通威股份:通威股份有限公司2021年年度报告（英文版）

2021 Annual Report
Stock Code: 600438 Short Name: Tongwei Co. Ltd.Tongwei Co. Ltd.Annual Report 2021
1 / 2612021 Annual Report
Important Notice
I. The board of directors board of supervisors as well as directors supervisors and senior
managers of the Company are responsible for the authenticity accuracy and completeness of
the information contained in this Annual Report without false records misleading statements
or material omissions and assume joint and several liability therefor.II. All directors of the Company have been presented in the board meeting.III. Sichuan Huaxin (Group) CPA (Special General Partnership) has issued a standard unqualified
opinion on the Company.IV. Xie Yi Head of the Company Zhou Bin Head of accounting affairs and Lei Jiaowen Head of
accounting department represent that they are responsible for the authenticity accuracy and
completeness of the financial statements in this Annual Report.V. The proposal on profit distribution or the proposal on conversion of capital reserve to share
capital for the year of 2021 resolved in the board meeting
Given the funds and investments of the Company in 2022 based on the total 4501548184 shares of
the Company a cash dividend of 9.12 yuan (including tax) per ten shares would be distributed to all
shareholders for a total distribution of 4105411943.81 yuan. This proposal has been approved in the 28th
session of the seventh board of directors and has not been submitted to the shareholder meeting for
approval.VI. Cautionary note on forward-looking statement
"√ Applicable" "□ Not applicable"
The forward-looking statements of the Company regarding its future development strategies and
business plans do not constitute any substantial commitment of the Company to investors; and the
investors should pay attention to risks.VII. Any funds possessed by the controlling shareholder and other related parties for non-operating
purposes?
No
VIII. Any outward guarantee by the Company in violation of the prescribed decision-making
procedures?
No
IX. More than half of the directors cannot guarantee the authenticity accuracy and
completeness of this Annual Report?
No
X. Note on significant risks
The Company had detailed possible risks in this Report. Please refer to VI Discussion and Analysis
on the Company's Future Development in Section III Management Discussion and Analysis for more
information on possible risks and actions.XI. Others
"□ Applicable" "√ Not applicable"
2 / 2612021 Annual Report
Contents
Section I. Definitions .............................. 4
Section II. Company Profile and Major Financial In... 6
Section III. Management Discussion and Analysis ..... 9
Section IV. Company Governance ..................... 37
Section V. Environmental and Social Responsibility.. 54
Section VI. Important Matters ...................... 67
Section VII. Share Changes and Shareholders ........ 82
Section VIII. Preference Shares .................... 95
Section IX. Bonds .................................. 95
Section X. Financial Report ........................ 98
Financial statements bearing the signatures and seals of the head of the Company the
head of the accounting affairs and the head of the accounting department.List of
Original auditor's report bearing the seal of the accountant firm and the signatures of the
Documents for
CPAs.Review
Formal copies of all Company documents and the original announcements publicly
disclosed in websites designated by the CSRC.
3 / 2612021 Annual Report
Section I. Definitions
I. Definitions
Unless otherwise indicated in the context the following terms shall have the following meanings in this
Report:
Description of common terms
Tongwei Company We or Us refers to Tongwei Co. Ltd.Tongwei Group refers to Tongwei Group Co. Ltd.Yongxiang refers to Yongxiang Co. Ltd.Yongxiang Polysilicon refers to Sichuan Yongxiang Polysilicon Co. Ltd.Yongxiang New Energy refers to Sichuan Yongxiang New Energy Co. Ltd.Inner Mongolia Hongwei High-purity Crystalline
Inner Mongolia Tongwei refers to
Silicon Company
Yunnan Tongwei High-purity Crystalline Silicon
Yunnan Tongwei refers to
Company
Tongwei New Energy refers to Tongwei New Energy Co. Ltd.Hefei Solar refers to Tongwei Solar (Hefei) Co. Ltd.Anhui Solar refers to Tongwei Solar (Anhui) Co. Ltd.Chengdu Solar refers to Tongwei Solar (Chengdu) Co. Ltd.Meishan Solar refers to Tongwei Solar (Meishan) Co. Ltd.Tongyu Property refers to Chengdu Tongyu Property Management Co. Ltd.Phase II 50000-ton High- Technical renovation project on PV silicon material
purity Polysilicon Project in refers to manufacturing (Phase II High-purity Polysilicon
Leshan Project)
Phase I 50000-ton High-purity High-purity Polysilicon green energy project (Phase I
refers to
Polysilicon Project in Baoshan 50000-ton High-purity Polysilicon Project)
Phase II 50000-ton High-
PV silicon material manufacturing project (Phase II
purity Polysilicon Project in refers to
50000 -ton High-purity Polysilicon Project)
Baotou
Project on the application of homemade intelligent
Phase I 7.5 GW High-
equipment (system) powered by high-efficiency silicon-
efficiency Solar Cell Project in refers to
based solar cells with an annual capacity of 7.5 GW
Meishan
(Meishan Phase I)
Phase II 7.5 GW High- Project on the application of intelligent factory powered
efficiency Solar Cell Project in refers to by high-efficiency silicon-based solar cells with an
Meishan annual capacity of 7.5 GW (Meishan Phase II)
Project on the application of intelligent connected
Phase I 7.5 GW High-
factory powered by high-efficiency silicon-based solar
efficiency Solar Cell Project in refers to
cells with an annual capacity of 7.5 GW (Jintang Phase
Jintang
I)
A high-efficiency silicon-based cell project with an
Tonghe Project refers to annual capacity of 15 GW by Tongwei Solar and Trina
Solar
Leshan Monocrystalline Rod 15 GW monocrystalline Rod Pulling and Cutting
refers to
Pulling and Cutting Project Project
Tongwei Media refers to Chengdu Tongwei Culture Media Co. Ltd.CSRC refers to China Securities Regulatory Commission
SSE refers to Shanghai Stock Exchange
China Securities Journal Shanghai Securities News
Designated Disclosure Media refers to
Securities Daily and STCN
LONGi refers to LONGi Green Energy Technology Co. Ltd.Zhonghuan Semiconductor refers to Tianjin Zhonghuan Semiconductor Co. Ltd.Trina Solar refers to Trina Solar Co. Ltd.Jinko Solar refers to Jinko Solar Co. Ltd.
4 / 2612021 Annual Report
Sichuan Jinko refers to Sichuan Jinko Solar Co. Ltd.Metco Silicon Energy refers to Baotou Metco Silicon Energy Co. Ltd.Sichuan Huaxin (Group) CPA (Special General
Sichuan Huaxin refers to
Partnership)
A measure that indicates the ability of solar cells to
Energy conversion efficiency refers to
convert light energy into electrical energy
Convertible bonds refers to Convertible corporate bonds
W refers to Watt the unit of power
Units of power 1 KW = 1000 W 1 MW = 1000 KW
KW MW and GW refers to
and 1 GW = 1000 MW
High-purity metal silicon with purity greater than
High-purity polysilicon refers to
99.9999999%
a cell produced with M6 silicon wafer (with a length of
166 mm) whose area is 12.21% larger than that of a cell
166 mm cell refers to
produced by the conventional M2 silicon wafer (with a
length of 156.75 mm).a cell produced with M10 silicon wafer (with a length
of 182 mm) whose area is 35.34% larger than that of a
182 mm cell refers to
cell produced by the conventional M2 silicon wafer
(with a length of 156.75 mm).a cell produced with M12 silicon wafer (with a length
of 210 mm) whose area is 80.5% larger than that of a
210 mm cell refers to
cell produced by the conventional M2 silicon wafer
(with a length of 156.75 mm).Passivated Emitter and Rear Contact a high-efficiency
crystalline silicon solar cell structure where a
passivation layer of Al2O3 or SiNx is added on the back
side of the cell to deal with the high carrier
PERC cell refers to
recombination on the back side of all aluminum back
surface field solar cells and then the film will be opened
to make the aluminum back surface field effectively
contact with the silicon substrate.Interdigitated Back Contact a high-efficiency solar cell
structure. The front side only has a passivation and anti-
reflection coating without any grating electrodes with
both positive and negative poles crossed on the back
side. The biggest feature of an IBC cell is that both the
IBC cell refers to
PN junction and metal contact are on the back side so
that the front side is protected against from the metal
shading which provides more effective power
generation area and therefore helps increasing the
energy conversion efficiency.Tunnel Oxide Passivated Contact where an ultra-thin
tunnel oxide and a heavily doped polysilicon thin film
are prepared on the surface of the cell to form a
TOPCon cell refers to
passivation contact structure thus increasing the open-
circuit voltage and short-circuit current of the cell and
then improving the energy conversion efficiency.Hetero-junction with Intrinsic Thin-layer a high-
efficiency crystalline silicon solar cell structure a
hybrid solar cell made of crystalline silicon substrate
and amorphous silicon thin film i.e. adding a non-
HJT cell refers to
doped (intrinsic) hydrogenated amorphous silicon thin
film between P-type hydrogenated amorphous silicon
and N-type hydrogenated amorphous silicon and N-type
silicon substrate. HJT cells are welcomed due to their
5 / 2612021 Annual Report
low process temperature good passivation effect high
open-circuit voltage and double-sided power
generation.The percentage of the total output power of the module
to the cell power shows the degree of module power
CTM value refers to
loss. A higher CTM value indicates a smaller degree of
module package power loss.Reporting period refers to The period from January 1 2021 to December 31 2021
CPIA refers to China Photovoltaic Industry Association
IRENA refers to International Renewable Energy Agency
Section II. Company Profile and Major Financial Indicators
I. Company information
Full Chinese name 通威股份有限公司
Short Chinese name 通威股份
Full English name TONGWEI CO. LTD.Short English name TONGWEI CO. LTD.Legal representative Xie Yi
II. Contacts and contact details
Secretary of the Board of Directors Representative of Securities Affairs
Name Yan Ke Li Huayu
Address Tongwei International Center (TIC) No. Tongwei International Center (TIC) No.
588 Middle Section Tianfu Avenue High- 588 Middle Section Tianfu Avenue High-
Tech Zone Chengdu Tech Zone Chengdu
Telephone 028-86168555 028-86168555
Fax 028-85199999 028-85199999
Email yank@tongwei.com lihy05@tongwei.com
III. Basic information
No. 588 Middle Section Tianfu Avenue High-Tech Zone Chengdu China
Registered address
(Sichuan) Pilot Free Trade Zone
In the Third Interim Shareholder Meeting held on November 16 2016 the
Company discussed and resolved the Tongwei Co. Ltd Proposal on Changing its
Changes of the Registered Address and Modifying its Articles of Association by agreeing to change
registered address the registered address from No. 11 Forth Section of South 2nd Ring Road High-tech Zone Chengdu” to “No. 588 Middle Section Tianfu Avenue High-Tech ZoneChengdu”
No. 588 Middle Section Tianfu Avenue High-Tech Zone Chengdu China
Office address
(Sichuan) Pilot Free Trade Zone
Post code 610041
Website http://www.tongwei.com.cn/
Email zqb@tongwei.com
IV. Information disclosure and site
Media names and websites where the Company China Securities Journal Shanghai Securities
disclose its annual reports News Securities Daily and STCN
Stock exchange websites where the Company
www.sse.com.cn
disclose its annual reports
6 / 2612021 Annual Report
Location where the Company stores its annual report Securities Department
V. Stock information
Stock Information
Stock type Stock exchange Stock name Stock code Previous stock
name
A - share Shanghai Stock Exchange 通威股份 600438
VI. Other information
Sichuan Huaxin (Group) CPA (Special General
Name
Partnership)
Accountant firm
28th Floor Jinmao Lidu South No. 18 Ximianqiao
engaged by the Office address
Street Chengdu
Company (domestic)
Signatory
Li Wulin Tang Fangmo and Xia Hongbo
accountants
Name China Securities Co. Ltd.Building B and E Kaiheng Center No. 2 Chaonei Street
Office address
Sponsor that performs Dongcheng District Beijing
continuous Signatory
Li Puhai and Pu Fei
supervision duties in representatives
the reporting period Period of
Continuous supervision period of non-public offering:
continuous
from December 10 2020 to December 31 2021
supervision
VII. Major accounting data and financial indicators within the latest three years
(I). Major accounting data
Unit: Yuan Currency: CNY
Increase/decrease
Major accounting data 2021 2020 2019
PoP (%)
Operating revenue 63491070520.12 44200270334.23 43.64 37555118255.70
Net profit attributable to
shareholders of the listed 8207920822.18 3607923359.56 127.50 2634568828.17
company
Net profit net of non-recurring
gain and loss attributable to
8486488644.672408554229.37252.352314484711.22
shareholders of the listed
company
Net cash flows generated from
7618273876.723024927931.94151.852357465207.68
operating activities
Increase/decrease
2021 close 2020 close 2019 close
PoP (%)
Net assets attributable to
shareholders of the listed 37502570958.36 30541405029.73 22.79 17577046993.09
company
Total assets 88249992122.16 64251948070.91 37.35 46820950745.60
(II). Major financial indicators
Unit: Yuan Currency: CNY
Increase/decrease
Major financial indicators 2021 2020 2019
PoP (%)
Basic earnings per share (yuan/share) 1.8234 0.8581 112.49 0.6786
Diluted earnings per share (yuan/share) 1.8234 0.8466 115.38 0.6558
Basic earnings per share net of non-recurring gain and loss
1.88520.5729229.060.5961
(yuan/share)
7 / 2612021 Annual Report
Weighted average return on net assets (%) 24.24 16.13 + 8.11 ppts 16.14
Weighted average return on net assets excluding of non-
25.07 10.77 + 14.30 ppts 14.18
recurring gain and loss (%)
Note on major accounting data and financial indicators within the latest three years by the end of reporting
period
"□ Applicable" "√ Not applicable"
VIII. Differences between accounting data under domestic and foreign accounting standards
(I). Difference in net profit and net assets attributable to shareholders of the listed company
contained in the financial statements disclosed simultaneously under International Accounting
Standard and China Accounting Standard
"□ Applicable" "√ Not applicable"
(II). Difference in net profit and net assets attributable to shareholders of the listed company
contained in the financial statements disclosed simultaneously under Foreign Accounting
Standard and China Accounting Standard
"□ Applicable" "√ Not applicable"
(III). Note on differences between China and foreign accounting standards:
"□ Applicable" "√ Not applicable"
IX. 2021 major financial data by quarters
Unit: Yuan Currency: CNY
Q1 Q2 Q3 Q4
(Jan - Mar) (Apr - Jun) (Jul - Sept) (Oct - Dec)
Operating revenue 10617725141.89 15944454470.63 20137556711.57 16791334196.03
Net profit attributable to
shareholders of the listed 847369394.06 2118360648.46 2978968358.78 2263222420.88
company
Net profit net of non-recurring
gain and loss attributable to
796171272.562198386343.022936172012.512555759016.58
shareholders of the listed
company
Net cash flows generated from
1685293387.041394946325.19481542263.354056491901.14
operating activities
Note on differences between these quarterly data and data contained in disclosed regular reports
"□ Applicable" "√ Not applicable"
X. Non-recurring gain and loss items and amounts
"√ Applicable" "□ Not applicable"
Unit: 元 Currency: CNY
Non-recurring gain and loss Notes
2021 amount 2020 amount 2019 amount
items (if applicable)
Profit and loss on disposal
-77844159.341541869733.03149118467.74
of non-current assets
Government subsidies
included in current profit
and loss but excluding
ration or quota-based on-
gonging government
345025134.17296657874.92204753562.81
subsidies closely related to
the normal operating
businesses of the Company
complying with national
policies
Profit or loss from debt -1162174.00
8 / 2612021 Annual Report
restructuring
In addition to the effective
hedging business related to
the normal business
operations of the Company
the fair value gain and loss
from held-for-trading
financial assets derivative
financial assets held-for-
trading financial liabilities
and derivative financial 54403941.63 14385110.27
liabilities as well as
investment returns from
disposal of held-for-trading
financial assets derivative
financial assets held-for-
trading financial liabilities
derivative financial
liabilities and other debt
investments
Non-operating revenue and
expenses other than -444426951.82 -439396332.17 29661420.53
aforementioned items
Less: Effects of income tax 163036399.95 209491363.52 60600017.60
Effects of minority interest
-7310612.824655892.341687142.53
(after tax)
Total -278567822.49 1199369130.19 320084116.95
Note on listing the non-recurring gain and loss items mentioned in the Explanatory Announcement on
Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-Recurring Gain
and Loss Items as recurring gain and loss items
"□ Applicable" "√ Not applicable"
XI. Items measured at fair value
"□ Applicable" "√ Not applicable"
XII. Others
"□ Applicable" "√ Not applicable"
Section III. Management Discussion and Analysis
I. Operation discussion and analysis
In 2021 the global economy recovery encountered rounds of the coronavirus pandemic outbreaks.Stimulated by eased money policies and fiscal policies major economies have rebounded clearly. With
the demand recovery faster than supply recovery adequate liquidities and international tensions the prices
of commodities like energy and raw materials surged due to short supply which significantly increased
the global inflation. In China supported by the robust pandemic control and measures for stabilizing the
prices and supplies of commodities the GDP grew by 8.1% (from the National Bureau of Statistics) and
kept its leading position in the world. However in the context of global supply chain crisis and global
inflation businesses still experienced unprecedented pressures and challenges in production and operation.In the reporting period with firm adherence to the operation policy of “focus execution andefficiency” as a response to the complicated economic environment the Company conducted businesses
in a stable manner with great performance. In the reporting period the Company recorded a revenue of
63.491 billion yuan for a year-on-year growth of 43.64%; net profit attributable to shareholders of the
listed company of 8.208 billion yuan for a year-on-year growth of 127.50%; net profit excluding non-
9 / 2612021 Annual Report
recurring gain and loss attributable to shareholders of the listed company of 8.486 billion yuan for a year-
on-year growth of 252.35%.(I) Feed and industry chain
Boosted by the accelerated recovery of swine production and the continued growth of aquatic and
ruminant production China's feed industry kept a great growth in 2021. According to China Feed Industry
Association the total feed production reached 293443000 tons for a year-on-year growth of 16.1%. By
feed type the swine feed production was 130765000 tons for a year-on-year growth of 46.6% egg-
producing poultry feed production was 32314000 tons for a year-on-year growth of -3.6%; meat
producing poultry feed production was 89096000 tons for a year-on-year growth of -2.9% ruminant feed
production was 14803000 tons for a year-on-year growth of 12.2% and aquatic feed production was
22930000 tons for a year-on-year growth of 8.0%. With the rise of feed demand prices of raw materials
were up. In the reporting period main raw materials for feed production surged due to factors including
decreased production of major raw materials pandemic-caused supply chain disruptions and inflations.Specifically the spot prices of corn and soybean meal increased by 27.2% and 19.5% from the previous
year (Wind). Feed companies experienced increased costs and operation difficulties.Facing increasingly competitive markets and rising prices of raw materials with the intention of
“maximizing the farming benefit to users” the Company imposed strict measures on product quality to
supply premium products and provide the comprehensive “product + model + service” farming solutions
to farmers in order to sustain the stable development of its agriculture and husbandry business. In the
reporting period the feed and industry chain business of the Company received a revenue of 22.379 billion
yuan for a year-on-year growth of 18.60% with 5515900 tons of feed sold for a year-on-year growth of
5.08%.
In the reporting period the Company mainly performed the following tasks:
1. Three special programs under the quality first framework
Quality is the foundation and precondition of market share and benefit and the fundamental for a
business to survive and develop. In 2021 the Company kept exercising the quality policy with a focus on
three tasks: standardization marketing transformation and product appeal development.In the reporting period the Company started field standardization to eliminate gas and fluid leak
regulate VI marks and perform list-base management so that the field management was refreshed and
changed the traditionally perceived feed industry. Its benchmark companies greatly increased the
production per person and reduced production costs. With great progress in field standardization the
Company also started standardizing operation activities through measures including control of key energy
consumption indicators optimization of management procedures upgrading of equipment and facilities
so that the pilot companies gained higher per capita efficiency lower variable production costs and stable
product quality assured by full process controls.Regarding marketing activities the Company shifted from the top-down model “company todistributors to farmers” and directly focused on end farmers. To maximize the farming benefit the
Company used new marketing approaches around product quality like event marketing and base marketing
and boosted the effective combination of high-quality products and end farmers and increased the effective
implementation of Company's quality policy in end users by having its market teams guide customers
technical teams provide deep services and serving the pain points of users to achieve the win-win effect
for the Company and farmers.Additionally the Company continued sending technical teams to end farmers to perform all-around
product tracking from market positioning processing quality and ultimate effect and to conclude a product
appeal report. These teams worked together with market teams so that feedback and corrections were made
in a timely manner to ensure the market competitiveness of its products. In 2021 the Company rolled out
the integrated product development (IPD) with a focus on the product appeal expression in end farmers
which greatly enhanced the benefits for farmers and received the high recognition from markets and
customers. In the reporting period the Company released a high-end “Kaikoule” feed series for fish fry
which significantly lowered the feed conversion ratio and increased the fry survival rate by over 25 ppts
the best-in-class level and consistently welcomed by farmers.
