[年报]通威股份:通威股份有限公司2020年年度报告（英文版）
原标题:通威股份:通威股份有限公司2020年年度报告（英文版） Company Code：600438 Abbreviation: Tongwei Co., Ltd. Tongwei Co., Ltd. 2020 Annual Report April 13, 2021 Important Notes I. The Board of Directors and Board of Supervisors, as well as directors and the management of the Company guarantee that the present Annual Report is true, accurate and complete in contents without false record, misleading statement or major omission, and undertake the individual and joint legal responsibilities therefore. II. All directors of the Company attended the board meeting. III. Sichuan Huaxin (Group) CPA Firm (Special General Partnership) has provided a standard and unqualified audit report. IV. Xie Yi, head of the Company, Zhou Bin, the person in charge of accounting work, and Lei Jiaowen, the person in charge of the accounting firm (accountant in charge) announce to guarantee the truth, accuracy and integrity of financial reports in the Annual Report. V. Profit Distribution Plan or Capital Reserves Share Capitalization Plan for the reporting period, reviewed by the Board of Directors According to the capital and investment situation of the Company in 2021, based on the current general capital 4,501,548,184 shares of the Company, a cash dividend of RMB 2.41 for every 10 shares (including tax) is distributed to all shareholders of the Company, and the total cash dividend is RMB 1,084,873,112.34 yuan. The plan has been reviewed and approved at the eighteenth meeting of the seventh board of directors of the Company, and needs to be submitted to the shareholders meeting of the Company for review and approval. VI. Risk statement of forward-looking statements √Applicable □Inapplicable 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. Is any capital occupied by a controlled shareholder or its related parties for non-operating purpose? No VIII. Is there any external guarantee that violates the prescribed decision-making procedures? No IX. Whether more than half of the directors cannot guarantee the authenticity, accuracy and completeness of the annual report disclosed by the Company? No X. Major risk warning The Company had already elaborated possible risks in this Report. Please refer to the contents about the possible risks and countermeasures included in the discussion and analysis of the Company's future development in Section IV Discussion and Analysis on Operation. XI. Others □Applicable √Inapplicable *The 2020 Annual Report of Tongwei Co., Ltd. was published both in Chinese and English. Where any discrepancy arises between the English translation and the original Chinese version, the Chinese version shall prevail. The English version here was only used for investors’ reference. Table of Contents Section I Definition ................................ ................................ ................................ ............................ 4 Section II Company Profile and Major Financial Indexes................................ .............................. 5 Section III Summany on Company Business ................................ ................................ ..................... 9 Section IV Discussion and Analysis on Operation................................ ................................ ........... 14 Section V Important Matters ................................ ................................ ................................ .......... 40 SectionVI Changes in Common Stock Equity and Shareholders ................................ ................. 70 SectionVII Preferred Shares ................................ ................................ ................................ .............. 82 SectionVIII Conditions on Directors, Supervisors and Senior Management and Staff ................. 83 Section IX Company Governance ................................ ................................ ................................ .... 90 Section X Information on Company Bonds ................................ ................................ ................... 92 Section XI Financial Report ................................ ................................ ................................ .............. 93 Section XII List of Documents Available for Inspection……………………………………….