provides months, and therefore,
module quality guarantee deposit at 1% of there is no need for
module sales revenue in accordance with the retrospective
relevant provisions of Accounting Standard adjustments.
for Business Enterprises No. 13 -
Contingencies, and with reference to
practices of major peer companies.
(3). Adjustments of financial statements at the beginning of the year for which new accounting
standards or interpretations are applied for the first time in 2022
"□ Applicable" "√ Not applicable"
45. Others
"□ Applicable" "√ Not applicable"
VI. Taxes
1. Major tax types and tax rates
Major tax types and tax rates
"√ Applicable" "□ Not applicable"
Tax type Tax basis Tax rate
VAT Sales amount 0%, 3%-5%, 6%, 9%, 13%
Urban construction and maintenance tax Turnover tax payable 1%-7%
Corporate income tax Turnover tax payable 15%, 16.5%, 17%, 20%, 25%
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2022 Annual Report
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Land use tax Area of used land Local provisions
Property tax Original value x 70%, rent 1.2%, 12%
Disclose the circumstance when different corporate income tax payers exist
"□ Applicable" "√ Not applicable"
2. Tax preferences
"√ Applicable" "□ Not applicable"
(1) VAT
Sale of feed by domestic companies is exempt from value added tax under the Cai Shui [2001] No.
121 document from the Ministry of Finance and the State Taxation Administration.
Sale of cement by Sichuan Yongxiang New Materials Co., Ltd. is entitled to an immediate refund of
70% VAT exempted from value added tax 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 Hainan Haiyi Aquatic Seed 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 exempted from value added tax from May 1, 2016 under the Cai Shui [2016] No.
36 document from the Ministry of Finance and the State Taxation Administration.
(2) Corporate income tax
1) Consolidated tax payment for cross-region operations
The collection provisions for corporate income tax in respect of the parent company (including the
head office administration and all branches), Tongwei Agriculture Development Co., Ltd. and its branches
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 that enterprises in encouraged industries established in west China are
entitled to income tax rate of 15% from January 1, 2021 to December 31, 2030. 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 polysilicon Company Co., Ltd., Yunnan Tongwei high-purity polysilicon
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).
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
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2022 Annual Report
(No. GR202151001846).
Chengdu Tongwei Animal Nutrition Technology Co., Ltd. was approved as a high-tech enterprise in
2022 (No. GR202251001505).
Tongwei Solar (Hefei) Co., Ltd. was approved as a high-tech enterprise in 2021 (No.
GR202134000919).
Tongwei Solar (Anhui) Co., Ltd. was approved as a high-tech enterprise in 2020 (No.
GR202034000630).
4) Subsidiaries engaged in seawater mariculture and inland aquaculture with entitlement in 50%
reduction of income tax
The Article 86 of the Implementation Regulations on the Enterprise Income Tax of the People'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 Haiyi Aquatic Seed Co., Ltd.,
Zhanjiang Haiyi Aquatic Seed Co., Ltd., Tongwei Aquaculture-Photovoltaic Integration (Rudong) Co., Ltd.
Chengdu Tongwei Aquatic Seed Co., Ltd., Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd.,
and Nanjing Tongwei Aquaculture Technology Co., Ltd. are entitled to this tax preference.
5) Overseas subsidiaries entitled to tax preferences
The 218/2013/N-CP document issued by the Government of Vietnam on December 26, 2013, the
statutory rate of corporate income tax in Vietnam was reduced to 20% from January 1, 2016. The tax
preferences to which Heping Tongwei Co., Ltd. is entitled: a 10-year preference period for its feed business
from the start of the production and operation, exemption from income tax for two years and 50% income
tax for four years from the start of the profitability period. The tax preferences to which Qianjiang Tongwei
Co., Ltd. is entitled: a 15-year preference period for its feed business from the start of the production and
operation during which the tax rate is 10%, exemption from income tax for four years and 50% income tax
for nine years from the start of the profitability period.
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: 0% for the amount less than (including) 1 million BDT; 5% for the
amount between 1 and 2 million BDT (including 2 million); 10% for the amount between 2 million and 3
million BDT (including 3 million); and 15% for the amount over 3 million BDT.
6) Tax preferences for public infrastructure projects with key national supports
According to the Notice of the Ministry of Finance of the People's Republic of China and State
Taxation Administration on Relevant Issues Concerning the Implementation of the Preferential Catalog of
Enterprise Income Tax for Public Infrastructure Projects (Cai Shui 2008 [46]), the income from investment
and operation of enterprises engaged in public infrastructure projects supported by the State are exempt
from enterprise income tax from the first to the third year starting from the tax year in which the first
production and operation income of the project is obtained, and the enterprise income tax is halved from
the fourth to the sixth year.
According to the provisions of 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"
VII. Notes to items in consolidated financial statements
1. Cash at bank and on hand
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Cash on hand 152,905.98 109,314.50
Cash at bank 36,810,223,406.34 2,894,022,360.61
Other cash at bank and on hand 31,195,817.69 107,799,207.27
Total 36,841,572,130.01 3,001,930,882.38
Including: total deposits overseas 104,247,603.68 205,052,603.96
146 / 241
2022 Annual Report
Other notes
For details on cash at bank and on hand that are restricted at the end of the period, refer to “Assets
with restricted ownership or use right”.
The cash at bank and on hand of 1,622,156,249.99 yuan, which are not restricted in their use and have
not been used as cash and cash equivalents, are fixed-term deposits held by the Company that are intended
to be held until maturity and accrue interest at the fixed deposit rate. Such deposits are not classified as
cash and cash equivalents because the purpose of the Company holding such deposits is not to meet
short-term liquidity needs for external payments, but rather to earn interest income.
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
4,298,524,475.70 10,617,668.58
profit and loss
Including:
Debt investments 4,278,667,572.63
Derivative financial assets 19,856,903.07 10,617,668.58
Total 4,298,524,475.70 10,617,668.58
Other notes:
"√ Applicable" "□ Not applicable"
Note 1: Debt instrument investments refer to bank structured deposits and wealth management products
purchased by the Company.
Note 2: The derivative financial assets refer to paper gains resulting from the difference between the locked
exchange rate in the undelivered forward foreign exchange contract and the central parity rate at the end of
the period.
3. Derivative financial assets
"□ Applicable" "√ Not applicable"
4. Notes receivable
(1). Presentations of notes receivable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Banker's acceptance
Commercial acceptance 200,000,000.00
Letters of credit 2,450,913,663.89 1,376,925,682.02
Total 2,450,913,663.89 1,576,925,682.02
(2). Notes receivable pledged by the Company as of the end of the period
"□ Applicable" "√ Not applicable"
(3). Notes receivable endorsed or discounted by the Company as of the end of the period that have
not been due on the balance sheet date
"□ Applicable" "√ Not applicable"
(4). Notes that have been converted by the Company to other receivables due to non-performance 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"
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2022 Annual Report
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 the current period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
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2022 Annual Report
5. Accounts receivable
(1). Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Age Closing book balance
Within 1 year
In which: Within 1 year
Within 1 year 3,791,028,295.86
Within 1 year 3,791,028,295.86
1- 2 years 402,092,947.42
2- 3 years 401,470,215.73
Over 3 years 210,301,102.61
Total 4,804,892,561.62
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2022 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 Book balance Provision for bad debts Book balance Provision for bad debts
Carrying Carrying
Percent Provision value Percent Provision value
amount amount amount amount
(%) (%) (%) (%)
Creation of
provision for a 67,797,723.02 1.41 2,048,007.32 3.02 65,749,715.70 103,540,864.18 3.27 1,035,408.64 1.00 102,505,455.54
single bad debt
Creation of
provision for a
4,737,094,838.60 98.59 301,481,924.16 6.36 4,435,612,914.44 3,064,741,941.20 96.73 251,720,247.66 8.21 2,813,021,693.54
group of bad
debts
Including:
Group 2 1,416,738,083.83 29.49 65,681,707.01 4.64 1,351,056,376.82 1,435,401,418.99 45.30 68,054,324.68 4.74 1,367,347,094.31
Group 3 17,350.00 0.00 17,350.00
Group 4 3,320,356,754.77 69.10 235,800,217.15 7.10 3,084,556,537.62 1,629,323,172.21 51.43 183,665,922.98 11.27 1,445,657,249.23
Total 4,804,892,561.62 / 303,529,931.48 / 4,501,362,630.14 3,168,282,805.38 / 252,755,656.30 / 2,915,527,149.08
150 / 241
2022 Annual Report
Creation of provision for a single bad debt:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance
name Provision for
Book balance Provision (%) Provision reason
bad debts
Price of feed delivered to
overseas customers secured by 66,002,392.49 660,023.92 1.00 Note 1
banks
Other accounts receivable with
individual provision for bad 1,795,330.53 1,387,983.40 77.31
debts
Total 67,797,723.02 2,048,007.32 3.02 /
Note on creation of individual provision for bad debts:
"√ Applicable" "□ Not applicable"
Note 1: Price of feed delivered to overseas customers are fully secured by local banks. The security banks
will make payments unconditionally when the payments are due, which are at a low risk, the provision
percentage is set as 1% accordingly.
Creation of provision for a group of bad debts:
"√Applicable" "□Not applicable"
Creation of provision for groups: Group 2
Unit: Yuan Currency: CNY
Closing balance
name Accounts Provision for bad
Provision (%)
receivable debts
Power supply companies
188,857,569.41
(desulfurization electricity price)
Electricity price subsidies 1,227,880,514.42 65,681,707.01 5.35
Total 1,416,738,083.83 65,681,707.01 4.64
Criteria for recognizing accounts receivables regarding the creation of provision for a group of bad debts:
"√ Applicable" "□ Not applicable"
The desulfurization electricity prices are recovered within the settlement period for no risk, no
provision for bad debts is created; electricity price subsidies have been included into the national subsidy
catalog, the subsides that have not been included into the catalog are presented in contract assets.
Creation of provision for groups: Group 4
Unit: Yuan Currency: CNY
Closing balance
name
Accounts receivable Provision for bad debts Provision (%)
Within 1 year 3,129,134,642.32 156,456,732.12 5.00
1- 2 years 107,530,228.27 10,753,022.83 10.00
2- 3 years 30,202,843.97 15,101,421.99 50.00
Over 3 years 53,489,040.21 53,489,040.21 100.00
Total 3,320,356,754.77 235,800,217.15 7.10
Criteria for recognizing accounts receivables regarding the creation of provision for a group of bad debts:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model for
expected credit loss:
"□ Applicable" "√ Not applicable"
151 / 241
2022 Annual Report
(3). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change in current period
Category Opening balance Recovered or Cleared or Closing balance
Provision Other changes
reversed written off
Creation for a
1,035,408.64 1,012,598.68 2,048,007.32
single debt
Risk group 251,720,247.66 103,162,845.27 247,038.82 51,298,405.38 -2,349,802.21 301,481,924.16
Total 252,755,656.30 104,175,443.95 247,038.82 51,298,405.38 -2,349,802.21 303,529,931.48
Note: Other changes are due to the difference in foreign currency translation and the impact of
exchange rate fluctuations on financial statements.
Significant amounts recovered or reversed in the current period:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Entity name Recovered or reversed amount Recovery method
Customer 1 125,000.00 Recovery of bad debts in prior period
Customer 2 10,000.00 Recovery of bad debts in prior period
Customer 3 15,129.60 Recovery of bad debts in prior period
Customer 4 28,373.29 Recovery of bad debts in prior period
Customer 5 68,535.93 Recovery of bad debts in prior period
Total 247,038.82 /
(4). Accounts receivable written off in the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Written off amount
Accounts receivable written off 51,298,405.38
Significant accounts receivable written off
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Whether the
Nature of
Written off amount is generated
Entity name accounts Write-off reason Write-off procedure
amount from a related-party
receivable
transaction
The payment is expected Approval under due
Customer 1 Loan 22,070,798.37 No
unrecoverable procedures
The payment is expected Approval under due
Customer 2 Loan 4,825,857.88 No
unrecoverable procedures
The payment is expected Approval under due
Customer 3 Loan 2,989,682.17 No
unrecoverable procedures
The payment is expected Approval under due
Customer 4 Loan 2,739,105.00 No
unrecoverable procedures
The payment is expected Approval under due
Customer 5 Loan 2,516,227.31 No
unrecoverable procedures
The payment is expected Approval under due
Customer 6 Loan 2,296,713.28 No
unrecoverable procedures
The payment is expected Approval under due
Customer 7 Loan 1,634,033.44 No
unrecoverable procedures
The payment is expected Approval under due
Customer 8 Loan 1,471,954.85 No
unrecoverable procedures
The payment is expected Approval under due
Customer 9 Loan 1,432,973.03 No
unrecoverable procedures
The payment is expected Approval under due
Customer 10 Loan 1,106,988.82 No
unrecoverable procedures
Other 78 The payment is expected Approval under due
Loan 8,214,071.23 No
customers unrecoverable procedures
Total / 51,298,405.38 / / /
Note on write-off of accounts receivable:
"□ Applicable""√ Not applicable"
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2022 Annual Report
(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
1,826,730,589.19 38.02 91,336,529.46
Tech-bank Note
Customer 1 655,267,190.12 13.64 32,763,359.51
Customer 2 173,154,105.91 3.60 9,240,931.28
Customer 3 142,908,726.75 2.97 9,017,016.16
Customer 4 115,712,664.21 2.41 6,383,987.23
Total 2,913,773,276.18 60.64 148,741,823.64
Other notes
Note: the age of accounts receivable from the pig farming company under Tech-bank Food Co., Ltd.
(“Tech-bank”) is within the 1 year and the amount is within the payment term agreed in the contract.
(6). Accounts receivable de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(7). Amounts of assets and liabilities generated due to transfer of accounts receivable and 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 acceptances 13,066,496,368.98 11,406,947,347.71
Total 13,066,496,368.98 11,406,947,347.71
Change in receivable financing and change in fair value in the current period:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model for
expected credit loss:
"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
(1) The banker's acceptances pledged by the Company at the end of the period totaled 9,665,638,659.50
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 10,192,859,326.46 yuan.
(3) The banker's acceptances discounted as of the end of the period that have not been due on the balance
sheet date totaled 31,445,606,956.18 yuan.
The acceptors of the said banker's acceptances are banks with a very low possibility of non-performance, 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.
153 / 241
2022 Annual Report
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 1,477,431,107.85 99.35 1,592,976,378.78 99.15
1- 2 years 7,294,527.86 0.49 9,894,205.53 0.62
2- 3 years 802,288.11 0.05 1,238,495.57 0.08
Over 3 years 1,645,068.90 0.11 2,435,960.95 0.15
Total 1,487,172,992.72 100.00 1,606,545,040.83 100.00
Note on the reason for significant prepayments over 1 year:
None.
(2). Top five entities in prepayments at the end of the current period
"□ Applicable" "√ Not applicable"
Other notes
"√ Applicable" "□ Not applicable"
The total amount of prepayments from top five entities for the current period is 829,451,693.13 yuan,
taking up 55.77% of the total amount of prepayments at the end of the period.
8. Other receivables
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 477,514,347.63 611,985,134.57
Total 477,514,347.63 611,985,134.57
Other notes:
"□ Applicable" "√ Not applicable"
Interest receivable
(1). Types of interest receivable
"□ Applicable" "√ Not applicable"
(2). Significant overdue interest
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Dividend receivable
(1). Dividend receivable
"□ Applicable" "√ Not applicable"
(2). Significant interest receivable over 1 year
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
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2022 Annual Report
Other receivables
(1). Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Age Closing book balance
Within 1 year
In which: Within 1 year
Within 1 year 313,924,039.39
Within 1 year 313,924,039.39
1- 2 years 85,395,361.21
2- 3 years 48,547,965.01
Over 3 years 120,425,876.85
Total 568,293,242.46
(2). Classification by nature of payment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Payment type Closing book balance Opening book balance
Performance bond 422,137,512.78 444,273,452.92
Asset disposal 76,665,987.95
Advances 41,079,914.03 38,008,377.28
Government grants 17,593,568.84
Insurance claims 22,111,905.64 4,702.00
Others 82,963,910.01 106,044,683.63
Total 568,293,242.46 682,590,772.62
(3). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Stage I Stage II Stage III
Lifetime expected Lifetime expected
12-Month
Provision for bad debts credit loss credit loss (with Total
expected credit
(without credit credit
loss
impairment) impairment)
Balance on January 01,
39,260,833.08 31,344,804.97 70,605,638.05
2022
The Jan 1, 2022 balance
during the current period
-- converted into stage II
-- converted into stage III -11,642,054.49 11,642,054.49
-- reversed into stage II
-- reversed into stage I
Creation in the current
-14,511,197.26 46,104,487.46 31,593,290.20
period
Reversal in the current
period
Clear in the current period
Write-off in the current
11,642,054.49 11,642,054.49
period
Other changes 222,021.07 222,021.07
Balance on December 31,
13,329,602.40 77,449,292.43 90,778,894.83
2022
Note on significant changes in balances of other receivables for which their provisions were changed in the
current period:
155 / 241
2022 Annual Report
"√ Applicable" "□ Not applicable"
Other changes are due to the in foreign currency translation.
Provisions for bad debts and basis for determining significant increases in credit risks of financial
instruments for the current period:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts
"□ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change in current period
Opening Recovered
Category Cleared or Other Closing balance
balance Provision or
written off changes
reversed
Other
70,605,638.05 31,593,290.20 11,642,054.49 222,021.07 90,778,894.83
receivables
Total 70,605,638.05 31,593,290.20 11,642,054.49 222,021.07 90,778,894.83
Significant amounts recovered or reversed in the current period:
"□ Applicable" "√ Not applicable"
(5). Other receivables written off in the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Written off amount
Other receivables written off in the current period 11,642,054.49
Significant receivable written off:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
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
Approval
Lease payments for The payment is expected
Entity 1 9,153,117.99 under due No
water surface (land) unrecoverable
procedures
Approval
The payment is expected
Entity 3 Current account 1,217,024.00 under due No
unrecoverable
procedures
Approval
The payment is expected
Entity 4 Performance bond 390,000.00 under due No
unrecoverable
procedures
Approval
The payment is expected
Other entities 881,912.50 under due No
unrecoverable
procedures
Total / 11,642,054.49 / / /
Note on write-off of other receivables:
"□ Applicable""√ Not applicable"
(6). Top five entities in other receivables at the end of the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percent in the
total other Provision for
Closing
Entity name Payment type Age receivables at the bad debts
balance
end of the period Closing balance
(%)
156 / 241
2022 Annual Report
Performance Within 1
Entity 1 76,190,000.00 13.41
bond year
Performance
Entity 2 56,681,911.77 Note 1 9.97
bond
Performance
Entity 3 30,000,000.00 1- 2 years 5.28
bond
Insurance Within 1
Entity 4 22,100,000.00 3.89
claims year
Performance
Entity 5 20,400,000.00 2- 3 years 3.59
bond
Total / 205,371,911.77 / 36.14
Note 1: The closing balance for entity 2: 34,496,451.77 yuan within 1 year, and 22,185,460.00 yuan
between 1 and 2 years.
(7). Grants receivable
"□ Applicable" "√ Not applicable"
(8). Other receivables de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(9). Amounts of assets and liabilities generated due to transfer of other receivables and continuing
involvement
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
157 / 241
2022 Annual Report
9. Inventories
(1). Classification of inventories
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Provision for Provision for
obsolete obsolete
Item
Book balance inventory/provision Carrying value Book balance inventory/provision Carrying value
for impairment on for impairment on
fulfillment costs fulfillment costs
Raw materials 3,933,801,975.56 76,889,145.51 3,856,912,830.05 2,567,707,745.26 9,983,945.22 2,557,723,800.04
Work-in-process 472,567,045.48 472,567,045.48 286,891,070.52 286,891,070.52
Goods in stock 3,583,696,215.78 252,067,262.23 3,331,628,953.55 924,876,172.89 27,417,517.64 897,458,655.25
Materials for
59,575,288.33 59,575,288.33 48,917,893.98 48,917,893.98
repeated use
Consumable
51,893,637.87 7,843,337.72 44,050,300.15 63,370,049.03 7,843,337.72 55,526,711.31
biological assets
Costs to fulfill
49,524,009.90 49,524,009.90 13,936,566.22 13,936,566.22
contracts
Packing materials 33,585,149.60 33,585,149.60 31,170,648.04 31,170,648.04
Materials in transit 13,153,709.97 13,153,709.97 9,318.11 9,318.11
Materials for
processing on 664,990,947.31 7,357,102.19 657,633,845.12 847,765,826.97 847,765,826.97
consignment
Goods in transit 2,598,930,595.62 114,912,619.39 2,484,017,976.23 948,652,713.69 5,261,636.09 943,391,077.60
Total 11,461,718,575.42 459,069,467.04 11,002,649,108.38 5,733,298,004.71 50,506,436.67 5,682,791,568.04
158 / 241
2022 Annual Report
(2). Provision for obsolete inventory and provision for impairment on fulfillment costs
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current increase Current decrease
Item Opening balance Reversed or Closing balance
Provision Others Others
cleared
Raw materials 9,983,945.22 66,905,200.29 76,889,145.51
Work-in-process
Goods in stock 27,417,517.64 266,282,040.98 41,632,296.39 252,067,262.23
Materials for repeated
use
Consumable
7,843,337.72 1,274,000.00 1,274,000.00 7,843,337.72
biological assets
Costs to fulfill
contracts
Goods in transit 5,261,636.09 127,133,447.21 17,482,463.91 114,912,619.39
Materials for
processing on 7,357,102.19 7,357,102.19
consignment
Total 50,506,436.67 468,951,790.67 60,388,760.30 459,069,467.04
(3). Note on closing balance of inventories containing capitalized amount of borrowing costs
"□ Applicable" "√ Not applicable"
(4). Note on amount of fulfillment costs amortized in the current period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
10. Contract assets
(1). Contract assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Electricity
price 630,254,246.71 32,323,051.12 597,931,195.59 758,955,932.09 43,852,907.79 715,103,024.30
subsidies
Total 630,254,246.71 32,323,051.12 597,931,195.59 758,955,932.09 43,852,907.79 715,103,024.30
(2). Significant changes in carrying values in the reporting period and reasons for the changes
"□ Applicable" "√ Not applicable"
(3). Impairment provision for contract assets in the current period
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model
for expected credit loss:
"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
(1) Impairment provision for contract assets
Unit: Yuan Currency: CNY
Closing balance Closing balance
Category Impairment Impairment
Book balance Provision (%) Book balance Provision (%)
provision provision
Electricity
price 630,254,246.71 32,323,051.12 5.13 758,955,932.09 43,852,907.79 5.78
subsidies
159 / 241
2022 Annual Report
(2) Changes in impairment provision for contract assets
Unit: Yuan Currency: CNY
Change in current period
Category Opening balance Recovered or Cleared or Other Closing balance
Provision
reversed written off changes
Electricity
price 43,852,907.79 11,529,856.67 32,323,051.12
subsidies
11. Assets held for sale
"□ Applicable" "√ Not applicable"
12. Non-current assets due within one year
"□ Applicable" "√ Not applicable"
Significant debt investments and other debt investments at the end of the current period:
"□ Applicable" "√ Not applicable"
Other notes
None.