2. Moderate expansion for higher market share
While keeping the stable endogenous development the Company actively looked for external
expansion opportunities. The Company signed the Strategic Framework Agreement with Tech-Bank Food
in July 2021 based on the division of businesses complementary development and cooperation which
indicated that the two reached an agreement on the Company's purchase of all the aquaculture feed assets
and a portion of the swine feed assets from Tech-Bank Food and on their cooperation on swine feed
10 / 2612021 Annual Report
supply. As of the end of the reporting period the share purchase and business integration had completed
and the long-term supply of swine feed was under execution. This acquisition and deep strategic
cooperation helped strengthen the Company's professionalism and scale in feed business increase its
market share and secure its market leading position.
3. Industry chain strategy for building a comprehensive competitiveness
While focusing on its feed business the Company moderately extended its industry chain in order to
build a comprehensive competitiveness for the agriculture and husbandry business. Adhering to the vision
of "For Better Life" the Company strictly followed food safety standards for providing safe healthy and
delicious aquatic food for consumers. In the reporting period the Company recorded sales of 1.135 billion
yuan for a year-on-year growth of 20% from the processing and circulation of aquatic products. Despite
of the overseas pandemic the export income from aquatic products grew rapidly by 29%; the quality of
Tongwei Fish a fresh fish brand was further improved; its farming bases got Organic and ANTIBIOTIC
FREE certifications. The fish barcode mode helped with the full-cycle tracking from source to dinner table.In terms of fish fry business the Company exerted R&D efforts to the pain points and difficulties of
farmers. In the reporting period the high synergy of shrimp seed business and feed business contributed
to the outstanding prawn farming effect. Prawn seeds recorded great increase in both volume and profit.The giant tiger prawn seeds were highly accepted by farmers for excellent growth indicators and good
farming benefits with the sale volume growing by up to 272% and a market share of about 80% in the
region.(II) PV business
The global PV industry kept its high-speed development in 2021. According to CPIA the new
installed capacity over the world was 31% higher than the previous year reaching the new high of 170
GW. China newly installed 54.88 GW which secured its number one place followed by the US (26.8 GW)
EU (25.9 GW) and India (11.89 GW) all of which received rapid year-on-year growths; the growth rate
of new installed capacity in India was as high as 218%. Regarding the industry chain China continued its
leading position in the globe. The outputs of polysilicon silicon wafers cells and modules were 505000
tons 227 GW 198 GW and 182 GW for year-on-year growths of 27.5% 40.6% 46.9% and 46.1%.Regarding overseas market the total export of PV products from China was about 28.43 billion US dollars
with a year-on-year growth of 43.9%; the total export of modules was about 98.5 GW with a year-on-year
growth of 25.1% both the export volume and amount reached new highs. Driven by expected rapid growth
of demand the whole industry chain actively expanded the capacity. Due to high technological barriers
large investments and long construction period as well as the long-term weakness of prices from 2018 to
2020 businesses engaged in upstream silicon material were far less willing to expand than downstream
businesses which resulted in the mismatch between upstream and downstream businesses in 2021. This
mismatch and the rising prices of commodities energy consumption control and pandemic outbreaks led
to high volatility of prices in the industry chain and pressures on businesses.
1. High-purity polysilicon
In the reporting period the Company still placed work safety and stable operation as the first priority.By implementing the standardized management for work safety advancing the IT-based safety
development and highlighting safety management accountability the Company achieved the “Four Zero”
target i.e. zero work injury zero accident zero wrong operation and zero unplanned downtime with the
production facilities running smoothly throughout the year and received great rating in the work safety
check organized by the Ministry of Emergency Management. Also the Company continued increased
efforts into research and development improved the delicacy management optimized technical indicators
and lowered production costs. In the reporting period the mono-grade rate of high-purity polysilicon
produced by the Company was over 99%; the mass delivery of N type silicon was realized and N-type
silicon customers covered mainstream silicon wafer manufacturers. The average comprehensive electricity
consumption and steam consumption per unit were lowered by 12% and 55% from the previous year with
other core indicators optimized to different extents which helped enhance the Company's core
competitiveness.In 2021 affected by the mismatch of the industry chain high-purity polysilicon products were in
short supply and lead to rising prices which allowed the great improvement of profitability of high-purity
polysilicon business. In the reporting period production bases were running at full capacity with all
products sold for 107700 tons for a year-on-year growth of 24.30%. Thanks to the correct timing of the
earlier capacity development and the efficient operation as of the end of the reporting period the Company
had recovered the investment costs for Yongxiang Polysilicon (old capacity) Leshan Phase I Project and
Baotou Phase I Project for a total capacity of 80000 tons.
11 / 2612021 Annual Report
In the reporting period the new Leshan Phase II 50000 - ton Project and Baoshan Phase I 50000 -
ton Project were put into production with the quality indicators of the first batches meeting Special Solar-
Grade the leading level in the industry. According to the investment and construction schedule the
capacity of projects in construction totals 170000 tons including the Baotou Phase II 50000 - ton Project
expected to be in service in 2022 and the Leshan Phase III 120000 - ton Project expected to be in service
in 2023. By that time the capacity of the Company would be 350000 tons. Leshan Phase III is the
Company's first project that can provide over 100000 tons per year. Lowered investment per unit
optimized processes and higher intelligence of the project will further strengthen the Company's advantage
in quality and cost.
2. Solar cells
In the reporting period short supply of silicon wafers with rising prices pushed the costs of
manufacturers of solar cells. According to PVInfoLink the prices of main silicon wafers i.e. 166 mm
182 mm and 210 mm as of the end of 2021 were increased by 55% 46% and 46% from the early 2021
while the prices of corresponding cells were only increased by 22% 19% and 16%. This resulted in the
sharp decrease in profitability and therefore the capacity utilization. Benefited by the deep strategic
partnerships with upstream and downstream businesses and its leading advantage in quality and cost
control the Company still secured a capacity utilization of 99.47% in the reporting period when the
capacity utilization across the industry was significantly lowered with its sales growth rapidly and
recorded a positive profit which evidenced the Company's strong resistance to risks. Cells and modules
sold in 2021 reached 34.93 GW for a year-on-year growth of 57.61% the gross margin from
monocrystalline silicon cells was 8.28% a decrease from the previous year. The Company continued its
global number one place in delivery of solar cells in 2021 according to PVInfoLink.Following the market trends closely the Company invested into the construction of Meishan Phase
II Project Jintang Phase I Project and Tonghe Project. The existing capacity for silicon cells of 182 mm
and onwards account for over 70% which can effectively meet the demand for large size products from
downstream customers. At the same time with increased efforts into internal and external alignment the
Company continued lowering its costs with improved quality. Throughout the year key process indicators
like grade A ratio energy conversion efficiency and scrap ratio remained the best-in-class level. The
average non-silicon cost for monocrystalline PERC cells was lowered to less than 0.18 yuan/w a reduction
of 11% from the previous year the non-silicon costs for large-sized products were lowered more
significantly. Regarding research and development in addition to optimizing the prevalent PERC cell
techniques the Company attempted to lower the costs and improve the efficiency for the next generation
cells from a technological perspective after the mass production was ensured. Apart from the 400 MW
HJT trial line invested in 2019 the Company newly constructed a 1 GW HJT pilot line. The R&D and
mass production efficiencies for HJT cells have been increased with the uses of main auxiliary materials
and consumables further lowered and the development of silver paste alternatives made some progress.What is more putting efforts for developing the TOPCon technology the Company took the lead in the
pilot run for 210 mm - based TOPCon cells; the 1 GW TOPCon Project has been put into production. The
energy conversion efficiency of mass production products is leading the industry.
3. PV power generation
In the reporting period by following the country's green development strategy the Company
continued the focus on the development construction operation and maintenance of Aquaculture-
Photovoltaic Integration projects based on which a moderate development of the tertiary sector including
tourism sightseeing and popular science to create the organic combination of the first second and tertiary
sectors. This is the Tongwei solution in line with the new fishery new energy and new village development
for effectively increasing the added value of the industry. As of the end of the reporting period the
Company constructed 48 PV stations with Aquaculture-Photovoltaic Integration as the core the
accumulated installed capacity connected to the grid was 2.7 GW and the electricity settlement amount
in a year was 3.09 billion kWh. With the on-going upgrading of technologies in the PV industry the
Company will further improve the economic benefits of the Aquaculture-Photovoltaic Integration model
on the basis of the systematic construction and operation via the use of high-efficiency modules flexible
brackets and automatic construction. By adhering to the scale cluster and benefit principle the Company
will advance the implementation of more Aquaculture-Photovoltaic Integration projects for driving the
fishery transformation and producing clean energy thereby making its own contribution to the green
development of the country while achieving its economic benefits.
12 / 2612021 Annual Report
II. Industries where the Company operated in the reporting period
(I) Feed industry
The feed industry provides materials for the modern husbandry and relates closely to the safe and
stable supply of animal products being one of the significant pillars of the national economy. Since the
Reform and Opening up the feed industry in China has been growing rapidly with China's feed output
gaining the first place in the world from 2011. This industry has helped with the modern development of
the husbandry in China and met the growing demand from Chinese residents for premium proteins from
swine chickens ducks and fishes. In 2021 the total feed production in China recorded 293443000 tons
the 8.5 times of that in 2000 with a rapid growth. From the perspective of the growth trend the industry
has come into a mature stage after the high-speed growth. According to the National Bureau of Statistics
the CAGR of feed output in China was 16.6% from 2000 to 2010 and lowered to 5.2% from 2011 to 2021
which indicates that the industry started a stable stage with the growth rate declining clearly.By the target animals feeds are categorized into swine feed poultry feed aquatic feed and ruminant
feed. Data from the China Feed Industry Association shows that the above feed types accounted for 45%
41% 8% and 5% of the total feed output in 2021 meaning that livestock and poultry feeds are the
dominant forces the entire Chinese feed industry. With a long-term view the total feed output in China
keeps growing without clear cycles. From a short and middle-term perspective however different types
of feeds may have cycles due to the farming cycles of animals and the different impacts of diseases and
disasters. Overall the cyclic changes of livestock and poultry farming show a greater impact on the total
feed production. For example the African swine fever virus (ASFV) starting in the second half of 2018
had a profound influence on the swine production in China: the swine feed production in 2018 and 2019
has lowered by 0.9% and 26.2% year-on-year. Dragged by the swine farming the total feed production
recorded a year-on-year growth of only 2.8% in 2018 and of even a drop of 3.7% in 2019.In recent years the industry has been increasingly mature with heightened homogeneous competition;
strong businesses become stronger and weak ones weaker. Large-size feed companies expand their market
presence and improve their market positions through new constructions and acquisitions by leveraging
their advantages in funds costs technologies brands risk controls and other areas. According to China
Feed Industry Association China had 957 feed producers of capacity greater than 100000 tons in 2021
with an increase of 208 from the previous year; the feed output from these producers reached 177077000
tons for a year-on-year increase of 24.4% accounting for 60.3% of the total feed output for a year-on-year
growth of 7.5 ppts. In the same year China had 39 feed groups of capacity greater than 1 million tons
with an increase of 6 from the previous year; and 6 feed groups of capacity greater than 10 million tons
with an increase of 3 from the previous year.Chinese feed industry is subject to increased and stricter regulations in quality and environmental
production evidenced by the amendments of laws and regulations including the Regulation on the
Administration of Feeds and Feed Additives and the Environmental Protection Law of the People's
Republic of China as well as the releases of sector policies like Notice on the 13th Five Year Plan for the
National Feed Industry Development National Strategic Plan for Agricultural Revitalization through
Quality Enhancement (2018-2022) and No.194 Announcement of the Ministry of Agriculture and Rural
Affairs. This pushes the industry to be more procedure-based standard and green for the transition from
quantity-focused to quality-focused development. In addition the husbandry industry has started the
modern journey for factory-based development with economies of scale and lower environmental impact
which raise higher requirements for feed companies in capabilities of technological development bio-
safety and quality control. In this context large feed companies with stronger technological capabilities
better regional presences and standardized processes secure clear advantages while SMEs will be under
long-term pressure due to their lack of market competitiveness and weak expansion ability.(II) PV industry
As one of the strategic emerging industries in China PV is also an important guard for the country’s
energy security and sustainability. In early 2000 pulled by the rapid growth of overseas demand for
renewable energy sources China's PV industry started from scratch and experienced speedy growth but
still challenged by the external pressures because of top technologies advanced equipment raw materials
and markets are not from China. Since the 18th CPC National Congress China has clarified the all-around
effort to reform the energy consumption building a clean and diversified energy supply system leveraging
the role of Innovation as the primary driver of development deeper reform of the energy system in all
areas and strengthening international energy cooperation across the board with a new energy security
strategy featuring Four Reforms and One Cooperation which points out the direction for the quality
13 / 2612021 Annual Report
growth of the energy industry in the new era. Boosted by Several Opinions on Promoting the Healthy
Development of the PV Industry released by the State Council in 2013 and a raft of supporting policies
the PV industry in China has gradually stepped on the quality-based development path. First the scales of
stages of the industry chain have been increasing with on-going technological upgrading for gradual
independent from overseas technologies equipment and raw materials which has created a PV
manufacturing chain with all-around competitiveness. Second the continuous progress in technologies
coupled with scale effect and supply chain competition have been driving the on-going cost reduction in
the PV industry; with the rising economic efficiency of the PV power generation is on the rise and the grid
parity available in most countries and regions the Chinese PV industry has been getting rid of the subsidies
for self-driven growth. Third the rapid expansion has made Chinese PV market a core driver for global
PV installation investments and greatly improved the country's energy structure. According to the
National Energy Administration the new installed PV capacity increased from 12.92 GW in 2013 to 54.88
GW in 2021 for a CAGR of 20%; China has secured the top one in the world for seven consecutive years
in terms of the cumulative installed capacity. In the same period the ratio of new installed PV capacity to
the total new installed capacity was increased from 12% to 31%.The costs of PV generation are low enough for grid parity in most countries and regions even lower
than the costs of fuel-fired generation which means that PV generation is highly potential in economic
efficiency and market space and the influence of a single country and/or region on the industry
development has been hugely reduced. But given that China has the largest PV industry in the world with
more than half number of its modules exported the combination of different policies financial
environments political policies trade frictions and repeated pandemic outbreaks may impact the industry's
growth from time to time.Most countries and regions across the world have started actions for energy saving and emission
reduction by putting enormous efforts into energy consumption transformation to actively address the
climate governance for sustainable development. By now 177 countries including Germany the US the
UK Japan and South Korea have announced or are discussing their net zero emission goals with plans for
development of renewable energies represented by PV generation. China has made a firm commitment
that the country strives to reach carbon peak by 2030 and carbon neutral by 2060 in the 75th session of
the UN General Assembly on September 22 2020. Around the dual carbon goal the State Council released
the Action Plan for Carbon Dioxide Peaking Before 2030 in 2021 and started accelerating work on 1+N
policies for peaking carbon emissions and achieving carbon neutrality. According to the Action Plan
China will spur large-scale high-quality development of wind and solar power generation across the board
continue to promote both concentrated and distributed systems and accelerate the construction of wind
and solar farms; by 2030 total installed generation capacity of wind and solar power will reach above 1.2
billion KW. The global green transformation has entered a new stage. As the leading actor among
renewable energies PV generation will embrace a huge market space. Driven by the expectation of high-
speed demand growth companies in and out of the industry have announced relevant plans to investment
and increase capacities which has given rise to a new round of capacity expansion of the PV industry. It
is expected that by the end of 2022 the global capacities of silicon materials silicon wafers cells and
modules will reach 1190000 tons 477 GW 560 GW and 580 GW respectively according to PVInfoLink.Also novel cell technologies that have the potential to further improve the quality and efficiency of PV
generation are in development. PV companies have made investments into new cell technologies including
TOPCon and HJT expecting a new wave of development dividend brought by the technological upgrading.III. Businesses of the Company in the reporting period
Adhering to the vision of "For Better Life" and the corporate purpose of "Striving for Excellence
Contributing to Society" the Company mainly focuses on agriculture and new energy thus forming a
business model of "Agriculture (fishery) + PV" integration and synergy. Its main businesses and their
positions in the industrial chain are shown in the figure below:
14 / 2612021 Annual Report
Agricultural chain
Aquatic
husbandry
Aquatic feed
Aquatic seedlings Aquatic husbandry Aquatic processing
Livestock babies Livestock husbandry Livestock processing
Livestock feed
PV chain
Aquaculture-Photovoltaic
Integration
PV power
Monocrystalline Monocrystalline Monocrystalline M onocrystalline generation
silicon rods silicon wafer cell module
PV
Polysilicon
powerplant
Multicrystalline Multicrystalline Multicrystalline Multicrystalline
silicon ingots silicon wafer cell module
Note: Core businesses of the Company are in the dashed boxes
(I) Main businesses and the operation models
In agriculture the major business is the research and development production and sales of aquatic
feed livestock feed and other products to meet the needs of aquatic animals and livestock for growth.Aquatic feed has always been the core product and the main profit source of the Company in agriculture
and animal husbandry business. As of the end of the reporting period the Company owned more than 80
subsidiaries and branches involved in feed business with a business model of adopting on-site production
and establishing a peripheral sales coverage while providing effective technical financial and other
supporting services to farmers. Around the feed business the Company was actively engaged in seed
breeding husbandry animal healthcare food processing and trade which further enriched the products
and enhance its comprehensive strength.In new energy the Company focuses on the research production and sales of high-purity polysilicon
and solar cells. As of the end of the reporting period the Company had an annual capacity of 180000 tons
for high-purity polysilicon and an annual capacity of 45 GW for solar cells. The Company has
manufacturing sites in Leshan Baotou and Baoshan for producing high-purity polysilicon products with
locally sourced raw materials which are delivered to downstream manufacturers of silicon wafers. In
recent years the Company has signed long-term sale contracts with these silicon wafer manufacturers
where a fixed quantity of silicon materials will be delivered at the market price an approach that for long-
term stable sales. Regarding solar cells the manufacturing sites in Shuangliu Jintang Meishan and Hefei
have their production plans arranged directly according to the market demand with the products directly
sold to the downstream manufacturers of modules. Leading technologies quality and cost control have
allowed the Company to serve top ten PV module manufacturers across the world and secure a long-term
leading position in the industry.On the comprehensive application the Company focuses on the development and construction of
large-scale "Aquaculture-Photovoltaic Integration" bases strives to create a model of ecological farming
coupled with green energy and strengthens the coordinated development of industries. By screening high-
quality water surfaces and for ensuring electricity consumption the Company explores novel aquaculture
ways with on-going advancements of the Aquaculture-Photovoltaic Integration bases in terms of scale
professionalism and intelligence which are expected to bring new profit sources for the Company farmers
and other partners.(II) Market positioning
In terms of agriculture and husbandry the Company focuses on the scale-based professional
development of the feed business with an annual feed capacity of over 10 million tons and its production
and sales network covering much of China and Southeast Asian countries such as Vietnam Bangladesh
and Indonesia. These make it a leading aquatic feed producer and an important livestock feed producer in
15 / 2612021 Annual Report
the world. The Company has been holding a leading position in the sale volume of aquatic feed i.e. its
core product. As a Key Leader in Agricultural Commercialization and a National Demonstration
Enterprise for Technological Innovations the Company has a National Enterprise Technology Center and
received honors like the Second Prize of National Science and Technology Progress Award China Well-
Known Trade Mark and China Quality Award Nomination Prize. With high-quality products and efficient
services the Company is well recognized in the industry.In terms of PV business the Company is an important participant and driver of the global PV industry
for its advantages in scale technologies costs and quality. In 2021 the Company was global number one
in terms of high-purity polysilicon production had a domestic market share of nearly 22% (CPIA) and
reached the fifth consecutive year for its largest quantity of cell delivery in the world (PVInfoLink). Given
the promising outlook of the PV industry the Company announced its 2020-2023 Development Plan for
High-purity Polysilicon and Solar Cell Businesses for further strengthening its market position. With the
current investment schedule into account it is expected that the Company's annual capacity will reach
350000 tons for high-purity polysilicon and 80 - 100 GW for solar cells in 2023.