…246 Section I Definition I. Definition Unless otherwise required, the following terms shall have the following meanings in this report: Definition of common terms Tongwei Co., Ltd., Company, the Company refers to Tongwei Co., Ltd. Tongwei Co., Ltd. refers to Tongwei Co., Ltd. Yongxiang refers to Sichuan Yongxiang Co., Ltd. Yongxiang Polysilicon refers to Sichuan Yongxiang Polysilicon Co., Ltd. Yongxiang New Energy refers to Sichuan Yongxiang New Energy Co., Ltd. Inner Mongolia Tongwei refers to Inner Mongolia Tongwei High-purity Crystalline Silicon Co., Ltd. Yunnan Tongwei refers to Yunnan Tongwei High- purity Crystalline Silicon Co., Ltd. Tongwei New Energy refers to Tongwei New Energy Co., Ltd. Tongwei Solar (Hefei) refers to Tongwei Solar (Hefei) Co., Ltd. Tongwei Solar (Anhui) refers to Tongwei Solar (Anhui) Co., Ltd. Tongwei Solar (Chengdu) refers to Tongwei Solar (Chengdu) Co., Ltd. Tongwei Solar (Meishan) refers to Tongwei Solar (Meishan) Co., Ltd. Tongyu Property refers to Chengdu Tongyu Property Co., Ltd. Leshan Phase-II 50,000MT High-purity Polysilicon Project refers to Technical improvement project for PV silicon material (Phase-II high-purity polysilicon project) Baoshan Phase-I 50,000MT High-purity Polysilicon Project refers to High-purity polysilicon green energy project (Phase-I 50,000MT high-purity polysilicon project) Baotou Phase-II 50,000MT High-purity Polysilicon Project refers to Manufacturing project of PV silicon material (Phase-II 50,000MT high-purity polysilicon project) Meishan Phase-I 7.5GW High-efficiency Solar Cell Project refers to The Phase-I application project of domestic intelligent equipment (system) with an annual capacity of 7.5GW high- efficiency crystalline silicon solar cells Meishan Phase-II 7.5GW High-efficiency Solar Cell Project refers to Smart factory project with an annual capacity of 7.5GW high-efficiency crystalline silicon solar cells (Meishan Phase-II) Jintang Phase-I 7.5GW High-efficiency Solar Cell Project refers to Smart interconnected factory project with an annual capacity of 7.5GW high-efficiency crystalline silicon solar cells ((Jintang Phase-I) Leshan Monocrystalline Ingots Cutting Project refers to 15GW monocrystalline ingots cutting project Tongwei Media refers to Chengdu Tongwei Culture Media Co., Ltd. China Securities Regulatory Commission/CSRC refers to China Securities Regulatory Commission Shanghai Stock Exchange refers to Shanghai Stock Exchange Designated information disclosure media refers to China Securities Journal, Shanghai Securities Journal, Securities Daily, Securities Times LONGi refers to Xi'an Longi Green Energy Technology Co., Ltd. Zhonghuan refers to Tianjin Zhonghuan Semiconductor Co., Ltd. Trina Solar refers to Trina Solar Co., Ltd. Jinko Solar refers to Jinko Solar Co., Ltd. Sichuan Jinko refers to Sichuan Jinko Solar Co., Ltd. Metco Silicon Energy refers to Baotou Metco Silicon Energy Co., Ltd. Sichuan Huaxin refers to Sichuan Huaxin (Group) CPA Firm (Special General Partnership) Conversion efficiency refers to Measure the ability of solar cells to convert light energy into electrical energy Convertible bond refers to Convertible corporate bond W refers to Watt, the unit of power KW, MW, GW refers to Power unit, 1KW=1000W, 1MW=1000KW, 1GW=1000MW High-purity polysilicon refers to High-purity metal silicon with purity greater than 99.9999999%. 166mm cell refers to The cell produced with M6 silicon wafer (with a length of 166mm) with area 12.21% larger than that of conventional M2 silicon wafer (with a length of 156.75mm). 210mm cell refers to The cell produced with M12 silicon wafer (with a length of 210mm) with area 80.5% larger than that of conventional M2 silicon wafer (with a length of 156.75mm). PERC cell refers to Passivated Emitter and Rear Contact, a high-efficiency crystalline silicon solar cell structure, where a passivation layer forms on the back surface of AL2O3 film or SiNX to deal with the high carrier recombination on the back surface of all aluminum back surface field solar cell, and then the film will be opened to make the aluminum back surface field effectively contact with the silicon substrate. TOPCON cell technology refers to 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 passivation contact structure, thus increasing the open-circuit voltage and short- circuit current of the cell and then improving the photoelectric conversion efficiency rate of the cell. HJT cell technology refers to Hetero-junction with Intrinsic Thin-layer, a high-efficiency crystalline silicon solar cell structure, a hybrid solar cell made of crystalline silicon substrate and amorphous silicon thin film, i.e. adding a non-doped (intrinsic) hydrogenated amorphous silicon thin film between P-type hydrogenated amorphous silicon and N-type hydrogenated amorphous silicon and N-type silicon substrate. HJT cell has the advantages of low process temperature, good passivation effect, high open-circuit