13. Other current assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Costs to obtain contracts
Costs of returns receivable
Input tax credit 680,785,868.61 1,192,394,602.16
Corporate income tax prepayment 105,330,225.62 25,773,110.65
Costs of issuing convertible bond to be deducted 1,140,203.28
Other tax prepayments 291,639.83 1,335,221.74
Total 786,407,734.06 1,220,643,137.83
14. Debt investments
(1). Debt investments
"□ Applicable" "√ Not applicable"
(2). Significant debt investments at the end of the current period
"□ Applicable" "√ Not applicable"
(3). Impairment provision
"□ Applicable" "√ Not applicable"
Impairment provisions created in the current period and basis for determining significant increases in credit
risks of financial instruments for the current period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
15. Other debt investments
(1). Other debt investments
"□ Applicable" "√ Not applicable"
(2). Other significant debt investments at the end of the current period
"□ Applicable" "√ Not applicable"
(3). Impairment provision
"□ Applicable" "√ Not applicable"
Impairment provisions created in the current period and basis for determining significant increases in credit
risks of financial instruments for the current period
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
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2022 Annual Report
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 the current period
"□ Applicable" "√ Not applicable"
(3). Long-term receivables de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(4). Amounts of assets and liabilities generated due to transfer of long-term receivables and
continuing involvement
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable""√ Not applicable"
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2022 Annual Report
17. Long-term equity investments
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
Change in current period
Additi Decrea Investment Adjustment Closing balance
Opening Declared cash Closing
Investee onal sed gain or loss of other Other changes Impairment of impairment
balance dividend or Others balance
invest invest under equity comprehensi in equity provision provision
profit
ments ments method ve income
I. Joint ventures
Maoming Tongwei Jiuding
6,411,699.14 -902,593.03 233,020.64 5,276,085.47
Feed Co., Ltd.
BioMar Tongwei (Wuxi)
105,106,774.23 -2,947,930.43 102,158,843.80
Biotech Co., Ltd.
Sub-total 111,518,473.37 -3,850,523.46 233,020.64 107,434,929.27
II. Associates
Bohai Aquaculture Co., Ltd. 99,603,329.66 2,136,863.18 -682,837.29 -166,628.78 100,890,726.77
Haimao Seed Industry
136,707,219.24 -57,308,947.49 -437,728.97 24,673,524.79 54,287,017.99 24,673,524.79
Technology Co., Ltd.
Anhui Tech-bank Feed
59,356,017.38 1,795,335.25 61,151,352.63
Technology Co., Ltd.
Anhui Tech-bank
23,402,678.61 338,944.91 23,741,623.52
Biotechnology Co., Ltd.
Suzhou Taiyangjing New
25,210,607.32 -5,939,032.23 23,809,924.94 43,081,500.03
Energy Co., Ltd.
Sub-total 344,279,852.21 -58,976,836.38 -1,120,566.26 23,643,296.16 24,673,524.79 283,152,220.94 24,673,524.79
Total 455,798,325.58 -62,827,359.84 -1,120,566.26 23,643,296.16 233,020.64 24,673,524.79 390,587,150.21 24,673,524.79
162 / 241
2022 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. 154,196,557.28 153,551,598.71
Total 154,196,557.28 153,551,598.71
(2). Non-trading equity investments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount Reasons for
Reasons for
Dividend converted designation as conversion from
income from other measurement at fair other
Cumulative Cumulative
Item recognized in comprehensi value through other comprehensive
gain loss income to
the current ve income to comprehensive
retained
period retained income
earnings
earnings
Chengdu
Tongwei
7,508,757.28 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 3,146,248.25
Total 3,146,248.25 3,146,248.25
Other notes:
"□ Applicable" "√ Not applicable"
20. Investment properties
Measurement models for investment properties
(1). Investment properties measured at cost
Unit: Yuan Currency: CNY
Premises and Construction
Item Land use rights Total
buildings in progress
I. Original carrying value
1. Opening balance 162,080,432.71 21,630,000.00 183,710,432.71
2. Current increase
(1) Purchased
(2) Conversion from
stock/fixed
assets/construction in
progress
(3) Increase from
business combination
3. Current decrease
(1) Disposal
(2) Others
4. Closing balance 162,080,432.71 21,630,000.00 183,710,432.71
163 / 241
2022 Annual Report
II. Accumulated depreciation and accumulated amortization
1. Opening balance 32,373,457.85 9,301,444.64 41,674,902.49
2. Current increase 3,964,328.84 666,408.39 4,630,737.23
(1) Deprecation or
3,964,328.84 666,408.39 4,630,737.23
amortization
3. Current decrease
(1) Disposal
(2) Others
4. Closing balance 36,337,786.69 9,967,853.03 46,305,639.72
II. Impairment provision
1. Opening balance 29,692,565.20 29,692,565.20
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal
(2) Others
4. Closing balance 29,692,565.20 29,692,565.20
IV. Carrying value
1. Closing carrying value 96,050,080.82 11,662,146.97 107,712,227.79
2. Opening carrying value 100,014,409.66 12,328,555.36 112,342,965.02
(2). Investment properties for which title certificates are not obtained
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
21. Fixed assets
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Fixed assets 53,291,583,073.49 36,953,602,608.30
Disposal of fixed assets 385,795.71 5,069,389.79
Total 53,291,968,869.20 36,958,671,998.09
Other notes:
"□ Applicable" "√ Not applicable"
164 / 241
2022 Annual Report
Fixed assets
(1). Fixed assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Machinery PV generation Transportation Office
Item Premises and buildings Total
equipment equipment equipment equipment
I. Original carrying value:
1. Opening balance 11,272,217,776.88 24,162,239,256.40 10,831,731,685.90 318,616,312.57 355,222,948.04 46,940,027,979.79
2. Current increase 5,162,903,579.60 18,292,125,909.28 2,637,504,831.29 122,727,795.27 50,414,649.37 26,265,676,764.81
(1) Purchase 554,370,355.91 1,105,823.98 121,590,896.08 40,552,438.83 717,619,514.80
(2) Conversion from construction
5,300,235,310.78 16,245,692,632.31 2,554,041,622.96 9,730,641.91 24,109,700,207.96
in progress
(3) Increase from business
combination
(4) Conversion from right-of-use
1,471,361,284.91 1,471,361,284.91
assets
(5) Adjustment from final accounts
-145,747,000.24 10,185,379.98 82,357,384.35 572,422.94 -818,610.69 -53,450,423.66
of construction completion
(6) Effect of foreign currency translation 8,415,269.06 10,516,256.17 564,476.25 950,179.32 20,446,180.80
3. Current decrease 230,575,857.43 4,520,613,799.75 656,194.57 35,451,100.30 40,762,126.55 4,828,059,078.60
(1) Disposal or scrap 136,713,554.21 1,846,021,208.80 656,194.57 35,451,100.30 40,762,126.55 2,059,604,184.43
(2) Conversion to construction in
93,862,303.22 2,674,592,590.95 2,768,454,894.17
progress
4. Closing balance 16,204,545,499.05 37,933,751,365.93 13,468,580,322.62 405,893,007.54 364,875,470.86 68,377,645,666.00
II. Accumulated depreciation
1. Opening balance 2,438,247,994.47 5,583,990,212.97 1,137,438,071.30 162,768,214.41 197,491,395.68 9,519,935,888.83
2. Current increase 559,384,218.39 4,063,066,114.71 437,312,287.34 53,080,713.35 49,534,102.03 5,162,377,435.82
(1) Provision 566,607,801.56 3,730,357,989.30 428,181,678.13 52,649,267.01 48,909,773.41 4,826,706,509.41
(2) Conversion from right-of-use 324,828,173.03
324,828,173.03
assets
(3) Adjustment from final accounts
-10,720,797.96 1,590,188.75 9,130,609.21
of construction completion
(3) Effect of foreign currency
3,497,214.79 6,289,763.63 431,446.34 624,328.62 10,842,753.38
translation
3. Current decrease 70,808,249.03 1,480,600,344.26 225,918.27 24,002,716.35 36,076,972.16 1,611,714,200.07
165 / 241
2022 Annual Report
(1) Disposal or scrap 50,477,658.24 699,761,044.48 225,918.27 24,002,716.35 36,076,972.16 810,544,309.50
(9) Conversion to construction in
20,330,590.79 780,839,299.78 801,169,890.57
progress
4. Closing balance 2,926,823,963.83 8,166,455,983.42 1,574,524,440.37 191,846,211.41 210,948,525.55 13,070,599,124.58
II. Impairment provision
1. Opening balance 153,494,696.78 47,207,099.06 265,252,962.50 10,219.13 524,505.19 466,489,482.66
2. Current increase 1,215,166,752.04 367,725,502.52 8,388.29 8,018.87 1,582,908,661.72
(1) Provision 1,215,166,752.04 367,725,502.52 8,388.29 8,018.87 1,582,908,661.72
3. Current decrease 6,110,206.34 27,311,375.08 10,219.13 502,875.90 33,934,676.45
(1) Disposal or scrap 6,110,206.34 27,311,375.08 10,219.13 502,875.90 33,934,676.45
4. Closing balance 147,384,490.44 1,235,062,476.02 632,978,465.02 8,388.29 29,648.16 2,015,463,467.93
IV. Carrying value
1. Closing carrying value 13,130,337,044.78 28,532,232,906.49 11,261,077,417.23 214,038,407.84 153,897,297.15 53,291,583,073.49
2. Opening carrying value 8,680,475,085.63 18,531,041,944.37 9,429,040,652.10 155,837,879.03 157,207,047.17 36,953,602,608.30
Note 1: Adjustment from final accounts of construction completions mainly refers to the adjustment of fixed assets pre-converted to fixed assets from final
accounts for phase 1 project of Tongwei Solar (Meishan) Co., Ltd.
Note 2: As stated in “changes in significant accounting policies”, the retrospective adjustments of the opening balances of fixed assets are as below:
Unit: Yuan Currency: CNY
Opening balance
Category Item
Before adjustment Adjustment amount After adjustment
Original carrying value 11,273,521,319.87 -1,303,542.99 11,272,217,776.88
Accumulated depreciation 2,438,346,397.86 -98,403.39 2,438,247,994.47
Premises and buildings
Impairment provision 153,494,696.78 153,494,696.78
Carrying value 8,681,680,225.23 -1,205,139.60 8,680,475,085.63
Original carrying value 24,632,305,612.33 -470,066,355.93 24,162,239,256.40
Accumulated depreciation 5,714,762,667.81 -130,772,454.84 5,583,990,212.97
Machinery equipment
Impairment provision 47,207,099.06 - 47,207,099.06
Carrying value 18,870,335,845.46 -339,293,901.09 18,531,041,944.37
Original carrying value 10,831,731,685.90 10,831,731,685.90
Accumulated depreciation 1,137,438,071.30 1,137,438,071.30
PV generation equipment
Impairment provision 265,252,962.50 265,252,962.50
Carrying value 9,429,040,652.10 9,429,040,652.10
Original carrying value 318,616,312.57 318,616,312.57
Accumulated depreciation 162,768,214.41 162,768,214.41
Transportation equipment
Impairment provision 10,219.13 10,219.13
Carrying value 155,837,879.03 155,837,879.03
Office equipment Original carrying value 355,222,948.04 355,222,948.04
166 / 241
2022 Annual Report
Accumulated depreciation 197,491,395.68 197,491,395.68
Impairment provision 524,505.19 524,505.19
Carrying value 157,207,047.17 157,207,047.17
Original carrying value 47,411,397,878.71 -471,369,898.92 46,940,027,979.79
Accumulated depreciation 9,650,806,747.06 -130,870,858.23 9,519,935,888.83
Total
Impairment provision 466,489,482.66 466,489,482.66
Carrying value 37,294,101,648.99 -340,499,040.69 36,953,602,608.30
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2022 Annual Report
(2). Fixed assets in temporary idleness
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Original Accumulated Impairment
Item Carrying value Notes
carrying value depreciation provision
Premises
and 729,275.97 289,893.32 439,382.65
buildings
Machinery
1,173,024.70 918,422.67 254,602.03
equipment
Total 1,902,300.67 1,208,315.99 693,984.68
(3). Fixed assets acquired by financial lease
"□ Applicable" "√ Not applicable"
(4). Fixed assets leased out by operating lease
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing carrying value
Premises and buildings 119,365,144.59
Machinery equipment 14,096,207.87
Transportation equipment 70,508.47
Office equipment 214,268.91
Total 133,746,129.84
(5). Fixed assets for which title certificates are not obtained
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Reason for not
Item Carrying value obtaining title
certificate
Premises of Tongwei (Hainan) Aquatic Products Co., Ltd. 17,990,405.42 In progress
Premises of Huaian Tongwei Feed Co., Ltd. 17,709,274.76 In progress
Premises of Xiamen Tongwei Feed Co., Ltd. 2,305,825.10 In progress
Premises of Nanchang Tongwei Biotechnology Co., Ltd. 32,394,060.19 In progress
Premises of Hainan Tongwei Biotechnology Co., Ltd. 1,528,086.69 In progress
Premises of Hainan Haiyi Aquatic Products Feed Co., Ltd. 61,621.36 In progress
Premises of Qianxi Tongwei Feed Co., Ltd. 5,124,208.04 In progress
Premises of Fuzhou Tongwei William Feed Co., Ltd. 125,333,729.24 In progress
Premises of Shenyang Tongwei Biotechnology Co., Ltd. 34,276,771.66 In progress
Premises of Huizhou Tongwei Biotechnology Co., Ltd. 10,717,625.01 In progress
Premises of Inner Mongolia Tongwei High-purity Crystalline
514,257,581.47 In progress
Silicon Company
Premises of Yunnan Tongwei High-purity Crystalline Silicon
720,591,473.62 In progress
Company
Premises of Sichuan Yongxiang PV Technology Co., Ltd. 801,604,223.16 In progress
Premises of Tonghe New Energy (Jintang) Co., Ltd. 974,231,354.94 In progress
Premises of Sichuan Yongxiang Energy Technology Co., Ltd. 207,476,446.41 In progress
Premises of Tongwei Solar (Hefei) Co., Ltd. 362,417,681.97 In progress
Premises of Tongwei Solar (Meishan) Co., Ltd. 798,432,847.79 In progress
Premises of Tongwei Solar (Jintang) Co., Ltd. 858,629,617.68 In progress
Premises of Tongwei Solar (Chengdu) Co., Ltd. 814,281,002.00 In progress
Total 6,299,363,836.51
Other notes:
168 / 241
2022 Annual Report
"□ Applicable" "√ Not applicable"
Disposal of fixed assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Disposal of fixed assets 385,795.71 5,069,389.79
Total 385,795.71 5,069,389.79
Other notes:
None.
22. Construction in progress
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Construction in progress 3,752,450,983.65 10,250,325,529.08
Construction materials 244,946,016.27 360,494,223.95
Total 3,997,396,999.92 10,610,819,753.03
Other notes:
"□ Applicable" "√ Not applicable"
169 / 241
2022 Annual Report
Construction in progress
(1). Construction in progress
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Phase I High-purity Polysilicon Project of 2,629,615.55
581,846,907.06 581,846,907.06 2,629,615.55
Yongxiang Energy Technology
15 GW Monocrystalline Rod Pulling and Cutting 746,198,554.03
94,842,688.37 94,842,688.37 746,198,554.03
Project of Yongxiang PV Technology
Yongxiang Technological Renovation for 29,930,785.31
52,302,278.30 52,302,278.30 29,930,785.31
Production
20,000-Ton High-purity Polysilicon Rod Pulling
54,273,623.61 54,273,623.61
and Cutting Project of Yongxiang PV Technology
Phase I 50,000-ton High-purity Polysilicon Project 3,409,911,750.01
45,978,767.94 45,978,767.94 3,409,911,750.01
of Yunnan Tongwei
Inner Mongolia Tongwei Technological Renovation 48,968,660.93
21,123,010.82 21,123,010.82 48,968,660.93
for Production
Phase II 200,000-ton High-purity Polysilicon
19,012,818.39 19,012,818.39
Project of Yunnan Tongwei
Yongxiang New Energy Technological Renovation 5,061,605.83
20,313,734.26 20,313,734.26 5,061,605.83
for Production
Phase II High-purity Polysilicon Project of Inner 1,192,138,830.18
1,192,138,830.18
Mongolia Tongwei
Phase II High-purity Polysilicon Project of 21,508,913.81
21,508,913.81
Yongxiang New Energy
Phase I 7.5 GW High-efficiency Solar Cell Project 115,621,150.20
115,621,150.20
in Meishan
Phase II 7.5 GW High-efficiency Solar Cell Project 809,599.56
809,599.56
in Meishan
Phase III 9 GW High-efficiency Solar Cell Project
1,907,004,489.28 1,907,004,489.28
in Meishan
Phase I 7.5 GW High-efficiency Solar Cell Project 1,964,042.72
1,964,042.72
in Jintang
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2022 Annual Report
Micro-crystalline Technology Upgrading for the
High-efficiency HJT Half-cut and Double-sided 348,162,426.96 348,162,426.96
Solar Cells 210mm in Jintang
Jintang S2_Demonstration Project for Application 2,606,601.33
of Core Technologies in Domestic Equipment for 2,061,184.60 2,061,184.60 2,606,601.33
High-efficiency Solar Cells
Tonghe 15 GW High-Efficiency Solar Cell Project 2,274,672,207.79 2,274,672,207.79
Tonghe 15 GW Wafer Slicing Project 550,360,995.61 550,360,995.61
Hefei Phase III 5GW High-efficiency Module 7,549,250.11
3,929,203.56 3,929,203.56 7,549,250.11
Project
Technological Upgrading Project for the 8 GW 20,001.98
13,104,798.68 13,104,798.68 20,001.98
Solar Intelligent Factory in Hefei
25 GW High-efficiency Solar Modules Project in
14,423,633.63 14,423,633.63
Yancheng
Phase II 250 MW Aquaculture-Photovoltaic
Integration Powerplant Project in Chenhu for 17,698,462.02 17,698,462.02
Tongwei Tianmen
Other constructions 556,372,956.17 556,372,956.17 1,845,655,227.03 5,282,262.90 1,840,372,964.13
Total 3,752,450,983.65 3,752,450,983.65 10,255,607,791.98 5,282,262.90 10,250,325,529.08
Note 1: As stated in “changes in significant accounting policies”, the retrospective adjustments of the opening balances of construction in progress are as below:
Unit: Yuan Currency: CNY
Opening balance
Project
Before adjustment Adjustment amount After adjustment
15 GW Monocrystalline Rod Pulling and Cutting Project of Yongxiang PV
755,030,527.90 -8,831,973.87 746,198,554.03
Technology
Tonghe 15 GW High-Efficiency Solar Cell Project 2,281,757,633.72 -7,085,425.93 2,274,672,207.79
Tonghe 15 GW Wafer Slicing Project 560,024,727.84 -9,663,732.23 550,360,995.61
Total 3,596,812,889.46 -25,581,132.03 3,571,231,757.43
(2). Changes in significant construction in progress in current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Interest
capitali
Amount converted to Cumulative Cumulative Including: interest zation
Opening Other current Closing Constructio Sources of
Project name Budget Current increase fixed assets in current cost to interest capitalized in rate in
balance decreases balance n progress current funds
period budget (%) capitalized current period
period
(%)
Phase I High-purity Polysilicon Project of Self-fundin
6,000,000,000.00 2,629,615.55 650,074,356.56 70,857,065.05 581,846,907.06 10.88 15.00 4,083,044.26 4,083,044.26 3.62
Yongxiang Energy Technology g
171 / 241
2022 Annual Report
15 GW Monocrystalline Rod Pulling and Raising
Cutting Project of Yongxiang PV 4,103,929,600.00 746,198,554.03 2,397,952,907.66 3,036,155,340.13 13,153,433.19 94,842,688.37 76.61 95.00 fund and
Technology self-funding
Yongxiang Technological Renovation for Self-fundin
160,822,200.00 29,930,785.31 85,805,257.43 63,433,764.44 52,302,278.30 71.97 70.00
Production g
20,000-Ton High-purity Polysilicon Rod
Self-fundin
Pulling and Cutting Project of Yongxiang 104,849,000.00 54,273,623.61 54,273,623.61 51.76 45.00
g
PV Technology
Phase I 50,000-ton High-purity Polysilicon Self-fundin
3,963,900,000.00 3,409,911,750.01 48,949,923.85 3,412,882,905.92 45,978,767.94 111.63 95.00 8,080,960.21 1,221,893.14 4.69
Project of Yunnan Tongwei g
Inner Mongolia Tongwei Technological Self-fundin
120,019,700.00 48,968,660.93 31,292,839.37 59,138,489.48 21,123,010.82 66.87 65.00
Renovation for Production g
Phase II 200,000-ton High-purity Self-fundin
10,079,410,000.00 19,012,818.39 19,012,818.39 0.19 Preparation
Polysilicon Project of Yunnan Tongwei g
Yongxiang New Energy Technological Self-fundin
430,080,000.00 5,061,605.83 95,602,058.09 80,349,929.66 20,313,734.26 23.41 20.00
Renovation for Production g
Raising
Phase II High-purity Polysilicon Project of
4,016,290,000.00 1,192,138,830.18 3,498,484,813.71 4,679,831,025.63 10,792,618.26 119.51 100.00 16,193,920.61 15,583,107.19 4.30 fund and
Inner Mongolia Tongwei
self-funding
Raising
Phase II High-purity Polysilicon Project of
3,893,700,000.00 21,508,913.81 53,543,080.73 75,051,994.54 97.29 100.00 fund and
Yongxiang New Energy
self-funding
Phase I 7.5 GW efficient solar cell project Self-fundin
2,500,000,000.00 115,621,150.20 23,917,402.29 139,538,552.49 93.64 100.00
in Meishan g
Raising
Phase II 7.5 GW efficient solar cell project
2,200,000,000.00 809,599.56 26,542,589.55 27,425,785.57 -73,596.46 73.77 100.00 fund and
in Meishan
self-funding
Phase III 9 GW High-efficiency Solar Cell Self-fundin
2,200,000,000.00 1,907,004,489.28 1,907,004,489.28 86.68 90.00
Project in Meishan g
Raising
Phase I 7.5 GW High-efficiency Solar Cell
2,500,359,400.00 1,964,042.72 50,059,015.31 51,680,726.05 342,331.98 100.71 100.00 9,299,363.05 3,978,773.61 5.20 fund and
Project in Jintang
self-funding
Micro-crystalline Technology Upgrading
for the High-efficiency HJT Half-cut and Self-fundin
120,000,000.00 348,162,426.96 348,162,426.96 3.45 3.00
Double-sided Solar Cells 210mm in g
Jintang
Jintang S2_Demonstration Project for
Application of Core Technologies in Self-fundin
2,000,000,000.00 2,606,601.33 1,649,641,379.98 1,589,837,582.20 60,349,214.51 2,061,184.60 95.68 99.00
Domestic Equipment for High-efficiency g
Solar Cells
Tonghe 15 GW High-Efficiency Solar Cell Self-fundin
4,500,000,000.00 2,274,672,207.79 1,033,895,738.51 3,306,454,676.32 2,113,269.98 73.52 100.00 2,619,263.77 2,619,263.77 4.62
Project g
Self-fundin
Tonghe 15 GW Wafer Slicing Project 1,500,000,000.00 550,360,995.61 209,980,788.12 757,343,733.73 2,998,050.00 50.69 100.00
g
Hefei Phase III 5GW High-efficiency Self-fundin
370,700,000.00 7,549,250.11 354,264,204.30 356,893,684.82 990,566.03 3,929,203.56 97.60 99.99
Module Project g
Technological Upgrading Project for the 8 Self-fundin
1,119,320,000.00 20,001.98 730,131,009.40 712,538,294.62 4,507,918.08 13,104,798.68 65.23 80.00
GW Solar Intelligent Factory in Hefei g
25 GW High-efficiency Solar Modules Self-fundin
4,500,000,000.00 14,423,633.63 14,423,633.63 0.32 0.75
Project in Yancheng g
Phase II 250 MW
Aquaculture-Photovoltaic Integration Self-fundin
1,541,934,500.00 796,897,321.98 779,198,859.96 17,698,462.02 51.68 49.83 5,614,885.81 5,614,885.81 4.39
Powerplant Project in Chenhu for Tongwei g
Tianmen
Other constructions 1,845,655,227.03 3,769,809,976.78 4,981,944,862.40 77,147,385.24 556,372,956.17 111,587,285.45 19,528,927.40
Total 57,925,314,400.00 10,255,607,791.98 17,849,721,655.49 24,109,700,207.96 243,178,255.86 3,752,450,983.65 / / 157,478,723.16 52,629,895.18 / /
172 / 241
2022 Annual Report
(3). Impairment provision for construction in progress in current period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
173 / 241
2022 Annual Report
Construction materials
(1).Construction materials
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Special
152,590,656.82 152,590,656.82 155,963,464.57 155,963,464.57
equipment
Special
92,355,359.45 92,355,359.45 204,530,759.38 204,530,759.38
materials
Total 244,946,016.27 244,946,016.27 360,494,223.95 360,494,223.95
Other notes:
None.