IV. Analysis of the core competitiveness in the reporting period
"√ Applicable""□ Not applicable"
(I) Clear strategic planning and positioning
The Company focuses on technological innovation and intelligent manufacturing in the main stages
of PV industry advances the large-scale application of clean energy with zero emission is committed to
creating a green healthy aquatic industrial chain to meet consumer demand for safe food and makes every
effort to provide the public with high-quality products in all industries closely related to human life and
continuously improve the quality of human life.Based on the above strategic positioning the long-term development goal of the Company is "a
world-class safe food supplier and a world-class clean energy operator" and the short and medium-term
development plan is "to build and consolidate the leading position of global high-purity polysilicon solar
cells and aquatic feed."
(II) Leading capabilities of technology research and development
Regarding science and technology as the primary productive force the Company attaches great
importance to technology research and development. For each business it has built a R&D team led by
subject matter experts and supported by increased investments with plenty of achievements applied in the
market. This has helped the Company gained a differentiated advantage for additional value.
1. Agriculture and animal husbandry
The Company has a National Enterprise Technology Center approved by five ministries and
commissions including the National Development and Reform Commission and the Ministry of Science
and Technology. After years of development and operation the Center has established a complete
organizational structure and operating mechanism for technological research and innovation with
specialization in animal nutrition and feed animal breeding and cultivation animal health care automated
farming facility project aquatic and livestock product processing and other research and technology
integration related to biotechnology. By transforming innovative research results into actual productivity
the Center provides a critical support for the Company's development. The aquatic product research
institute special aquatic product research institute livestock and poultry research institute animal health
care research institute facility fishery engineering research institute aquatic engineering center and testing
center under the Center provide effective guide on innovations with clear goals and detailed tasks and
ensure the innovation results. The Center was again rated “outstanding” among over 1700 National
Enterprise Technology Centers in the annual assessment as described in the Notice on 2021 Result of
Annual Assessment of National Enterprise Technology Centers issued by the General Office of the
National Development and Reform Commission.In the reporting period the Center implemented the Company's policy for development of a three-
level R&D system consisting of forward-looking research fundamental research and applied research.Regarding forward-looking research it focused on the research of production and application of single-
cell proteins used as raw proteins for fish feed such as promoting the industrialization of bacteria-based
single cell proteins and studying the integration of feed-grade Spirulina and solar energy. Regarding
applied research considering the operation needs the Center applied research achievements into
development of new products such as the freshwater high-end Kaikoule feed for fish fry and Yukang
No.1 feed for better immunology and special Yudongjian feed for winter feeding and developed the
16 / 2612021 Annual Report
unattended and intelligent workshop for prawn farming and circulation water processing system designed
for intelligent monitoring of water quality precise feeding and efficient control and prevention of diseases.As of the end of the reporting period 840 new patent applications were submitted with 616 patents
authorized.In 2021 the Company set up the Working Group on Feed Test Standardization as authorized by the
TC76 which is responsible for the development of test standards for nutrients and non-nutrients
prohibited additives feed efficacy and safety assessment relating to feed industry. In the reporting period
the Company participated in the revision of Feed Materials: Fish Meal (GB/T 19164－2021) which has
been released and implemented the development and revision of Formula Feed for Crayfish
(Procambarus Clarkii) and Formula Feed for Blunt Snout Bream (Megalobrama Amblycephala) two
industrial standards to be issued and received the task for revising ten national standards. Also the
General Technical Specification for Construction of Aquaculture-Photovoltaic Integration System a
project started by the China Fisheries Association and led by the Company has been issued for
implementation.Over the years the Company has established a young high-quality R&D team which continuously
consolidates the Company's R&D capabilities and improves its product competitiveness under the
leadership of the experts with special government allowances from the State Council.
2. PV
To strengthen its independence in R&D and catch development opportunities in core technologies
products and applications enhance its core competitiveness the Company has formed a PV Technology
Center based on the original scientific research system for the PV business and set up a scientific research
and technical team mainly composed of well-known experts in the industry for advancing the development
and integration of technologies across different stages of the PV industry chain in a coordinated manner.In 2021 the PV Technology Center was mainly tasked with the cross-business link and integration in the
introduction of new technologies and new products (such as TOPCON HJT) with increased efforts into
the university-industry cooperation with domestic and foreign universities research institutes and other
scientific research institutions and strengthened the follow-up research and development of cross-
generation technology and cutting-edge technology (including HBC perovskite laminated cell/module
PV + storage) in the industry.In terms of high-purity polysilicon after years of development the Company has made a number of
achievements with independent intellectual property rights in the core technology fields such as cold
hydrogenation large-scale energy-saving rectification high-efficiency reduction tail gas recovery
trichlorosilane synthesis and anti-disproportionation making it at the leading position in the industry. In
the reporting period the mono-grade rate of high-purity polysilicon produced by the Company was over
99%; the mass delivery of N type silicon was realized. As of the end of the reporting period 493 new
patent applications were submitted by Yongxiang with 342 patents authorized.In terms of solar cells the Company has gained a number of technological achievements with
independent intellectual property rights in the core technology fields such as atomic layer deposition back
passivation selective emitter technology double-sided cells multi-grid TOPCon cells and HJT cells. On
the one hand the Company focuses on the current mainstream PERC technology by improving and
optimizing the technology through the applications of other process technologies (such as multi-grid high-
resistance dense grid and alkali polishing) to improve the energy conversion efficiency and reduce
production cost. On the other hand the Company continues to increase the investment in tracking and
developing new cell technologies. The energy conversion efficiencies of its HJT and TOPCon cells in
mass production are high-ranking in the industry.(III) Scale and cost advantage
1. Agriculture and animal husbandry
The Company is a national key leading enterprise in agricultural industrialization with presence
across China and Southeast Asia and annual feed capacity of more than 10 million tons which makes it
a leading aquatic feed producer and an important livestock feed manufacturer in the world. It has intensive
advantages in raw material purchasing production organization and market expansion.
2. PV
The Company has an annual capacity of 180000 tons for high-purity polysilicon and of over 170000
tons in construction with all consumptions and costs declining. With the on-going improvements of
technological processes and the expansion of capacity the Company will have its costs further optimized
after the projects in construction are put into service.
17 / 2612021 Annual Report
Regarding solar cells at the end of the reporting period the Company had an annual capacity of 45
GW and the non-silicon cost of monocrystalline PERC cells was below 0.18 yuan/w. With the new projects
for larger size products in service the scale effect will be greater leading to higher cost advantage.(IV) Quality and brand advantages
1. Agriculture and animal husbandry
Since its inception in 1992 the Company has developed a series of formula feeds that can meet the
needs of various aquatic animals through continuous R&D and improvement. After years of tests in the
market the feed quality and market services of the Company have been highly recognized by farmers
which has created one of the iconic brands in the domestic aquatic feed industry. At the same time the
Company has made great efforts to build a well-known fresh fish brand "Tongwei Fish" and established
aquatic and livestock food processing bases in Sichuan and Hainan for processing food in strict accordance
with the requirements of the HACCP quality management system. As a result the full-cycle quality
monitoring from source to dinner table has been realized which has effectively enhanced the value and
competitiveness of the industrial chain.
2. PV
Relying on the Sichuan Polysilicon Engineering Technology Research Center the Company has
explored the automatic reduction process multiphase flow technology cascade utilization of reduction
heat technology for removal of boron/phosphorus/carbon and other impurities to continuously improve
the quality of high-purity polysilicon reduce emission and increase energy efficiency and keep its leading
position in relevant technologies. In 2021 the high-purity polysilicon business of the Company created a
branch for the National Enterprise Technology Center upon approval and received national and provincial
honors including National Green Factory National Premium Engineering Award Chinese Outstanding
Patent Award Sichuan Second Prize of Science and Technology Progress Award and Sichuan Quality
Benchmarking Award which fully present the brand value and awareness of the Company.The Company is high-ranking in the industry regarding solar cell indicators like energy conversion
efficiency first pass yield scrap rate and CTM value with its quality widely accepted by customers and
professional certifications at home and abroad. The Company has received the Excellent Quality Award
from LONGi Excellent Quality Supplier from Jinko Solar. Best Quality Supplier from GCL System
Integration Technology Excellent Supplier and Quality Inspection-Exempt Supplier from Canadian Solar
Excellent Supplier from Trina Solar and Strategic Supplier from Risen New Energy. In 2021 the Company
won national provincial and industrial awards including the National High-tech Enterprise High-tech
Enterprise Certificate Anhui Enterprise Technology Center Anhui Top 100 Manufacturers Anhui Digital
Workshop Sichuan Science and Technology Progress Award and Hefei Top 30 Manufacturers.(V) Unique Aquaculture-Photovoltaic Integration model
Supported by the unique advantage of resource integration at the end customers the Company has
created an innovative development model where solar electricity is generated above the water and fish
farmed under the water which allows the green combination of intelligent fishery and clean energy
generation. In terms of fishery the Company guides the intensive intelligent and efficient development
of aquaculture through effective water surface modification rational application of fishery facilities and
optimization and innovation of aquaculture models. In terms of PV power generation the Company
adheres to the cost strategic planning and continuously reduces the installed cost of PV systems through
design optimization and technological innovation.The Aquaculture-Photovoltaic Integration development model can promote the coordinated
development of primary secondary and tertiary sectors integrate and create a modern industrial park
integrating new fishery new energy and new rural area advance industrial transformation and upgrading
and provide an effective way for the construction of new rural areas which has helped form a unique
competitive model for the Company.(VI) Corporate culture
An effective culture is an important support for the cohesion and creativity of the Company and an
important part of the core competitiveness of the Company. The Company has a powerful culture where
Striving for Excellence Contributing to Society is the purpose; For Better Life the vision which indicates
the value and goals of the Company; Honesty Trust Fairness and Excellence the management philosophy
that is being sincere and candid winning trust by credibility running business with fairness and
legitimacy taking the lead with guaranteed excellence; Three Determines the important management
principle of the Company that is efficiency determines profit detail determines success speed determines
life and death; Work hard; Work with intelligence; Work with the spirit of seizing the day the code of
conduct for employees. After years of development the spirit advocated by the culture closely integrated
18 / 2612021 Annual Report
with our business targets and daily work guides the benchmarking of all businesses branches and
subsidiaries continuously and deeply advances the fine-tuning of management and constantly boosts the
high-quality development of various business activities.V. Main operating activities in the reporting period
Refer to the Section Operation Discussion and Analysis for details.(I). Analysis of main businesses
1. Analysis of changes in related items of the income statement and cash flow statement
Unit: Yuan Currency: CNY
GL Account Current amount Prior amount Change (%)
Operating revenue 63491070520.12 44200270334.23 43.64
Operating cost 45918101338.17 36648405064.38 25.29
Sales expense 918970450.73 778030640.18 18.11
Management expense 2947649906.71 1808578103.39 62.98
Financial expense 637160688.38 676326528.79 -5.79
R&D expenses 2035847045.43 1035331434.68 96.64
Net cash flows generated from operating activities 7618273876.72 3024927931.94 151.85
Net cash flow generated from investing activities -13591029353.32 -4740250322.93 -186.72
Net cash flow generated from financing activities 2901644427.08 5795372325.96 -49.93
Note on the reasons for operating revenue change: mainly attributed to the expansion of PV operation size
and rise of product prices.Note on the reasons for operating cost change: mainly attributed to the expansion of PV operation size and
rise of raw material costs.Note on the reasons for change in sales expense: mainly attributed to the business expansion and increase
in the advertising and marketing expense.Note on the reasons for change in management expense: mainly attributed to increase in employee payrolls.Note on the reasons for change in financial expense: mainly attributed to the interest increase caused by
the private placement performed by the Company.Note on the reasons for change in R&D expenses: mainly attributed to the preparation for new projects
with increased R&D investments into silicon materials and solar cells.Note on the reasons for change in net cash flows generated from operating activities: mainly attributed to
the expanded operating size and improved profitability.Note on the reasons for change in net cash flows generated from investing activities: mainly attributed to
the increase investments into PV business.Note on the reasons for change in net cash flows generated from financing activities: mainly attributed to
the funds raised by private placement in the previous year.Detailed note on any significant change in the business type profit structure or profit source of the
Company
"□ Applicable" "√ Not applicable"
2. Revenue and cost analysis
"□ Applicable" "√ Not applicable"
19 / 2612021 Annual Report
(1). Main businesses by industry product region and sale model
Unit: Yuan Currency: CNY
Main businesses by industry
Gross profit margin YoY change of YoY change of YoY change of gross
Industry Operating revenue Operating cost
(%) operating revenue (%) operating cost (%) profit margin (%)
Agriculture and animal husbandry 24590256728.92 22258698101.39 9.48 17.46 19.03 - 1.2 ppts
PV 38184020831.78 22984446347.90 39.81 69.69 32.98 + 16.62 ppts
Offset from consolidation -3308475.76
Total 62770969084.94 45243144449.29 27.92 44.52 25.74 + 10.77 ppts
Main businesses by product
Gross profit margin YoY change of YoY change of YoY change of gross
Product Operating revenue Operating cost
(%) operating revenue (%) operating cost (%) profit margin (%)
Feed food and relevant activities 24590256728.92 22258698101.39 9.48 17.46 19.03 - 1.2 ppts
Solar cells modules and relevant activities 24934677377.18 22738716766.81 8.81 60.87 71.66 - 5.73 ppts
High-purity polysilicon and chemical engineering 18760753572.81 6249238622.80 66.69 186.89 46.34 + 31.99 ppts
PV power 1602572317.70 595820555.39 62.82 36.85 26.05 + 3.18 ppts
Offset for internal transactions in the PV business -7113982435.91 -6599329597.10
Offset from consolidation -3308475.76
Total 62770969084.94 45243144449.29 27.92 44.52 25.74 + 10.77 ppts
Main businesses by region
Gross profit margin YoY change of YoY change of YoY change of gross
Region Operating revenue Operating cost
(%) operating revenue (%) operating cost (%) profit margin (%)
East China 23200958755.41 19933517798.49 14.08 55.66 59.74 - 2.19 ppts
South China 8140607000.57 7374491656.45 9.41 15.34 18.40 - 2.34 ppts
West China 25719026992.30 15858381212.62 38.34 121.25 66.77 + 20.14 ppts
North China 10555878160.30 6935607964.24 34.30 81.68 47.46 + 15.25 ppts
Middle China 5618189936.60 5304592406.78 5.58 58.55 59.81 - 0.74 ppts
Overseas 7988788037.26 7350095911.20 7.99 43.69 55.17 - 6.81 ppts
Total 81223448882.44 62756686949.78 22.74 67.47 53.15 + 7.22 ppts
Internal offsets -18452479797.50 -17513542500.49
Total after offset 62770969084.94 45243144449.29 27.92 44.52 25.74 + 10.77 ppts
Main businesses by sale model
Gross profit margin YoY change of YoY change of YoY change of gross
Sale model Operating revenue Operating cost
(%) operating revenue (%) operating cost (%) profit margin (%)
Direct sale 47083684450.80 30903915101.22 34.36 62.84 34.25 + 13.98 ppts
Franchised dealership 15687284634.14 14339229348.07 8.59 8.04 10.63 - 2.14 ppts
Note on main businesses by industry product region and sale model:
None.
20 / 2612021 Annual Report
(2). Production and sale analysis
"√ Applicable" "□ Not applicable"
YoY change of YoY change of YoY change of
Main products Unit Production Sale Inventory
production (%) sale (%) inventory (%)
Feed 10000 tons 537.69 551.59 10.48 2.41 5.08 34.70
High-purity polysilicon Ton 109340.50 107700.32 2012.38 26.85 24.30 299.12
Solar cells and modules MW 35450.57 34931.58 1185.78 56.91 57.61 63.17
PV generation 10000 kWh 317664.71 308982.99 / 42.60 42.72
Note on production and sale:
The production and sale data contain these caused by the trial production; capacity refers to the capacity in mass production (excluding trial production) therefore
capacity utilization = production in mass production / capacity in mass production.
(3). Fulfillment of major purchase contracts and sales contracts
"√ Applicable" "□ Not applicable"
Fulfillment of major existing sales contracts as of the end of the reporting period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Subject Amount fulfilled in Amount to be Fulfillment or Note on non-
Counterparty Total amount Amount fulfilled
matter the reporting period fulfilled not fulfillment
Polysilicon Jinko Solar Sichuan Jinko / 3483111758.89 3306479678.89 / Yes
Polysilicon Trina Solar / 1416173880.00 1416173880.00 / Yes
Polysilicon Metco Silicon Energy / 1780033717.38 1780033717.38 / Yes
Polysilicon Zhonghuan Semiconductor / 2593519170.00 1459207680.00 / Yes
Note: quantities are agreed in the above major sales contracts where prices are determined according to the market prices.Fulfillment of major existing purchase contracts as of the end of the reporting period
"□ Applicable" "√ Not applicable"
(4). Cost analysis
Unit: Yuan
21 / 2612021 Annual Report
Cost by industry
Current Prior
amount amount to YoY amount
Industry Cost item Current amount Prior amount
to total total cost change (%) Notes
cost (%) (%)
Agriculture and animal husbandry Raw materials 20912211007.71 93.95 17512872870.27 93.65 19.41
Agriculture and animal husbandry Labor cost 367104377.22 1.65 335736535.67 1.80 9.34
Agriculture and animal husbandry Manufacturing expense 979382716.46 4.40 851332237.58 4.55 15.04
PV Raw materials 17056289488.92 74.21 12463938323.90 72.11 36.85
PV Labor cost 806471779.10 3.51 649514991.13 3.76 24.17
PV Manufacturing expense 5121685079.88 22.28 4171222480.84 24.13 22.79
Cost by product
Current Prior
amount amount to YoY amount
Product Cost item Current amount Prior amount
to total total cost change (%) Notes
cost (%) (%)
Feed food and relevant activities Raw materials 20912211007.71 93.95 17512872870.27 93.65 19.41
Feed food and relevant activities Labor cost 367104377.22 1.65 335736535.67 1.80 9.34
Feed food and relevant activities Manufacturing expense 979382716.46 4.40 851332237.58 4.55 15.04
High-purity polysilicon and chemical Raw materials
3072125706.9749.161601517823.8437.5091.83
engineering
High-purity polysilicon and chemical Labor cost
265592641.474.25188287616.754.4141.06
engineering
High-purity polysilicon and chemical Manufacturing expense
2911520274.3646.592480663134.4858.0917.37
engineering
Solar cells modules and relevant Raw materials
20517743788.1290.2311466767788.7686.5778.93
activities
Solar cells modules and relevant Labor cost
540879137.632.38487871096.693.6810.87
activities
Solar cells modules and relevant Manufacturing expense
1680093841.067.391291756441.169.7530.06
activities
PV power Manufacturing expense 595820555.39 100.00 472672272.89 100.00 26.05
22 / 2612021 Annual Report
(5). Changes in the scope of consolidation due to shareholding changes of main subsidiaries in the
reporting period
"□ Applicable" "√ Not applicable"
(6). Significant changes or adjustments in businesses products or services of the Company in the
reporting period
"□ Applicable" "√ Not applicable"
(7). Major customers and suppliers
A. Main customers
The sales amount from top five customers was 17106906100 yuan accounting for 26.94% of the total
sale amount; the sales amount from related parties (in the sales amount from top five customers) was 0
accounting for 0 % of the total sale amount.The sale amount from a single customer was over 50% of the total sale amount and/or the top five
customers include new customers or the Company was heavily dependent on a small number of customers
"□ Applicable" "√ Not applicable"
B. Major suppliers
The purchase amount to top five suppliers was 12233825600 yuan accounting for 39.53% of the total
purchase amount; the purchase amount to related parties (in the purchase amount to top five suppliers)
was 0 accounting for 0% of the total purchase amount. (The purchase amount excludes tax)
The purchase amount to a single supplier was over 50% of the total purchase amount and/or the top five
suppliers include new suppliers or the Company was heavily dependent on a small number of suppliers
"□ Applicable" "√ Not applicable"
3. Expenses
"□ Applicable" "√ Not applicable"
4. R&D cost
(1).R&D cost
"√ Applicable" "□ Not applicable"
Unit: Yuan
R&D cost expensed in current period 2035847045.43
R&D cost capitalized in current period 0
Total R&D cost 2035847045.43
Total R&D cost to operating revenue (%) 3.21
Percent of capitalized R&D cost (%) 0
(2).R&D personnel
"√ Applicable" "□ Not applicable"
Number of R&D employees 3335
R&D employees to total employees (%) 10.35%
Education background of R&D employees
Education background Number of employees
Doctor degree 21
Master degree 287
Bachelor degree 2011
Three-year college 760
High school or lower 256
23 / 2612021 Annual Report
Age groups of R&D employees
Age group Number of employees
Less than 30 years 1530
30 - 40 years 1317
40 - 50 years 341
50 - 60 years 138
60 years or older 9
(3).Note
"√ Applicable""□ Not applicable"
Under the principle that science and technology constitute the foremost productive forces the
Company attaches great importance to technology research and development. For each business it has
built a R&D team led by subject matter experts and supported by increased investments with plenty of
achievements applied in the market. This ensures the healthy development of the Company. The Company
has 3335 R&D employees or 10.35% of its total employees. Specifically these holding bachelor or higher
degrees account for 69.54% of the R&D employees; 54.12% of the R&D employees are 30 years or older.
45.88% of the R&D employees are under 30 years.
(4).Reasons for material change in R&D personnel structure and its impact on the Company's
future development
"√ Applicable" "□ Not applicable"
As the end of the reporting period the Company newly hired 757 R&D employees. This was mainly
due to the formation of PV Technology Center and increased investments into PV technologies in the
reporting period. The Company purchased the aquatic feed business and a part of the swine feed business
from TECH-BANK in the reporting period also led to an increase in the R&D employees.The increase in R&D personnel not only helps with the efficient use of the Company's R&D resources
but also further boost its R&D capability and level for improving its sustainability.
5. Cash flow
"√ Applicable" "□ Not applicable"
Refer to the analysis of changes in related items of the income statement and cash flow statement in this
Section
(II). Note on material change in profit caused by non-main operating activities
"□ Applicable" "√ Not applicable"
24 / 2612021 Annual Report
(III). Analysis of assets and liabilities
"√Applicable" "□Not applicable"
1.Assets and liabilities
Unit: Yuan
Opening Closing balance
Opening balance Closing balance of YoY
Item name balance to the to the total Notes
of current period last period balance (%)
total assets (%) assets (%)
Due to fund-raising for investments into project
Cash at bank and on hand 3001930882.38 3.40 6264168242.03 9.75 -52.08
constructions
Held-for-trading financial assets 10617668.58 0.01 1531863068.12 2.38 -99.31 Due to redemption of wealth management products
Due to expansion of overseas business and increase
Notes receivable 1576925682.02 1.79 530962356.27 0.83 196.99
in the L/Cs
Due to the cooperation with TECH-BANK the
Accounts receivable 2915527149.08 3.30 1069352776.17 1.66 172.64 grant of a certain receivables collection period and
the increase in PV power subsidies receivables
Due to business expansion and prerepayment
Prepayments 1606545040.83 1.82 1113458878.37 1.73 44.28
increase
Due to business expansion and rise of raw material
Inventories 5682791568.04 6.44 2773077527.98 4.32 104.93
costs
Other current assets 1220643137.83 1.38 810572652.99 1.26 50.59 Due to the increase in VAT credit refund
Due to the increase in costs of constructions for solar
Construction in progress 10636400885.06 12.05 2997901620.59 4.67 254.79
cells and high-purity polysilicon projects
Due to the increase in intangible assets from the
Intangible assets 2410841890.16 2.73 1663705788.75 2.59 44.91
purchase of TECH-BANK business
Due to the increase in prepayments for engineering
Other non-current assets 2440626665.32 2.76 1547022743.45 2.41 57.76
equipment
Due to the optimization of financing period and the
Short-term borrowings 1375230141.70 1.56 2349154525.77 3.66 -41.46
reduction of short-term borrowings
Due to the business expansion and investment
Accounts payable 8151270076.21 9.23 3917320980.64 6.10 108.08 increase as well as the increase in accounts payable
and in prepayments for engineering equipment
Due to business expansion and increase in advances
Contract liabilities 3112027804.79 3.53 2302728492.73 3.58 35.15
from suppliers
Due to business expansion and the optimization of
Long-term borrowings 11441029860.16 12.96 6296585539.34 9.80 81.70
financing period
Other notes:
None.
25 / 2612021 Annual Report
2.Overseas assets
"√Applicable" "□Not applicable"
(1) Assets
The overseas assets were 1955956342.20 (Unit: Yuan; Currency: CNY) accounting for 2.22% of the
total assets.
(2) Note on the high ratio of overseas assets
"□ Applicable" "√ Not applicable"
3.Main restricted assets at the end of the reporting period
"√ Applicable" "□ Not applicable"
Item Closing carrying Restriction reasons
value
98852162.75 Provide guarantees for financing and operations of
Cash at bank and on hand
the Company
10084007955.24 Provides pledges for the bank acceptance bills
Receivables financing
issued by the Company
Accounts receivable 1227885049.80 Provide collaterals for financing of the Company
Contract assets 660365599.48 Provide collaterals for financing of the Company
8415955174.84 Provide securities for financing of the Company
Fixed assets
and financial lease
Construction in progress 1849680205.51 Provide collaterals for financing of the Company
Intangible assets 425887607.93 Provide collaterals for financing of the Company
Investment properties 75396248.55 Provide collaterals for financing of the Company
Total 22838030004.10
4.Other notes
"□ Applicable" "√ Not applicable"
(IV). Analysis of operational information in the industry
"√ Applicable" "□ Not applicable"
The Company is involved in PV agriculture forestry livestock husbandry and fishery.
26 / 2612021 Annual Report
Analysis of operational information in the PV industry
1.PV equipment manufacturing
"□ Applicable" "√ Not applicable"
2.Key technical indicators of PV products
"√ Applicable" "□ Not applicable"
Product category Technical indicator
Solar-grade polysilicon: Output ratio of products at all levels Ratio of electricity cost to total product cost
Solar-grade polysilicon 100% 28.97%
Solar cells: Average energy conversion efficiency in mass production Maximum energy conversion efficiency in R&D stage
Monocrystalline silicon cells 23.53% 25.45%
Cell modules: Average module power in mass production Maximum module power in R&D stage
Crystalline silicon cells 454W 619W
Discussion and analysis of indicators: (1) Average energy conversion efficiency in mass production of solar cells means the ratio of the maximum output power of
solar cells when they are under sunlight to the incident ray power an important parameter to measure the quality and technical level of cells. The higher the energy
conversion efficiency rate the higher the output power of the single wafer of the cell and the single wafer of the cell with high power can be packaged into high
power PV modules. (2) The maximum energy conversion efficiency rate in R&D stage refers to the highest average energy conversion efficiencies of all tested
cells in the R&D stage. The Company strictly follows the standard grade-one reference solar cell from Fraunhofer and focuses on the development of high-efficiency
cells. It further improves the conversion efficiency of cells and modules by adopting multi-grid back passivation SE process high-resistance dense grid alkali
polishing stacked solar cells and HJT technologies allowing the Company to be the industry leader in product quality with relevant indicators.
3.PV powerplants
"√ Applicable" "□ Not applicable"
Unit:10000 yuan Currency: CNY
Development of PV powerplants
Number of powerplants Number of powerplants Number of powerplants
Total price of Effect of powerplants sold in the
and total installed and total installed and total installed Total installed
powerplant projects period on the operational
capacity held at the capacity sold in the capacity held at the end capacity approved
sold performance of the period
beginning of the period reporting period of the period
45 powerplants with 48 powerplants with
No powerplant was sold in the
grid connected installed 0 grid connected installed 2.7 GW 0
period
capacity of 2.1 GW capacity of 2.7 GW
27 / 2612021 Annual Report
"√ Applicable" "□ Not applicable"
Unit:10000 yuan Currency: CNY
Operation of PV powerplants in the year:
Grid connected
Installed Power generation Settled power Price of grid connected Electricity
Region power Subsidies
capacity (MW) (10000 kWh) (10000 kWh) electricity (yuan/kWh) revenue
(10000 kWh)
Centralized:
East China 928.02 116215.27 113985.55 112393.89 0.53 34357.91 25085.81
South China 1087.68 129853.54 127696.34 126439.18 0.48 43934.55 16149.87
West China 244.41 20491.13 20122.53 19866.46 0.62 7483.22 4917.61
North China 154.91 16424.47 16094.19 16019.17 0.71 5384.82 5938.94
Middle China 221.66 26961.44 26769.98 26797.95 0.44 10085.74 1633.85
Total 2636.68 309945.85 304668.59 301516.65 2.78 101246.24 53726.08
Distributed:
South China 22.20 2695.74 2643.12 2643.19 0.65 955.61 760.23
North China 20.57 3176.66 3098.72 3075.01 0.53 1091.76 552.09
Middle China 15.04 1846.46 1778.35 1748.14 0.91 592.40 1002.23
Total 57.81 7718.86 7520.19 7466.34 2.09 2639.77 2314.55
Note: Grid connected electricity price electricity revenue and subsidies exclude taxes."□ Applicable" "√ Not applicable"
4.Recommended tables
(1). PV capacity in use and in construction
"√ Applicable" "□ Not applicable"
Unit:10000 yuan Currency: CNY
Total
Current
investment
investment in (Expected)
Capacity Process route in in Designed Process route in
Product category Yield production completion
utilization operation production capacity construction
lines in time
lines in
construction
construction
Solar-grade 109340.50 Modified Siemens 100000 Modified
129.91%499229.10497279.052022
polysilicon tons process tons Siemens process
Silicon wafers:
28 / 2612021 Annual Report
Monocrystalline
/ / / 47081.60 47081.60 15 GW 2022 Monocrystalline
silicon wafers
Solar cells:
Multicrystalline
3.37 GW 112.58% / / / / / /
silicon cells
Monocrystalline PERC/
29.56 GW 98.33% PERC/TOPCON/HJT 228542.38 228542.38 15 GW 2022
silicon cells TOPCON
Cell modules:
Crystalline High-efficiency High-efficiency
2.51 GW 84.64% 921.99 921.99 3.6 GW 2022
silicon cell modules modules modules
(2). Major financial indicators of PV products
"√ Applicable" "□ Not applicable"
Unit: 10000 yuan Currency: CNY
Sales revenue Gross profit margin (%)
Product category Sales-to-production ratio (%)
Domestic Overseas Domestic Overseas
Solar-grade polysilicon 98.50 1678437.33 71.80
Solar cells:
Multicrystalline silicon cells 101.30 104368.72 27744.45 3.58 6.17
Monocrystalline silicon cells 98.35 1656356.00 289042.81 8.91 4.66
Cell modules:
Crystalline silicon cells 96.95 162528.02 234498.67 9.52 11.14
PV products sold overseas should be listed by country or region
"√Applicable" "□Not applicable"
Unit:10000 yuan Currency: CNY
Overseas sales of cell modules
Country/region Sales revenue Gross profit margin (%)
South Korea 147066.61 13.21
Germany 40708.83 9.64
Italy 19403.47 8.32
Poland 7195.92 4.99
Netherlands 8399.53 2.18
29 / 2612021 Annual Report
France 8884.27 5.58
Others 2840.04 4.06
Unit:10000 yuan Currency: CNY
Overseas sales of monocrystalline silicon cells
Country/region Sales revenue Gross profit margin (%)
Turkey 88089.88 4.50
South Korea 69381.22 4.15
Hong Kong SAR China 21586.36 9.47
Germany 26905.88 8.35
Japan 19015.20 3.15
India 12459.18 1.85
Others 51605.09 2.90
Unit: 10000 yuan Currency: CNY
Overseas sales of multicrystalline silicon cells
Country/region Sales revenue Gross profit margin (%)
India 19131.86 5.84
Brazil 3531.31 7.56
Turkey 1265.84 7.26
Hong Kong SAR China 216.39 5.76
Others 3599.06 6.25
(3). PV powerplant projects commissioned or developed
"□ Applicable" "√ Not applicable"
5.Other notes
"□ Applicable" "√ Not applicable"
30 / 2612021 Annual Report
(V). Investment analysis
Overall analysis on external equity investments
"√ Applicable" "□ Not applicable"
According to the strategic planning the Company is committed to the coordinated integration of
agriculture and PV industries and the further expansion of each industry. By making full use of its existing
technology and cost advantages the Company accelerates the business expansion enhance the
competitiveness and strives to consolidate its leading position in the core component of the industrial
chain.
1.Significant equity investments
"□ Applicable" "√ Not applicable"
2.Significant non-equity investments
"√ Applicable" "□ Not applicable"
Unit: 10000 yuan
Return
Amount
Cumulative realized in
invested in Project
Project name Project budget investment the Sources of funds
the reporting progress
amount reporting
period
period
Phase II 50000-ton High-purity Polysilicon Raising fund and
401020.00 366784.46 370983.33 Completed 7056.44
Project in Leshan self-funding
Phase I 50000-ton High-purity Polysilicon
409203.75 406333.02 408225.27 In progress / Self-funding
Project in Baoshan
Phase II 50000-ton High-purity Polysilicon Raising fund and
413475.00 226807.46 226865.26 In progress /
Project in Baotou self-funding
15 GW monocrystalline Rod Pulling and Raising fund and
440535.87 104203.56 104203.56 In progress /
Cutting Project self-funding
Phase II 7.5 GW High-efficiency Solar Cell
240000.00 122804.89 181011.88 Completed 2262.44 Raising fund
Project in Meishan
Phase I 7.5 GW High-efficiency Solar Cell Raising fund and
270061.39 137680.26 191525.35 Completed -2077.83
Project in Jintang self-funding
Tonghe Project 450000.00 228542.38 228542.38 In progress / Self-funding
3.FVTPL financial assets
"□ Applicable" "√ Not applicable"
4.Progress of significant asset restructuring and integration in the reporting period
"□ Applicable" "√ Not applicable"
(VI). Significant asset and equity sales
"□ Applicable" "√ Not applicable"
(VII). Analysis of companies where the Company holds shares
"√ Applicable" "□ Not applicable"
Unit: 10000 yuan
Business Registered Net
Full name of subsidiary Total assets Net assets
nature capital income
Yongxiang Co. Ltd. PV Industry 142086.69 2847473.21 1386520.86 863211.02
(VIII). Structure entities controlled by the Company
"□ Applicable" "√ Not applicable"
31 / 2612021 Annual Report
VI. Discussion and analysis on the Company's future development
(I). Industry pattern and trends
"√ Applicable" "□ Not applicable"
1. Feed industry
(1) Feed industry in stage with low-speed and steady growth
China's husbandry was stable but in an upward pattern in the 13th Five Year Plan period; despite of
the heavy hit from African swine fever virus swine production recovered fully by the country's measures
to stabilize swine production and guarantee non-staple food supply. According to the Ministry of
Agriculture and Rural Affairs pork output was 52960000 tons in 2021 or 28.8% higher than that in the
previous year basically the general level before the pandemic; beef and mutton output was 4.1% higher
year-on-year; cow milk output 7.1% higher year-on-year and the output of aquatic products over 2% higher
year-on-year. Driven by the effective demand from husbandry the total feed production in China
continued its steady growth although clearly slower in relative to the 12th Five Year Plan period. There is
little room for increasing the consumption of industrial feed because of the wide application of feed in
livestock and poultry farming. Despite of the less application of feed aquaculture and ruminant farming
needs significantly less industrial feed than livestock and poultry due to the farming level environment
and scale and plays a limited role in increasing the total feed output. As such the annual average growth
rate of feed consumption in China is expected to be low in a long term.
(2) Upgraded requirements on safety and environmental protection drive the high-quality
development of the feed industry
The Regulation on the Administration of Feeds and Feed Additives amended in 2017 has further
enhanced the access threshold of feed industry with stricter punishments on violations and breaches for
the procedure-based and orderly development of the industry. In recent years regulators have been
increasing the efforts into supervision and spot check on feed production and operation companies in
violation of applicable regulations may be subject to a fine up to 10 times of the price of products
concerned blacklisted and disclosed to the public. With the amendments releases and implementations
of applicable regulations including the Environmental Protection Law of the People's Republic of China
and the Food Safety Law of the People’s Republic of China feed companies are required to meet more
strict requirements for safety and quality and comply with new requirements on food safety
environmental protection and consumption upgrading which have raised new challenges for poorly
funded SMEs with lower capabilities in technologies and production management while top companies
can better adapt to and meet the industrial needs in the new circumstance due to their stronger strength so
as to drive the high-quality development of the industry.
(3) Heavy dependence on imports of raw materials weighs on companies in terms of production costs
in a long term
Main raw materials for feed production are corn and soybean meal both of which are primarily
imported a situation that is unlikely to change in a long run. According to China Customs data 2021 corn
import was 28350000 tons 2.5 times of the previous year; soybean import was 96520000 tons
accounting for about 60% of the global soybean trading volume; in the same year China only produced
16400000 tons of soybean indicating a heavy import dependence of 83.7%. In the last two years the
prices of corn and soybean have been rising with fluctuations in the context of extreme weathering
conditions the coronavirus pandemic geopolitical tensions trade frictions and inflations; and are expected
to remain high for a while. To lower this heavy import dependence and relieve the supply chain risk the
Ministry of Agriculture and Rural Affairs issued the Work Plan on Lowering the Use of Corn and Soybean
Meal and Recommending the Use of Alternative Ingredients in Feed and Technical Guidelines on
Lowering the Use of Corn and Soybean Meal in Swine and Chicken Feed through Use of Alternative
Ingredients under which companies are guided and encouraged to use raw materials like wheat sorghum
barley and rice instead of corn and use rapeseed meal cotton seed meal peanut meal and sunflower seed
meal instead of soybean meal. Meanwhile feed companies are actively testing new ingredients striving
to stabilize and even reduce the costs of raw materials. That being said from a short-term view this high
import dependence will not be changed significantly which keeps weighing on feed producers and impose
an impact on the profitability of end farmers.
(4) Accelerated scale-up of feed industry with intensive and integrated model
According to China Feed Industry Association from the perspective of production China had 957
feed producers of capacity greater than 100000 tons in 2021 with an increase of 208 from the previous
year; the feed output from these producers reached about 0.177 billion tons accounting for 60.3% of the
32 / 2612021 Annual Report
total feed output for a year-on-year growth of 7.5 ppts. There were 39 feed groups of annual capacity of
over 1 million tons and their output accounted for 59.7% of the total output in China a year-on-year
growth of 5.1 ppts. From the perspective of sales bulk feed (for large-sized farms) output was 90287000
tons for a YoY growth of 53.1% accounting for 33.4% of the total formula feed output a YoY growth of
7.8 ppts. With the speedy concentration of the feed processing industry top companies have their
advantages in efficiency technology management capital and human resources boosted with the capacity
from small ones increasingly removed resulting in clearly differentiated groups in the industry. In addition
top companies are increasing their investments into farming food processing and trade leading to
increasingly integrated industry chain. As such the competition on comprehensive strength across the
entire industry chain has become the mainstream.
2. PV
(1) With the carbon neutral consensus PV industry will speed up its growth
On December 12 2015 the 196 parties to the United Nations Framework Convention on Climate
Change passed the Paris Agreement at the Paris Climate Change Conference with the purpose of making
arrangements for the global response to climate change after 2020. According to the Paris Agreement
countries need to control the global average temperature rise within 2 degrees Celsius above the pre-
industrial level in this century and strive to control it within 1.5 degrees Celsius. This means that the
world needs to achieve "carbon neutrality" before 2050. To this end IRENA (International Renewable
Energy Agency) World Energy Transitions Outlook: 1.5 ℃ Pathway predicts that the renewable power
will take up 90% of the total power in the world (the PV and wind power will take up 63%) the total
installed capacity of PV power will exceed 14000 GW far higher than the current installed capacity across
the world by 2050. At the same time stimulated by the rapid rise of fuel energies major economies
represented by the EU since 2022 have announced more aggressive renewable energy development plans
under which PV will get on an accelerating path. As predicted by CPIA the average new installed capacity
of PV power from 2022 to 2025 will reach 232 - 286 GW including the 83 - 99 GW from China.