23. Productive biological assets
(1). Productive biological assets measured at cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Aquaculture
Item Total
Male fish Male pawn
I. Original carrying value
1. Opening balance 145,460.00 13,985,535.85 14,130,995.85
2. Current increase 16,801,702.14 16,801,702.14
(1) Purchased 16,801,702.14 16,801,702.14
(2) Self-cultivated
3. Current decrease 105,171.45 105,171.45
(1) Disposal 105,171.45 105,171.45
(2) Others
4. Closing balance 40,288.55 30,787,237.99 30,827,526.54
II. Accumulated depreciation
1. Opening balance 138,187.04 10,355,136.90 10,493,323.94
2. Current increase 11,364,719.87 11,364,719.87
(1) Provision 11,364,719.87 11,364,719.87
3. Current decrease 99,912.88 99,912.88
(1) Disposal 99,912.88 99,912.88
(2) Others
4. Closing balance 38,274.16 21,719,856.77 21,758,130.93
II. Impairment provision
1. Opening balance
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal
(2) Others
4. Closing balance
IV. Carrying value
1. Closing carrying value 2,014.39 9,067,381.22 9,069,395.61
2. Opening carrying value 7,272.96 3,630,398.95 3,637,671.91
(2). Productive biological assets measured at fair value
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable""√ Not applicable"
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2022 Annual Report
24. Oil and gas assets
"□ Applicable" "√ Not applicable"
25. Right-of-use assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Premises and Land and water
Item Machinery equipment Total
buildings surface
I. Original carrying value
1. Opening balance 231,755,303.04 2,166,786,175.15 3,278,047,224.94 5,676,588,703.13
2. Current increase -28,664,827.11 782,510,106.34 620,073,128.26 1,373,918,407.49
(1) Lease in current
7,840,052.17 824,759,340.05 620,064,251.19 1,452,663,643.41
period
(2) Adjustment from
modifications of terms of lease -36,504,879.28 -401,200.20 8,877.07 -36,897,202.41
contracts
(3) Conversion from
construction in progress
(4) Other increase -41,848,033.51 -41,848,033.51
3. Current decrease 42,263,199.67 1,471,361,284.91 338,019,863.67 1,851,644,348.25
(1) Written-off upon lease
35,952,516.29 133,017,269.38 168,969,785.67
expiry
(2) Scrap or disposal 6,310,683.38 205,002,594.29 211,313,277.67
(3) Conversion to fixed
1,471,361,284.91 1,471,361,284.91
assets
4. Closing balance 160,827,276.26 1,477,934,996.58 3,560,100,489.53 5,198,862,762.37
II. Accumulated depreciation
1. Opening balance 47,060,888.07 317,105,969.66 936,179,582.10 1,300,346,439.83
2. Current increase 23,292,238.00 91,644,850.77 280,238,764.67 395,175,853.44
(1) Provision 23,292,238.00 91,644,850.77 280,238,764.67 395,175,853.44
3. Current decrease 36,674,557.65 324,828,173.03 198,577,932.10 560,080,662.78
(1) Disposal 722,041.36 65,560,662.72 66,282,704.08
(2) Written-off upon lease
35,952,516.29 133,017,269.38 168,969,785.67
expiry
(3) Conversion to fixed
324,828,173.03 324,828,173.03
assets
4. Closing balance 33,678,568.42 83,922,647.40 1,017,840,414.67 1,135,441,630.49
II. Impairment provision
1. Opening balance
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal
4. Closing balance
IV. Carrying value
1. Closing carrying value 127,148,707.84 1,394,012,349.18 2,542,260,074.86 4,063,421,131.88
2. Opening carrying value 184,694,414.97 1,849,680,205.49 2,341,867,642.84 4,376,242,263.30
Other notes:
Note 1: The “other increase” for “machinery equipment” in current period is due to the adjustment
made for this year on the basis of amount excluding tax because the PV generation equipment directly
leased in 2021 was initially recognized on the price (including tax), and it was confirmed in 2022 by the
leaser that special VAT invoice was allowed.
Note 2: “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.
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2022 Annual Report
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 2,126,519,847.06 149,599,396.20 193,842,742.73 163,929,885.07 97,251,107.50 56,069,470.78 29,981,500.00 2,817,193,949.34
2. Current increase 199,990,164.56 86,603.77 46,555.43 35,159,849.65 82,610.00 22,573.20 2,301,231.00 237,689,587.61
(1) Purchase 52,896,430.78 86,603.77 46,555.43 15,049,516.46 82,610.00 2,301,231.00 70,462,947.44
(2) Internal
research and development
(3) Increase from
business combination
(4) Conversion
from construction in 144,286,817.34 17,682,976.86 161,969,794.20
progress
(5) Adjustment
from final accounts of 2,427,356.33 22,573.20 2,449,929.53
construction completion
(6) Effect of
foreign currency 2,806,916.44 2,806,916.44
translation
3. Current decrease 1,447,340.76 11,751,705.19 13,199,045.95
(1) Disposal 1,447,340.76 11,751,705.19 13,199,045.95
4. Closing balance 2,325,062,670.86 149,685,999.97 193,889,298.16 187,338,029.53 97,333,717.50 56,092,043.98 32,282,731.00 3,041,684,491.00
II. Accumulated amortization
1. Opening balance 260,243,423.29 15,022,413.42 36,814,491.52 73,638,407.67 10,842,586.23 8,321,005.00 1,469,732.05 406,352,059.18
2. Current increase 48,486,442.54 10,593,133.35 19,858,202.54 21,219,091.41 82,258,599.60 2,087,907.51 1,584,811.26 186,088,188.21
(1) Provision 47,840,243.85 10,593,133.35 19,858,202.54 21,219,091.41 82,258,599.60 2,087,907.51 1,584,811.26 185,441,989.52
(2) Adjustment
from final accounts of
construction completion
(3) Effect of
foreign currency 646,198.69 646,198.69
translation
3. Current decrease 895,227.29 5,689,029.48 6,584,256.77
(1) Disposal 895,227.29 5,689,029.48 6,584,256.77
4. Closing balance 307,834,638.54 25,615,546.77 56,672,694.06 89,168,469.60 93,101,185.83 10,408,912.51 3,054,543.31 585,855,990.62
II. Impairment provision
1. Opening balance
176 / 241
2022 Annual Report
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal
4. Closing balance
IV. Carrying value
1. Closing carrying
2,017,228,032.32 124,070,453.20 137,216,604.10 98,169,559.93 4,232,531.67 45,683,131.47 29,228,187.69 2,455,828,500.38
value
2. Opening 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
Intangible assets generated from internal research and development accounts for 0% of the closing balance of intangible assets.
177 / 241
2022 Annual Report
(2). Land use rights for which title certificates are not obtained
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Reason for not obtaining
Item Carrying value
title certificate
Land used by Huizhou Tongwei Biotechnology Co., Ltd. 7,017,013.41 In progress
Land used by Huaian Tongwei Feed Co., Ltd. 575,295.08 In progress
Land used by Xiamen Tongwei Feed Co., Ltd. 3,701,738.09 In progress
Land used by Tongwei Solar (Chengdu) Co., Ltd. 49,916,888.91 In progress
Land used by Gao’an Tongwei Fishery-PV Technology
126,316.67 In progress
Co., Ltd.
Total 61,337,252.16
Other notes:
"□ Applicable""√ Not applicable"
27. R&D cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current increase Current decrease
Opening Recognized Converted into Closing
Item Converted to
balance Internal R&D cost Others as intangible current profit and balance
operating cost
assets loss
R&D projects for
2,066,616,172.22 97,841,714.74 1,968,774,457.48
silicon materials
R&D projects for
solar cells and 1,729,881,805.72 1,002,788,501.48 727,093,304.24
modules
Others 604,085,366.95 363,813,327.62 240,272,039.33
Total 4,400,583,344.89 1,464,443,543.84 2,936,139,801.05
28. Goodwill
(1). Original carrying value of goodwill
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current
Current increase
decrease
Investee or event generating goodwill Opening balance From Closing balance
business Others 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
Tech-bank Feed Co., Ltd. 139,528,632.05 3,304,451.85 142,833,083.90
Total 797,632,156.16 3,304,451.85 800,936,608.01
Note: The goodwill increase for Tech-bank Feed Co., Ltd. is due to the acquisition consideration
determined by facts such as accounts receivable of Tech-bank Feed Co., Ltd. that had existed before the
purchase date (combination date) were recovered within 12 months after the purchase date (combination
date), so that the Company paid an acquisition consideration of 3,304,451.85 yuan in the current period.
(2). Impairment provision for goodwill
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current
Opening Current increase
Investee or event generating goodwill decrease Closing balance
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
178 / 241
2022 Annual Report
Sichuan Chunyuan Ecological Farming Co.,
1,486,979.12 1,486,979.12
Ltd.
Tongwei Solar (Hefei) Co., Ltd. 24,020,900.00 86,073,100.00 110,094,000.00
Goodwill of Tech-bank Feed Co., Ltd. 4,753,172.31 60,798,136.56 65,551,308.87
Total 51,058,878.43 146,871,236.56 197,930,114.99
(3). Information relating to asset group or combination of asset groups where the goodwill belongs
"√ Applicable" "□ Not applicable"
Products of above companies that generated goodwill have active markets. Main cash flow into these
companies are independent from the cash flow into other asset groups or combinations of asset groups.
These companies are determined as separate asset groups. Such asset group is identical to the 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 flow, 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"
① Core goodwill
The recoverable amount is determined by asset group on the basis of expected future cash flow. Future
cash flow is determined according to the financial budget 2023 and financial forecast 2024-2027 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 flow 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.
Determination of discount rate: The comparable company analysis is used for this test with the expected
return on investments estimated under weighted average costs of capital model. Under this approach, the
first step is to select comparable companies from listed companies, and estimate the systemic risk
coefficient β (Levered Beta) of the comparable companies; the second step is to estimate the expected
return on investments before tax according to the capital structure and β of comparable companies and the
capital structure of the Company. This expected return on investments is then taken as the discount rate.
The management believes that any reasonable change in the said assumptions would not cause the carrying
value of any asset group that shares the goodwill to be greater than its recoverable amount except that the
impairment provision for core goodwill from Tongwei Solar (Hefei) Co., Ltd. and Tech-bank Feed Co., Ltd.
② Non-core goodwill
Referring to the case study 5-1 “Goodwill and its impairment issues arising from the recognition of
deferred tax liabilities due to asset valuation appreciation during acquisition”, from Chapter 5 of the
Analysis of Cases of Listed Companies Implementing Accounting Standard for Enterprises (2020)
published by the Accounting Department of the China Securities Regulatory Commission in June 2020. For
non-core goodwill, the deferred tax liability is reversed, and the future income tax expenses is reduced. The
recoverable amount of this portion of goodwill is essentially the amount of future income tax expenses that
have been reduced. As the fair value increment of assets due to acquisition is amortized in the consolidated
financial statements, the corresponding deferred tax liability is reversed and a provision for impairment of
non-core goodwill is recognized accordingly.
(5). Effects of goodwill impairment test
"√ Applicable" "□ Not applicable"
Goodwill impairment test has indicated that the goodwill impairment in 2022 caused a goodwill
impairment loss of 146,871,200 yuan in the consolidated financial statements of the Company.
Other notes
"□ Applicable" "√ Not applicable"
29. Deferred expenses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Current Amortization in Other
Item Closing balance
balance increase current period decrease
Expense for 105,933,322.75 120,457,216.53 64,599,436.69 161,791,102.59
179 / 241
2022 Annual Report
improvements of
long-term assets
Decoration expense 122,814,222.70 86,065,941.44 51,016,899.17 157,863,264.97
Others 33,062,991.97 48,787,632.62 41,940,092.08 39,910,532.51
Total 261,810,537.42 255,310,790.59 157,556,427.94 359,564,900.07
30. Deferred tax assets/deferred tax liabilities
(1). Deferred tax assets not offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Deductible Deferred income Deductible Deferred income
temporary tax temporary tax
difference Assets difference Assets
Provision for
2,256,674,882.39 402,795,236.91 759,649,485.88 151,104,304.39
asset impairment
Unrealized gain
on internal 2,751,537,922.22 423,457,310.00 1,308,235,055.38 203,294,395.80
transactions
Deductible loss 58,023,069.45 9,282,943.58 127,368,220.47 19,811,869.18
Claims reserve 17,774,435.23 4,443,608.81
Amortization of
fixed assets greater
than the 83,228,601.01 12,484,290.15 89,054,507.33 13,358,176.10
amortization under
tax laws
Decrease in
depreciation of
fixed assets due to -39,266,319.74 -4,603,953.08 -72,121,613.64 -10,729,826.87
provision for asset
impairment
Employee benefits 3,964,862,186.96 594,729,328.04 753,695,409.29 113,354,311.39
Deferred income 692,274,458.64 111,129,338.65 724,500,421.51 115,775,526.75
Deduction of gain at
consolidation on
24,755,230.47 3,713,284.57 25,565,344.73 3,834,801.71
increase in assessed
value of land
Lease interest
15,425,604.51 2,313,840.68
amortization
Estimated liabilities 177,993,077.06 26,698,961.56
Paper loss of
held-for-trading 64,230,257.65 9,635,384.04
financial liabilities
Total 10,052,087,801.34 1,593,765,733.23 3,731,372,435.46 612,117,399.13
(2). Deferred tax liabilities not offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Taxable Deferred income Taxable Deferred income
temporary tax temporary tax
difference Liabilities difference Liabilities
Increase in assessed value
from business 360,307,872.46 84,508,900.31 486,551,435.76 114,919,145.64
combinations under
180 / 241
2022 Annual Report
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
6,650,967,370.42 1,007,325,075.89 2,379,425,585.71 356,913,837.86
equipment and appliance
less than 5 million yuan
Discounted income from
5,760,114.68 864,017.20 18,955,505.36 2,843,325.80
interest-free debts
Amortization of fixed
assets less than the
856,150,608.82 128,422,591.32 1,372,249,974.84 205,837,496.23
amortization under tax
laws
Paper gain on
held-for-trading financial 7,788,828.24 1,368,775.83 10,617,668.58 2,198,830.87
assets
Total 7,880,974,794.62 1,222,489,360.55 4,267,800,170.25 682,712,636.40
(3). Net amount after offsetting deferred tax assets or liabilities
"□ Applicable" "√ Not applicable"
(4). Details of un-recognized deferred tax assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Deductible temporary difference
Deductible loss 6,055,471,972.83 2,176,875,369.80
Provision for asset impairment 698,856,020.00 159,535,463.69
Employee benefits 335,981,978.32 59,273,714.10
Deferred income 490,652.78
Change in fair value of 120,856.83
held-for-trading financial liabilities
Total 7,090,430,827.98 2,396,175,200.37
(5). Deductible losses on deferred tax assets not recognized that will be due in the following years
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Year Closing amount Opening amount Notes
2022 95,747,614.75
2023 116,616,691.24 100,189,511.81
2024 201,981,863.88 230,356,593.24
2025 426,453,093.92 354,691,177.91
2026 1,107,701,974.53 1,395,890,472.09
2027 4,202,718,349.26
Total 6,055,471,972.83 2,176,875,369.80 /
Other notes:
"□ Applicable" "√ Not applicable"
31. Other non-current assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
181 / 241
2022 Annual Report
Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Costs to obtain
contracts
Costs to fulfill
contracts
Costs of returns
receivable
Contract assets
Input tax credit under
129,047,943.34 129,047,943.34 620,859,210.32 620,859,210.32
VAT
Prepayments for
engineering 2,554,289,711.33 2,554,289,711.33 1,819,767,455.00 1,819,767,455.00
equipment
Land prepayments 19,362,354.02 19,362,354.02
Others 884,768.56 884,768.56
Total 2,703,584,777.25 2,703,584,777.25 2,440,626,665.32 2,440,626,665.32
Other notes:
Input tax credit under VAT whose deduction is expected to be over a year is presented under 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
Guarantee borrowings 32,275,024.55 734,950,572.25
Credit borrowings 20,015,972.23 40,032,625.01
Discount of commercial acceptances 200,000,000.00
Guarantee + mortgage borrowings 200,204,722.22
Trade finance loan 35,476,127.44
Total 87,767,124.22 1,375,230,141.70
(2). Overdue short-term borrowings
"□ Applicable" "√ Not applicable"
Significant overdue short-term borrowings:
"□ Applicable" "√ Not applicable"
Other notes
"√ Applicable" "□ Not applicable"
Refer to “related-party guarantees” for details on guarantees provided by Tongwei Group for the Company.
Guarantees between the Company and its subsidiaries are as below:
Unit: Yuan Currency: CNY
Guarantee
Guaranteed commencement Guarantee expiry
Guarantor Guaranteed party amount date date
Tongwei Holdings PTE. Ltd. PT. Tongwei Indonesia 871,205.97 October 01, 2022 January 13, 2023
Tongwei Holdings PTE. Ltd. PT. Tongwei Indonesia 2,707,967.41 October 05, 2022 January 13, 2023
Tongwei Holdings PTE. Ltd. PT. Tongwei Indonesia 2,852,178.23 October 13, 2022 January 31, 2023
Tongwei Holdings PTE. Ltd. PT. Tongwei Indonesia 2,776,209.98 October 17, 2022 January 31, 2023
November 08,
Tongwei Holdings PTE. Ltd. 3,101,462.12 February 06, 2023
PT. Tongwei Indonesia 2022
November 09,
Tongwei Holdings PTE. Ltd. 1,772,264.07 February 07, 2023
PT. Tongwei Indonesia 2022
Tongwei Holdings PTE. Ltd. PT. Tongwei Indonesia 2,658,396.10 December 14, 2022 March 14, 2023
Vietnam Tongwei Feed Co., Qianjiang Tongwei Co., 1,238,543.21 October 10, 2022 January 06, 2023
182 / 241
2022 Annual Report
Ltd. Ltd.
Vietnam Tongwei Feed Co., Qianjiang Tongwei Co., 1,740,989.61 October 11, 2022 January 09, 2023
Ltd. Ltd.
Vietnam Tongwei Feed Co., Qianjiang Tongwei Co., 832,914.05 October 13, 2022 January 11, 2023
Ltd. Ltd.
Vietnam Tongwei Feed Co., Qianjiang Tongwei Co., 2,154,266.82 October 17, 2022 January 13, 2023
Ltd. Ltd.
Vietnam Tongwei Feed Co., Qianjiang Tongwei Co., 3,055,870.92 October 27, 2022 January 25, 2023
Ltd. Ltd.
Vietnam Tongwei Feed Co., Qianjiang Tongwei Co., 2,585,195.99 October 28, 2022 January 26, 2023
Ltd. Ltd.
Vietnam Tongwei Feed Co., Qianjiang Tongwei Co., November
3,927,560.07 February 20, 2023
Ltd. Ltd. 22,2022
183 / 241
2022 Annual Report
33. Held-for-trading financial liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Current Current Closing
Item
balance increase decrease balance
Held-for-trading financial liabilities
Including:
Financial liabilities designated to be
measured at fair value through
current profit and loss
Including:
Derivative financial liabilities 64,351,114.48 64,351,114.48
Total 64,351,114.48 64,351,114.48
Other notes:
"√ Applicable" "□ Not applicable"
The derivative financial liabilities refer to paper losses resulting from the difference between the locked
exchange rate in the undelivered forward foreign exchange contract and the central parity rate at the end of
the period.
34. Derivative financial liabilities
"□ Applicable" "√ Not applicable"
35. Notes payable
(1). Presentation of notes payable
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
Type Closing balance Opening balance
Commercial acceptances 124,448,544.24
Banker's acceptances 8,840,732,429.14 9,761,984,458.33
Letters of credit 10,690,936.81 71,490,068.10
Total 8,851,423,365.95 9,957,923,070.67
Total amount of overdue notes payable as of the end of the period is 0 yuan.
36. Accounts payable
(1). Presentation of accounts payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Within 1 year 9,158,290,478.11 7,686,622,841.17
1- 2 years 1,696,665,608.81 388,134,629.62
2- 3 years 127,094,781.97 42,680,870.30
Over 3 years 36,110,668.41 33,831,735.12
Total 11,018,161,537.30 8,151,270,076.21
(2). Significant accounts payable with an age over 1 year
"□ Applicable" "√ Not applicable"
Other notes
"√ Applicable" "□ Not applicable"
1) Accounts payable with an age over 1 year are mainly equipment and construction prices payable by the
Company；
2) Classification by nature of payment:
Unit: Yuan Currency: CNY
184 / 241
2022 Annual Report
Item Closing balance Opening balance
Payable on operating activities 4,171,159,587.56 2,586,374,768.27
Payable on non-operating activities 6,847,251,082.48 5,564,895,307.94
Total 11,018,410,670.04 8,151,270,076.21
37. Advances from customers
(1). Presentation of advances from customers
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Within 1 year 26,743,540.63 97,237,950.05
1- 2 years 5,902,926.55 2,630,455.22
2- 3 years 1,973,487.73 728,229.39
Over 3 years 1,847,939.73 1,663,190.63
Total 36,467,894.64 102,259,825.29
(2). Significant advances from customers with an age over 1 year
"□ Applicable""√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
38. Contract liabilities
(1). Contract liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Customer advances 5,405,872,108.61 3,112,027,804.79
Total 5,405,872,108.61 3,112,027,804.79
(2). Significant changes in carrying values in the reporting period and reasons for the changes
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
39. Employee benefits payable
(1). Presentation of employee benefits payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
I. Short-term benefits 1,388,757,870.41 7,333,858,281.76 5,581,551,563.25 3,141,064,588.92
II. Post-employment benefits -
270,931,739.31 270,931,739.31
defined contribution plans
III. Termination benefits 7,566,789.48 7,566,789.48
IV. Other benefits due within
one year
Total 1,388,757,870.41 7,612,356,810.54 5,860,050,092.03 3,141,064,588.92
Note: The balance of salaries, bonuses, allowances and subsidies payable is the December salaries and
annual bonus that had been established and would be paid in the next month. No delay in employee
payment exists.