(2) On-going improvements of PV technologies and processed help lower the cost of PV electricity
Cost reduction is an eternal topic for the development of PV industry. According to IRENA the cost
of solar power declined by 85% from 2010 to 2020 mainly due to improvements of technologies
economics of scale supply chain competitions and increased experience from developers. In 2021 the
awarding price for the Saudi Arabia PV project was as low as 1.04 US cents/kWh (0.067 yuan/kWh) and
the awarding price for Ganzi PV project 0.1476 yuan/kWh respectively recording the new lows in China
and abroad according to CPIA. This means that PV generation has shifted from heavy reliance on
subsidies to a high-speed development driven by the market. The cost of PV generation will be further
lowered allowing it to keep the leading position among renewable energies supported by increased
percent of large-size and double-side modules the mass production of frontier technologies like HJT and
TOPCon and the wide application of tracking brackets.
(3) Top players are more competitive with increased concentration in the industry
Several adjustments and reshuffles of the PV industry over the past two decades have gradually
remove outdated capacity with the industry concentration increasingly higher and much of the new
capacity is in China. According to CPIA in China the top five polysilicon companies produced 86.7% of
the total polysilicon output the top five silicon wafer companies produced 84.0% of the total silicon wafers
the top five solar cell companies produced 53.9% of the total solar cells and the top five module companies
produced 63.4% of the total modules. Supported by their growing scale leading companies continue to
improve quality and reduce costs through on-going technological breakthroughs and delicacy management
to build stronger competitiveness.
(4) Accelerated capacity expansion along the industry chain with increased competition
Pulled by robust demand expectations in both China and broad China's PV industry chain is exposed
to a new round of capacity expansion. The new capacity will be the result of more advanced technologies
and processes as well as more intelligent management systems to meet the objectives of better quality
reduced cost lowered energy consumption and decreased carbon footprint driving the high-quality
development of China's PV industry chain and allowing it to remain a global leader. It should be noted
that since 2021 apart from many traditional PV manufacturers that have been speeding up their capacity
expansion many companies outside of the industry are investing. This capacity expansion will inevitably
lead to short supply of capital land human resources and raw materials and the expected competitions
will be fiercer. In this process leading companies are more able to withstand risks thanks to their scale
technologies cost human resources and management while new comers will be exposed to larger
uncertainties and pressure.
33 / 2612021 Annual Report
(II). Development strategy of the Company
"√ Applicable" "□ Not applicable"
The Company's development strategy is to build a world-class safe food supplier and clean energy
operator. Utilizing the comprehensive strength and large-scale advantages accumulated for a long time in
scientific research branding comprehensive operations and other areas it adapts to industry development
trends adheres to the specialization large-scale and industrialization process of the PV new energy
segment and agriculture and animal husbandry segments and optimizes and improves their respective
industrial chain strives to promote the Company's sustainable and stable development by both endogenous
and extensional investment methods promotes the continuous and stable development and realizes the
Company's vision of "For Better Life".
1. Agriculture and animal husbandry: a world-class safe food supplier
Feed industry: With a focus on the specialization and scale up of the feed business the Company
tries to grow steadily by setting up facilities overseas as well as domestic and international M&As. While
focusing on the aquatic feed business the Company makes the most of the season-based cycle of the
business by exploring the collaborative mode with large farming companies in livestock and poultry feed
a way to increase its feed business size and market share.Aquaculture: Based on the resources (aquaculture resources channel resources) gained over the past
years and making use of its unique Aquaculture-Photovoltaic Integration mode for efficiency
improvement the Company puts great efforts into the new approach combining the Company with farmers
and further explores and develops facility-based standard fishery where factory-based farming targeting
premium sea products represented by prawns and special aquatic foods elevates the automation
intelligence and environmental standards for aquaculture advances the transformation from traditional to
modern fishery and build state-of-the-art production bases of safe aquatic products which can be fully
tracked.Processing and trade activities: The Company accelerates the deep processing and trade of aquaticproducts and build a uniform industry chain from farmers to consumers around the growth mode of “three-fish one-prawn one-platform and one-market”. Tongwei Fish the Company's green and safe food
benchmark has been highly recognized in the regional market and the successful model will be replicated
in many places in the future. At the same time it is actively applying big data to the sale of aquatic products
by combining an e-commerce platform (Quan Nong Hui) with an aquatic wholesale market (San Lian
Shui Chan Pin) to create a circulation system. By giving full play to Tongwei Fish the Company focuses
on the operation of key products like Tilapia mullet channel catfish and Yantian shrimp striving to cover
the entire industry chain including farming production processing and trade.
2. PV: create a world-class clean energy operator
As one of the leading manufacturers in the PV industry the Company will continue to enhance its
sizes in key processes of the PV manufacturing and accelerate the Aquaculture-Photovoltaic Integration
mode to be a world-class clean energy operator.Regarding PV manufacturing by giving full play to its capabilities of technology development and
cost control the Company is solidifying its leading position in this area. It is accelerating the expansion
of high-purity polysilicon capacity by catching the window period in which import substitution and
removal of outdated capacity. Regarding the solar cells size expansion and improvement of the cost
advantage in the context that the industry concentration is on the rise.The Aquaculture-Photovoltaic Integration is under firm advancement in the field of PV generation.Through organic combination of its resources in agriculture and PV the Company is trying to create an
Aquaculture-Photovoltaic Coexistence economy where feed aquatic products and green energy are
integrated thereby building a differentiated competitiveness for the Company.(III). Business plan
"√ Applicable" "□ Not applicable"
For 2022 with firm adherence to the business guidelines of focus execution and efficiency the
Company continues securing its advantages in aquatic feed high-purity polysilicon and solar cell to
increase its value and return to shareholders.
1. Agriculture and animal husbandry
In 2022 the Company strives to increase the revenue of feed food and associated businesses along
the industry chain by over 10% YoY to more than 27 billion yuan. Guided by the quality policy and aiming
34 / 2612021 Annual Report
to maximize the farming benefit the Company highlights focused products marketing transformation and
standardization tasks with further deepening the implementation of quality policy in production sale and
use for the win-win between the Company and end farmers.
2. PV
In 2022 the Company strives to produce and sell over 180000 tons of high-purity polysilicon and
over 40 GW of solar cells and to newly invest and construct 1 GW of Aquaculture-Photovoltaic
Integration projects. To this end the Company has proposed the following actions:
(1) High-purity polysilicon
Through standard management of work safety the Company ensures the safety and smoothness of
production and project construction. On-going efforts into technological development and optimization of
processes are used for ensuring product quality and cost reduction. Strategic partnerships are further
strengthened to ensure a stable supply and full capacity.
(2) Solar cells
Following the demand trend the Company rapidly advances the newly completed projects to reach
their full capacity increases the delivery of large-size products and improve its profitability. With
continued efforts into cost reduction through technologies production processes and management the
Company is trying to boost its core competitiveness. Putting more efforts into breakthroughs of
technological bottlenecks of the trial lines of 1 GW TOPCon and 1 GW HJT projects the Company intends
to improve the comprehensive cost efficiency of new technologies to provide sufficient verifications for
the subsequent mass production. In addition improved cooperation with strategic suppliers and customers
will be applied for mutual benefits.
(3) PV power generation
In the context that China is advancing rural revitalization the Company develops Aquaculture-
Photovoltaic Integration projects in areas abundant in water surfaces. High-efficiency modules flexible
bracket 2.0 technology and automatic construction are combined to lower the cost and improve the
efficient combination of resources and industries in the Aquaculture-Photovoltaic Integration model.(IV). Possible risks
"√ Applicable" "□ Not applicable"
1. Feed industry
(1) Risk of raw material price volatility. The major component of feed cost is from raw materials.
The current prices of raw materials are highly susceptible to many factors such as the international political
and economic situation changes in the output of the main producing areas national collection and storage
and subsidies exchange rate fluctuations and changes in logistics costs. High volatility of raw material
prices may affect the gross profit margin of products.Risk response measures: strengthen team training on business skills closely track changes in
disturbance factors predict the price trend of raw materials through systematic research and analysis;
combine supply production and sales requirements rationally arranged purchasing plans and implement
optimal inventory management; participant in the operation and management of the IPD product line
together with formula product managers and quality control; ensure continuous follow-up of research and
development and meet the needs of raw material substitution under extreme conditions.
(2) Market volatility risk. Feed sales are directly affected by downstream aquaculture which is
adversely influenced by natural disasters abnormal temperature and the spread of diseases leading to
fluctuations in feed demand.Risk response measures: pay close attention to the climate natural disasters and diseases with
prevention first and remedy as the supplement quickly develop response measures and actively help
farmers to resume breeding activities; increase investment in disease prevention and control research
promote proved aquaculture model according to the needs of aquaculture species and help farmers
maximize their benefits; the rich feed varieties of the Company and reasonable regional layout of branch
companies can effectively cope with systemic market fluctuation risks.
(3) Policy risk. With the implementation of the new Environmental Protection Law green
aquaculture norms and policy-based subsidies the aquaculture industry is developing towards antibiotic-
free green large-scale and intelligent which raise high challenges to small farmers and new requirements
for the Company.Risk response measures: according to the development trend of aquaculture the Company rationally
adjusts the Company's business strategy and increases the development of large-scale farms; resolutely
35 / 2612021 Annual Report
implementes antibiotic-free feeds makes reasonable formulas according to the nutritional needs of
different aquaculture species at each growth stage and launches high-quality feed products enhances the
level of product profitability; guides the transformation and upgrading of small farmers with strong
operating capabilities and actively seek for relevant subsidy policies to achieve large-scale development.
(4) Exchange rate volatility risk. With the growing demand for international raw material trade and
the expanded overseas feed business of the Company frequent two-way fluctuations in the RMB exchange
rate will leave an obvious impact on business operations.Risk response measures: the Company pays close attention to and study the development trends of
the international foreign exchange market and selects favorable payment settlement currencies and
settlement methods accordingly; improves its research and forecast capabilities of the foreign exchange
market strengthens the management of import and export business and uses financial instruments such
as future foreign exchange settlement change over and foreign exchange options business to lock the
exchange rate risks. The Company makes full use of its advantages of in scale technology and brand and
actively seek for the initiative in the negotiation and negotiation mechanism for prices currencies and
settlement cycles.
(5) Other risks from force majeure. Despite of the effective control of the overall pandemic in China
the spreading of variants such as omicron and the on-going influences of overseas pandemic local virus
outbreaks still happen from time to time. The possibility that overseas pandemic will spread further
remains. As such purchase of raw materials and international trade are still exposed to potential pandemic
risk.Risk response measures: The Company will increase analysis and predications on the pandemic and
other force majeure risks with appropriate virus protection measures and take necessary actions to cope
with the negative influence of long-term pandemic on purchase production and sale activities.
2. PV industry
(1) Industry chain instability. Capacity mismatch of the PV industry chain has led to short supplies
in some stages and highly volatile product prices which places supply chain management under pressure.What is more shipping cost has been significantly increase due to the pandemic impact and complicated
international trade environment.Risk response measures: The Company will increase analysis and research of the industry chain keep
improving its competitiveness in scale technologies quality and cost and enhancing the cooperation with
upstream and downstream companies to ensure a stable supply chain.
(2) Adjustment of industry policies. The PV industry is benefited from the country's policies any
significant change in the policies will have an impact on the industry. Also some foreign countries still
have policies encouraging PV generation in place any change in such policies will influence the demand
for PV installations.Risk response measures: The Company will keep a close eye on changes in relevant policies with a
risk response plan in place and continue lowering product cost with improved product competitiveness
to hold its favorable position in competitions.
(3) Technology updates. Technologies and products are upgraded at a higher speed in the PV industry
than in some other industries. In recent years breakthroughs in new generation silicon cells including
TOPCon HJT and IBC have been made with on-going developments in non-silicon routes such as film
and perovskite. The new technologies raise higher requirements on silicon quality and the demand for N-
type products is expected to be higher. Inability to keep abreast of frontier technologies and market
changes is likely to weaken the Company's competitiveness.Risk response measures: The Company will be actively engaged in the trial and mass production of
mainstream technologies of the next generation including HJT and TOPCon while keep an eye on forward-
looking technologies with R&D demonstrations to ensure it holds the leading technologies and continue
increasing the percent of N-type silicon material supplied and cost reduction work to strengthen its core
competitiveness.
(4) International trade frictions. Over the development of past years China has developed a strong
PV industry in terms of scale cost and quality with the number one market share across the world and a
growing export. In recent years some countries have initiated AD and CVD investigations and imposed
other trade restriction on Chinese PV products similar incidents will not be excluded which once happen
will impact the country's PV industry.Risk response measures: The Company only exports a small portion of its products directly which
means it is less exposed to risks like this. With on-going attention to the trends and patterns of international
36 / 2612021 Annual Report
trade and given its own strategic development plan the Company will improve its market competitiveness
such as polysilicon products and solar cells.
(5) Other risks from Force Majeure. The coronavirus pandemic overseas remains severe. Overseas
market contributes to about sixty percent of global demand for PV installation capacity. The possibility
that the demand for PV terminals will be lowered is not excluded if the pandemic remains out of effective
control.Risk response measures: With increased analysis and predication of the pandemic and other force
majeure risks the Company will give full play to its core competitiveness and put more efforts into
developing strategic customers to lower the negative impact from these risks.(V). Others
"□ Applicable" "√ Not applicable"
VII. Note on the fact that the Company fails to disclose under standards due to inapplicability of the
standards due to inapplicability or national secrets and/or trade secrets and the reasons
"□ Applicable" "√ Not applicable"
Section IV. Company Governance
I. Note on the Company governance
"√ Applicable" "□ Not applicable"
In the reporting period the Company further improved its company governance structure and various
internal systems given its actual conditions in strict accordance with the Company Law Code of Corporate
Governance for Publicly Listed Companies and other legal requirements. The shareholders meeting the
board of directors the board of supervisors and the management of work under clear powers and
responsibilities having formed a procedure-based governance structure for the legal entity to ensure its
smooth running in accordance with regulations. The board of directors believes that the governance
structure of the Company is in compliance with the Code of Corporate Governance for Publicly Listed
Companies and other legal requirements.(I) Shareholders meeting board of directors meeting and board of supervisors meeting
In the reporting period the Company held one annual shareholders meeting and one interim
shareholders meeting. The procedures for shareholders meeting were in compliance with the Listing Rules
of the Shanghai Stock Exchange Articles of Association of the Company and Rules of Procedure for
Shareholders Meeting and safeguarded the legitimate interests of the Company and its shareholders. Seven
meetings of the board of directors were held in the reporting period. Directors attended board meetings in
accordance with the Articles of Association and the Rules of Procedures for the Board of Directors and
other policies and discussed deeply on various proposals submitted for deliberation fully considered the
interests and demands of small and medium shareholders when making decisions which helped with the
stable and healthy development of the Company's production and operation. In the reporting period seven
meetings of the board of supervisors were held. Supervisors attended the meetings in accordance with
regulations such as Company Law Articles of Association and the Rules of Procedure for the Board of
Supervisors and performed their duties independently under laws to improve the procedure-based
operation of the Company.(II) Controlling shareholder and its related parties and listed companies
The controlling shareholder of the Company behaved exercised rights and performed obligations
under laws did not directly or indirectly interfere with the Company's decision-making and business
activities without the participation of the shareholders meeting. Board of directors board of supervisors
and the management performed independently and the Company had independent businesses and was able
to operate on its own. In the reporting period the Company did not provide any guarantee to its controlling
shareholder and/or its related parties and the controlling shareholder did not occupy any funds of the
Company for non-operating purposes.In the reporting period every related-party transaction submitted to the board of directions for
discussion was approved via voting with the voting rights of related directors disabled. The related
transactions were priced fairly without any influence on the Company's independence or harm to the listed
company.