(2). Presentation of short-term benefits
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
I. Salaries, bonuses, allowances and
1,323,924,230.34 6,784,349,035.51 5,071,326,247.76 3,036,947,018.09
subsidies
II. Employee benefit expense 225,495,265.83 225,495,265.83
III. Social insurance expense 151,292,403.51 151,292,403.51
185 / 241
2022 Annual Report
Including: Medical insurance expense 133,125,331.45 133,125,331.45
Work injury insurance expense 15,939,071.41 15,939,071.41
Maternity insurance expense 2,228,000.65 2,228,000.65
IV. House provident fund 64,353,943.40 64,353,943.40
V. Union funds and education expense 64,833,640.07 108,367,633.50 69,083,702.74 104,117,570.83
VI. Short-term paid leave
VII. Short-term profit sharing plan
Total 1,388,757,870.41 7,333,858,281.76 5,581,551,563.25 3,141,064,588.92
(3). Presentation of defined contribution plans
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening
Item Current increase Current decrease Closing balance
balance
1. Basic pension insurance 261,648,124.01 261,648,124.01
2. Unemployment insurance
9,283,615.30 9,283,615.30
expense
3. Enterprise annuity expense
Total 270,931,739.31 270,931,739.31
Other notes:
"□ Applicable""√ Not applicable"
40. Taxes payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
VAT 437,308,048.59 248,318,107.38
Corporate income tax 2,423,575,096.10 496,865,750.99
Personal income tax 39,520,951.40 24,877,403.26
Urban construction and maintenance tax 14,363,121.16 15,889,519.06
Stamp duty 32,256,582.08 7,637,857.31
Property tax 6,104,220.08 6,773,632.40
Land use tax 3,361,264.48 3,309,489.18
Others 17,591,719.68 12,315,148.98
Total 2,974,081,003.57 815,986,908.56
41. Other payables
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest payable
Dividend payable
Other payables 2,142,680,307.16 761,620,932.59
Total 2,142,680,307.16 761,620,932.59
Other notes:
"□ Applicable" "√ Not applicable"
Interest payable
(1).Presentation by category
"□ Applicable" "√ Not applicable"
Dividend payable
(1). Presentation by category
"□ Applicable" "√ Not applicable"
186 / 241
2022 Annual Report
Other payables
(1). Other payable by nature
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Current accounts with related-parties 2,853,250.00 3,801,160.00
Performance bond 1,879,416,612.15 511,772,262.14
Others 260,410,445.01 246,047,510.45
Total 2,142,680,307.16 761,620,932.59
(2). Other significant payables with an age over 1 year
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
42. Liabilities held for sale
"□ Applicable" "√ Not applicable"
43. Non-current liabilities due within one year
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Long-term borrowings due within 1 year 1,054,189,602.55 981,675,606.47
Bonds payable due within 1 year 167,792,353.66
Long-term accounts payable due within 1 year 522,191,207.59 1,039,544,910.06
Lease liabilities due within 1 year 467,925,405.65 465,808,746.76
Total 2,212,098,569.45 2,487,029,263.29
Other notes:
(1) Long-term borrowings due within one year
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Credit borrowings 4,602,899.29 67,722,242.68
Guarantee borrowings 110,163,681.11 455,298,240.87
Mortgage borrowings 100,329,999.99 1,499,305.06
Pledge + guarantee borrowings 138,459,263.10 124,603,755.53
Mortgage + guarantee borrowings 472,227,132.22 107,591,505.55
Mortgage + pledge + guarantee borrowings 228,406,626.84 224,960,556.78
Total 1,054,189,602.55 981,675,606.47
Note 1: Guarantees provided by Tongwei Group for the Company are detailed in “related-party
guarantees”. Guarantees provided by the Company for its subsidiaries:
Unit: Yuan Currency: CNY
Guarantee
Guarantee expiry
Guaranteed amount commencement
date
Guarantor Guaranteed party date
The November 20,
7,348,254.11 March 18, 2019
Company Tongwei New Energy Co., Ltd. 2023
The
11,083,826.11 June 28, 2019 April 10, 2023
Company Panzhihua Tongwei Huijin New Energy Co., Ltd.
The
70,679,194.35 October 20, 2019 October 20, 2023
Company Sihong Tongli New Energy Co., Ltd.
The September 30,
40,443,437.50 March 27, 2020
Company Aohanqi Xinhuo New Energy Co., Ltd. 2023
The December 21,
9,818,798.93 April 01, 2020
Company Gao’an Tongwei Fishery-PV Technology Co., Ltd. 2023
The December 10,
24,133,327.60 June 30, 2020
Company Tianjin Binhai Tongli New Energy Co., Ltd. 2023
The September 11, December 20,
19,231,215.45
Company Changde Dingcheng Tongwei New Energy Co., Ltd. 2020 2023
187 / 241
2022 Annual Report
The September 27, December 21,
6,691,315.28
Company Xichan Tongwei New Energy Co., Ltd. 2020 2023
The Binzhou Zhanhua Tonghui Marine Technology Co., December 30, December 20,
46,455,780.45
Company Ltd. 2020 2023
The November 20,
48,562,933.91 March 11, 2021
Company Bengbu Tongwei New Energy Co., Ltd. 2023
The September 21,
25,197,633.33 March 26, 2021
Company Gong’an Tongwei Fishery-PV Technology Co., Ltd. 2023
The December 10, December 10,
9,621,166.88
Company Binyang Jingchuang New Energy Co., Ltd. 2021 2023
The December 10, December 10,
11,643,542.36
Company Binyang Jingchuang New Energy Co., Ltd. 2021 2023
The December 15,
12,565,702.78 October 27, 2021
Company Qinzhou Tongwei Huijin New Energy Co., Ltd. 2023
The
20,238,944.44 March 04, 2021 August 22, 2023
Company Dongying Tongli New Energy Co., Ltd.
The Tongwei Fishery-PV Technology (Jiangmen) Co.,
399,197.09 October 28, 2022 October 26, 2023
Company Ltd.
The Lianjiang Tongwei Fishery-PV Technology Co.,
459,585.67 October 25, 2022 October 20, 2023
Company Ltd.
The December 27, December 26,
13,665,555.56
Company Tianmen Tongli Fishery-PV Technology Co., Ltd. 2022 2023
The December 23, December 20,
3,049,885.00
Company Xide Tongwei Huijin New Energy Co., Ltd. 2022 2023
The Zhaoyuan Tongwei New Energy Technology Co., November 26,
171,999.89 May 27, 2022
Company Ltd. 2023
The December 10,
2,519,230.90 July 29, 2022
Company Binyang Jingchuang New Energy Co., Ltd. 2023
The November 12,
980,765.85 May 12, 2022
Company Tonghe New Energy (Jintang) Co., Ltd. 2023
The September 27, December 21,
2,000,000.00
Company Tongwei Solar (Meishan) Co., Ltd. 2022 2023
The December 26, December 21,
24,000,000.00
Company Tongwei Solar (Meishan) Co., Ltd. 2022 2023
The Yunnan Tongwei High-purity Crystalline Silicon November 24, December 31,
115,578,151.60
Company Company 2021 2023
Total 526,539,445.04
Note 2: Pledges and mortgage are detailed in “assets with restricted ownership or use right”.
Note 3: There is no overdue long-term borrowings due within one year.
(2) Long-term accounts due within one year are detailed in “long-term payables”.
44. Other current liabilities
Other current liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Short-term bonds payable
Sale returns payable
Output VAT to be converted 405,605,864.73 190,563,712.84
Reserve established by guarantor 17,774,435.23 16,976,803.56
Including: undue claims reserve 2,516,102.90 3,012,100.99
Compensation reserve established by guarantor 15,258,332.33 13,964,702.57
Total 423,380,299.96 207,540,516.40
Increase/decrease in short-term bonds:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable""√ Not applicable"
45. Long-term borrowings
(1). Classification of long-term borrowings
"√ Applicable" "□ Not applicable"
188 / 241
2022 Annual Report
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Mortgage borrowings 300,000,000.00
Guarantee borrowings 8,928,810,054.34 5,462,279,024.22
Credit borrowings 2,377,710,000.00 1,220,980,000.00
Pledge + guarantee borrowings 1,292,458,536.98 1,388,907,338.52
Mortgage + guarantee borrowings 727,550,000.00 1,364,310,000.00
Mortgage + pledge + guarantee borrowings 1,782,807,404.35 2,004,553,497.42
Total 15,409,335,995.67 11,441,029,860.16
Note on classification of long-term borrowings:
(1) Refer to “related-party guarantees” for details on guarantees provided by Tongwei Group for the
Company. Guarantees provided by the Company for its subsidiaries are as below:
Unit: Yuan Currency: CNY
Guarantee
Guaranteed commencement Guarantee
Guarantor Guaranteed party amount date expiry date
The Tianmen Tongli Fishery-PV Technology Co., December 26,
786,666,666.66 December 27, 2022
Company Ltd. 2042
The August 24,
Sichuan Yongxiang New Energy Co., Ltd. 705,000,000.00 July 30, 2021
Company 2028
The August 30,
Tonghe New Energy (Jintang) Co., Ltd. 589,800,000.00 August 31, 2022
Company 2027
The
Sihong Tongli New Energy Co., Ltd. 547,554,450.00 October 20, 2019 April 20, 2031
Company
The November 30,
Tongwei Solar Hong Kong Co., Ltd. 544,810,195.88 December 01, 2021
Company 2024
The November 30,
Tongwei Solar Hong Kong Co., Ltd. 417,876,000.00 December 01, 2021
Company 2024
The November 30,
Tongwei Solar Hong Kong Co., Ltd. 417,876,000.00 December 01, 2021
Company 2024
The Binzhou Zhanhua Tonghui Marine December 03,
412,770,400.00 December 30, 2020
Company Technology Co., Ltd. 2032
The December 29,
Bengbu Tongwei New Energy Co., Ltd. 361,224,128.35 March 11, 2021
Company 2031
The December 13,
Tongwei Solar (Hefei) Co., Ltd. 300,000,000.00 December 14, 2021
Company 2024
The October 19,
Tongwei Solar (Meishan) Co., Ltd. 300,000,000.00 October 20, 2021
Company 2024
The
Tianjin Binhai Tongli New Energy Co., Ltd. 272,895,000.00 June 30, 2020 June 10, 2032
Company
The March 26,
Aohanqi Xinhuo New Energy Co., Ltd. 260,000,000.00 March 27, 2020
Company 2030
The December 26,
Tongwei Solar (Meishan) Co., Ltd. 250,000,000.00 December 27, 2022
Company 2029
The December 21,
Tongwei Solar (Jintang) Co., Ltd. 233,000,000.00 December 24, 2021
Company 2026
The Changde Dingcheng Tongwei New Energy August 10,
222,888,630.97 September 11, 2020
Company Co., Ltd. 2032
The December 08,
Binyang Jingchuang New Energy Co., Ltd. 218,575,000.00 December 10, 2021
Company 2032
The December 25,
Tongwei Solar (Meishan) Co., Ltd. 216,000,000.00 December 26, 2022
Company 2027
The September 26,
Tongwei Solar (Meishan) Co., Ltd. 198,000,000.00 September 27, 2022
Company 2025
The
Tongwei Solar (Meishan) Co., Ltd. 192,000,000.00 July 26, 2021 July 25, 2025
Company
The February 21,
Dongying Tongli New Energy Co., Ltd. 150,000,000.00 March 04, 2021
Company 2031
The Gao’an Tongwei Fishery-PV Technology December 21,
144,112,876.00 April 01, 2020
Company Co., Ltd. 2034
The Gong’an Tongwei Fishery-PV Technology September 21,
143,000,000.00 March 26, 2021
Company Co., Ltd. 2029
The Tongwei Solar (Meishan) Co., Ltd. 128,000,000.00 January 01, 2022 July 31, 2025
189 / 241
2022 Annual Report
Company
The Qinzhou Tongwei Huijin New Energy Co., October 27,
115,200,000.00 October 27, 2021
Company Ltd. 2032
The September 26,
Tongwei Solar (Meishan) Co., Ltd. 100,000,000.00 September 27, 2021
Company 2024
The December 21,
Tongwei Solar (Jintang) Co., Ltd. 95,000,000.00 December 24, 2021
Company 2026
The December 05,
Xide Tongwei Huijin New Energy Co., Ltd. 90,200,000.00 December 23, 2022
Company 2035
The March 18,
Tongwei New Energy Co., Ltd. 86,600,000.00 March 18, 2019
Company 2036
The
Tongwei Solar (Meishan) Co., Ltd. 64,000,000.00 September 10, 2021 July 31, 2025
Company
The September 27,
Xichan Tongwei New Energy Co., Ltd. 62,900,000.00 September 27, 2020
Company 2033
The Panzhihua Tongwei Huijin New Energy Co.,
47,000,000.00 June 28, 2019 June 10, 2027
Company Ltd.
The December 08,
Binyang Jingchuang New Energy Co., Ltd. 21,250,000.00 July 29, 2022
Company 2032
The Yunnan Tongwei High-purity Crystalline
11,550,000.00 November 24, 2021 June 30, 2025
Company Silicon Company
The Tongwei Fishery-PV Technology (Jiangmen) October 26,
9,611,191.80 October 28, 2022
Company Co., Ltd. 2037
The March 30,
Tongwei Solar (Hefei) Co., Ltd. 5,000,000.00 March 31, 2022
Company 2028
The Zhaoyuan Tongwei New Energy Technology
4,750,000.01 May 27, 2022 May 25, 2037
Company Co., Ltd.
The Lianjiang Tongwei Fishery-PV Technology October 25,
4,545,456.00 October 25, 2022
Company Co., Ltd. 2034
The
Tonghe New Energy (Jintang) Co., Ltd. 4,000,000.00 May 12, 2022 May 11, 2026
Company
Total 8,733,655,995.67
(2) Guarantees from external entities
Unit: Yuan Currency: CNY
Guarantee
Guaranteed Guarantee expiry
Guarantor Guaranteed amount commencement
party date
date
September 21, September 20,
496,000,000.00
Chongqing Branch, Ping An Bank Co., Ltd. The Company 2022 2025
Total 496,000,000.00
(3) Pledges and mortgage are detailed in “assets with restricted ownership or use right”.
Other note (including interest rate range):
"□ Applicable""√ Not applicable"
190 / 241
2022 Annual Report
46. Bonds payable
(1). Bonds payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
2020 Middle-Term Note Series 1 147,817,803.66 410,493,072.19
Tong22 Convertible Bonds 10,296,919,111.67
Less: Bonds payable due within one year 167,792,353.66
Total 10,276,944,561.67 410,493,072.19
(2). Increase/decrease in bonds payable: (excluding other financial instruments such as preference share and perpetual bond classified as financial
liabilities)
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Interest Amortization of
Bond Face New Bond New Opening Current Current Closing
established by premium or
name value date duration amount balance New repayment balance
face value discount
2020
June 17,
Middle-Term 100 3 Years 400,000,000.00 410,493,072.19 12,720,000.00 404,731.47 275,800,000.00 147,817,803.66
2020
Note Series 1
Tong22
February
Convertible 100 6 Years 12,000,000,000.00 12,000,000,000.00 19,974,550.00 -1,707,785,438.33 15,270,000.00 10,296,919,111.67
24, 2022
Bonds
Total / / / 12,400,000,000.00 410,493,072.19 12,000,000,000.00 32,694,550.00 -1,707,380,706.86 291,070,000.00 10,444,736,915.33
Note 1: Amortization of premium or discount on “Tong22 Convertible Bonds” is as below:
Unit: Yuan Currency: CNY
Composition of amortization of premium or discount Amortized premium or discount
Initially recognized amount of debt part of Tong22 Convertible Bonds -2,048,613,255.07
Current amortization of adjusted interest for Tong22 Convertible Bonds 338,508,525.45
Reversal of adjusted interest due to conversion of Tong22 Convertible Bonds 2,319,291.29
Total -1,707,785,438.33
Note 2: Of the closing balance of bonds payable, those re classed into non-current liabilities due within one year are presented as below:
Unit: Yuan Currency: CNY
191 / 241
2022 Annual Report
Amount of non-current liability due within
Item Book balance Amount of bonds payable
one year
2020 Middle-Term Note Series 1 147,817,803.66 147,817,803.66
Tong22 Convertible Bonds 10,296,919,111.67 19,974,550.00 10,276,944,561.67
Total 10,444,736,915.33 167,792,353.66 10,276,944,561.67
Note 3: The amount payable for the current period regarding “Tong22 Convertible Bonds” was paid through conversion of the bonds to shares. In the current period, a
total of 152,700 bonds were converted to the Company's A-shares for a total amount of 15,270,000.00 yuan.
192 / 241
2022 Annual Report
(3). Note on conversion conditions and conversion time on convertible bonds
"√ Applicable" "□ Not applicable"
The conversion period for the convertible bonds issued this time is from the 1st trading day 6 months
after the issuance was completed (March 2, 2022, T+4) to the maturity date of the convertible bonds - that
is from September 2, 2022 to February 23, 2028.
(4). Note on other financial instruments classified as financial liabilities
Basic information of other financial instruments (including preference share and perpetual bond)
outstanding as of the end of the period
"□ Applicable" "√ Not applicable"
Changes in other financial instruments (including preference share and perpetual bond) outstanding as 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 3,374,637,088.14 2,966,450,212.56
Less: Lease liabilities due within one year 467,925,405.65 465,808,746.76
Total 2,906,711,682.49 2,500,641,465.80
Other notes:
Note 1: Information on leases where the Company is the lessee is detailed in “other important matters -
leases”.
Note 2: Guarantees provided by the Company for its subsidiaries:
(1) The Company has provided guarantees for the net financial lease of 519,000,442.22 yuan taken by
Sichuan Yongxiang Energy Technology Co., Ltd. and Yunnan Tongwei High-purity Crystalline Silicon
Company.
(2) The Company and Tongwei New Energy Co., Ltd. have provided guarantees for the net financial lease
of 1,637,635,172.73 yuan taken by Dongxing Tonghui New Energy Co., Ltd., Fuqing Tongwei Huijin New
Energy Co., Ltd., Pingdu Tongwei New Energy Co., Ltd., Qian’an Tongwei Huijin New Energy Co., Ltd.,
Suihua Tongli Fishery-PV Technology Co., Ltd., Tongli Fishery-PV Technology (Nanjing) Co., Ltd.,
Tongwei Fishery-PV (Tangshan) Co., Ltd., Tongwei Fishery-PV (Nanchang) Co., Ltd., Tongwei
Fishery-PV (Rudong) Co., Ltd., Chongqing Tongwei New Energy Co., Ltd., and Zibo Huixiang New
Energy Co., Ltd.
(3) The Company has provided guarantees for the net financial lease of 156,527,451.66 yuan taken by
Tongwei Solar (Jintang) Co., Ltd.
48. Long-term payables
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Long-term payables 973,541,127.03 1,647,453,239.69
Special payables 850,000.00 850,000.00
Total 974,391,127.03 1,648,303,239.69
Other notes:
"□ Applicable" "√ Not applicable"
193 / 241
2022 Annual Report
Long-term payables
(1).Presentation of other payable by nature
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Financial lease payments payable
807,596,681.47 1,315,358,937.56
(sale-leaseback does not constitute of a sale)
Others 165,944,445.56 332,094,302.13
Total 973,541,127.03 1,647,453,239.69
Note: As of December 31, 2022, PV powerplant companies under the Company acquired a net amount of
1,129,390,844.93 yuan 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
(1).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 Note
850,000.00 850,000.00
Tongwei Agriculture Financing Guarantee
Total 850,000.00 850,000.00 /
Other notes:
Note: The special funds used as guarantees by Tongwei Agriculture Financing Guarantee (a subsidiary
of the Company) are 2,480,000.00 yuan consisting of risk support funds (1,630,000.00 yuan) and funds for
reward in place of subsidy (850,000.00 yuan). The use of these funds is subject to Sichuan Management
Procedures on Provincial-level Special Fiscal Subsidy for Agriculture-related Credit Guarantee issued by
the Department of Finance of Sichuan province on August 28, 2012. Article 18 of the Procedures provides
for that: funds for reward in place of subsidy are injected as state-owned capital to increase the registered
capital of the guarantor; every time when the cumulative funds for reward in place of subsidy received by
the guarantor is or over 10 million yuan, the guarantor must timely report to relevant authority under
relevant provisions for approval and then complete the change registration of its registered capital. Risk
support funds are to compensate the loss from guarantee risk if the risk reserve created by the guarantor is
insufficient to compensate the loss; the balance of the risk support funds (if any) is carried over to the next
year. The funds received by the Company were used in 2018 to compensate a loss of 1,630,000.00 yuan
resulted from the 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 3,805,815,900.20 649,891,600.00
Total 3,805,815,900.20 649,891,600.00
Note: Other long-term employee benefits refer to the bonus to be paid one year later.
(2). Change in defined benefit plan
Present value of defined benefit plan
"□ Applicable" "√ Not applicable"
Plan asset:
"□ Applicable" "√ Not applicable"
194 / 241
2022 Annual Report
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
flow, time and uncertainty:
"□ Applicable" "√ Not applicable"
Note on significant actuarial assumptions for defined benefit plan and result of sensitivity analysis
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
50. Estimated liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Closing balance Reason
Item
balance
Outward guarantee
Pending litigation
Product warranty 177,993,077.06
Reorganization obligation
Loss contracts to be enforced
Sale returns payable
Others
Total 177,993,077.06 /
Other notes including notes on important assumptions and estimates relating to significant estimated
liabilities:
The Company provides module quality guarantee deposit at 1% of module sales revenue with
reference to practices of major peer companies.
51. Deferred income
Deferred income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Current Current Closing
Item Reason
balance increase decrease balance
Government
900,673,699.85 189,943,587.50 223,087,090.85 867,530,196.50
grants
Total 900,673,699.85 189,943,587.50 223,087,090.85 867,530,196.50 /
195 / 241
2022 Annual Report
Items relating to grants:
"√ Applicable""□ Not applicable"
Unit: Yuan Currency: CNY
Amount carried Amount carried into
into other income in
Increased grant Other Relating to
Liability item Opening balance non-operating current period Closing balance
in current period changes asset/income
revenue in
current period
Subsidy for fixed asset investment 412,616,407.45 68,643,300.00 127,188,678.61 354,071,028.84 Relating to asset
Infrastructure support fund for Global Innovation
63,072,000.00 63,072,000.00 Relating to asset
Base project
Subsidy for land investment 56,542,372.77 1,220,339.04 55,322,033.73 Relating to asset
Special funds for infrastructure construction 49,878,746.72 9,653,950.97 40,224,795.75 Relating to asset
State public service platform 26,830,588.24 27,150,000.00 15,042,086.81 38,938,501.43 Relating to asset
Compensation for relocation 30,393,248.73 9,550,397.52 20,842,851.21 Relating to asset
Technological renovation project for the 2 GW
24,750,820.29 5,514,363.57 19,236,456.72 Relating to asset
intelligent factory
2021 annual advanced manufacturing policy 20,000,000.00 1,944,444.46 18,055,555.54 Relating to asset
Special funds for uniform It-enabled service
18,000,000.00 18,000,000.00 Relating to asset
platform in the industrial park (digital fishery)
Fiscal subsidy for emerging strategies 19,097,222.26 2,083,333.32 17,013,888.94 Relating to asset
Other amounts relating to asset 208,968,775.21 42,990,287.50 47,229,010.15 204,730,052.56 Relating to asset
Relating to
Other amounts relating to income 8,523,518.18 13,160,000.00 3,660,486.40 18,023,031.78
income
Total 900,673,699.85 189,943,587.50 223,087,090.85 867,530,196.50
Other notes:
"□ Applicable" "√ Not applicable"
196 / 241
2022 Annual Report
52. Other non-current liabilities
"□ Applicable" "√ Not applicable"
53. Share capital
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change (+, -)
Capital
Opening reserve Closing
balance New Bonus balance
Converted Others Sub-total
issue issue
to share
capital
Total
4,501,548,184 397,913 397,913 4,501,946,097
shares
Note: Other increase means the conversion of Tong22 Convertible Bonds to shares in the current period.
54. Other equity instruments
(1).Basic information of other financial instruments (including preference share and perpetual bond)
outstanding as of the end of the period
"√ Applicable" "□ Not applicable"
Approved by the CSRC in the CSRC Permit [2021] No. 4028, on February 24, 2022, the Company
issued convertible bonds publicly valued 12 billion yuan for a term of 6 years. The coupon rate
arrangements for these convertible bonds: 0.20% in the 1st year, 0.40% in the 2nd year, 0.60% in the 3rd
year, 1.50% in the 4th year, 1.80% in the 5th year, and 2.00% in the 6th year. Interest payments are made
annually and the principal and interest for the last year will be paid on maturity.
(2).Changes in other financial instruments (including preference share and perpetual bond)
outstanding as of the end of the period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Financial Opening Current increase Current decrease Closing
instruments
outstanding Number Carrying value Number Carrying value Number Carrying value Number Carrying value
Tong22
Convertible 120,000,000 1,967,589,416.96 152,700 2,503,757.53 119,847,300 1,965,085,659.43
Bonds
Total 120,000,000 1,967,589,416.96 152,700 2,503,757.53 119,847,300 1,965,085,659.43
Note on changes in other equity instruments and the reasons as well as basis for relevant accounting
treatment
"√ Applicable" "□ Not applicable"
Note: The current decrease is due to the accumulative conversion of Tong22 Convertible Bonds with a
nominal value of 15,270,000.00 yuan to the Company’ shares, which resulted in the conversion of other
equity instruments into capital reserve.
Other notes:
"□ Applicable" "√ Not applicable"
55. Capital reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
Capital premium
16,108,230,834.72 21,207,139.65 8,407,758.12 16,121,030,216.25
(share premium)
Other capital
-371,113.32 23,809,924.94 166,628.78 23,272,182.84
reserves
Total 16,107,859,721.40 45,017,064.59 8,574,386.90 16,144,302,399.09
197 / 241
2022 Annual Report
Other notes including changes in current period and reasons:
Note 1: Current change in capital reserve is from:
Unit: Yuan Currency: CNY
Item Current increase Current decrease
I. Share premium 21,207,139.65 8,407,758.12
1. “Tong22 Convertible Bonds” converted to share capital 15,050,495.92
2. Equity transactions with minority interest 6,156,643.73 8,407,758.12
II. Other capital reserves 23,809,924.94 166,628.78
1. Other changes in equity of Suzhou Taiyangjing New
Energy Co., Ltd. (an associate of the Company) recognized 23,809,924.94
by the shareholding percentage
2. Other changes in equity of Bohai Aquaculture Co., Ltd.
(an associate of the Company) recognized by the 166,628.78
shareholding percentage
Total 45,017,064.59 8,574,386.90
Note 2: Equity transactions with minority interest are detailed in “Equity in other entities -
Transactions resulting in changes in ownership interest without loss of control”. The share premium is
adjusted as below according to the difference between the Company’s share of the net assets of the investee
and the acquisition consideration/disposal consideration:
Unit: Yuan Currency: CNY
Change in equity percentage before and
after the transaction
Shareholding Adjustment of
No. Investee
Before percentage After capital reserve
transaction under transaction
transaction
Sichuan Willtest Technology Co.,
1 85.04% 0.36% 85.40% 4,813.50
Ltd.
Sichuan Yongxiang Silicon
2 92.75% 7.25% 100.00% -8,407,758.12
Materials Co., Ltd.
Tongwei (Hainan) Aquatic Products
3 100.00% -20.00% 80.00% 6,151,830.23
Co., Ltd.
Total -2,251,114.39
56. Treasury shares
"□ Applicable" "√ Not applicable"
57. Other comprehensive income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing
Current period amount
balance
Less: amount Less: amount
carried into carried into
other other
Opening Less: After-tax income
Item comprehensive comprehensive After-tax income
balance Current period Income attributable to
income in prior income in prior attributable to the
amount before tax tax minority
periods that is periods that is parent company
expense shareholders
converted into converted into
current profit retained
and loss earnings
I. Other comprehensive income
that cannot be reclassified into 6,863,798.71 644,958.57 644,958.57 7,508,757.28
profit or loss
Including: Changed in
re-measured defined benefit plan
Other comprehensive income
that cannot be converted into
profit and loss under equity
method
Change in fair value of other
6,863,798.71 644,958.57 644,958.57 7,508,757.28
equity investments
Change in fair value of the
company's own credit risk
198 / 241
2022 Annual Report
II. Other comprehensive income
that will be reclassified into profit -89,171,202.67 -26,418,368.81 -27,197,357.90 778,989.09 -116,368,560.57
or loss
Including: other comprehensive
income that can be converted into
259,086.76 -1,120,566.26 -1,120,566.26 -861,479.50
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 -89,430,289.43 -25,297,802.55 -26,076,791.64 778,989.09 -115,507,081.07
Total other comprehensive
-82,307,403.96 -25,773,410.24 - - -26,552,399.33 778,989.09 -108,859,803.29
income
Other notes including the adjustment of the initially recognized amount of a hedged item converted from
the effective portion of cash flow hedge: None.
58. Special reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
Work safety
15,918,034.03 140,169,711.16 122,335,772.05 33,751,973.14
expense
Total 15,918,034.03 140,169,711.16 122,335,772.05 33,751,973.14
Other notes including changes in current period and reasons:
None.
59. Surplus reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
Statutory surplus
1,414,948,005.57 992,407,579.88 2,407,355,585.45
reserve
Discretionary
surplus reserve
Reserve fund
Enterprise
development fund
Others
Total 1,414,948,005.57 992,407,579.88 2,407,355,585.45
Surplus reserve notes, including notes on changes in current period and reasons for the changes:
None.
60. Undistributed profit
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
Item Current period Prior period
Unadjusted undistributed profit at the end of the prior
15,544,604,417.32 9,066,353,854.50
period
Total adjustment of opening undistributed profit (+
-319,550,651.51 -375,926,424.61
for increase and - for decrease)
Adjusted opening undistributed profit 15,225,053,765.81 8,690,427,429.89
Add: net current profit attributable to owners of
25,726,447,236.27 8,109,125,091.40
parent company
Less: Withdrawal from statutory surplus 992,407,579.88 489,625,643.13
Withdrawal from discretionary surplus reserve
Withdrawal from general risk reserve
Common dividend payable 4,105,411,943.81 1,084,873,112.35
199 / 241
2022 Annual Report
Common dividend converted to share capital
Closing undistributed profit 35,853,681,478.39 15,225,053,765.81
Details on adjustment of opening undistributed profit:
1. Retrospective adjustment made under the Accounting Standard for Business Enterprises and relevant
new provisions had an effect of -319,550,651.51 yuan on the opening undistributed profit.
2. Changes in accounting policies had an effect of 0 yuan on the opening undistributed profit.
3. Corrections of material accounting errors had an effect of 0 yuan on opening undistributed profit.
4. Change in the scope of the consolidation due to business combination under common control had an
effect of 0 yuan on the opening undistributed profit.
5. The total effect of other adjustments on the opening undistributed profit was 0 yuan.
61. Operating revenue and operating cost
(1). Operating revenue and operating cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current amount Prior amount
Item
Revenue Cost Revenue Cost
Main operating activities 141,472,384,388.51 87,254,634,514.11 64,109,894,648.73 47,707,872,705.20
Other operating activities 950,133,606.48 805,326,665.12 720,101,435.18 674,956,888.88
Total 142,422,517,994.99 88,059,961,179.23 64,829,996,083.91 48,382,829,594.08
(2). Revenue from contracts with customers
"□ Applicable" "√ Not applicable"
Note on revenue from contracts with customers
"□ Applicable" "√ Not applicable"
(3). Note on performance obligations
"□ Applicable" "√ Not applicable"
(4). Note on allocation to remaining performance obligations
"□ Applicable" "√ Not applicable"
62. Tax and surcharge
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Urban construction and maintenance tax 377,178,795.41 70,012,995.86
Education surcharge 163,166,551.01 30,168,484.84
Property tax 89,394,957.45 58,097,775.48
Land use tax 52,628,305.98 35,038,174.67
Stamp duty 94,650,742.15 46,710,678.44
Local education surcharge 108,780,536.29 20,103,271.22
Others 25,575,237.38 15,823,859.87
Total 911,375,125.67 275,955,240.38
63. Sales expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Employee benefits 770,817,518.67 528,231,438.62
Estimated loss from product warranty 182,911,569.17
Business travel cost 113,684,620.81 99,407,130.03
Advertising costs 149,568,889.24 80,254,400.11
Marketing and promotion costs 80,378,401.05 111,456,577.28
After-sale costs 25,658,311.95 34,614,317.63
Others 111,751,581.98 65,045,929.26
Total 1,434,770,892.87 919,009,792.93
200 / 241
2022 Annual Report
64. Management expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Employee benefits 6,343,786,628.08 2,064,751,080.97
Depreciation expense 263,277,201.43 204,677,855.44
Amortization of intangible assets 169,676,417.53 75,297,475.40
Work safety expense 163,287,723.11 69,318,823.96
Consulting expense (including advisory expense) 107,243,742.53 66,490,767.62
Others 820,642,991.69 470,697,968.07
Total 7,867,914,704.37 2,951,233,971.46
65. R&D cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Costs of materials 740,997,184.57 544,172,230.59
Labor cost 342,122,319.57 264,910,724.79
Fuel and power 172,464,460.31 96,754,339.59
Depreciation expense 71,625,073.77 59,155,137.92
Other expense 137,234,505.62 60,723,055.79
Total 1,464,443,543.84 1,025,715,488.68
66. Financial expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Interest expense 960,173,341.35 469,390,027.14
Add: Fiscal interest subsidy 655,131.16 12,516,147.44
Less: Interest income 458,574,423.96 111,780,056.77
Add: Exchange loss 304,701,078.39 107,665,859.41
Less: Exchange gain 362,325,267.48 50,678,301.83
Add: Amortization of unrecognized financing costs 212,094,771.40 223,712,325.17
Add: Long-term interest on employee benefits payable 13,209,811.77
Add: Financial institution fees 20,523,031.76 11,366,982.70
Total 689,147,212.07 637,160,688.38
67. Other income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Government grants relating to everyday activities 397,490,494.89 359,499,729.72
Total 397,490,494.89 359,499,729.72
Other notes:
Government grants relating to everyday activities are detailed below:
Unit: Yuan Currency: CNY
Relating to
Item Current amount Prior amount
asset/income
Special reward funds 68,299,113.00 14,398,300.00 Relating to income
Subsidy for employment stabilization 10,099,574.85 2,977,131.25 Relating to income
Government supports 10,000,000.00 20,880,000.00 Relating to income
Tax refund 3,187,034.78 20,154,724.40 Relating to income
Amount relating to asset that is
219,999,271.08 168,293,435.91 Relating to asset
converted from deferred income
Amount relating to income that is 3,087,819.77 1,479,897.53 Relating to income
201 / 241
2022 Annual Report
converted from deferred income
Other amounts relating to income 82,817,681.41 131,316,240.63 Relating to income
Total 397,490,494.89 359,499,729.72
68. Investment gain
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Gain on long-term equity investment under equity method -62,827,359.84 -14,159,521.52
Gain on disposal of long-term equity investment 1,122,402.01 386,473.17
Investment gain on held-for-trading financial assets in the
holding period
Dividend income on other equity investments in the holding
period
Interest income on debt investments in the holding period
Interest income on other debt investments in the holding
period
Gain on disposal of held-for-trading financial assets 497,846.62
Investment gain on disposal of other equity investments
Investment gain on disposal of debt investments
Investment gain on disposal of other debt investments
Debt restructuring gain
Gain on other non-current financial assets -12,271.90
Discount interest on receivable financing -374,197,220.05 -15,695,856.14
Gain on wealth management products purchased from banks 89,935,380.67 23,368,421.89
Gain on forward exchange settlement -75,037,183.70 48,151,494.55
Total -421,003,980.91 42,536,586.67
Other notes:
(1) Gain on long-term equity investment under equity method
Unit: Yuan Currency: CNY
Investee Current amount Prior amount
Bohai Aquaculture Co., Ltd. 2,136,863.18 1,030,906.22
Anhui Tech-bank Feed Technology Co., Ltd. 1,795,335.25 -643,982.62
Anhui Tech-bank Biotechnology Co., Ltd. 338,944.91 402,678.61
Maoming Tongwei Jiuding Feed Co., Ltd. -902,593.03 -655,071.22
BioMar Tongwei (Wuxi) Biotech Co., Ltd. -2,947,930.43 3,881,464.81
Suzhou Taiyangjing New Energy Co., Ltd. -5,939,032.23 -3,339,026.67
Haimao Seed Industry Technology Co., Ltd. -57,308,947.49 -13,461,047.10
Huangmei Tongwei Jiuding Feed Co., Ltd. -93,859.57
Shaoxing Tongwei Jiuding Feed Co., Ltd. -196,132.16
Hefei Tongwei Jiuding Feed Co., Ltd. -1,085,451.82
Total -62,827,359.84 -14,159,521.52
(2) Gain on disposal of long-term equity investment
Unit: Yuan Currency: CNY
Investee Current amount Prior amount
Hefei Tongwei Jiuding Feed Co., Ltd. Note 990,241.92 141,666.67
Shaoxing Tongwei Jiuding Feed Co., Ltd. Note 132,160.09 118,750.00
Lijiang Longji Silicon Materials Co., Ltd. 116,781.50
Huangmei Tongwei Jiuding Feed Co., Ltd. 9,275.00
Total 1,122,402.01 386,473.17
Note: Hefei Tongwei Jiuding Feed Co., Ltd. and Shaoxing Tongwei Jiuding Feed Co., Ltd. (two joint
ventures) were dis-registered in 2021, the gain on distribution of remaining assets of the two joint ventures
after the dis-registration was recognized as gain on investment in the current period.
202 / 241
2022 Annual Report
(3) Gain on disposal of held-for-trading financial assets
Unit: Yuan Currency: CNY
Investee Current amount Prior amount
Disposal of the equity in Chengdu Tongwei
497,846.62
Industrial Co., Ltd.
Total 497,846.62
(4) Gain on other non-current financial assets
Unit: Yuan Currency: CNY
Investee Current amount Prior amount
Sichuan Electricity Trading Center Co., Ltd. -12,271.90
Total -12,271.90
69. Gain on hedge of net exposure
"□ Applicable" "√ Not applicable"
70. Fair value gain
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Source of gains Current amount Prior amount
Held-for-trading financial assets 20,117,978.88 5,754,600.46
Including: Gain on change in fair value of derivate financial
1,450,406.25 5,754,600.46
instruments
Gain on change in fair value of structured deposits and
18,667,572.63
wealth management products
Held-for-trading financial liabilities -56,562,286.24
Investment properties measured at fair value
Total -36,444,307.36 5,754,600.46
71. Credit impairment loss
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Bad debt loss from notes receivable
Bad debt loss from accounts receivable -104,175,443.95 -92,018,130.84
Bad debt loss from other receivables -31,593,290.20 -31,637,916.41
Impairment loss from debt investments
Impairment loss from other debt investments
Bad debt loss from long-term receivables
Impairment loss from contract assets
Total -135,768,734.15 -123,656,047.25
72. Asset impairment loss
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
I. Bad debt loss
II. Obsolete inventory loss and impairment loss on
-468,951,790.67 -43,333,695.97
fulfillment costs
III. Impairment loss from long-term equity investments -24,673,524.79
IV. Impairment loss from investment properties
V. Impairment loss from fixed assets -1,582,908,661.72 -43,375,936.90
VI. Impairment loss from construction materials
VII. Impairment loss from construction in progress
VIII. Impairment loss from productive biological assets
IX. Impairment loss from gas and oil assets
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X. Impairment loss from intangible assets
XI. Goodwill impairment loss -146,871,236.56 -28,774,072.31
XII. Others
XIII. Impairment loss from contract assets 11,529,856.67 -13,637,378.90
Total -2,211,875,357.07 -129,121,084.08
73. Gain on asset disposal
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Gain on disposal of fixed assets -9,233,490.26 -99,013,550.58
Gain on disposal of intangible assets 3,128,786.74 15,823,037.54
Gain on disposal of right-of-use assets -7,486,618.82 5,007,050.34
Gain on disposal of construction in progress -47,169.81
Gain on disposal of productive biological assets 153,161.13
Total -13,438,161.21 -78,230,632.51
74. Non-operating revenue
Non-operating revenue
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount carried
Current into current
Item Prior amount
amount non-recurring gain
or loss
Total gain on disposal of non-current assets 230,421.30 257,617.59 230,421.30
In which: Gain on disposal of fixed assets 230,421.30 257,617.59 230,421.30
Gain on disposal of intangible assets
Gain on non-monetary exchange
Receipt of donations
Government grants
Payables that cannot be paid 17,811,097.71 11,220,621.89 17,811,097.71
Income relating to damages for breach 12,262,136.16 7,891,108.73 12,262,136.16
Others 1,115,736.17 570,562.18 1,115,736.17
Total 31,419,391.34 19,939,910.39 31,419,391.34
Grants carried into current gain and loss
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable""√ Not applicable"
75. Non-operating cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount carried into current
Item Current amount Prior amount
non-recurring gain or loss
Total loss on disposal of non-current assets 1,189,771,474.52 451,946,658.93 1,189,771,474.52
In which: Loss on disposal of fixed assets 1,189,771,474.52 451,946,658.93 1,189,771,474.52
Loss on disposal of intangible assets
Loss on non-monetary exchange
Outward donations 57,889,843.28 2,205,539.82 57,889,843.28
Damages 14,225,476.46 4,856,884.84 14,225,476.46
Others 4,587,735.07 5,357,778.62 4,587,735.07
Total 1,266,474,529.33 464,366,862.21 1,266,474,529.33
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2022 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 6,407,796,222.28 1,568,558,449.66
Deferred income tax -441,871,609.95 80,386,004.34
Total 5,965,924,612.33 1,648,944,454.00
(2).Adjustment of accounting profit and income tax expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount
Total profit 38,338,810,153.14
Income tax expense under legal/applicable tax rate 9,584,702,538.28
Effect of different tax rates applied to subsidiaries -3,739,754,419.63
Effect of periods prior to adjustment -17,084,155.10
Effect of non-taxable income -265,667,288.52
Effect of nondeductible cost, expense and loss 79,202,156.25
Effect of use of deductible loss from prior unrecognized deferred tax assets -21,109,109.37
Effect of deductible temporary difference or deductible loss from deferred
557,090,177.01
tax assets not recognized in current period
Effect of recognition of deferred tax asset in current period for the
deductible loss/deductible temporary difference from deferred tax assets not -4,978,114.49
recognized in prior period
Effect of the reversal of deductible loss/deductible temporary difference
36,747,737.42
from prior recognized deferred tax assets
Effect of taxable income deduction -153,471,003.21
Effect of tax credit -91,301,334.72
Deferred income tax expense impacted by changes in tax rates 1,853,442.37
Income tax expense 5,965,924,612.33
Other notes:
"□ Applicable""√ Not applicable"
77. Other comprehensive income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
1. Other comprehensive income attributable to owners of the
-26,552,399.33 -8,393,182.24
parent company
In which: Change in fair value of other equity investments 644,958.57 106,497.86
Other comprehensive income that can be converted to profit or
-1,120,566.26 259,086.76
loss under equity method
Foreign currency translation -26,076,791.64 -8,758,766.86
2. Other comprehensive income attributable to minatory
778,989.09 -269,478.66
shareholders
In which: Change in fair value of other equity investments
Other comprehensive income that can be converted to profit or
loss under equity method
Foreign currency translation 778,989.09 -269,478.66
Total -25,773,410.24 -8,662,660.90
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78. Cash flow statement
(1). Other cash received relating to operating activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Performance bond 860,757,228.02 216,063,316.45
Interest on bank deposits 381,361,028.20 111,381,985.30
Government grants 387,782,690.24 505,800,189.28
Reserve and current accounts 14,433,073.85
Rent income 20,764,119.65 13,703,889.84
Damages for breach 5,757,415.65 5,691,790.25
Insurance claims 3,686,436.65 304,741,143.61
Others 7,251,801.87 2,661,344.67
Total 1,667,360,720.28 1,174,476,733.25
Other cash received relating to operating activities:
None.
(2). Other cash paid relating to operating activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Other cash paid relating to operating activities 975,744,124.58 851,207,059.21
Performance bond 442,975,203.98 136,890,264.51
Reserve and current accounts 27,699,083.31
Prepaid distribution from PV powerplants in
4,258,494.94 12,432,390.37
poverty alleviation program
Total 1,422,977,823.50 1,028,228,797.40
Other cash paid relating to operating activities:
None.
(3). Other cash received relating to investing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Construction bid bonds 702,279,499.81 461,244,114.22
Construction account funds unlocked 6,400,835.68
Total 702,279,499.81 467,644,949.90
Other cash received relating to investing activities:
None.
(4). Other cash paid relating to investing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Refunded construction bid bonds 501,949,500.23 506,985,472.09
Reclamation deposit paid 5,059,692.00
Total 507,009,192.23 506,985,472.09
Other cash paid relating to investing activities:
None.
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(5). Other cash received relating to financing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Cash received from sale-leaseback (which does not
420,000,000.00
constitute of a sale)
Recovered borrowings, letters of guarantee, and bills of
18,563,287.33 167,104,080.27
guarantee deposit
Funds coordinated to joint ventures 16,181,517.10 52,701,735.98
Recovered lease risk reserve 3,144,221.04
Income including interest on financing margin 66,625.00 400,362.32
Debt investments from minority shareholders of
122,975,000.00
subsidiaries
Total 457,955,650.47 343,181,178.57
Notes on other cash received relating to financing activities:
None.
(6). Other cash paid relating to financing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Lease payments 2,303,848,382.42 2,028,127,474.39
In which: Lease payments for sale-leaseback (which
1,509,098,738.01 1,341,397,284.46
does not constitute of a sale)
Principal repayment for interest-free debts 185,087,917.55 185,087,917.55
Financial lease risk reserve 34,496,451.77 22,549,598.12
Funds coordinated to joint ventures 16,181,517.10 52,701,735.99
Purchase of minority shareholding 8,520,015.17 1,534,258.73
Financing charges 3,270,000.00 9,179,990.00
Intermediary costs including attorney costs and
2,579,796.72
accountant costs for issuing convertible bonds
Paid notes, letters of credit and deposits for
7,503,287.33
borrowings
Investment withdrawn by minority shareholders 1,689,178.73
Total 2,553,984,080.73 2,308,373,440.84
Notes on other cash paid relating to investing activities:
None.