37 / 2612021 Annual Report
(III) Disclosure and transparency
The Company attaches great importance to information disclosure and strictly observes the
provisions of Shanghai Stock Exchange on information disclosure of listed companies as set forth in
Securities Law. In the reporting period board of directors board of supervisors and management of the
Company prudentially signed written confirmations to ensure that the authenticity accuracy completeness
timeliness and fairness of the disclosure. The Company received the best rating (Grade A) on information
disclosure 2020 - 2021 from Shanghai Stock Exchange for its great information disclosure.In the reporting period the Company managed insiders relating to periodical reporting and important
issues through the registration system in strict accordance with applicable regulations to ensure the fairness
principle for information disclosure and protect the legitimate rights and interests of shareholders.(IV) Investor relations
The Company attaches high importance to long-term and active communications with all kinds of
investors. In the reporting period the Company conveyed its operation philosophy results and strategic
direction to investors through channels including shareholders meetings performance briefings and
investor platforms. In addition it responded carefully and patiently to queries from investors via phone
calls emails visits and http://sns.sseinfo.com/ which helped investors understand and gain confidence in
the Company and maintained the Company's image in the capital market. In 2021 the Company received
a lot of awards and honors including the Sharp Board Secretary Award out of the Golden Quality
assessment of publicly listed companies issued by Shanghai Securities News the Company of the Year
with the Highest Investment Value from China Fund and the Golden Bull Award of the Highest Value
and the Golden Bull Award from China Securities Journal.(V) Safeguard the rights and interests of shareholders
The Company takes the rights and interests of shareholders in particular small and middle-sized ones
seriously seeks for sustainable returns to shareholders. In the reporting period the Company completed
the 2020 profit distribution in accordance with the Three-year Distribution Plan (2018-2020) and
developed the new Three - Year Distribution Plan (2021-2023) which has been approved by the 2020
annual shareholders meeting.Corporate governance is a long-term work. The Company will improve its operation and management
optimize the decision-making mechanism and enhance the functioning of the governance level
supervision level and operation level for the healthy and stable development of the Company in accordance
with laws and regulations issued by regulators.Significant difference between the corporate governance and provisions of laws regulations and rules of
the CSRC on listed companies and the reasons
"□ Applicable" "√ Not applicable"
II. Specific measures taken by the controlling shareholder and actual controller of the Company
for ensuring the Company’s independence in assets personnel financial affairs organizational
structure and business activities as well as solutions progress and work plan for influencing the
Company’s independence
"√ Applicable" "□ Not applicable"
The Company is strictly separated from its controlling shareholder and actual controller in terms of
assets personnel financial affairs organizational structure and business activities takes responsibilities
and risks independently. No matters that impact the Company's independence and that prevent it from
being independent or keeping independent operation exist.(I). Asset independence
The Company owns a business system and a complete asset system with all relevant assets under its
control and owned and operated by the Company. The ownership between the Company and its controlling
shareholder is clearly defined and the Company has no assets or funds occupied by the controlling
shareholder and is exposed to any other circumstance that harms the interests of other shareholders of the
Company.(II). Personnel independence
The Company has an independent system for personnel registration on boarding appointment
dismissal and review as well as an independent renumeration management and benefit system. Senior
managers (general manager deputy general managers board secretary and financial director) serve the
Company on a full-time basis and receive renumeration from the Company. No controlling shareholder
38 / 2612021 Annual Report
actual controller and/or businesses under their control assume positions other than directors and/or
supervisor or receive payments from the Company. No financial staff of the Company take any part-time
job in the controlling shareholder actual controller and/or businesses under their control.(III). Financial independence
The Company has an independent finance and audit department and an independent accounting
system and financial management system being able to make financial decisions independently. As an
independent taxpayer the Company make tax returns and pay taxes under laws. The Company has its own
bank account and does not share any bank account with its controlling shareholder actual controller and/or
businesses under their control.(IV). Structure independence
The Company has a completed governance structure consisting of shareholders meeting board of
directors and board of supervisors with respective procedures. Furthermore the Company has developed
a complete operation management system with independence in power of management and not influenced
by its controlling shareholder or actual controller and/or companies controlled by them.(V). Business independence
The Company has the assets personnel qualifications and capabilities for independent business
activities. The Company is independent of its controlling shareholder actual controller and/or businesses
controlled by them in terms of business activities; it is not a competitor of its controlling shareholder
actual controller and/or businesses controlled by them.No issue that has an impact on the Company's independence has been found so far.Controlling shareholder actual controller and/or any other entity under their control is engaged in any
business identical or similar to the business of the Company and any impact of competition between the
Company and its controlling shareholder actual controller and/or any other entity under their control and
any great change in such competition actions for resolving this impact that have been taken the resolution
progress and the plan for next steps
"□ Applicable" "√ Not applicable"
39 / 2612021 Annual Report
III. Introduction to shareholders meeting
link to the designated website
Disclosure
Session No. Session date where the published Resolutions
date
resolutions are available
Proposals discussed and resolved: The Proposal on Tongwei Co. Ltd.Employee Share Plan (Draft) 2021-2023 and its Summary the Proposal
on the Management Procedures on Tongwei Co. Ltd. Employee Share
1st interim
Plan 2021-2023 the Proposal on Requesting the Shareholders Meeting
shareholders 2021-02-25 http://www.sse.com.cn/ 2021-02-26
to Authorize the Board of Directors to Deal with Issues Relating to
meeting 2021
Tongwei Co. Ltd. Employee Share Plan 2021-2023 and the Proposal on
the Modification of the Articles of Association and the Subsequent
Business Registration.Proposals discussed and resolved: 2020 Work Report of the Board of
Directors 2020 Work Report of the Board of Supervisors 2020 Annual
Report and its Summary 2020 Financial Close Report 2020 Profit
Distribution Proposal 2020 Working Report of Independent Directors
the Proposal on Renewing the Engagement with the Accountant Firm the
Proposal on 2021 Application for Comprehensive Credit Line the
Proposal on the Company's Accepting Guarantees from and to
Subsidiaries in 2021 the Proposal on the Company's Providing
Guarantees to its Customers in 2021 the Proposal on Starting Bill Pool
Annual Service in 2021 the Shareholder Distribution Plan 2021-2023 the
shareholders 2021-05-07 http://www.sse.com.cn/ 2021-05-08 Proposal on Adjusting the Total Size of Some Projects Invested by the
meeting 2020 Raised Funds the Proposal on the Company’s Compliance with the
Conditions for Issuing A-share Convertible Bonds the Proposal on the
Feasibility Report on Use of Funds Raised via the Company’s Public
Issuing A-share Convertible Bonds the Proposal on the Dilution on
Immediate Return via the Company's Public Issuing Convertible Bonds
and Remedial Measures the Rules on Meeting of A-share Convertible
Bond Holders the Proposal on Requesting the Shareholders Meeting to
Authorize the Board of Directors to Deal Issues relating to the Company's
Public Issuing Convertible Bonds and the Proposal on the Use of Funds
Raised in the Previous Financing Activity.Interim shareholders meetings requested by the preferred shareholders whose voting rights have been restored
40 / 2612021 Annual Report
"□ Applicable" "√ Not applicable"
Note on shareholders meetings
"□ Applicable" "√ Not applicable"
IV. Information of directors supervisors and senior managers
(I). Shareholding changes and Renumeration of directors supervisors and senior management currently in office and having left office in reporting period
"√ Applicable" "□ Not applicable"
Unit: share
Total before-tax Whether
compensation receiving
Closing Change in Reason for from the compensation
Name Position (note) Gender Age Start date End date Opening shares
shares shares change Company in the from related
reporting period parties of the
(10000 yuan) Company
Liu Hanyuan Director Male 57 2019-05-08 2022-05-07 0 0 0 285.34 No
Chairman of the
Xie Yi Male 38 2019-05-08 2022-05-07 290122 217622 -72500 Note: 434.29 No
Board of Directors
Vice Chairman of the
Yan Hu Male 58 2011-05-10 2022-05-07 836650 836650 0 297.49 No
Board of Directors
Duan Yong
Director Male 48 2016-05-03 2021-05-27 1061628 796311 -265317 Note: 436.16 No
(left)
Wang
Director Male 45 2019-05-08 2022-05-07 0 0 0 0 No
Xiaohui
Ding Yi Director Female 57 2020-05-12 2022-05-07 0 0 0 5 No
Du Kunlun Independent director Male 53 2016-01-15 2022-05-07 0 0 0 10 No
Wang Jin Independent director Male 55 2016-05-03 2022-05-07 0 0 0 10 No
Fu Daiguo Independent director Male 57 2019-05-08 2022-05-07 0 0 0 10 No
Chairman of the
Deng San Female 37 2017-05-05 2022-05-07 225880 225880 0 119.37 No
Board of Supervisors
Yang
Supervisor Male 49 2007-04-30 2022-05-07 210800 158100 -52700 Note: 52.83 No
Shixian
Chen
Supervisor Male 52 2016-05-03 2022-05-07 0 0 0 3 No
Xiaohua
Guo
General Manager Male 51 2016-03-03 2022-05-07 500450 500450 0 331.06 No
Yizhong
41 / 2612021 Annual Report
Deputy General
Chen Pingfu Male 56 2010-04-27 2022-05-07 444730 444730 0 157.29 No
Manager
Wang Deputy General
Male 58 2013-05-07 2022-05-07 659050 659050 0 175.70 No
Shangwen Manager
Song Deputy General
Male 58 2013-05-07 2022-05-07 425075 331375 -93700 Note: 86.54 No
Gangjie Manager
Deputy General
Shen Jinzhu Male 56 2016-05-09 2022-05-07 280400 210300 -70100 Note: 119.90 No
Manager
Deputy General
Zhang Lu Male 43 2017-03-12 2022-05-07 281600 281600 0 154.79 No
Manager
Zhou Bin Financial Director Male 53 2019-05-08 2022-05-07 55211 55211 0 193.91 No
Secretary of the
Yan Ke Male 37 2019-05-08 2022-05-07 0 0 0 129.38 No
Board of Directors
Total / / / / / 5271596 4717279 -554317 / 3012.05 /
Note: In 2015 the A-share market experienced irrational drops leading to dramatic fluctuation of Company's share price making the market cap was severely deviated
from the Company's value. With confidence in China's economy China's capital market and the Company's development prospects the management increased their
shares in the Company to stabilize the share price and drive the market cap to be normal. In the reporting period for gaining benefits and due to personal needs some
management members reduced their shares in the Company subject to applicable laws and regulations as well as SSE Detailed Rules on the Shareholding Reduction
by the Shareholders Directors Supervisors and Senior Management of Listed Company.Name Work experience
Male born in 1964 EMBA of Guanghua School of Management Peking University senior engineer. He was the chairman of the first to sixth board
of directors of the Company. He is the chairman of the board of directors of Tongwei Group and a director of the 7th board of directors of the Company.Liu
Other social positions include a member of the 11th Standing Committee of the CPPCC National Committee deputy to the NPC (National People's
Hanyuan
Congress) a member of Standing Committee of All-China Federation of Industry and Commerce the executive chairman of CNECC vice chairman
of the All-China Federation of Industry and Commerce Sichuan and the executive vice chairman of China Feed Industry Association.Male born in 1984 MIM from Imperial College London UK member of the CPC. He was the president assistant of Tongwei Group chairman of
the board of directors of Tongwei Solar (Hefei) Co. Ltd. chairman of the board of directors of Tongwei Solar (Chengdu) Co. Ltd. and currently
Xie Yi serves as the chairman of the board of directors of the Company. Other social positions include a deputy to the 13th CPC Chengdu Congress vice
chairman of the 14th Committee of Sichuan Youth Federation member of the 15th CPPCC Chengdu Committee member of the 11th CPPCC Standing
Committee of Shuangliu District Chengdu; and vice chairman of the second council of CPIA.Male born in 1964 MBA of Guanghua School of Management Peking University senior accountant. He was the chief accountant of the Southwest
Medical Equipment Co. Ltd. the manager on behalf of the US party in the GE Healthcare China Southwest Branch financial director of Sichuan
Zhongyuan Industries Company Limited executive deputy general manager of Chengdu Yuanda Wheel and Rim Manufacturing Co. Ltd. vice
Yan Hu
president and financial director of South Hope Industrial Co. Ltd. director and financial director of New Hope Group and the director of New Hope
Co. Ltd. After joining the Company he has served as the chief accountant of Tongwei Group the chief accountant president and secretary of the
board of directors of Tongwei Co. Ltd. and the director of the board of directors (1st 2nd 4th 5th and 6th) of Tongwei Co. Ltd. He is a director
42 / 2612021 Annual Report
and vice chairman of the 7th board of directors of the Company. He is also the legal representative and vice-chairman of Sichuan Association for
Listed Companies vice chairman of Sichuan Enterprise Confederation and the Sichuan Entrepreneurs Association vice-chairman of China Society of
Forestry Animal Husbandry and Fishery Economics vice chairman of Sichuan Research Institute for International Tax and vice chairman of
Association of Feed Industry and vice-chairman of Sichuan Fisheries Society.Male born in 1974 MBA and Master from Lingnan University. He served as the deputy general manager financial director and secretary of the board
Duan of directors of Shanghai Topslane Medical Devices Co. Ltd.; Baotou financial director president assistant executive president and president of East
Yong Hope Group. He was the chairman of the board of directors of Yongxiang Co. Ltd. and a director of the 7th board of directors of the Company
(resigned in May 27 2021).Male born in 1976 master in economics of the Guanghua School of Management in Peking University. He was an auditor of Beijing KPMG Huazhen
Accounting Firm an industry analyst of CITIC Securities Research Department a senior manager and director of energy industry group of Investment
Wang
Banking Committee of CITIC Securities and the executive general manager of M&A Department of Investment Banking Committee of CITIC
Xiaohui
Securities. He is the executive director of China Life Asset Management Co. Ltd. a director of Beijing Jingneng Power Co. Ltd. and a director of
the 7th board of directors of the Company.Female born in 1964 member of the Communist Party of China doctoral degree in economics Renmin University of China. She worked in Huaneng
Power International Co. Ltd. and successively served as the chairman of Huaneng Capital Services Co. Ltd. Great Wall Securities and other
Ding Yi
companies. She is a director of the 7th board of directors of the Company and also serves as an independent director of Huaxia Bank Co. Ltd Huatai
Asset Management Co. Ltd. and Yanshi New Materials Co. Ltd.Male born in 1969 doctor in economics China CPA (Certified Public Accountant) China CPV (Certified Public Valuer) researcher mentor of
Du master candidates in Institute of Finance of Sichuan Academy of Social Sciences. He was a member of the 12th and 13th Main Board Market Issuance
Kunlun Examination Commission of China Securities Regulatory Commission and an independent director of the 5th and 6th board of directors of the
Company. He is an independent director of the 7th board of directors of the Company.Male born in 1964 dean of the Western Business School of Southwestern University of Finance and Economics a professor of accounting doctoral
supervisor and vice president of Chengdu Accounting Society. He served as an independent director of several companies such as Sichuan Crun Co.Fu Daiguo
Ltd. Lier Chemical Co. Ltd. and Ingenic Semiconductor Inc. He is an independent director of the 7th board of directors of the Company and also
an independent director of Maccura Biotechnology Co. Ltd. and Sichuan Langjiu Group Co. Ltd.Male born in 1966 doctor in economics from Emory University USA and a professor. He worked in Emory University Georgian College Georgia
Public Affairs Federal Reserve Bank and other institutions on a full-time or part-time basis and served as a teacher at Renmin University of China
Wang Jin and Shanghai University. Since March 2012 he has been the director of the International Energy Research Institute. At present he is an independent
director of the 7th board of directors of the Company the CECEP Solar Energy Co. Ltd. and Shuangdeng Cable Co. Ltd. and external director of
the SPIC Guangdong Electric Power Co. Ltd.Female born in 1984 CPC member MBA of Sichuan University. She was the head of the secretary department of Tongwei Group assistant to the
Deng San chairman of the board of directors of Tongwei Group and the chairman of the 6th board of supervisors of the Company. She is the chairman of the
7th board of supervisors of the Company.
Yang Male born in 1972 master in market economics. He was the finance manager and project manager of Fuling Tongwei Feed Co. Ltd. general manager
Shixian assistant and financial manager of He'nan Tongwei Feed Co. Ltd. and a member of the 3rd to 6th board of supervisors of the Company. He is a
43 / 2612021 Annual Report
member of the 7th board of supervisors of the Company.Male born in 1969 CPA. He worked at Chengdu Zhongda Accounting Firm Sichuan Branch of Beijing Jingdu Public Accounting Firm and Sichuan
Chen
Shenghe Public Accounting Firm. He is the director of Sichuan Branch of Beijing Xinghua Public Accounting Firm (Special General Partnership) and
Xiaohua
a member of the 6th and 7th board of supervisors of the Company.Guo Male born in 1970 college diploma. He served as the general manager of Jieyang Tongwei Feed Co. Ltd. the general manager of Guangdong
Yizhong Tongwei Feed Co. Ltd. and general manager of Guangdong Area. Since March 2016 he has been the general manager of the Company.Male born in 1965 EMBA CPA. He was the finance manager deputy general manager and general manager of Sichuan Tongwei a member of the
Chen
4th and 5th board of directors of the Company. He is the general manager responsible for Vietnam area one and the deputy general manager of the
Pingfu
Company.Wang Male born in 1963 MBA doctor's degree. He served as president assistant director of human resources marketing director and technical director of
Shangwen the Company. He is currently the deputy general manager of the Company.Male born in 1964 aquaculture engineer EMBA in Agriculture from School of Continued Education Tsinghua University (2002-2003). He served
Song as president assistant of the Company general manager of Chongqing Area general manager of Jiangsu and Zhejiang Area general manager of
Gangjie Yangtze River and Huai River Area general manager of Suzhou Tongwei Feed Co. Ltd. and general manager of Nanjing Tongwei Aquatic Products
Technology Co. Ltd. He is currently the deputy general manager of the Company.Male born in 1966 bachelor degree aquaculture engineer. He served as the general manager of Shashi Tongwei Feed Co. Ltd. general manager
Shen
assistant of Guangdong Tongwei Feed Co. Ltd. general manager of Vietnam Area and general manager of Vietnam Tongwei. He is now the deputy
Jinzhu
general manager of the Company and general manager of Hefei Branch.Male born in 1979 doctor's degree researcher an expert receiving the special government allowance from the State Council. He was vice technology
Zhang Lu director and the technology director of fish feed in Guangdong Yuehai Feeds Group. Currently he is the technology director and a deputy general
manager of the Company.Male born in 1968 bachelor degree in accounting from Shanghai University of Finance and Economics master degree from Southwest Jiaotong
University MBA from University of South Australia CPA (Certified Public Accountant) and CPV (Certified Public Valuer). He was the legal
Zhou Bin
representative of Sichuan Beite Certified Public Accounting Firm the general manager of Sichuan Zhongfa Certified Tax Accountant Firm and the
financial director of Yongxiang Co. Ltd. He is the financial director of the Company.Male born in 1985 bachelor degree in accounting from Southwest University of Finance and Economics. He served as the Company's securities
Yan Ke
affairs representative. Now he is the secretary of the 7th board of directors of the Company.Other notes
"□ Applicable" "√ Not applicable"
44 / 2612021 Annual Report
(II). Other offices of directors supervisors and senior management currently in office and having
left office in reporting period
1. Offices in shareholders
"√ Applicable" "□ Not applicable"
Name in office Shareholder name Title Start date End date
Chairman of the
Liu Hanyuan Tongwei Group Co. Ltd. 2008-03-24
board of directors
China Life Asset Management
Wang Xiaohui Executive director 2017-03-08
Company Limited
Note on offices
None.in shareholders
2. Offices in other entities
"√ Applicable" "□ Not applicable"
Name in office Entity name Title Start date End date
Sichuan Academy of Social Mentor of master
Du Kunlun 2012-12-01
Sciences candidates
Independent
Du Kunlun Luzhou Laojiao Co. Ltd 2015-06-30 2021-06-29
director
Independent
Du Kunlun Tianqi Lithium Corporation 2017-02-10 2020-09-09
director
Sichuan Jule Food Co. Ltd. (To Independent
Du Kunlun 2017-05-14 2020-09-09
be listed) director
Cscec Scimee Sci.&Tech. Co. Independent
Du Kunlun 2019-01-28 2022-01-24
Ltd. director
International Energy Research
Wang Jin Head 2012-06-01
Institute
Wang Jin Chongqing Zongshen Power Director 2016-04-01 2019-10-31
Independent
Wang Jin CECEP Solar Energy Co. Ltd. 2014-03-01 2020-02-28
director
Independent
Wang Jin Shuangdeng Cable Co. Ltd. 2020-08-01
director
Inner Mongolia Yili Energy Co Independent
Wang Jin 2020-05-01
Ltd. director
SPIC Guangdong Electric Power
Wang Jin External director 2020-03-01
Co. Ltd.Southwestern University of
Fu Daiguo Professor 2002-12-01
Finance and Economics
Maccura Biotechnology Co. Independent
Fu Daiguo 2019-01-22
Ltd. director
Sichuan Langjiu Co. Ltd. Independent
Fu Daiguo 2019-07-31
(To be listed) director
Independent
Ding Yi Hua Xia Bank Co. Ltd. 2020-09-09
director
Huatai Asset Management Co. Independent
Ding Yi 2020-09-04
Ltd. director
Independent
Ding Yi Yuanshi New Materials Co. Ltd. 2021-10-22
director
Beijing Jingneng Power Co.Wang Xiaohui Director 2021-06-23
Ltd.Beijing Xinghua Accounting
Head of Sichuan
Chen Xiaohua Firm (special general 2012-09-01
office
partnership)
Note on offices
None.in other entities
45 / 2612021 Annual Report
(III). Renumeration of directors supervisors and senior managers
"√ Applicable" "□ Not applicable"
Under the Articles of Association and relevant provisions of the Detailed
Rules of Remuneration and Review Committee the Committee studies and
reviews the remuneration policies and plans for directors and senior
Procedures for deciding
managers. The remuneration and review procedures for senior managers are
the renumeration of
put into implementation after being discussed and approved by the board of
directors supervisors
directors the remuneration payments are determined after reviewed by the
and senior managers
Committee; the remuneration plans for directors and supervisors and
submitted to the shareholders meeting for approval after being approved by
the board of directors and board of supervisors.
1.The renumeration of directors supervisors and senior managers who take
specific roles in production and operation of the Company consists of a base
and a performance-based bonus. The Company ensures the overall
Basis for the compensations and benefits to employees are of competitiveness in the
renumeration of industry and market through fair and appropriate payments given the
directors supervisors specific roles duties and performances.and senior managers 2. Directors and supervisors who do not hold full-time roles in the Company
received fixed allowances annually. Costs for performance of director and/or
supervisor duties are from the Company's annual funds of board of directors
and/or funds of board of supervisors.The renumeration to directors supervisors and senior managers are paid
Actual payments to according to their performance assessed under the Performance Review
directors supervisors Management Procedures. In the reporting period the actual payments to
and senior managers directors supervisors and senior managers are consistent with the disclosure
made by the Company.Total renumeration
received by directors
supervisors and senior 30120500 yuan
managers as of the end
of the reporting period
(IV). Changes in directors supervisors and senior managers
"√ Applicable" "□ Not applicable"
Name Title Change Reason for change
Duan Mr. Duan Yong resigned from the office of director and other
Director Resigned
Yong roles in the Company on May 27 2021 for job change.(V). Notes on penalties from securities regulators
"□ Applicable" "√ Not applicable"
(VI). Others
"□ Applicable" "√ Not applicable"
V. Board of directors meetings held in the reporting period
Session No. Session date Resolutions
Proposals discussed and resolved: the Proposal on Tongwei Co.Ltd. Employee Share Plan (Draft) 2021-2023 and its Summary
the Proposal on the Management Procedures on Tongwei Co.
17th meeting of
Ltd. Employee Share Plan 2021-2023 the Proposal on
the 7th board of 2021-02-09
Requesting the Shareholders Meeting to Authorize the Board of
directors
Directors to Deal with Issues Relating to Tongwei Co. Ltd.Employee Share Plan 2021-2023 the Proposal on Execution of
the Strategic Cooperation Agreement with Jinko Solar Co. Ltd.