79. Additional information on cash flow statement
(1). Additional information on cash flow statement
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Additional information Current amount Prior amount
1. Net profit adjusted as cash flow from operating activities
Net income 32,372,885,540.81 8,621,503,055.19
Add: provision for asset impairment 2,211,875,357.07 129,121,084.08
Credit impairment loss 135,768,734.15 123,656,047.25
Deprecation of fixed assets, depletion of oil and gas assets
4,842,701,966.51 2,595,470,227.61
and depreciation of productive biological assets
Amortization of right-of-use assets 395,175,853.44 436,570,018.21
Amortization of intangible assets 185,441,989.52 92,013,927.02
Amortization of long term prepaid expenses 157,556,427.94 103,368,124.71
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2022 Annual Report
Loss from disposal of fixed assets, intangible assets and
13,438,161.21 78,230,632.51
other long-term assets (“-” for gain)
Loss from scrap of fixed assets (“-” for gain) 1,189,541,053.22 451,689,041.34
Loss from change in fair value (“-” for gain) 36,444,307.36 -5,754,600.46
Financial expense (“-” for gain) 1,105,568,202.87 704,955,202.62
Investment loss (“-” for gain) 421,003,980.91 -42,536,586.67
Decrease in deferred tax assets (“-” for increase) -981,648,334.10 -170,385,098.15
Increase in deferred tax liabilities (“-” for decrease) 539,776,724.15 250,771,102.49
Decrease in inventories (“-” for increase) -5,788,809,331.01 -2,796,868,142.01
Decrease in operating receivables (“-” for increase) -6,104,015,351.83 -7,394,759,888.49
Increase in operating receivables (“-” for decrease) 13,085,204,349.48 4,297,349,286.08
Others
Net cash flow generated from operating activities 43,817,909,631.70 7,474,393,433.33
2. Significant investing and financing activities not related to cash receipt and payment:
Debt for equity swap 12,950,708.71
Convertible bonds due within one year
Fixed assets acquired by financial lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 35,194,041,631.11 2,903,078,719.63
Less: Opening balance of cash 2,903,078,719.63 5,986,042,619.46
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 32,290,962,911.48 -3,082,963,899.83
(2). Net cash paid by subsidiaries in current period
"□ Applicable" "√ Not applicable"
(3). Net cash received in current period for disposal of subsidiary
"□ Applicable" "√ Not applicable"
(4). Components of cash and cash equivalents
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
I. Cash 35,194,041,631.11 2,903,078,719.63
Including: Cash on hand 152,905.98 109,314.50
Bank deposits available for payment 35,171,465,208.91 2,872,458,634.04
Other cash available for payment 22,423,516.22 30,510,771.09
Central bank deposits available for payment
Interbank deposits
Interbank borrowings
II. Cash equivalents
Including: Bond investments due within three months
II. Closing cash and cash equivalents 35,194,041,631.11 2,903,078,719.63
Including: Restricted cash and cash equivalents available
for use by parent company or subsidiaries
Other notes:
"□ Applicable""√ Not applicable"
80. Notes to statement of owner's equity
Note on “other” items and adjusted amounts for adjustment of closing balance of prior period:
"□ Applicable""√ Not applicable"
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2022 Annual Report
81. Assets with restricted ownership or use right
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing carrying Restriction reasons
value
Provide guarantees for financing and operating
Cash at bank and on hand 25,374,248.91
activities of the Company
Receivables financing Provides pledges for the bank acceptance bills issued
9,665,638,659.50
by the Company
Accounts receivable 715,625,583.47 Provide collaterals for financing of the Company
Contract assets 355,864,692.87 Provide collaterals for financing of the Company
Fixed assets Provide securities for financing of the Company and
5,957,339,958.31
financial lease
Right-of-use assets 1,392,343,524.16 Provide collaterals for financing of the Company
Intangible assets 445,149,567.28 Provide collaterals for financing of the Company
Investment properties 72,509,754.87 Provide collaterals for financing of the Company
Total 18,629,845,989.37 /
82. Foreign currency monetary items
(1). Foreign currency monetary items
"√ Applicable" "□ Not applicable"
Unit: Yuan
Closing converted
Closing foreign Exchange rates for
Item CNY
currency balance translation
balance
Cash at bank and on hand - -
Including: USD 52,165,598.43 6.9646 363,312,526.88
VND 186,436,434,592.84 0.0002952 55,028,463.57
BDT 341,859,501.11 0.0730199 24,962,540.88
IDR 11,622,323,637.03 0.0004431 5,149,456.64
EUR 6,500,588.19 7.4229 48,253,216.08
HKD 2,173,601.96 0.8933000 1,941,678.63
Notes receivable
USD 253,151,673.51 6.9646 1,763,100,145.35
EUR 92,661,024.47 7.4229 687,813,518.54
Accounts receivable - -
Including: USD 13,447,964.89 6.9646 93,659,696.27
VND 371,273,280,684.83 0.0002952 109,584,793.59
BDT 25,534,533.98 0.0730199 1,864,528.70
IDR 121,315,998,102.01 0.0004431 53,750,996.06
Short-term borrowings
USD 6,415,829.92 6.9646000 44,683,689.04
VND 52,633,734,200.00 0.0002952 15,535,340.66
IDR 17,000,000,000.00 0.0004431 7,532,122.29
Notes payable
USD 1,192,650.00 6.9646 8,306,330.19
EUR 321,250.00 7.4229 2,384,606.62
Accounts payable
USD 1,308,701.32 6.9646 9,114,581.19
VND 156,596,951,194.71 0.0002952 46,221,059.96
BDT 276,812,011.55 0.0730199 20,212,780.78
IDR 43,053,236,032.25 0.0004431 19,075,425.81
EUR 1,738,795.15 7.4229 12,906,930.24
Employee benefits payable
209 / 241
2022 Annual Report
VND 13,140,244,969.32 0.0002952 3,878,466.62
BDT 47,711,618.55 0.0730199 3,483,896.82
IDR 563,250,000.00 0.0004431 249,556.93
Taxes payable
USD 41,252,996.57 6.9646 287,310,619.88
VND 10,143,711,306.70 0.0002952 2,994,011.59
BDT 961,063.17 0.0730199 70,176.72
IDR 5,897,546,827.00 0.0004431 2,613,002.58
EUR 1,658,393.26 7.4229 12,310,087.35
Other payables
USD 41,252,996.57 6.9646 287,310,619.88
VND 10,143,711,306.70 0.0002952 2,994,011.59
BDT 961,063.17 0.0730199 70,176.72
IDR 5,897,546,827.00 0.0004431 2,613,002.58
EUR 1,658,393.26 7.4229 12,310,087.35
Non-current liabilities due
within one year
USD 1,193,612.42 6.9646 8,313,033.06
Long-term borrowings - -
Including: USD 198,225,626.15 6.9646 1,380,562,195.88
(2). Note on overseas operating entities, including for important overseas operating entities, the
principal business locations overseas, reporting currencies and basis, as well as reasons for
changes in reporting currencies
"√ Applicable" "□ Not applicable"
Principal
Reporting Basis for reporting
Entity name business
currency currency
location
Tongwei Holdings PTE. Ltd. Currency for main
Singapore USD
operating activities
Tongwei Solar (Singapore) PTE. Ltd. Currency for main
Singapore USD
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. Currency for main
Hong Kong USD
operating activities
Tongwei Solar (Germany) GmbH Germany EUR Local main currency
83. Hedge
"□ Applicable" "√ Not applicable"
84. Government grants
(1). Overview of government grants
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount carried into
Type Amount Presentation item
current profit and loss
Grants related to assets 1,068,933,769.17 Deferred income 219,426,604.45
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2022 Annual Report
Grants related to income 21,683,518.18 Deferred income 3,660,486.40
Grants related to income 177,181,223.81 Other income 177,181,223.81
Grants related to income 5,837,894.16 Operating cost 5,837,894.16
Grants related to income 655,131.16 Financial expense 655,131.16
Total 1,274,291,536.48 Total 406,761,339.98
(2). Return of grants
"□ Applicable" "√ Not applicable"
Other notes:
None.
85. Others
"□ Applicable" "√ Not applicable"
VIII. Changes in the scope of consolidation
1. Business combinations under different control
"□ Applicable""√ Not applicable"
2. Business combinations under common control
"□ Applicable""√ Not applicable"
3. Reverse acquisition
"□ Applicable" "√ Not applicable"
4. Subsidiary disposal
Disposal of subsidiary with on transaction leading to losing control
"□ Applicable""√ Not applicable"
Other notes:
"□ Applicable""√ Not applicable"
5. Changes in scope of consolidation for other reasons
Note on changes in scope of consolidation for other reasons (such as new subsidiary or liquidation of
subsidiary) and relevant circumstances:
"√ Applicable" "□ Not applicable"
(1) The 10 first-level subsidiaries newly established through investment in current period are listed as
follows:
Subsidiary name Subsidiary name
Tongwei Solar (Hainan) Co., Ltd. Huizhou Tongwei Biotechnology Co., Ltd.
Tongwei Solar (Singapore) PTE. Ltd. Changde Tongwei Biotechnology Co., Ltd.
Tongwei Agriculture Development Co., Ltd. Huanggang Tongwei Biotechnology Co., Ltd.
Hefei Tongwei Biotechnology Co., Ltd. Nanchang Tongwei Feed Co., Ltd.
Shaoxing Tongwei Biotechnology Co., Ltd. Chengdu Tongwei Biotechnology Co., Ltd.
(2) The 2 first-level subsidiaries canceled in current period are listed as follows:
Subsidiary name Subsidiary name
Tongwei Industrial (Tibet) Co., Ltd. Hengshui Tongwei Feed Co., Ltd.
(3) 55 first-level subsidiaries were converted to second-level ones in the current period
① Tongwei (Hainan) Aquatic Products Co., Ltd. become a subsidiary of Sichuan Tongwei Food Co.,
Ltd.
② The following 54 subsidiaries were converted to the subsidiaries of Tongwei Agriculture
Development Co., Ltd. in the current period:
Subsidiary name Subsidiary name Subsidiary name
Chongqing Tongwei Feed Co., Ltd. Chongqing Changshou Tongwei Sichuan Willtest Technology Co., Ltd.
Feed Co., Ltd.
Shandong Tongwei Feed Co., Ltd. Nantong Bada Feed Co., Ltd. Wuxi Tongwei Biotechnology Co., Ltd.
Shashi Tongwei Feed Co., Ltd. Zibo Tongwei Feed Co., Ltd. Sichuan Tongwei Feed Co., Ltd.
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2022 Annual Report
Chengdu Tongwei Animal Nutrition Kunming Tongwei Feed Co., Ltd. Qingdao Hairen Aquatic Seed Industry
Technology Co., Ltd. Technology Co., Ltd.
Yuanjiang Tongwei Feed Co., Ltd. Foshan Gaoming Tongwei Feed Zhanjiang Haixianfeng Bio-tech Co.,
Co., Ltd. Ltd.
Changchun Tongwei Feed Co., Ltd. Tianmen Tongwei Biotechnology Nanchang Tongwei Biotechnology Co.,
Co., Ltd. Ltd.
He’nan Tongwei Feed Co., Ltd. Binyang Tongwei Feed Co., Ltd. Yangjiang Haiyi Biotechnology Co.,
Ltd.
Guangdong Tongwei Feed Co., Ltd. Chengdu Tongwei Sanxin Nanning Tongwei Biotechnology Co.,
Pharmaceutical Co. Ltd. Ltd.
Xiamen Tongwei Feed Co., Ltd. Tongwei Agricultural Finance Maoming Tongwei Biotechnology Co.,
Guarantee Co., Ltd. Ltd.
Wuhan Tongwei Feed Co., Ltd. Chengdu Tongwei Automation Ningbo Tech-bank Feed Technology
Equipment Co., Ltd. Co., Ltd.
Tianjin Tongwei Feed Co., Ltd. Haerbin Tongwei Feed Co., Ltd. Qingdao Qihao Biotechnology Co., Ltd.
Huaian Tongwei Feed Co., Ltd. Zhuhai Haiyi Aquatic Products Ningbo Tech-bank Biotechnology Co.,
Feed Co., Ltd. Ltd.
Jieyang Tongwei Feed Co., Ltd. Hainan Haiyi Aquatic Seed Co., Yancheng Tech-bank Feed Technology
Ltd. Co., Ltd.
Chengdu Ronglai Tongwei Feed Co., Tongwei Holdings PTE. Ltd. Nanning Aigefei Feed Co., Ltd.
Ltd.
Langfang Tongwei Feed Co., Ltd. Chizhou Tongwei Feed Co., Ltd. Bengbu Tech-bank Feed Technology
Co., Ltd.
Hainan Haiyi Aquatic Products Feed Honghu Tongwei Feed Co., Ltd. Hubei Tech-bank Feed Co., Ltd.
Co., Ltd.
Yangzhou Tongwei Feed Co., Ltd. Hainan Tongwei Biotechnology Dongying Tech-bank Feed Technology
Co., Ltd. Co., Ltd.
Lianyungang Tongwei Feed Co., Ltd. Hanshou Tongwei Feed Co., Ltd. Guangdong Tongwei Biotechnology
Co., Ltd.
6. Others
"□ Applicable" "√ Not applicable"
IX. Interest in other entities
1. Interest in subsidiaries
(1). Corporate group structure
"√ Applicable" "□ Not applicable"
Principal Equity percent (%)
Subsidiary Registered Obtaining
business Business nature
name location Direct Indirect method
location
Chemical engineering Business combination
Yongxiang Co., Ltd. Leshan Leshan 99.9999 0.0001
and PV under common control
Production and
Business combination
Tongwei Solar (Hefei) Co., Ltd. Hefei Hefei operation of solar 100
under common control
cells and modules
PV electricity Business combination
Tongwei New Energy Co., Ltd. Chengdu Chengdu 100
operation under common control
Chengmai Chengmai
Establishment through
Tongwei Solar (Hainan) Co., Ltd. County, County, Sale of modules 100
investment
Hainan Hainan
Establishment through
Tongwei Solar (Singapore) PTE. Ltd. Singapore Singapore Sale of modules 100
investment
Establishment through
Sichuan Tongwei Food Co., Ltd. Chengdu Chengdu Food processing 80
investment
Tongwei Agriculture Development Feed production and Establishment through
Chengdu Chengdu 100
Co., Ltd. operation investment
Feed production and Establishment through
Panzhihua Tongwei Feed Co., Ltd. Panzhihua Panzhihua 100
operation investment
Feed production and Business combination
Zaozhuang Tongwei Feed Co., Ltd. Zaozhuang Zaozhuang 100
operation under common control
Feed production and Establishment through
Nanning Tongwei Feed Co., Ltd. Nanning Nanning 100
operation investment
Feed production and Establishment through
Qianxi Tongwei Feed Co., Ltd. Qianxi Qianxi 100
operation investment
Feed production and Establishment through
Foshan Tongwei Feed Co., Ltd. Foshan Foshan 100
operation investment
Feed production and Establishment through
Tongwei (Dafeng) Feed Co., Ltd. Yancheng Yancheng 51
operation investment
Fuzhou Tongwei William Feed Co., Fuzhou Fuzhou Feed production and 65 Establishment through
212 / 241
2022 Annual Report
Ltd. operation investment
Ningxia Yinchuan Tongwei Feed Co., Feed production and Establishment through
Yinchuan Yinchuan 100
Ltd. operation investment
Sichuan Tongguang Construction Establishment through
Chengdu Chengdu Construction 100
Engineering Co., Ltd. investment
Feed production and Establishment through
Qingyuan Tongwei Feed Co., Ltd. Yingde Yingde 100
operation investment
Chengdu Tongwei Fishery-PV Establishment through
Chengdu Xinjin Others 100
Technology Co., Ltd. investment
Shenyang Tongwei Biotechnology Feed production and Establishment through
Shenyang Shenyang 100
Co., Ltd. operation investment
Zhejiang Tongwei Solar Technology Establishment through
Zhejiang Zhejiang PV 100
Co., Ltd. investment
Sichuan Chunyuan Ecological Business control under
Chengdu Qionglai Farming 100
Farming Co., Ltd. different control
Establishment through
Zibo Tongwei Food Co., Ltd. Zibo Zibo Food processing 100
investment
Tianmen Tongwei Aquaculture PV electricity Establishment through
Tianmen Tianmen 100
Technology Co., Ltd. operation investment
Establishment through
Sichuan Fusion Link Co., Ltd. Chengdu Chengdu Others 60
investment
Chengdu Tongwei Aquaculture Business combination
Chengdu Chengdu Farming 100
Technology Co., Ltd. under common control
Nanjing Tongwei Aquaculture Establishment through
Nanjing Nanjing Farming and feed sale 100
Technology Co., Ltd. investment
Foshan Nanhai Tongwei Aquatic Establishment through
Guangzhou Guangzhou Farming 100
Products Technology Co., Ltd. investment
Chengdu Tongwei Aquatic Seed Co., Establishment through
Chengdu Chengdu Farming 100
Ltd. investment
Hefei Tongwei Biotechnology Co., Feed production and Establishment through
Hefei Hefei 100
Ltd. operation investment
Shaoxing Tongwei Biotechnology Co., Feed production and Establishment through
Shaoxing Shaoxing 100
Ltd. operation investment
Huizhou Tongwei Biotechnology Co., Feed production and Establishment through
Huizhou City Huizhou City 100
Ltd. operation investment
Changde Tongwei Biotechnology Co., Feed production and Establishment through
Changde Changde 100
Ltd. operation investment
Huanggang Tongwei Biotechnology Huanggang Huanggang Feed production and Establishment through
100
Co., Ltd. City City operation investment
Feed production and Establishment through
Nanchang Tongwei Feed Co., Ltd. Nanchang Nanchang 100
operation investment
Chengdu Tongwei Biotechnology Co., Feed production and Establishment through
Chengdu Chengdu 100
Ltd. operation investment
Establishment through
Tongwei Industrial (Tibet) Co., Ltd. Lhasa Lhasa Trade 100
investment
Feed production and Establishment through
Hengshui Tongwei Feed Co., Ltd. Hebei Hebei 100
operation investment
Note on equity percent different from voting right percent:
None.
Basis for cases when the Company has control of investee in which it only holds 50% or less voting rights
and when the Company has no control of investee in which it holds over 50% voting rights:
None.
Basis for the Company's control of important structured entities included into scope of consolidation:
None.
Basis for determining whether the Company is the agent or trustor
None.
Other notes:
10 first-level subsidiaries were newly established, 2 first-level were catcalled, and 55 were turned to
second-level subsidiaries in the current period.
(2). Important non-wholly-owned subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current profit or Current dividend
Minority equity Closing minority
Subsidiary name loss attributable to declared to
Percentage interest balance
minority monitory
213 / 241
2022 Annual Report
shareholders shareholders
Sichuan Yongxiang New Energy
15.00% 2,292,876,227.14 325,500,000.00 2,761,655,928.93
Co., Ltd.
Inner Mongolia Tongwei
High-purity Crystalline Silicon 20.00% 1,232,601,295.27 1,792,601,295.27
Company
Yunnan Tongwei High-purity
49.00% 2,753,393,109.87 3,888,851,743.50
Crystalline Silicon Company
Note on minority shareholders’ equity percent is different from their percent of voting rights:
"□ Applicable""√ Not applicable"
Other notes:
"□ Applicable""√ Not applicable"
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2022 Annual Report
(3). Main financial information of important non-wholly owned subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Subsidiary name Non-current Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities liabilities
Sichuan Yongxiang
New Energy Co., 18,350,818,358.97 6,015,580,249.11 24,366,398,608.08 2,945,904,867.86 2,317,028,437.67 5,262,933,305.53 3,577,128,981.61 6,318,559,026.43 9,895,688,008.04 2,550,821,147.39 2,030,145,996.60 4,580,967,143.99
Ltd.
Inner Mongolia
Tongwei
High-purity 7,050,201,465.49 7,374,629,015.39 14,424,830,480.88 3,440,885,204.37 1,738,279,450.49 5,179,164,654.86 2,873,221,927.26 5,192,361,709.88 8,065,583,637.14 2,365,006,622.69 1,240,863,384.23 3,605,870,006.92
Crystalline Silicon
Company
Yunnan Tongwei
High-purity
5,938,916,629.59 4,853,156,274.80 10,792,072,904.39 2,056,775,497.20 798,865,277.60 2,855,640,774.80 517,638,329.26 4,171,961,361.12 4,689,599,690.38 2,635,557,680.20 454,042,010.18 3,089,599,690.38
Crystalline Silicon
Company
Current amount Prior amount
Subsidiary name Total comprehensive Cash flow from operating Total comprehensive Cash flow from operating
Operating revenue Net income Operating revenue Net income
income activities income activities
Sichuan Yongxiang New Energy Co., Ltd. 26,901,512,100.82 15,958,744,438.50 15,958,744,438.50 16,878,564,935.55 6,909,496,192.32 3,531,078,979.98 3,531,078,979.98 3,083,528,871.28
Inner Mongolia Tongwei High-purity
17,558,954,593.62 9,806,952,195.80 9,806,952,195.80 10,663,010,692.14 6,596,764,472.94 3,496,533,270.77 3,496,533,270.77 3,479,298,068.24
Crystalline Silicon Company
Yunnan Tongwei High-purity Crystalline
10,090,209,647.84 5,619,169,611.98 5,619,169,611.98 3,994,695,927.84 - - - -175,888,103.79
Silicon Company
215 / 241
2022 Annual Report
(4). Significant restrictions on use of group assets and service of group liabilities
"□ Applicable""√ Not applicable"
(5). Financial or other supports provided for structured entities within the scope of consolidation
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
2. Transactions resulting in changes in ownership interest without loss of control
"√ Applicable" "□ Not applicable"
(1).Notes on changes in equity interest in subsidiaries
"√ Applicable" "□ Not applicable"
In May 2022, the Company acquired 0.36% of ownership in Sichuan Willtest Technology Co., Ltd.
from minority shareholders with a consideration of 112,257.05 yuan. After the acquisition, the Company's
ownership interest in Sichuan Willtest Technology Co., Ltd. was changed from 85.04% to 85.40%.
In June 2022, Yongxiang Co., Ltd. (a wholly-owned subsidiary of the Company) acquired 7.25% of
ownership interest in Sichuan Yongxiang Silicon Materials Co., Ltd. from minority shareholders with a
consideration of 8,407,758.12 yuan. After the acquisition, the ownership interest of Yongxiang Co., Ltd. in
Sichuan Yongxiang Silicon Materials Co., Ltd. was changed from 92.75% to 100.00%.
In August 2022, the Company transferred a portion of its shares in Tongwei (Hainan) Aquatic Products
Co., Ltd. where it previously held 100.00% shares to Sichuan Tongwei Food Co., Ltd. where it directly held
80.00% shares for a consideration of 188,470,100.00 yuan. As such, the equity percentage of the Company
in Tongwei (Hainan) Aquatic Products Co., Ltd. decreased from 100.00%to 80.00%.
(2).Effects of transactions on minority interest and interest attributable to owners of parent
company
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Sichuan Willtest Sichuan Yongxiang Tongwei (Hainan)
Technology Co., Silicon Materials Aquatic Products
Ltd. Co., Ltd. Co., Ltd.
Acquisition cost/disposal
112,257.05 8,407,758.12 37,694,020.00
consideration
--Cash 112,257.05 8,407,758.12 37,694,020.00
--Fair value of non-cash assets
Total acquisition cost/disposal
112,257.05 8,407,758.12 37,694,020.00
consideration
Less: Share of subsidiary's net assets
based on the ownership interest 117,070.55 - 31,542,189.77
acquired or disposed
Difference -4,813.50 8,407,758.12 6,151,830.23
Including: Adjustment of capital
4,813.50 -8,407,758.12 6,151,830.23
reserve
Adjustment of surplus reserve
Adjustment of undistributed
profit
Other notes
"□ Applicable""√ Not applicable"
3. Interest in joint ventures or associates
"□ Applicable""√ Not applicable"
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2022 Annual Report
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.
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, 2022, the
balance of accounts receivable from top five customers was 2,913,773,300 yuan accounting for 60.64% of
the period-end total balance of accounts receivable.
(II) Market risk
It is the risk the fair value of future cash flow of financial instrument volatilizes due to changes 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 “Notes: Foreign currency monetary items”.
(III) Liquidity risk
It is the risk of incurring losses resulting from the inability to meet payment obligations via delivery 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
217 / 241
2022 Annual Report
cash flow, the Financial Department ensures the Company keeps adequate cash to pay debts under all
reasonably expected conditions.