46 / 2612021 Annual Report
the Proposal on the Modification of the Articles of Association
and the Subsequent Business Registration and the Proposal on
Holding the 1st Interim Shareholders Meeting 2021.Proposals discussed and resolved: 2020 Work Report of the Board
of Directors 2020 Work Report of the General Manager 2020
Annual Report and its Summary 2020 Financial Close Report
2020 Profit Distribution Proposal 2020 Working Report of
Independent Directors the Summary of the Audit Committee on
Sichuan Huaxin (Group) Accounting Firm (Special General
Partnership)'s Performing the 2020 Audit of the Company the
Proposal on Renewing the Engagement with the Accountant Firm
the 2020 Evaluation Report on the Company's Internal Controls
the 2020 Audit Report on the Company's Internal Controls the
Proposal on 2020 Provision for Asset Impairment and Scrap of
Fixed Asset the Proposal on 2021 Application for Comprehensive
Credit Line the Proposal on the Company's Accepting
Guarantees from and to Subsidiaries in 2021 the Proposal on the
Company's Providing Guarantees to its Customers in 2021 the
Proposal on Starting Bill Pool Service in 2021 the Proposal on
18th meeting of
Use of Short Surplus Funds for Wealth Management in 2021 the
the 7th board of 2021-04-09
Proposal on Conducting Hedging Service in 2021the Proposal
directors
on Daily Related-party Transactions Expected in 2021 the
Special Report on the Storage and Actual Use of Funds Raised in
2020 the Proposal on Adjusting the Total Size of Some Projects
Invested by the Raised Funds the Shareholder Distribution Plan
2021-2023 the 2021 Q1 Report (full text) the Proposal on the
Company’s Compliance with the Conditions for Issuing A-share
Convertible Bonds the Proposal on the Proposed Plan for the
Company’s Public Issuing Convertible Bonds the Proposal on
the Feasibility Report on Use of Funds Raised via the Company’s
Public Issuing A-share Convertible Bonds the Rules on Meeting
of A-share Convertible Bond Holders the Proposal on Requesting
the Shareholders Meeting to Authorize the Board of Directors to
Deal Issues relating to the Company's Public Issuing Convertible
Bonds the Report on the Use of Funds Raised in the Previous
Financing Activity and the Proposal on Holding 2022 Annual
Shareholders Meeting.
19th meeting of
Reviewed and approved the 2020 ESG Report of Tongwei Co.the 7th board of 2021-06-28
Ltd.directors
20th meeting of
Reviewed and approved the Proposal on Investing the 200000 -
the 7th board of 2021-06-30
ton High-purity Polysilicon Project in Leshan
directors
21st meeting of Reviewed and approved 2021 Semi-year Report and its Summary
the 7th board of 2021-08-16 the Special Report on the Storage and use of Funds Raised in in
directors 1H 2021 and the Proposal on Change of Accounting Policies.
22nd meeting of
the 7th board of 2021-10-26 Reviewed and approved 2021 Q3 Report.directors
23rd meeting of
Reviewed and approved the Proposal on Use of Some Idle Funds
the 7th board of 2021-12-10
for Temporary Supplement of Current Funds.directors
47 / 2612021 Annual Report
VI. Performance of duties by directors
(I). Attendances at board of directors meetings and shareholders meetings by directors
Attendance
at
Attendance at board of directors meetings
shareholders
meetings
Number
of board
of
Director Independent directors
Number of
Name director meetings Absence from
Number shareholders
the In By two
Virtual of meeting the
director person proxy consecutive
/ director has
should meetings
attended
have
attended
in the
year
Liu
No 7 7 5 0 0 No 2
Hanyuan
Xie Yi No 7 7 5 0 0 No 2
Yan Hu No 7 7 5 0 0 No 2
Duan
No 2 2 1 0 0 No 2
Yong
Wang
No 7 7 6 0 0 No 0
Xiaohui
Ding Yi No 7 7 6 0 0 No 0
Du
Yes 7 7 6 0 0 No 1
Kunlun
Wang Jin Yes 7 7 6 0 0 No 0
Fu
Yes 7 7 6 0 0 No 1
Daiguo
Note on absence from two consecutive meetings
"□ Applicable" "√ Not applicable"
Number of board of directors meetings held in the year 7
Number of physical meetings 1
Number of virtual meetings 5
Number of virtual and physical combined meetings 1
(II). Director objections on issues of the Company
"□ Applicable""√ Not applicable"
(III). Others
"□ Applicable" "√ Not applicable"
VII. Committees under the board of directors
"√Applicable" "□Not applicable"
(1).Members of committees under the board of directors
Committee Members
Audit Committee Fu Daiguo Du Kunlun and Yan Hu
Nomination Committee Xie Yi Wan Jin and Du Kunlun
Remuneration and Review Committee Du Kunlun Wang Jin and Xie Yi
Strategy Committee Xie Yi Liu Hanyuan Yan Hu Wang Jin and Wang Xiaohui
48 / 2612021 Annual Report
(2).Six meetings held by the Audit Committee in the Reporting Period
Other information on performance
Session date Content Important opinions and recommendations
of duties
Asked for the audit progress of the
1. Based on the audit results over the past years Tongwei Co. Ltd
annual report listened to the audit
has been running in accordance with regulation with robust internal
information from project managers
controls and adequate functioning of its internal audit and supervision
of the accounting firm emphasized
system for effective risk prevention.the importance of external
2. The 2020 Annual Report must be prepared in strict accordance with
auditing in particular audit
Standards on Annual Reports of Publicly Listed Company of CSRC
discrepancies long-term equity
Discussed and reviewed Issues the Notice on 2020 Annual Reporting Disclosure by Companies
investments and impairments
2021-02-19 Concerned relating to the Work of Listed in the Main Board Market of the Shanghai Stock Exchange
revenue and accounts receivable
2020 Annual Report and relevant memos to present the rule accurate and complete
and related-party transactions
information of the Company to investors.required that accountants
3. Given the disclosure timeline 2020 annual report and relevant
responsible for annual report audit
materials of proposals to board of directors must be drafted before
must conduct their work with
April 2 approved by the secretary of board of directors and the
carefulness and justice and urged
financial director and then submitted to the Audit Committee before
the firm to submit the audit report
submitting to the board of directors for discussion and approval.within the specified period.The Audit Committee raised no objection to matters listed by Huaxin
Checked the auditing progress on
Accounting Firm in the Letter. The following views were raised on
annual report on the site.key audit matters including asset impairment:
Emphasized on the need for a good
Considered the Letter of 1. Determination of key audit matters should be subject to sufficient
ending job to submit the audit
Communication with the communications with the management in term of its judgement made
2021-03-31 report by the specified time and
Governance Level from Huaxin in impairment reserve assessment in terms of the accuracy of
communicated with audits from the
Accounting Firm provision for impairment reserve.accounting firm regarding the audit
2. Asked the QC department of the accounting firm to perform full
performance and the actual
discussions on above matters regarding the execution of accounting
conditions of the Company.standards.
1. Considered the 2020 Financial 1. Passed the 2020 Financial Report Audited by Huaxin Accounting
Report Audited by Huaxin Firm.Accounting Firm 2. Passed the Summary Report on 2020 Audit Work by Huaxin
2021-04-03 None.
2. Considered the Summary Report Accounting Firm.
on 2020 Audit Work by Huaxin 3. Passed the Proposal on Renewing the Engagement with the
Accounting Firm Accounting Firm.
49 / 2612021 Annual Report
3. Considered the Proposal on 4. Passed the Proposal on Expected Daily Related-party Transactions
Renewing the Engagement with the in 2021.Accounting Firm 5. Passed the Proposal on 2020 Provision for Impairment Reserve.
4. Considered the Proposal on 6. Passed the Special Report on Storage and Use of Funds Raised in
Expected Daily Related-party 2020
Transactions in 2021 7. Passed the 2020 Performance Report by Audit Committee
5. Considered the Proposal on 2020
Provision for Impairment Reserve
6. Considered the Special Report on
Storage and Use of Funds Raised in
2020
7. Considered the 2020 Performance
Report by Audit Committee
Considered the Progress Report on
Passed the Progress Report on Works Relating to 2021 Semi-year
2021-08-06 Works Relating to 2021 Semi-year None.
Report
Report
Considered the Progress Report on
2021-10-11 Passed the Progress Report on Works Relating to 2021 Q3 Report None.
Works Relating to 2021 Q3 Report
The situation and arrangement of
2021-12-28 2021 annual report audit and Passed the plan of 2021 annual report audit None.
internal control audit
50 / 2612021 Annual Report
(3).Specific circumstances where objections were raised
"□ Applicable" "√ Not applicable"
VIII. Note on the board of supervisors’ identification of the Company risks
"□ Applicable" "√ Not applicable"
The board of supervisors did not raise any objection to matters supervised in the reporting period.IX. Employees of the parent company and major subsidiaries at the end of the reporting period
(I). Employees
Number of active employees of the parent company 1730
Number of active employees of major subsidiaries 30494
Total employees 32224
Number of retirees for whom the parent and major subsidiaries 72
must bear relevant expenses
Profession structure
Profession Number of employees
Production 18837
Sales 3850
Technology 5732
Finance 647
Administration 3158
Total 32224
Education structure
Education background Number of employees
Master or higher 594
Bachelor 6350
Three-year college 7491
Three-year college or lower 17789
Total 32224
(II). Compensation policy
"√ Applicable" "□ Not applicable"
Upholding the principle of "externally competitive and internally fair" the Company has created a
diverse compensation system with fairness competition win-win incentive and lawfulness that combines
incentive compensation with guaranteed compensation explicit compensation with implicit compensation
and short-term compensation with long-term compensation. To keep a properly competitive compensation
system the Company conducts market research and compensation-cost analysis from time to time and
adjusts and optimizes the incentive policy according to value and workload of roles. The leverage role of
performance-based compensation is used to fully motivate employees and increase the Company's
profitability for the sustainable development of the Company.(III). Training plan
"√ Applicable" "□ Not applicable"
Human resources are an important driver for the Company’s sustained development; therefore the
Company attaches high importance to selection employment development and retention of talents. In the
reporting period the Company ensured the effective use and rapid development of employees through
various incentive policies and growth programs integrated high-quality education resources based on the
development system represented by Tongwei Learning Center to gain outstanding operation models and
management approaches and learned from advanced management experience and technologies for the
efficient combination of employee development and use. To respond to diversified development needs
from different levels professions and work types the Company has created a complete training system
coordinating different business lines and subsidiaries. Also the Company encourages employees to
improve themselves by providing financial supports for employees who take part in further education or
training on professional skills.
51 / 2612021 Annual Report
(IV). Labor outsourcing
"□ Applicable" "√ Not applicable"
X. Proposal on profit distribution or capital surplus converted to share capital
(I). Development execution or adjustments of cash dividend policy
"√ Applicable" "□ Not applicable"
The Company conducted the profit distribution in strict accordance with its dividend policy in the
reporting period. The 2020 Profit Distribution Proposal considered at the 18th meeting of the 7th board
of directors on April 09 2021 and approved at the 2020 annual shareholders meeting on May 07 2021
stated that based on the total 4501548184 shares a cash dividend of 2.41 yuan (including tax) per ten
shares would be paid to all registered shareholders for a total cash distribution of 1084873112.34 yuan.This plan was fully executed on May 21 2021.The Shareholder Distribution Plan 2021-2023 approved at the 18th meeting of the 7th board of
directors and the 2020 annual shareholders meeting specified that the Company preferred the cash
dividend policy with minimum dividend payout ratio to ensure the execution of the profit distribution
policy.The 2021 Profit Distribution Proposal raised by the board of directors on April 22 stated that based
on the total 4501548184 shares a cash dividend of 9.12 yuan (including tax) per ten shares would be
paid to all registered shareholders for a total cash distribution of 4105411943.81 yuan. This plan will be
submitted to the 2021 annual shareholders meeting 2021 for consideration.(II). Special note on cash dividend policy
"√ Applicable" "□ Not applicable"
Compliance with provisions of the Articles of Association or resolutions of the "√ Yes"
shareholders meeting "□ No"
Dividend standards and payout ratio are clear "√ Yes"
"□ No"
Relevant decision-making procedures and mechanism are complete "√ Yes"
"□ No"
Independent directors performed their duties and played their role "√ Yes"
"□ No"
Middle and small shareholders had opportunities to fully express their views and "√ Yes"
needs with their legitimate rights and interests fully protected "□ No"
(III). The Company should disclose the reasons and the purposes and plan of these undistributed
profit where the Company achieved profits and the profit attributable to shareholders of the parent
company was positive but no cash dividend proposal was raised
"□ Applicable" "√ Not applicable"
XI. The information of share incentive plan employee share plan and other employee incentive
measures and their impacts
(I). Where relevant incentive matters have been disclosed in interim announcements without
further progress or change
"□ Applicable" "√ Not applicable"
(II). Where relevant incentive matters were not disclosed in interim announcements or further
progress or change occurred
Share incentive
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
52 / 2612021 Annual Report
Employee share plan
"√ Applicable" "□ Not applicable"
1. The 2017 Employee Share Plan expired on January 5 2021. The Company had sold the planned
shares according to the incentive plan to provide returns to employees given their performance review.
2. The Company passed the Proposal on Tongwei Co. Ltd. Employee Share Plan (Draft) 2021-2023
and its Summary at the 17th meeting of the 7th board of directors on February 9 2021 and the first interim
shareholders meeting on February 25 2021 to keep the incentive to employees fully motivate their
creativity and to align the interests of shareholders the Company and employees. The total funds planned
under this Employee Share Plan are not more than 1350 million yuan and will be managed by an asset
manager through a trust/asset management product. The total units of the product are limited to 2700
million and the price per unit is 1 yuan. The ratio of preferred units to common units is not higher than
1:1. The total preferred units are limited to 1350 million and the total common units are limited to 1350
million. The planned duration of this Employee Share Plan is 36 months with shares purchased fromsecondary market. In the reporting period the Employee Share Plan — “China Life Asset Management -Advantage Select 2110 Insurance Asset Management Product” and “China Life Asset Management -Advantage Select 2108 Insurance Asset Management Product” were created with stocks purchased in the
secondary market through public bidding and bulk trade. A total of 76499840 shares for 2633584589
yuan (34.43 yuan per share) were purchased taking up 1.70% of the Company's share capital. These shares
have a locking period from May 21 2021 to May 20 2022.Other incentive measures
"□ Applicable" "√ Not applicable"
(III). Share incentives granted to directors and senior managers in the reporting period
"□ Applicable" "√ Not applicable"
(IV). Evaluation mechanism for senior managers in the reporting period and the development
and execution of incentive mechanism
"√ Applicable" "□ Not applicable"
The board of directors has a Remuneration and Review Committee which is responsible for
developing the performance review criteria for senior managers and conducting the review. Remuneration
to senior managers consists of base salary and performance-based bonus. The Remuneration and Review
Committee pays fair and appropriate salaries given the Company's performance needs of job positions
duties and work performance to ensure the compensation and benefits of employees are competitive in the
market and industry.XII. Development and implementation of internal controls in the reporting period
"√ Applicable" "□ Not applicable"
Refer to the Internal Control Self-Assessment Report disclosed on http://www.sse.com.cn by the
Company on April 26 2022.Note on significant discrepancies in internal controls in the reporting period
"□ Applicable" "√ Not applicable"
XIII. Management and control over subsidiaries in the reporting period
"√ Applicable" "□ Not applicable"
As of the end of 2021 the Company had 263 subsidiaries including 253 domestic companies and 10
overseas companies. The Company held shares directly in 82 subsidiaries and indirectly in 181
subsidiaries.It has completed management and control policies over subsidiaries. Regarding operation and
business control the Company has clear strategic goals. With completed organizational structure and
business processes it has effectively made subsidiaries organic parts for its overall strategy for synergies
in business operation and for the integration creation and sharing of resources. Also subsidiaries submit
production and operation statements to the Company as required so that it gains an understanding of and
control over the operation and management of subsidiaries. Regarding financial control the Company has
53 / 2612021 Annual Report
created a powerful financial control system consisting of clear policies and requirements on financial
budgeting and execution funds with other parties loans and guarantees. Subsidiaries have their financial
affairs managed in strict accordance with the Company's financial management requirements and policies.Regarding personnel management the Company sends directors supervisors and senior managers to
subsidiaries for which it is the controlling shareholder to effectively supervise them. At the same time the
Company enhances the performance review on subsidiaries to better motivate their employees drive their
development and ensure their overall operational targets are met.In the reporting period the Company purchased the aquatic feed company and a part of the swine
feed company under Tech-Bank via cash and effectively integrated assets organizations businesses
personnel and funds to further increase the professionalism and scale of the feed business with an increased
market share and to strengthen its leading position in the industry. Further to help with the smooth
integration with the new subsidiary with the Company it set a Tech-Bank business area for which
managers from the Company were dispatched and increased the publicity activities in the new subsidiary.As of the end of the reporting period the said new subsidiary was integrated under planned schedule
without significant deviation.XIV. Note on relevant information on internal control audit report
"√ Applicable" "□ Not applicable"
Sichuan Huaxin engaged by the Company has audited the Company's 2021 internal controls and
issued a report with standard unqualified opinion details of which are in the 2021 Internal Control Audit
Report on Tongwei Co. Ltd. disclosed on http:www.sse.com.cn on April 26 2022 by the Company.Whether the internal control audit report was disclosed: Yes
Type of audit opinion: Standard unqualified opinion
XV. Correction of problems identified in self-check for the governance of listed companies
The Company has performed a self-inspection subject to the Self-Checklist of Listed Companies and
found no issues to be corrected.XVI. Others
"□ Applicable" "√ Not applicable"
Section V. Environmental and Social Responsibility
I. Environmental information
(I). Note on the environmental protection by companies falling into the key waste discharge
organizations published by the environmental protection authority and their major subsidiaries
"√ Applicable" "□ Not applicable"
1.Waste discharge
"√ Applicable" "□ Not applicable"
In the reporting period the Company strictly observed applicable environmental laws and regulations
in the construction and operation of environmental facilities and wastewater waste gas and solid waste
produced were discharged under relevant standards for clean production. Relevant environmental
information is provided below:
(1) Polysilicon production in Yongxiang
* Major pollutants in the wastewater are COD NH3-N and PH.Discharge method: continuous and stable discharge
Number of discharge outlets: 1
Discharge standards: Grade one standard in Table 4 of Integrated Wastewater Discharge Standard
(GB8978-1996) — COD ≤ 100 mg/l; NH3-N ≤ 15m g/l; 6≤pH≤9.Discharge concentrations: COD 9.85 mg/l NH3-N 0.778 mg/l and PH:7.75 all of which complied with
the standards.Approved annual discharge amount: No limits for COD and NH3-N.
2021 total discharge amount: COD 4.98 tons and NH3-N 0.415 tons.
54 / 2612021 Annual Report
* Major pollutants in the boiler smoke: sulfur dioxide nitrogen oxides and particles
Emission method: continuous and stable emission
Number of emission outlets: 2
Emission standards: Special emission limits in Table 3 of the Emission Standard of Air Pollutants for
Boiler (GB13271-2014) — sulfur dioxide ≤50 mg/m3 nitrogen oxides ≤ 150 mg/m3 (EIA requirement is
80 mg/m3) and particles ≤ 20 mg/m3.
Emission concentrations: sulfur dioxide 0.377 mg/m3 nitrogen oxides 38.73 mg/m3 and particles 1.093
mg/m3 all of which complied with the standards.Approved annual emission amount: No limits for sulfur dioxide and particles; nitrogen oxides ≤ 53.1 tons.
2021 total emission amount: sulfur dioxide 0.1274 ton; particles 0.2234 ton and nitrogen oxides 9.096
tons each of which was lower than the approved amount.
(2) Production of high-purity polysilicon in Yongxiang New Energy
* Major pollutants in the wastewater are COD NH3-N and pH.Discharge method: continuous and stable discharge
Number of discharge outlets: 1
Discharge standards: Grade one standard in Table 4 of Integrated Wastewater Discharge Standard
(GB8978-1996) — COD ≤ 100 mg/l; NH3-N ≤ 15m g/l; 6≤pH≤9.Discharge concentrations: COD 11.771 mg/l NH3-N 2.07 mg/l and PH:7.358 all of which complied with
the standards.Approved annual discharge amount: COD ≤ 43.96 tons and NH3-N ≤ 4.4 tons.
2021 total discharge amount: COD 8.13 tons and NH3-N 1.48 tons each of which was lower than the
approved amount.* Major pollutants in the boiler smoke: sulfur dioxide nitrogen oxides and particles
Emission method: continuous and stable emission
Number of emission outlets: 2
Emission standards: Special emission limits in Table 3 of the Emission Standard of Air Pollutants for
Boiler (GB13271-2014) — sulfur dioxide ≤50 mg/m3 nitrogen oxides ≤ 150 mg/m3 (EIA requirement is
80 mg/m3) and particles ≤ 20 mg/m3.
Emission concentrations: sulfur dioxide 0.67 mg/m3 nitrogen oxides 58.75 mg/m3 and particles 7.5
mg/m3 all of which complied with the standards.Approved annual emission amount: sulfur dioxide ≤ 26.98 tons nitrogen oxides ≤ 76.04 tons and particles
≤ 19.19 tons.Thanks to the effective result of energy saving electric boilers operated in most cases in 2021 while gas-
fired boilers were seldom in use which resulted in much lowered emissions.