As of December 31, 2022, 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
8,776.71 8,776.71
borrowings
Held-for-trading
financial 6,435.11 6,435.11
liabilities
Notes payable 885,142.34 885,142.34
Accounts
1,101,816.15 1,101,816.15
payable
Other payables 214,268.03 214,268.03
Long-term
139,136.06 663,159.40 772,649.60 266,933.38 1,841,878.44
borrowings
Bonds payable 17,360.95 4,793.89 46,740.45 1,222,442.46 1,291,337.75
Lease liabilities 58,061.52 55,426.31 92,218.55 247,529.04 453,235.42
Long-term
57,325.87 35,573.87 59,173.65 11,949.04 164,022.43
payables
Total 2,488,322.74 758,953.47 970,782.25 1,748,853.92 5,966,912.38
XI. Fair value disclosure
1. Closing fair value of assets and liabilities measured at fair value
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing fair value
Level 1 fair Level 2 fair
Item Level 3 fair value
value value Total
measurement
measurement measurement
I. Continuous
measurement at fair
value
(I) Held-for-trading
19,856,903.07 4,278,667,572.63 4,298,524,475.70
financial assets
1. Financial assets
measured at fair value
19,856,903.07 4,278,667,572.63 4,298,524,475.70
through current profit
and loss
(1) Debt investments 4,278,667,572.63 4,278,667,572.63
(2) Equity investments
(3) Derivative financial
19,856,903.07 19,856,903.07
assets
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
154,196,557.28 154,196,557.28
investments
(IV) Investment
218 / 241
2022 Annual Report
properties
1. Land use right for
lease
2. Buildings for lease
3. Land use right held for
transfer after its value is
increased
(V) Biological assets
1. Consumable biological
assets
2. Productive biological
assets
Receivables financing 13,066,496,368.98 13,066,496,368.98
Other non-current
3,146,248.25 3,146,248.25
financial assets
Total assets
continuously measured 19,856,903.07 17,502,506,747.14 17,522,363,650.21
at fair value
(VI) Held-for-trading
64,351,114.48 64,351,114.48
financial liabilities
1. Financial liabilities
measured at fair value
64,351,114.48 64,351,114.48
through current profit
and loss
Including: trading bonds
issued
Derivative
64,351,114.48 64,351,114.48
financial liabilities
Others
2. Financial liabilities
designated to be
measured at fair value
through current profit
and loss
Total liabilities
continuously measured 64,351,114.48 64,351,114.48
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. The basis for recognizing the market value of projects measured at first-level fair value on a
continuing and non-continuing basis
"□ Applicable" "√ Not applicable"
3. Qualitative and quantitative information on valuation techniques and important parameters for
projects measured at second-level fair value on a continuing and non-continuing basis
"√ Applicable" "□ Not applicable"
Debt instruments investments are structure deposits and wealth management products purchased by
the Company. The market value of projects measured at fair value on a continuing and non-continuing basis
is recognized based on the value calculated according to the yield observable at commonly quoted
219 / 241
2022 Annual Report
intervals.
Derivative financial assets and derivative financial liabilities are paper gains and losses from FX forward
contracts. The market value of projects measured at fair value on a continuing and non-continuing basis is
recognized based on the gains and loss calculated according to the observable parameters published by the
banks with which the contracts are signed.
4. Qualitative and quantitative information of valuation techniques and important parameters
used for level 3 items continuously and non-continuously measured at fair value
"√ Applicable" "□ Not applicable"
Remaining term of receivables financing is short, which means its carrying value is close to the fair
value, therefore, the carrying value is used as fair value.
For other equity investments, the closing net assets of investee is used as the important basis for its fair
value valuation. Where certain valuation techniques are used to determine fair value, the important
parameters include interest rate that cannot be directly observed.
The investment costs of other non-current financial assets are used as their fair values because no
significant changes occurred in the operating environment, operation and financial status of the investees
and these amounts are not significant.
5. Reconciliation between opening and closing carrying values and sensitivity analysis for
unobservable parameters for level 3 items continuously and non-continuously measured at fair
value
"□ Applicable" "√ Not applicable"
6. Reasons for and policies at level conversion for items continuously measured at fair value
"□ Applicable" "√ Not applicable"
7. Changes in valuation techniques and reasons
"□ Applicable" "√ Not applicable"
8. Fair value of financial assets and financial liabilities not measured at fair value
"□ Applicable" "√ Not applicable"
9. Others
"□ Applicable" "√ Not applicable"
XII. Related parties and related-party transactions
1. Parent company
"√ Applicable" "□ Not applicable"
Unit: 10,000 Yuan Currency: CNY
Parent Parent’s ownership Parent's voting
Registered Business Registered
company percentage in the right percentage in
location nature capital
name Company (%) the Company (%)
Tongwei
Mixed
Group Co., Sichuan 20,000.00 43.85 43.85
operation
Ltd.
Description of the Company’s parent company
Tongwei Group Co., Ltd. is a limited liability company whose registered office and business office are
both at No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, legally represented by Guan
Yamei, with a registered capital of 200 million yuan. Scope of activities: (The following items do not
include those requiring prior licenses, items requiring post licenses are subject to licenses or approvals)
Feed processing; manufacturing of equipment specially for electronic industry; manufacturing of PV
equipment and modules; 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
220 / 241
2022 Annual Report
conducted until such approval is obtained from relevant authorities)
The ultimate controller of the Company is Liu Hanyuan.
2. Subsidiaries of the Company
Refer to Notes for details.
"√ Applicable" "□ Not applicable"
Details of subsidiaries are in Note IX. Interest in other entities.
3. Joint ventures and associates
Details of important joint ventures and associates are in Notes.
"√ Applicable" "□ Not applicable"
None.
Other joint ventures or associates that concluded related-party transactions with the Company in the current
period or in prior periods that had caused balances
"√ Applicable" "□ Not applicable"
Name of joint venture or associate Relationship with the Company
BioMar Tongwei (Wuxi) Biotech Co., Ltd. Joint venture
Anhui Tech-bank Feed Technology Co., Ltd. Associate
Anhui Tech-bank Biotechnology Co., Ltd. Associate
Bohai Aquaculture Co., Ltd. Associate
Suzhou Taiyangjing New Energy Co., Ltd. Associate
Other notes
"□ Applicable""√ Not applicable"
4. Other related parties
"√ Applicable" "□ Not applicable"
Name Relationship with the Company
Chengdu Haozhuren Pet Food Co., Ltd. Common ultimate control
Chengdu Tongwei Culture Media Co., Ltd. Common ultimate control
Chengdu Tongwei Property Co., Ltd. Common ultimate control
Chengdu Tongyu Property Management Co., Ltd. Common ultimate control
Chengdu Xinrui Technology Development Co., Ltd. Common ultimate control
Meishan Tongwei Property Co., Ltd. Common ultimate control
Chengdu Low-carbon Urban Investment Co., Ltd. Common ultimate control
Chengdu Tongwei Business Management Co., Ltd. Common ultimate control
Sichuan Tongwei Shidi Property Co., Ltd. Common ultimate control
Tongwei Microelectronics Co., Ltd. Common ultimate control
The wholly-owned subsidiary of BioMar
Zhuhai Haiwei Feed Co., Ltd. Tongwei (Wuxi) Biotech Co., Ltd., the
Company's joint venture
5. Related-party transactions
(1). Related-party transactions on sale and purchase of goods and rendering and receipt of services
Purchase of goods/receipt of services
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Related-party
Related party Current amount Prior amount
transaction
Anhui Tech-bank Feed Technology Co., Ltd. Raw materials, feed
280,736,973.22
and others
221 / 241
2022 Annual Report
Chengdu Tongyu Property Management Co., Property
Ltd. management and 54,388,845.77 40,633,560.03
service fees
Chengdu Xinrui Technology Development Machinery
Co., Ltd. equipment, raw
63,540,825.44 38,560,074.17
materials and
others
Anhui Tech-bank Biotechnology Co., Ltd. Raw materials, feed
41,527,937.80
and others
Zhuhai Haiwei Feed Co., Ltd. Feed, packaging
materials and 15,638,890.03 29,054,160.65
others
Suzhou Taiyangjing New Energy Co., Ltd. Equipment, raw
materials and 15,166,701.94
others
Chengdu Tongwei Culture Media Co., Ltd. Tongwei
Newspaper, and 14,389,212.92 19,657,805.03
related goods
Chengdu Tongwei Business Management Co., Spirits and
1,930,085.00 2,889,642.18
Ltd. beverages, gifts
BioMar Tongwei (Wuxi) Biotech Co., Ltd. Feed, pre-mixed
1,352,304.04 199,789.47
feed and others
Chengdu Haozhuren Pet Food Co., Ltd. Feed and pet
39,906.75 1,725.61
supplies
Chengdu Tongwei Property Co., Ltd. Others 11,428.57
Sale of goods/rendering of services
"√ Applicable""□ Not applicable"
Unit: Yuan Currency: CNY
Related-party
Related party Current amount Prior amount
transaction
BioMar Tongwei (Wuxi) Biotech Co., Ltd. Feed, pre-mixed
27,935,807.89 20,103,851.67
feed and others
Bohai Aquaculture Co., Ltd. and its Feed, pre-mixed
27,309,672.32
subsidiaries feed and others
Zhuhai Haiwei Feed Co., Ltd. Feed, pre-mixed
23,507,534.89 90,079,786.26
feed and others
Anhui Tech-bank Feed Technology Co., Ltd. Raw materials, feed
3,777,900.77
and others
Tongwei Group Co., Ltd. Accessories, food
1,221,676.18 1,519,237.15
and others
Chengdu Tongwei Business Management Co., Accessories, food
1,043,945.36 533,148.01
Ltd. and others
Chengdu Haozhuren Pet Food Co., Ltd. Feed, pre-mixed
500,845.04 285,335.10
feed and others
Sichuan Tongwei Shidi Property Co., Ltd. Accessories, food
479,042.85 1,690,814.66
and others
Chengdu Tongwei Culture Media Co., Ltd. Accessories, food
309,273.00
and others
Tongwei Microelectronics Co., Ltd. Accessories, food
47,025.84
and others
Suzhou Taiyangjing New Energy Co., Ltd. Cells, raw materials
26,548.68
and others
Other subsidiaries of Tongwei Group Co., Ltd. Others 21,354.20 32,550.37
Meishan Tongwei Property Co., Ltd. Food, and coupon
4,627.52 51,613.79
cards
Anhui Tech-bank Biotechnology Co., Ltd. Feed 4,099.20
222 / 241
2022 Annual Report
Chengdu Tongyu Property Management Co., Equipment, and
191,818.34
Ltd. technical services
Note on related-party transactions on sale and purchase of goods and rendering and receipt of services
"□ Applicable""√ Not applicable"
(2). Related-party management/Entrusted management and contract-based operation/outsourcing
Entrusted management/contract-based operation by the Company:
"□ Applicable""√ Not applicable"
Note on related-party management/contract-based operation
"□ Applicable""√ Not applicable"
Entrusted management/contract-based operation from the Company
"□ Applicable""√ Not applicable"
Note on related-party management/contract-based operation for the Company
"□ Applicable""√ Not applicable"
(3). Related-party leases
The Company as lessor:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Lease income Lease income
Lessee name Type of leased asset recognized in current recognized in prior
period period
Chengdu Haozhuren Pet Food Premises, buildings and
5,888,379.75 6,285,474.88
Co., Ltd. machinery equipment
Tongwei Microelectronics Co.,
Premises and buildings 1,988,885.68
Ltd.
223 / 241
2022 Annual Report
The Company as lessee:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Variable lease
Lease payments for short-term payments not
leases and low-value leases included into the Interest expense on lease Increased right-of-use
Paid rents
Type of leased under a simplified approach (if measurement of lease liabilities assets
Lessor name
asset applicable) liabilities (if
applicable)
Current Current Prior Current Current
Prior amount Current amount Prior amount Prior amount Prior amount
amount amount amount amount amount
Chengdu
Tongwei Premises and
7,687,842.36 4,613,688.60 15,669,690.79 15,087,274.23 4,908,883.02 5,503,281.85 3,213,254.39
Property buildings
Co., Ltd.
Tongwei
Premises and
Group Co., 110,194.28 16,325.26 1,121,075.99 1,121,075.99 119,371.34 154,119.01
buildings
Ltd.
Chengdu
Tongyu
Premises and
Property 88,073.40 95,119.27
buildings
Management
Co., Ltd.
Note on related-party leases
"□ Applicable" "√ Not applicable"
224 / 241
2022 Annual Report
(4). Related-party guarantees
The Company as guarantor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Guarantee Guarantee
Guaranteed Guarantee expiry
Guaranteed party commencement fulfilled
amount date
date completely or not
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 19,000,000.00 August 12, 2022 March 24, 2023 No
Sichuan Tongwei Green Electricity Co., Ltd. 18,634,514.60 January 17, 2022 January 13, 2023 No
The Company has provided a guarantee limited to 55 million yuan for the debt of BioMar Tongwei
(Wuxi) Biotech Co., Ltd. (one of its joint ventures) made from HSBC Bank (China) Co., Ltd. As of
December 31, 2022, the borrowing balance in HSBC Bank (China) Co., Ltd. was 19 million yuan.
The Company has provided a guarantee limited to 90 million yuan for the debt incurred in a period by
Sichuan Tongwei Green Electricity Co., Ltd. (one of its subsidiaries). As of December 31, 2022, the debt
owned by Sichuan Tongwei Green Electricity Co., Ltd. to its trading partners was 18,634,500 yuan.
As of December 31, 2022, the Company had no related-party guarantees other than the above ones and the
financing guarantees to its subsidiaries.
The Company as guaranteed party
"√ Applicable""□ Not applicable"
Unit: Yuan Currency: CNY
Guarantee Guarantee fulfilled
Guarantor Guaranteed amount Guarantee expiry date
commencement date completely or not
Tongwei Group Co., Ltd. 100,119,698.27 April 28, 2022 January 31, 2023 No
Tongwei Group Co., Ltd. 254,304,033.62 September 27, 2022 October 26, 2023 No
Tongwei Group Co., Ltd. 20,652,277.82 October 19, 2022 September 20, 2023 No
Tongwei Group Co., Ltd. 455,407.94 June 01, 2022 December 01, 2023 No
Tongwei Group Co., Ltd. 30,258,194.44 August 26, 2022 August 26, 2023 No
Tongwei Group Co., Ltd. 2,704,825.01 August 18, 2022 December 21, 2023 No
Tongwei Group Co., Ltd. 200,000,000.00 April 16, 2021 April 15, 2024 No
Tongwei Group Co., Ltd. 300,000,000.00 April 28, 2022 April 27, 2024 No
Tongwei Group Co., Ltd. 480,000,000.00 October 19, 2022 October 18, 2025 No
Tongwei Group Co., Ltd. 235,000,000.00 April 07, 2022 April 07, 2025 No
Tongwei Group Co., Ltd. 499,970,000.00 June 01, 2022 May 30, 2024 No
Tongwei Group Co., Ltd. 230,000,000.00 August 26, 2022 May 29, 2025 No
Tongwei Group Co., Ltd. 590,000,000.00 August 05, 2022 July 29, 2025 No
Tongwei Group Co., Ltd. 270,000,000.00 September 26, 2022 September 26, 2025 No
Tongwei Group Co., Ltd. 697,000,000.00 August 18, 2022 August 17, 2025 No
Tongwei Group Co., Ltd. 100,000,000.00 September 27, 2021 September 26, 2024 No
Note on related-party guarantees
"□ Applicable""√ Not applicable"
(5). Related-party lending
"□ Applicable" "√ Not applicable"
(6). Related-party asset transfer and debt restructuring
"□ Applicable" "√ Not applicable"
(7). Key management personnel compensation
"√ Applicable" "□ Not applicable"
Unit:10,000 Yuan Currency: CNY
Item Current amount Prior amount
Key management personnel compensation 15,586.42 3,009.97
(8). Other related-party transactions
"□ Applicable" "√ Not applicable"
225 / 241
2022 Annual Report
6. Accounts receivable and payable from and to related parties
(1). Receivable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Provision Provision
Item Related party Book Book
for bad for bad
balance balance
debts debts
Accounts BioMar Tongwei (Wuxi) Biotech
12,800.00
receivable Co., Ltd.
Accounts Chengdu Tongwei Business
4,550.00
receivable Management Co., Ltd.
Advances to Anhui Tech-bank Feed
6,376,445.84 532,545.20
suppliers Technology Co., Ltd.
(2). Payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Related party Closing book Opening book
balance balance
Chengdu Xinrui Technology
Accounts payable 46,532,808.36 35,843,000.82
Development Co., Ltd.
Suzhou Taiyangjing New Energy
Accounts payable 15,717,420.87
Co., Ltd.
Chengdu Tongwei Culture Media
Accounts payable 4,386,999.62 6,851,067.39
Co., Ltd.
Anhui Tech-bank Feed Technology
Accounts payable 2,426,111.30 4,920,062.20
Co., Ltd.
Anhui Tech-bank Biotechnology
Accounts payable 800,840.00 2,122,411.00
Co., Ltd.
Chengdu Tongyu Property
Accounts payable 142,900.00
Management Co., Ltd.
Accounts payable Zhuhai Haiwei Feed Co., Ltd. 11,712.20
Contract liabilities Meishan Tongwei Property Co., Ltd. 36,728.00 50,000.00
Chengdu Low-carbon Urban
Contract liabilities 2,870.00 2,870.00
Investment Co., Ltd.
Anhui Tech-bank Feed Technology
Contract liabilities 88,843.13
Co., Ltd.
Chengdu Tongyu Property
Contract liabilities 2,099.81
Management Co., Ltd.
Chengdu Tongwei Culture Media
Other payables 2,853,250.00 40,000.00
Co., Ltd.
Chengdu Xinrui Technology
Other payables 3,757,800.00
Development Co., Ltd.
Chengdu Tongwei Business
Other payables 3,360.00
Management Co., Ltd.
Lease liabilities (including
Chengdu Tongwei Property Co., Ltd. 103,407,308.75 145,395,418.74
those due within one year)
Lease liabilities (including
Tongwei Group Co., Ltd. 2,630,318.79 3,464,362.08
those due within one year)
The Company coordinates funds of joint ventures 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 is as
below:
Related party Current amount Prior amount
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 1,994.51
Total 1,994.51
226 / 241
2022 Annual Report
7. Related-party commitments
"□ Applicable" "√ Not applicable"
8. Others
"□ Applicable" "√ Not applicable"
XIII. Share-based payment
1. Overview of share-based payments
"□ Applicable" "√ Not applicable"
2. Equity-settled share-based payments
"□ Applicable" "√ Not applicable"
3. Cash-settled share-based payments
"□ Applicable" "√ Not applicable"
4. Modification and termination of share-based payments
"□ Applicable" "√ Not applicable"
5. Others
"□ Applicable" "√ Not applicable"
XIV. Commitments and contingencies
1. Important commitments
"□ Applicable" "√ Not applicable"
2. Contingencies
(1). Important contingencies on balance sheet date
"√ Applicable" "□ Not applicable"
Outward guarantees
As of December 31, 2022, the Company had the following outward guarantees and the post-date
repayments of guaranteed borrowings and recovery of guaranteed sales on credit:
1) Guarantees for farmers who borrowed money from financial institutions for purchasing Tongwei Feed
and building rooftop powerplants:
Unit: 10,000 Yuan Currency: CNY
Balance of Post-date
Guarantee
Item Guarantee expiry date guaranteed repayment or
commencement date
amount recovery
Tongwei Agricultural Finance
Guarantee Co., Ltd. provided
guarantees for farmers who
January 01, 2022 December 16, 2023 12,985.20
borrowed money from financial 8,743.19
institutions for purchasing Tongwei
feed
Tongwei Agricultural Finance
Guarantee Co., Ltd. Provided
guarantees for farmers who
September 15, 2017 May 31, 2028 1,792.11
borrowed money from financial 75.51
institutions for building rooftop
powerplants
Total 14,777.31 8,818.70
Note: As of December 31, 2022, the balance of repayment made by Tongwei Agricultural Finance
227 / 241
2022 Annual Report
Guarantee Co., Ltd. for behalf of guaranteed parties was 18,552,000 yuan. It was trying to recover the
balance.
2) Tongwei Co., Ltd. has provided the following guarantees for its strategic partners:
Unit: 10,000 Yuan Currency: CNY
Guarantee
Guarantee
Guaranteed Guarantee fulfilled
Guarantor Guaranteed party commencement
amount expiry date completely or
date
not
March 01,
The Company Guangdong Dajia Food Co., Ltd. 3,500.00 October 13, 2022
2023 No
Jiangxi Junshanhu Ecologic
1,900.00 July 13, 2022 April 15, 2023
The Company Agriculture Development Co., Ltd. No
The Company had no important matters or contingences other than the above- mentioned ones that
required disclosure as of December 31, 2022.
(2). Note on no important contingencies that require disclosure
"□ Applicable" "√ Not applicable"
3. Others
"□ Applicable" "√ Not applicable"
XV. Post balance sheet events
1. Important non-adjusting events
"□ Applicable" "√ Not applicable"
2. Profit distribution
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Proposed profit or dividend distribution 12,866,561,945.23
Declared profit or dividend
The Company will distribute profit for the year 2022 based on the its total share capital on the record
date. A cash dividend of 28.58 yuan per 10 shares (including tax) will be distributed to all shareholders. As
of December 31, 2022, the total share capital of the Company was 4,501,946,097 shares, based on which
the total cash dividend to be distributed is 12,866,561,945.23 yuan (including tax). If there is any change in
the total share capital before the record date, the total dividend amount will remain unchanged, and the
dividend per share will be adjusted accordingly. The above profit distribution proposal will be submitted to
the Company’s general meeting for approval before execution.
3. Sales return
"□ Applicable" "√ Not applicable"
4. Note on other post balance sheet events
"□ Applicable" "√ Not applicable"
XVI. Other important matters
1. Prior error corrections
(1). Retrospective restatement
"□ Applicable" "√ Not applicable"
(2). Prospective application
"□ Applicable" "√ Not applicable"
2. Debt restructuring
"□ Applicable" "√ Not applicable"
228 / 241
2022 Annual Report
3. Asset exchange
(1). Non-monetary exchange
"□ Applicable" "√ Not applicable"
(2). Other asset exchange
"□ Applicable" "√ Not applicable"
4. Annuity plan
"□ Applicable""√ Not applicable"
5. Discontinued operations
"□ Applicable" "√ Not applicable"
6. Segments
(1). Basis for determining reporting segments and accounting policies applicable to reporting
segments
"√ Applicable" "□ Not applicable"
The Company classifies operating segments given its organizational structure, management
requirements and internal reporting policies. An operating segment is a component that meets the following
conditions: ①it can earn revenues and incur expenses in daily activities; ② its operating results are
reviewed regularly by the management to make decisions about resources to be allocated to the component
and assess its performance; ③ accounting information relating to financial position, operating results and
cash flow about the component are available to the Company through analysis. Two or more operating
segments that bear similar economic characteristics and meet certain conditions can be combined into one
operating segment.
The Company classifies reporting segments based on operating segments with operating revenue, operating
cost, assets and liabilities classified by the same type of operating entities.
(2). Financial information of reporting segments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Management head Agriculture and PV Offsets among Total
office animal husbandry segments
Total assets 87,829,523,481.54 11,335,603,425.76 119,853,940,150.79 -73,775,273,426.90 145,243,793,631.19
Total liabilities 49,732,811,639.21 6,218,360,071.36 68,757,053,082.09 -52,709,664,977.23 71,998,559,815.43
Operating revenue 31,646,055,679.69 109,826,328,708.82 141,472,384,388.51
Operating cost 29,147,668,534.83 58,106,965,979.28 87,254,634,514.11
(3). Note on reasons why the Company has no reporting segments or cannot disclose the total assets
and total liabilities of each reporting segment
"□ Applicable" "√ Not applicable"
(4). Other notes
"□ Applicable" "√ Not applicable"
7. Important transactions or events with influence on decisions of investors
"□ Applicable" "√ Not applicable"
8. Others
"√ Applicable" "□ Not applicable"
(1) Pledge of the Company's shares held by the controlling shareholder:
As of December 31, 2022, Tongwei Group Co., Ltd. held 1,974,022,515 shares in the Company of
which, 437,000,000 were pledged for financing purpose.