2021 total emission amount: sulfur dioxide 0.044 tons; nitrogen oxides 1.863 tons and particles 0.244 tons
each of which was lower than the approved amount.
(3) Production of high-purity crystalline silicon in Inner Mongolia Tongwei
* Major pollutants in the boiler smoke are sulfur dioxide nitrogen oxides and particles;
* Major pollutants in smoke generated from hydrogen production: sulfur dioxide nitrogen oxides and
particles
Emission method: continuous and stable emission
Number of emission outlets: 4
Emission standards on boiler smoke: emission limits for ne boilers in Table 2 of the Emission Standard of
Air Pollutants for Boiler (GB13271-2014) — sulfur dioxide ≤50 mg/m3 nitrogen oxides ≤ 200 mg/m3 and
particles ≤ 20 mg/m3.Emission standards on hydrogen production smoke: Air pollutant limits in Table 4 of the Emission
Standard of Pollutants for Petroleum Chemistry Industry (GB31571-2015) — sulfur dioxide ≤100 mg/m3
nitrogen oxides ≤ 180 mg/m3 and particles ≤ 20 mg/m3.Emission concentrations in boiler smoke: sulfur dioxide 0.67 mg/m3 nitrogen oxides 52.94 mg/m3 and
particles 6.16 mg/m3 all of which complied with the standards.Emission concentrations in smoke from hydrogen production: sulfur dioxide 1.58 mg/m3 nitrogen oxides
35.97 mg/m3 and particles 4.08 mg/m3 all of which complied with the standards.
Approved annual emission amount: sulfur dioxide ≤ 1.459 tons nitrogen oxides ≤ 67.36 tons.
2021 total emission amount: sulfur dioxide 0.21 tons; nitrogen oxides 5.61 tons each of which was lower
than the approved amount.
(4) PVC and sodium hydroxide production in Yongxiang
55 / 2612021 Annual Report
* Major pollutants in the wastewater are COD NH3-N and PH.Discharge method: continuous and stable discharge.Number of discharge outlets: 1
Discharge standards: the Emission Standard of Pollutants for Caustic Alkali and Polyvinyl Chloride
Industry (GB15581-2016) — COD≤60 mg/l NH3-N ≤15 mg/l and 6≤pH≤9.Discharge concentrations: COD 17.52 mg/l NH3-N 6.29 mg/l and PH 6 - 9 all of which complied with
the standards.Approved annual discharge amount: COD ≤ 39 tons and NH3-N ≤ 9.75 tons.
2021 total discharge amount: COD 3.85 tons and NH3-N 0.89 tons each of which was lower than the
approved amount.* Heavy metal is mercury (II) chloride which is mainly used as the catalyst for vinyl chloride synthesis
and coded as HW29 in National Directory of Hazardous Substances must be disposed centrally to
qualified suppliers for treatment and recycle.
(5) Cement production in Yongxiang New Materials
* Major pollutants in the waste gas are dust SO2 and NOX.Emission method: continuous and stable emission
Number of emission outlets: 2
Emission standards: Emission Standard of Air Pollutants for Cement Industry (GB4915-2013). Dust ≤ 10
mg/m3; SO2 ≤ 35 mg/m3; NOx ≤ 100 mg/m3
Emission concentrations: average concentration of dust was 4.95mg/m3 in the kiln head 3.38 mg/m3 in
the kiln tail; average concentration of SO2 was 12.81 mg/m3; average concentration of NOX was 71.76
mg/m3 all of which met the standards.Approved annual emission amount: dust ≤ 51.60 tons SO2 ≤ 150 tons and NOx ≤ 480 tons.
2021 total emission amount: dust from kiln head 10.24 tons dust from kiln tail 8.47 tons SO2 32.17 tons
and NOx 191.23 tons. All of them were lower than the respective approved amount.* Major pollutants in the wastewater are COD and NH3-N.Discharge method: continuous and stable discharge
Number of discharge outlets: 1
Discharge standards: Grade one standards in Integrated Wastewater Discharge Standard (GB8978-1996)
— COD ≤ 100 mg/l; NH3-N ≤ 15m g/l;
Discharge concentrations: COD 14.64 mg/l and NH3-N 0.23 mg/l. Each of them met the standards.Approved annual discharge amount: No limits for COD and NH3-N.
2021 total discharge amount: COD 0.70 ton and NH3-N 0.01 ton.
(6) Production of solar cells in Chengdu:
* Major pollutants in the waste gas are fluoride hydrogen chloride chlorine sulfuric acid mist ammonia
particles and volatile organic compounds (VOC)
Emission method: continuous and stable emission
Number of emission outlets: 30
Emission standards: Ammonia subject to limit in Table 2 of Emission Standards for Odor Pollutants
(GB14554-1993); VOC subject to industrial standards for electronic industry set in Table 3 of Sichuan
Control Standards for Volatile Organic Compounds (DB51/2377-2017); other pollutants subject to limits
for solar cells in Table 5 of Emission Standard of Pollutants for Battery Industry (GB30484-2013).Ammonia ≤ 14 kg/h; VOC ≤60 mg/m3; fluoride ≤3 mg/m3; chlorine ≤5 mg/m3; particles ≤30 mg/m3;
hydrogen chloride ≤5 mg/m3; and NOX ≤ 30 mg/m3.Emission concentrations: fluoride 1.38 mg/m3; chlorine 1.58 mg/m3; particles 6.1 mg/m3; NOx 6.38 mg/m3;
VOC 1.84 mg/m3; hydrogen chloride 0.2 mg/m3; ammonia 0.259 kg/h all of which met the standards.
2021 total emission amount: Nitrogen oxides 49.89 tons and NH3-N 11.11 tons each of which was lower
than the approved amount.* Major pollutants in the wastewater are fluoride CODcr NH3-N and pH.Discharge method: continuous and stable discharge
Number of discharge outlets: 2
Discharge standards: Indirect discharge standards for solar cells in Table 2 of Emission Standard of
Pollutants for Battery Industry (GB30484-2013); CODcr ≤ 150 mg/l; NH3-N ≤ 30 mg/l; pH 6 - 9; fluoride
≤ 8 mg/l.Discharge concentrations: CODcr 22.81 ml/l; NH3-N 3.74 mg/l; pH 7.59 and fluoride 5.35 mg/l. Each of
them met the standards.
56 / 2612021 Annual Report
Approved annual discharge amount: COD ≤ 1109.8 tons and NH3-N ≤ 221.9 tons.
2021 total discharge amount: CODcr 164.12 tons and NH3-N 23.52 tons each of which was lower than
the approved amount.
(7) Production of solar cells in Meishan:
* Major pollutants in the waste gas are chlorine particles VOC and fluoride.Emission method: continuous and stable emission
Number of emission outlets: 15
Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standard
of Pollutants for Battery Industry (GB30484-2013) — nitrogen oxides ≤ 30 mg/m3 fluoride ≤ 3 mg/m3
chlorine ≤ 5 mg/m3; particles ≤ 30 mg/m3; hydrogen chloride ≤ 5 mg/m3; Odor Pollutants (GB14554-1993)
—ammonia ≤ 14 mg/m3 (from industrial waste gas); ammonia ≤ 20 mg/m3 (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) — VOC ≤ 60 mg/m3; grade two limits in Table 2 of
Integrated Standards for Emission of Air Pollutants (GB16297-1996) — sulfuric acid mist ≤ 60 mg/m3.Emission concentrations: fluoride 2.06 mg/m3; chlorine 1.39 mg/m3; particles 10.76 mg/m3; hydrogen
chloride 0.59 mg/m3; VOC 0.63 mg/m3; hydrogen chloride 16mg/m3; sulfuric acid mist not detected;
ammonia 0.21 kg/h (rate) ozone 90.25 all of which met the standards.
2021 total emission amount: Nitrogen oxides 0.737 ton and VOC 2.19 tons.
* Major pollutants in the wastewater are COD NH3-N pH total nitrogen and fluoride.Discharge method: continuous and stable discharge
Number of discharge outlets: 3
Discharge standards: production wastewater is subject to the indirect discharge standards in Table 2 of
Emission Standard of Pollutants for Battery Industry (GB30484-2013) and all pollutant factors and
chlorides are subject to standards for designed inlet water quality of first zone of the wastewater treatment
plant in Xiuwen Town Meishan Industrial Park; general wastewater is subject to standards for designed
inlet water of the artificial wetland in second zone of the said wastewater treatment plant; domestic
wastewater is subject to the grade three standards in Table 4 of Integrated Wastewater Discharge Standard
(GB8978-1996) the grade B limits in Table 1 of Wastewater Quality Standards for Discharge to Municipal
Sewers (GB/T31962-2015) and standards for designed inlet water of the second zone of the said
wastewater treatment plant;
Wastewater discharge concentrations: COD 34.41 mg/l NH3-N 13.35 mg/l PH 7.6 total nitrogen
22.55mg/l and fluoride 5.9 mg/l all of which met the standards.
2021 total discharge amount: COD was 118.10 tons and NH3-N 45.81 tons.
(8) Production of solar cells in Hefei:
* Major pollutants in the waste gas are chlorine particles nitrogen oxides hydrogen chloride VOC and
fluoride.Emission method: continuous and stable emission
Number of emission outlets: 31
Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standard
of Pollutants for Battery Industry (GB30484-2013) — nitrogen oxides ≤ 30 mg/m3 fluoride ≤ 3 mg/m3
chlorine ≤ 5 mg/m3; particles ≤ 30 mg/m3; hydrogen chloride ≤ 5 mg/m3; VOCs ≤ 50 mg/m3subject to
Tianjin Emission Standards for Volatile Organic Compounds from Industrial Enterprises (DB16297-2014).Waste gas emission concentrations: nitrogen oxides 11.94 mg/m3; fluoride 1.08 mg/m3; chlorine 0.38
mg/m3; particles 8.48 mg/m3; hydrogen chloride 1.58 mg/m3; VOCs 4.65mg /m3 all of which met the
standards.
2021 total emission amount: nitrogen oxides 14.881 tons and VOCs 7.866 tons.
* Major pollutants in the wastewater are COD NH3-N pH total nitrogen and fluoride.Discharge method: continuous and stable discharge
Number of discharge outlets: 1
Discharge standards: Indirect discharge standards for solar cells in of Emission Standard of Pollutants for
Battery Industry (GB30484-2013) and standards for Hefei West Zutuan wastewater treatment plant; COD
≤ 150 mg/l; NH3-N ≤ 30 mg/l; 6 ≤ pH ≤ 9; fluoride ≤ 8 mg/l.Wastewater discharge concentrations: COD 87.6 mg/l NH3-N 10.5 mg/l PH 7.75 total nitrogen 21.7mg/l
and fluoride 3.87 mg/l all of which met the standards.
2021 total discharge amount: COD 140.13 tons and NH3-N 18.016 tons
(9) Production of solar cells in Anhui:
57 / 2612021 Annual Report
* Major pollutants in the waste gas are chlorine particles nitrogen oxides hydrogen chloride VOC and
fluoride.Emission method: continuous and stable emission.Number of emission outlets: 12
Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standard
of Pollutants for Battery Industry (GB30484-2013) — nitrogen oxides ≤ 30 mg/m3 fluoride ≤ 3 mg/m3
chlorine ≤ 5 mg/m3; particles ≤ 30 mg/m3; hydrogen chloride ≤ 5 mg/m3; VOCs ≤ 50 mg/m3 subject to
Tianjin Emission Standards for Volatile Organic Compounds from Industrial Enterprises (DB16297-2014).Waste gas emission concentrations: nitrogen oxides 27 mg/m3; fluoride 0.53 mg/m3; chlorine 0.9 mg/m3;
particles 9.92 mg/m3; hydrogen chloride 2.07 mg/m3; VOCs 6.25mg /m3 all of which met the standards.
2021 total emission amount: nitrogen oxides 0.206 ton and VOCs 13.314 tons.
* Major pollutants in the wastewater are COD NH3-N pH total nitrogen and fluoride.Discharge method: continuous and stable discharge.Number of discharge outlets: 1
Discharge standards: Indirect discharge standards for solar cells in of Emission Standard of Pollutants for
Battery Industry (GB30484-2013) and standards for Hefei West Zutuan wastewater treatment plant; COD
≤ 150 mg/l; NH3-N ≤ 30 mg/l; 6 ≤ pH ≤ 9; fluoride ≤ 8 mg/l.Wastewater discharge concentrations: COD 32.05 mg/l NH3-N 9.46 mg/l PH 7.14 total nitrogen 22.25
mg/l and fluoride 3.25 mg/l. Each of them met the standards.
2021 total discharge amount: COD 58.549 tons and NH3-N 17.968 tons.
(10) Production of solar cells in Jintang:
* Major pollutants in the waste gas are hydrogen chloride hydrogen chloride chlorine ammonia
particles and volatile organic compounds (VOC);
Typical pollutant(s): fluoride.Emission method: continuous and stable emission.Number of emission outlets: 9.Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standard
of Pollutants for Battery Industry (GB30484-2013) — fluoride ≤ 3 mg/m3 chlorine ≤ 5 mg/m3; particles
≤ 30 mg/m3; hydrogen chloride ≤ 5 mg/m3; nitrogen oxides ≤ 30 mg/m3. Ammonia ≤20kg/h subject to
limit in Table 2 of Emission Standards for Odor Pollutants (GB14554-1993); VOCs ≤ 60mg/m3 subject
to industrial standards for electronic industry set in Table 3 of Sichuan Control Standards for Volatile
Organic Compounds (DB51/2377-2017). Emission concentrations: fluoride 0.0096 mg/m3 (not detected
in most cases throughout the year); chlorine 1.54 mg/m3; particles 12.8 mg/m3; NOx 10.3 mg/m3; VOC
1.7 mg/m3; hydrogen chloride 0.6 mg/m3; ammonia 2.22 kg/h. Each of them met the standards.
Approved annual emission amount: Nitrogen oxides ≤12 tons and VOCs ≤12.1 tons.
2021 total emission amount: Nitrogen oxides 11.48 tons and VOCs 2.73 tons. All of them were lower than
the respective approved amount.* Major pollutants in the wastewater are pH COD NH3-N and fluoride.Discharge method: continuous and stable discharge.Number of discharge outlets: 1
Discharge standards: Indirect discharge standards in Table 2 of Emission Standard of Pollutants for Battery
Industry (GB30484-2013) — 6≤pH≤9; COD ≤ 150 mg/l; NH3-N ≤ 30 mg/l; fluoride ≤ 8 mg/l. Discharge
concentrations: COD 37.4 ml/l; NH3-N 6.96 mg/l; pH 7.2-7.5 and fluoride 3.58 mg/l. Each of them met
the standards.Approved annual discharge amount: COD ≤ 509.9 tons and NH3-N ≤ 102 tons.
2021 total discharge amount: COD 41.92 tons and NH3-N 7.81 tons; each of which was lower than the
approved amount.
(11) Production of solar cells in Tonghe:
* Major pollutants in the waste gas are fluoride hydrogen chloride chlorine ammonia particles and
volatile organic compounds (VOC).Emission method: continuous and stable emission.Number of emission outlets: 18
Emission standards: For solar cell projects ammonia ≤ 14 kg/h subject to limit in Table 2 of Emission
Standards for Odor Pollutants (GB14554-1993); VOCs ≤ 60 mg/m3 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
58 / 2612021 Annual Report
Pollutants for Battery Industry (GB30484-2013): fluoride ≤3 mg/m3 chlorine ≤5 mg/m3 particles ≤30
mg/m3 and hydrogen chloride ≤5 mg/m3. For wafer cutting projects particles ≤ 120 mg/m3 subject to grade
two limit in Integrated Standards for Emission of Air Pollutants (GB16297-1996) VOCs ≤ 60 mg/m3
subject to industrial standards for electronic industry set in Table 3 of Sichuan Control Standards for
Volatile Organic Compounds (DB51/2377-2017).Emission concentrations: fluoride 0.94 mg/m3; chlorine 0.32 mg/m3; particles 9.5 mg/m3; VOCs 0.64
mg/m3; hydrogen chloride 0.64 mg/m3; ammonia 0.007 kg/h all of which met the standards.Approved annual emission amount: fluoride ≤ 2.08 tons VOCs ≤ 39.904 tons and particles ≤ 8.713 tons.
2021 total emission amount: fluoride 0.16 ton VOCs 0.045 ton and particles 0.22 ton.
* Major pollutants in the wastewater are CODcr SS pH fluoride and TOC.Discharge method: continuous and stable discharge.Number of discharge outlets: 1
Discharge standards: Indirect discharge standards for solar cells in Table 2 of Emission Standard of
Pollutants for Battery Industry (GB30484-2013); CODcr ≤ 150 mg/L; SS ≤ 140; pH 6 - 9; fluoride ≤ 8
mg/l. Discharge standards for materials dedicated to electronic industry in Table 1 of Discharge Standard
of Water Pollution for Electronic Industry (GB 39731-2020): TOC ≤ 200 mg/l.Annual discharge concentrations throughout the year: CODcr 104 mg/l pH 6.8 fluoride 3.46 mg/l TOC
9.6 mgl all of which met the standards.
Approved annual discharge amount: CODcr ≤ 1327.37 tons and fluoride ≤ 39.2 tons.
2021 total discharge amount: CODcr 9.21 tons and fluoride 0.31 ton each of which was lower than the
approved amount.
(12) Production in Chengdu Ronglai Tongwei Feed:
* Major pollutants in the wastewater are COD NH3-N and total nitrogen.Discharge method: continuous and stable discharge.Number of discharge outlets: 1
Discharge standards: COD ≤ 500 mg/l NH3-N ≤ 45 mg/l and total nitrogen ≤ 70 mg/l subject to
Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015).Discharge concentrations: COD was 20 mg/l and NH3-N 12.5 mg/l; all of which met the standards.Approved annual discharge amount: COD ≤ 0.6 ton and NH3-N ≤ 0.06 ton.
2021 total discharge amount: COD was 0.043 ton and NH3-N 0.027 ton.
* Major pollutants in the waste gas are particles;
Emission method: continuous and stable emission.Number of emission outlets: 3
Emission standards: particles ≤ 120 mg/m3 subject to Integrated Standards for Emission of Air Pollutants
(GB16297-1996).Emission concentrations : particles 7.71 mg/m3.Approved annual emission amount: particles 1.29 tons.
2021 total emission amount: particles 0.9 ton lower than the approved amount.
(13) Production in Shashi Tongwei Feed:
* Major pollutants in the wastewater are COD NH3-N and total nitrogen.Discharge method: continuous and stable discharge.Number of discharge outlets: 1
Discharge standards: COD ≤ 500 mg/l NH3-N ≤ 45 mg/l and total nitrogen ≤ 70 mg/l subject to
Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015);
Discharge concentrations: COD 60mg/ l: NH3-N 5 mg/l and total nitrogen 15 mg/l; all of which met the
standards.Approved annual discharge amount: COD 0.744 ton NH3-N 0.062 ton and total nitrogen 0.186 ton.
2021 total discharge amount: COD 0.22 ton NH3-N 0.019 ton and total nitrogen 0.056 ton.
(14) Chunyuan Food Company:
* Major pollutants in the wastewater are COD NH3-N PH SS BOD animal fats and vegetable oils
total phosphorus and total nitrogen.Discharge method: intermittent discharge.Number of discharge outlets: 1
Discharge standards: grade three limits for livestock processing in Table 3 of Discharge Standard of Water
Pollutants for Meat Packing Industry (GD13457-1992) — COD 500 mg/l no limit on NH3-N PH 6.0-
8.5 SS 400 mg/l BOD 500 mg/l animal fat and vegetable oils 60 mg/l no limit on total phosphorus and
59 / 2612021 Annual Report
no limit on total nitrogen.Discharge concentrations: COD 18 mg/l NH3-N 9.53 mg/l PH 7.5 SS 12 mg/l BOD 18 mg/l animal fat
and vegetable oils 0.16 mg/l total phosphorus 2.91 mg/l and total nitrogen 12 mg/l all of which met the
standards.Approved annual discharge amount: COD 357.5 tons no limits on other pollutants.
2021 total discharge amount: COD 9.66 tons lower than the approved amount.
* Major pollutants in the boiler smoke: sulfur dioxide nitrogen oxides and particles
Emission method: continuous and stable emission.Number of emission outlets: 1
Emission standards: Emission Standard of Air Pollutants for Boilers in Chengdu and random waste gas
emission at facility boundaries is subject to new construction and expansion standards of grade two in
Table 1 of Emission Standards for Odor Pollutants (GB14554-93). Odor