229 / 241
2022 Annual Report
(2) Impact of bill pool on the Company's assets and liabilities:
Bill-based settlement is a common practice in PV industry where the Company operates. With the
growing business of Tongwei and the introduction of bill pool service, banker's acceptance that are undue
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 2022, the balances of
banker's acceptances receivable and payable reached 13,066,496,400 yuan and 8,840,732,400 yuan
respectively, accounting for 9.00% of total assets and 12.28% of total liabilities, having impacted the L/A
ratio by 3.27 ppts. Refer to the following table for details (unit: 10,000 yuan).
Item Consolidated amount Effect Amount net of effect
Total current assets 7,551,054.46 -884,073.24 6,666,981.22
Total non-current assets 6,973,324.90 6,973,324.90
Total assets 14,524,379.36 -884,073.24 13,640,306.12
Total current liabilities 3,635,734.79 -884,073.24 2,751,661.55
Total non-current liabilities 3,564,121.19 3,564,121.19
Total liabilities 7,199,855.98 -884,073.24 6,315,782.74
L/A ratio 49.57% 46.30%
(3) Loss from scrap of non-current assets
In order to improve asset utilization, the Company eliminated some production equipment that could
not be used normally due to aging, high failure rate, and damage. In 2022, the Company incurred a fixed
asset scrap loss of 118,977.15 yuan, mainly due to the upgrading and renovation of some production lines
for small-sized solar cells to adapt to market demand. During the upgrading process, equipment that was
dismantled and could no longer be used was scrapped.
(4) Impairment of fixed assets
If the carrying value of a fixed asset is greater than its recoverable amount, an impairment provision
equaling to the difference of the two shall be established. Assessments showed that the recoverable amount
of production lines for small sized solar cells and other relevant fixed assets was lower than the carrying
value, a total provision for important of fixed assets of 1,582,908,700 was established.
The photovoltaic industry is developing rapidly, with technology, products, and market demand
evolving quickly. Since 2022, the market share of small-sized solar cells has been decreasing with the
profitability declining. Large-sized solar cells have become the mainstream product sought after in the
market. There is great uncertainty about the expected future profitability and survival space of small-sized
solar cells. Based on the principle of prudence, the Company evaluated production lines for small-sized
solar cells in the middle and at the end of 2022. For the difference between the expected future recoverable
amount and the lower carrying value, the Company provided fixed asset impairment.
(5) Leases
The Company as lessee:
Unit: 10,000 Yuan Currency: CNY
Item Amount
Interest expense on lease liabilities 13,841.70
Short-term lease expense subject to simplified treatment carried into relevant assets or
3,197.84
current profit and loss
Low-value lease expense subject to simplified treatment carried into relevant assets or
current profit and loss (excluding short-term lease expense from low-value assets)
Variable lease payments not included into the measurement of lease liabilities carried
into relevant assets or current profit and loss
Income received from subleases of right-of-use rights 22,187.67
Total cash outflows relating to leases 79,474.96
Relevant gain or loss on leasebacks
230 / 241
2022 Annual Report
XVII. Notes to main items of parent's financial statements
1. Accounts receivable
(1). Disclosure by age
"□ Applicable" "√ Not applicable"
(2). Disclosure by method for creation of provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Category 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
43,717,676.11 100.00 3,022,016.86 6.91 40,695,659.25
a group of bad debts
Including:
Group 4 43,717,676.11 100.00 3,022,016.86 6.91 40,695,659.25
Total / / 43,717,676.11 100.00 3,022,016.86 6.91 40,695,659.25
Creation of provision for a single bad debt:
"□ Applicable" "√ Not applicable"
Creation of provision for a group of bad debts:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model for expected credit loss:
"□ Applicable" "√ Not applicable"
231 / 241
2022 Annual Report
(3). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change in current period
Opening Recovered Cleared Closing
Category
balance Provision or or written Other changes balance
reversed off
Bad debt
provision for
3,022,016.86 3,357,100.25 -6,379,117.11
accounts
receivable
Total 3,022,016.86 3,357,100.25 -6,379,117.11
Note: Other changes are due to conversion of branches to subsidiaries.
Significant amounts recovered or reversed in the current period:
"□ Applicable" "√ Not applicable"
(4). Accounts receivable written off in the current period
"□ Applicable" "√ Not applicable"
Significant accounts receivable written off
"□ Applicable" "√ Not applicable"
(5). Top five entities in accounts receivable at the end of the current period
"□ Applicable" "√ Not applicable"
(6). Accounts receivable de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(7). Amounts of assets and liabilities generated due to transfer of accounts receivable and continuing
involvement
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
2. Other receivables
Presentation of items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 22,391,469,716.10 20,560,977,497.02
Total 22,391,469,716.10 20,560,977,497.02
Other notes:
"□ Applicable" "√ Not applicable"
Interest receivable
(1). Types of interest receivable
"□ Applicable" "√ Not applicable"
(2). Significant overdue interest
"□ Applicable" "√ Not applicable"
232 / 241
2022 Annual Report
(3). Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Dividend receivable
(4). Dividend receivable
"□ Applicable" "√ Not applicable"
(5). Significant interest receivable over 1 year
"□ Applicable" "√ Not applicable"
(6). Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Other receivables
(1). Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Age Closing book balance
Within 1 year
In which: Within 1 year
Within 1 year 23,202,309,572.09
Within 1 year 23,202,309,572.09
1- 2 years 1,046,705.41
2- 3 years
Over 3 years 157,882.00
Total 23,203,514,159.50
(2). Classification by nature of payment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Payment type Closing book balance Opening book balance
Current accounts with related parties 23,201,234,084.93 21,267,261,376.21
Performance bond 1,403,687.41 43,495,417.81
Others 876,387.16 11,410,166.54
Total 23,203,514,159.50 21,322,166,960.56
(3). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
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 credit
loss credit impairment) impairment)
Balance on January 01, 2022 761,189,463.54 761,189,463.54
The Jan 1, 2022 balance during
the current period
-- converted into stage II
-- converted into stage III
-- reversed into stage II
233 / 241
2022 Annual Report
-- reversed into stage I
Creation in the current period 53,642,310.18 -113,076.30 53,529,233.88
Reversal in the current period
Clear in the current period
Write-off in the current period 113,076.30 113,076.30
Other changes -2,561,177.72 -2,561,177.72
Balance on December 31, 2022 812,044,443.40 812,044,443.40
Note on significant changes in balances of other receivables for which their provisions were changed in the
current period:
"□ Applicable" "√ Not applicable"
Provisions for bad debts and basis for determining significant increases in credit risks of financial
instruments for the current period:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change in current period
Opening Recovered
Category Cleared or Closing balance
balance Provision or Other changes
written off
reversed
Other receivables 761,189,463.54 53,529,233.88 113,076.30 -2,561,177.72 812,044,443.40
Total 761,189,463.54 53,529,233.88 113,076.30 -2,561,177.72 812,044,443.40
Significant amounts recovered or reversed in the current period:
"□ Applicable" "√ Not applicable"
(5). Other receivables written off in the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Written off amount
Other receivables written off in the current period 113,076.30
Significant receivable written off:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Whether the amount
Nature of other Written off Write-off is generated from a
Entity name Write-off reason
receivables amount procedure related-party
transaction
The payment is
Approval under
Customer 1 Others 113,076.30 expected No
due procedures
unrecoverable
Total / 113,076.30 / / /
Note on write-off of other receivables:
"□ Applicable" "√ Not applicable"
(6). Top five entities in other receivables at the end of the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percent in the
Provision for
total other
bad debts
Entity name Payment type Closing balance Age receivables at
Closing
the end of the
balance
period (%)
Tongwei Solar Co., Ltd. Current accounts
with related 3,781,666,877.72 Within 1 year 16.30
parties
234 / 241
2022 Annual Report
Tongwei Solar (Hefei) Co., Ltd. Current accounts
with related 2,879,719,274.78 Within 1 year 12.41
parties
Tongwei Solar (Jintang) Co., Ltd. Current accounts
with related 996,997,747.79 Within 1 year 4.30
parties
Bengbu Tech-bank Feed Technology Current accounts
Co., Ltd. with related 972,129,646.04 Within 1 year 4.19 14,617,801.17
parties
Tongwei Holdings PTE. Ltd. Current accounts
with related 922,162,472.40 Within 1 year 3.97
parties
Total / 9,552,676,018.73 / 14,617,801.17
(7). Grants receivable
"□ Applicable" "√ Not applicable"
(8). Other receivables de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(9). Amounts of assets and liabilities generated due to transfer of other receivables and continuing
involvement
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
235 / 241
2022 Annual Report
3. Long-term equity investments
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Investments into subsidiaries 21,201,717,905.80 126,454,000.00 21,075,263,905.80 17,022,660,757.00 43,292,356.80 16,979,368,400.20
Investments into associates and joint
106,166,812.24 106,166,812.24 430,587,718.26 430,587,718.26
ventures
Total 21,307,884,718.04 126,454,000.00 21,181,430,718.04 17,453,248,475.26 43,292,356.80 17,409,956,118.46
(1). Investments into subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Impairment Closing balance
Investee Opening balance Current increase Current decrease Closing balance provision in of impairment
current period provision
Chongqing Tongwei Feed Co., Ltd. 23,074,213.76 23,074,213.76
Shandong Tongwei Feed Co., Ltd. 703,760.04 703,760.04
Shashi Tongwei Feed Co., Ltd. 21,851,065.30 21,851,065.30
Chengdu Tongwei Animal Nutrition Technology Co., 11,605,910.79 11,605,910.79
Ltd.
Yuanjiang Tongwei Feed Co., Ltd. 70,858,072.03 70,858,072.03
Changchun Tongwei Feed Co., Ltd. 10,585,208.09 10,585,208.09
He’nan Tongwei Feed Co., Ltd. 6,518,994.97 6,518,994.97
Guangdong Tongwei Feed Co., Ltd. 59,994,628.41 59,994,628.41
Xiamen Tongwei Feed Co., Ltd. 13,752,585.43 13,752,585.43
Wuhan Tongwei Feed Co., Ltd. 16,479,438.23 16,479,438.23
Zaozhuang Tongwei Feed Co., Ltd. 18,987,038.58 18,987,038.58
Nanning Tongwei Feed Co., Ltd. 28,978,368.63 28,978,368.63
Tianjin Tongwei Feed Co., Ltd. 14,700,000.00 55,000,000.00 69,700,000.00
Huaian Tongwei Feed Co., Ltd. 10,599,481.76 10,599,481.76
Jieyang Tongwei Feed Co., Ltd. 50,000,000.00 50,000,000.00
Chengdu Ronglai Tongwei Feed Co., Ltd. 16,000,000.00 16,000,000.00
Langfang Tongwei Feed Co., Ltd. 15,000,000.00 15,000,000.00
Tongwei (Hainan) Aquatic Products Co., Ltd. 151,859,769.84 151,859,769.84
Hainan Haiyi Aquatic Products Feed Co., Ltd. 85,711,797.01 85,711,797.01
Yangzhou Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Panzhihua Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
236 / 241
2022 Annual Report
Qianxi Tongwei Feed Co., Ltd. 30,000,000.00 30,000,000.00
Lianyungang Tongwei Feed Co., Ltd. 80,000,000.00 80,000,000.00
Chongqing Changshou Tongwei Feed Co., Ltd. 30,000,000.00 30,000,000.00
Nantong Bada Feed Co., Ltd. 57,372,600.00 57,372,600.00
Foshan Tongwei Feed Co., Ltd. 30,095,100.00 30,095,100.00
Zibo Tongwei Feed Co., Ltd. 3,800,000.00 3,800,000.00 -
Tongwei (Dafeng) Feed Co., Ltd. 49,900,133.00 49,900,133.00
Kunming Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Foshan Gaoming Tongwei Feed Co., Ltd. 100,000,000.00 100,000,000.00
Tianmen Tongwei Biotechnology Co., Ltd. 15,000,000.00 15,000,000.00
Binyang Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Fuzhou Tongwei William Feed Co., Ltd. 32,500,000.00 32,500,000.00
Ningxia Yinchuan Tongwei Feed Co., Ltd. 30,000,000.00 30,000,000.00
Chengdu Tongwei Aquaculture Technology Co., Ltd. 9,245,867.39 10,000,000.00 19,245,867.39
Chengdu Tongwei Sanxin Pharmaceutical Co. Ltd. 7,000,000.00 7,000,000.00
Foshan Nanhai Tongwei Aquatic Products Technology 10,000,000.00 10,000,000.00 3,940,000.00
Co., Ltd.
Zibo Tongwei Food Co., Ltd. 50,000,000.00 20,736,000.00 70,736,000.00 12,420,000.00
Sichuan Tongguang Construction Engineering Co., 20,000,000.00 20,000,000.00
Ltd.
Tongwei Agricultural Finance Guarantee Co., Ltd. 100,000,000.00 100,000,000.00
Chengdu Tongwei Automation Equipment Co., Ltd. 12,103,854.14 12,103,854.14
Haerbin Tongwei Feed Co., Ltd. 20,000,000.00 25,000,000.00 45,000,000.00
Nanjing Tongwei Aquaculture Technology Co., Ltd. 10,000,000.00 160,000,000.00 170,000,000.00
Zhuhai Haiyi Aquatic Products Feed Co., Ltd. 31,897,204.89 31,897,204.89
Hainan Haiyi Aquatic Seed Co., Ltd. 20,763,456.80 20,763,456.80
Tongwei Holdings PTE. Ltd. 61,605,594.60 61,605,594.60
Tongwei Industrial (Tibet) Co., Ltd. 100,000,000.00 100,000,000.00
Chizhou Tongwei Feed Co., Ltd. 50,000,000.00 50,000,000.00
Honghu Tongwei Feed Co., Ltd. 90,164,469.77 90,164,469.77
Chengdu Tongwei Aquatic Seed Co., Ltd. 5,000,000.00 12,000,000.00 17,000,000.00
Hengshui Tongwei Feed Co., Ltd. 5,000,000.00 5,000,000.00 -
Qingyuan Tongwei Feed Co., Ltd. 5,000,000.00 5,000,000.00
Sichuan Tongwei Food Co., Ltd. 64,000,000.00 64,000,000.00
Hainan Tongwei Biotechnology Co., Ltd. 50,000,000.00 50,000,000.00
Hanshou Tongwei Feed Co., Ltd. 27,900,000.00 17,100,000.00 45,000,000.00
Yongxiang Co., Ltd. 6,388,060,739.07 2,299,000,000.00 8,687,060,739.07
Tongwei Solar (Hefei) Co., Ltd. 2,884,624,940.43 2,884,624,940.43 86,073,100.00 110,094,000.00
Tianmen Tongwei Aquaculture Technology Co., Ltd. 25,939,300.00 25,939,300.00
Sichuan Fusion Link Co., Ltd. 1,200,000.00 1,200,000.00
Sichuan Willtest Technology Co., Ltd. 21,448,836.49 112,257.05 21,561,093.54
Wuxi Tongwei Biotechnology Co., Ltd. 150,007,603.05 150,007,603.05
Tongwei New Energy Co., Ltd. 4,055,911,940.76 4,055,911,940.76
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Zhejiang Tongwei Solar Energy Co., Ltd. 8,000,000.00 8,000,000.00
Sichuan Tongwei Feed Co., Ltd. 100,000,000.00 100,000,000.00
Qingdao Hairen Aquatic Seed Industry Technology 50,685,000.00 50,685,000.00
Co., Ltd.
Sichuan Chunyuan Ecological Farming Co., Ltd. 15,146,640.74 15,146,640.74
Zhanjiang Haixianfeng Bio-tech Co., Ltd. 765,000.00 765,000.00
Nanchang Tongwei Biotechnology Co., Ltd. 96,000,000.00 96,000,000.00
Yangjiang Haiyi Biotechnology Co., Ltd. 50,000,000.00 50,000,000.00
Nanning Tongwei Biotechnology Co., Ltd. 50,000,000.00 50,000,000.00
Maoming Tongwei Biotechnology Co., Ltd. 40,000,000.00 40,000,000.00
Ningbo Tech-bank Feed Technology Co., Ltd. 941,052,018.29 2,099,038.85 943,151,057.14
Qingdao Qihao Biotechnology Co., Ltd. 76,369,224.71 76,369,224.71
Ningbo Tech-bank Biotechnology Co., Ltd. 18,340,900.00 18,340,900.00
Yancheng Tech-bank Feed Technology Co., Ltd. 61,200,000.00 61,200,000.00
Nanning Aigefei Feed Co., Ltd. 29,000,000.00 29,000,000.00
Bengbu Tech-bank Feed Technology Co., Ltd. 28,300,000.00 28,300,000.00
Hubei Tech-bank Feed Co., Ltd. 4,400,000.00 4,400,000.00
Dongying Tech-bank Feed Technology Co., Ltd. 10,600,000.00 10,600,000.00
Shenyang Tongwei Biotechnology Co., Ltd. 46,000,000.00 46,000,000.00
Tongwei Agriculture Development Co., Ltd. 4,463,391,837.20 4,463,391,837.20
Tongwei Solar (Hainan) Co., Ltd. 100,000,000.00 100,000,000.00
Guangdong Tongwei Biotechnology Co., Ltd. 1,000,000.00 1,000,000.00
Hefei Tongwei Biotechnology Co., Ltd. 38,000,000.00 38,000,000.00
Shaoxing Tongwei Biotechnology Co., Ltd. 50,000,000.00 50,000,000.00
Huanggang Tongwei Biotechnology Co., Ltd. 30,000,000.00 30,000,000.00
Changde Tongwei Biotechnology Co., Ltd. 20,000,000.00 20,000,000.00
Huizhou Tongwei Biotechnology Co., Ltd. 80,000,000.00 80,000,000.00
Nanchang Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Chengdu Tongwei Biotechnology Co., Ltd. 60,000,000.00 60,000,000.00
Total 17,022,660,757.00 7,509,439,133.10 3,330,381,984.30 21,201,717,905.80 86,073,100.00 126,454,000.00
Note 1: The decrease in the long-term equity investment in Tongwei (Hainan) Aquatic Food Co., Ltd. was due to the transfer of the Company's equity to Sichuan
Tongwei Food Co., Ltd., a subsidiary for which the Company is the controlling shareholder; the decrease in the long-term equity investment in Tongwei Industry
(Tibet) Co., Ltd. and Hengshui Tongwei Feed Co., Ltd. was due to the cancellation of these two companies in the current period; and the decrease in the long-term
equity investment in other companies was due to the transfer of the Company's equity to Tongwei Agriculture Development Co., Ltd., a wholly-owned subsidiary of
the Company.
Note 2: The opening provision for impairment of the long-term equity investment in Hainan Haiyi Aquatic Seed Co., Ltd., i.e., 2,911,456.80 yuan, which has been
transferred together with the equity to Tongwei Agriculture Development Co., Ltd.
(2). Investments into associates and joint ventures
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
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2022 Annual Report
Change in current period
Closing
Adjustment of
Investment Opening Investment gain Other Declared cash Closing balance of
Additional Decreased other Impairment
Unit balance or loss under changes in dividend or Others balance impairment
investments investments comprehensive provision
equity method equity profit provision
income
I. Joint ventures
Maoming Tongwei Jiuding Feed Co., Ltd. 6,411,699.14 -902,593.03 233,020.64 5,276,085.47
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 105,106,774.23 -1,283,158.59 -103,823,615.64
Sub-total 111,518,473.37 -2,185,751.62 233,020.64 -103,823,615.64 5,276,085.47
II. Associates
Bohai Aquaculture Co., Ltd. 99,603,329.66 2,136,863.18 -682,837.29 -166,628.78 100,890,726.77
Haimao Seed Industry Technology Co., Ltd. 136,707,219.24 -1,052,635.98 -135,654,583.26
Anhui Tech-bank Feed Technology Co., Ltd. 59,356,017.38 824,225.02 -60,180,242.40
Anhui Tech-bank Biotechnology Co., Ltd. 23,402,678.61 1,284,053.99 -24,686,732.60
Sub-total 319,069,244.89 3,192,506.21 -682,837.29 -166,628.78 -220,521,558.26 100,890,726.77
Total 430,587,718.26 1,006,754.59 -682,837.29 -166,628.78 233,020.64 -324,345,173.90 106,166,812.24
Other notes:
Other changes are due to the Company's transfer of a portion of its equity to Tongwei Agriculture Development Co., Ltd.
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2022 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 activities 3,346,595,726.56 2,972,307,955.86 4,554,199,847.43 3,998,297,572.06
Other operating activities 20,614,932.76 8,876,652.28 190,862,521.70 139,776,936.95
Total 3,367,210,659.32 2,981,184,608.14 4,745,062,369.13 4,138,074,509.01
(2). Revenue from contracts with customers
"□ Applicable" "√ Not applicable"
(3). Note on performance obligations
"□ Applicable" "√ Not applicable"
(4). Note on allocation to remaining performance obligations
"□ Applicable" "√ Not applicable"
Other notes:
None.
5. Investment gain
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Long-term equity investment gains under cost method 10,781,212,600.00 5,047,065,159.73
Gain on long-term equity investment under equity method 1,006,754.59 -10,820,494.85
Gain on disposal of long-term equity investment 45,402,735.74 82,577,082.35
Investment gain on held-for-trading financial assets in the holding period
Dividend income on other equity investments in the holding period
Interest income on debt investments in the holding period
Interest income on other debt investments in the holding period
Gain on disposal of held-for-trading financial assets
Investment gain on disposal of other equity investments
Investment gain on disposal of debt investments
Investment gain on disposal of other debt investments
Debt restructuring gain
Gain on wealth management products purchased from banks 89,935,380.67 23,368,421.89
Discount interest on accounts receivable financing -111,156,141.57 -15,207,023.08
Total 10,806,401,329.43 5,126,983,146.04
Other notes:
None.
6. Others
"□ Applicable" "√ Not applicable"
XVIII. Additional information
1. Current non-recurring gains and losses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Amount Remarks
Profit and loss on disposal of non-current assets -12,315,759.20
Government subsidies included in current profit and loss (excluding ration or
quota-based on-gonging government subsidies closely related to the normal 387,940,097.37
operating businesses of the Company)
In addition to the effective hedging business related to the normal business -130,149,063.69
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2022 Annual Report
operations of the Company, the fair value gain and loss from held-for-trading
financial assets, derivative financial assets, held-for-trading financial
liabilities, and derivative financial liabilities, as well as investment returns
from disposal of held-for-trading financial assets, derivative financial assets,
held-for-trading financial liabilities, derivative financial liabilities, and other
debt investments
Non-operating revenue and expenses other than aforementioned items -1,235,055,137.99
Less: Effects of income tax -156,512,227.43
Effects of minority interest -12,141,142.59
Total -820,926,493.49
Where the Company lists the non-recurring gain and loss items defined in the Explanatory 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"
Earnings per share
Weighted average return
Profit in reporting period Basic earnings per Diluted earnings per
on net assets (%)
share share
Net profit attributable to common shareholders
52.36 5.7149 5.4889
of the Company
Net profit excluding non-recurring profits and
losses attributable to common shareholders of 54.03 5.8973 5.6623
the Company
3. Differences between accounting data under domestic and foreign accounting standards
"□ Applicable""√ Not applicable"
4. Others
"□ Applicable" "√ Not applicable"
Chair: Liu Shuqi
Submission date approved by the board of directors: April 21,2023
Revision
"□ Applicable" "√ Not applicable"
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