voltage, double-sided power generation, etc. CTM value refers to The percentage of the total output power of the module to the cell power shows the degree of module power loss. The higher CTM value shows the smaller degree of module package power loss. Reporting period refers to From January 1, 2020 to December 31, 2020 CPIA refers to China Photovoltaic Industry Association IRENA refers to International Renewable Energy Agency Section II Company Profile and Major Financial Indexes I. Company Information Chinese name 通威股份有限公司 Abbreviation of Chinese name 通威股份 English name TONGWEI CO., LTD. Abbreviation of English name TONGWEI CO., LTD. Legal representative Xie Yi II. Contact and Contact Information Secretary of the Board of Directors Representative of Securities Affairs Name Yan Ke Li Huayu Address Tongwei International Center (TIC), No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu Tongwei International Center (TIC), No. 588, Middle Section Tianfu Avenue, High- Tech Zone, Chengdu Tel: 028-86168552 028-86168553 Fax 028-85199999 028-85199999 [email protected] [email protected] III. Basic Information Registered address No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu Postal code 610041 Business address No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu Postal code 610041 Website http://www.tongwei.com.cn [email protected] IV. Information Disclosure and Location Information disclosure media designated by the Company China Securities Journal, Shanghai Securities News, Securities Daily, Securities Times Website designated by CSRC for publishing annual report www.sse.com.cn Place of preparing annual report Securities Department of the Company V. Stock Information Stock information Type Stock exchange Stock abbreviation Stock code Stock abbreviation before change A-shares Shanghai Stock Exchange Tongwei Co., Ltd. 600438 VI. Other information Accounting Firm engaged by the Company (domestic) Name Sichuan Huaxin (Group) CPA Firm (Special General Partnership) Business address 28th Floor, Jinmao Lidu South, No. 18, Ximianqiao Street, Chengdu Name of the accountants with signature Feng Yuan, He Shoufu, Gou Jing Sponsor institutions that perform continuous supervision duties during the reporting period Name China Securities Co., Ltd. Business address Building B and E, Kaiheng Center, No. 2 Chaonei Street, Dongcheng District, Beijing Name of sponsor representatives with signature Pu Fei, Liu Bo Period of continuous supervision Continuous supervision period of convertible bonds: from March 18, 2019 to December 31, 2020 Sponsor institutions that perform continuous Name China Securities Co., Ltd. Business address Building B and E, Kaiheng Center, No. 2 Chaonei Street, Dongcheng District, Beijing supervision duties during the reporting period Name of sponsor representatives with signature Li Puhai, Pu Fei Period of continuous supervision Continuous supervision period of non-public offering: from December 10, 2020 to December 31, 2021 VII. Major Accounting Data and Financial Indexes in the Recent Three Years (I) Major accounting data Unit: Yuan Currency: RMB Major accounting data 2020 2019 Increase/decrease in this period over last year (%) 2018 Operating revenue 44,200,270,334.23 37,555,118,255.70 17.69 27,535,170,274.25 Net profit attributable to shareholders of the listed company 3,607,923,359.56 2,634,568,828.17 36.95 2,018,746,008.65 Net profit net of non-recurring gains and losses attributable to shareholders of the listed company 2,408,554,229.37 2,314,484,711.22 4.06 1,909,390,964.39 Net cash flow from operation activities 3,024,927,931.94 2,357,465,207.68 28.31 3,099,620,044.15 At the end of 2020 End of 2019 Increase/ decrease at the end of this period over last year (%) At the end of 2018 Net assets attributable to shareholders of the listed company 30,541,405,029.73 17,577,046,993.09 73.76 14,737,718,118.23 Total assets 64,251,948,070.91 46,820,950,745.60 37.23 38,483,631,552.68 (II) Major financial indexes Major financial indicators 2020 2019 Increase/decrease in this period over last year (%) 2018 Basic earnings per share (yuan/share) 0.8581 0.6786 26.45 0.5200 Diluted earnings per share (yuan/share) 0.8466 0.6558 29.09 0.5200 Basic earnings per share net of non-recurring gains and losses(yuan/share) 0.5729 0.5961 -3.89 0.4918 Weighted average return on equity (%) 16.13 16.14 reduce by 0.01ppt 14.43 Weighted average return on equity net of non-recurring gains and losses（%） 10.77 14.18 reduce by 3.41 ppt 13.65 Explanation on major accounting data and financial indexes in the last three years at the end of reporting period □ Applicable √Inapplicable VIII. Differences in accounting data under the accounting standards both at home and abroad (I) Difference in net profit and the net assets attributable to shareholders of the listed company in the Financial Reports disclosed simultaneously according to the International Accounting Standard and China Accounting Standard □ Applicable √Inapplicable (II) Difference in net profit and the net assets attributable to shareholders of the listed company in the Financial Reports disclosed simultaneously according to foreign accounting standard and China Accounting Standard □ Applicable √Inapplicable (III) Explanation of differences between foreign and domestic accounting standards: □ Applicable √Inapplicable IX. 2020 Major Financial Data in Quarters Unit: Yuan Currency: RMB 1st Quarter (January - March) 2nd Quarter (April - June) 3rd Quarter (July - September) 4th Quarter (October - December) Operating revenue 7,825,137,178.03 10,913,464,753.53 12,939,507,273.67 12,522,161,129.00 Net profit attributable to shareholders of the listed company 344,466,430.76 665,992,893.50 2,322,106,738.43 275,357,296.87 Net profit net of non- recurring profit and loss attributable to shareholders of the listed company 316,119,847.57 642,933,054.92 953,578,016.12 495,923,310.76 Net cash flow from operating activities 434,113,263.66 582,042,704.85 1,022,333,994.49 986,437,968.94 Explanation on differences between quarterly data and previously disclosed accounting period data □Applicable √Inpplicable X. Item and Amount of Non-Recurring Profit and Loss √Applicable □ Inapplicable Unit: Yuan Currency: RMB Non-recurring profit and loss items Amount in 2020 Note (if applicable) Amount in 2019 Amount in 2018 Profit and loss on disposal of non- current assets 1,541,869,733.03 149,118,467.74 47,863,656.09 Government subsidies included in current profit and loss, but except the government subsidies closely related to the normal operating businesses of the Company, complying with stipulations of national policies and continuously enjoyed rationally or 296,657,874.92 204,753,562.81 79,650,132.05 quantitatively based on a certain standard Profit or loss from debt restructuring -1,162,174.00 Net current profit and loss of the subsidiaries acquired in business combination involving entities under common control from the beginning of the period to the combination date -1,555,296.53 In addition to the effective hedging business related to the normal business operations of the Company, the fair value gains and losses arising from holding transactional financial assets, derivative financial assets, transactional financial liabilities, and derivative financial liabilities, as well as the investment income from the disposal of transactional financial assets, derivative financial from assets, transactional financial liabilities, derivative financial liabilities and other debt investments; 14,385,110.27 Non-operating income and expenses other than aforementioned items -439,396,332.17 29,661,420.53 5,130,754.97 Affected amount of minority equity -4,655,892.34 -1,687,142.53 -1,470,212.96 Affected amount of the income tax -209,491,363.52 -60,600,017.60 -20,263,989.36 Total 1,199,369,130.19 320,084,116.95 109,355,044.26 XI. Items measured by fair values □ Applicable √Inapplicable XII. Others □ Applicable √Inapplicable Section III Summary on Company Business I. Explanation of the main business, business model and industry situation that the Company is engaged in during the reporting period Adhering to the corporate 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 collaborative development. Its main business and position in the industrial chain are shown in the figure below: Monocrystalline module Multicrystalline module PV powerplant PV power generation Aquatic husbandry Fishery& PV Integration Monocrystalline silicon wafer Aquatic seedlings Multicrystalline cell Polysilicon Monocrystalline cell Agricultural industrial chain Multicrystalline silicon ingots Multicrystalline silicon wafer Monocrystalline silicon rods PV new energy industrial chain Livestock processing Aquatic processing Livestock husbandry Aquatic husbandry Livestock feed Aquatic feed Livestock babies Note: Core businesses of the Company are in the dashed boxes In agriculture segment, the major business of the Company is the research and development, production and sales of aquatic feed, livestock feed and other products. Among them, aquatic feed has always been the core product of the Company and the main profit source of the Company in agriculture and animal husbandry segment. As of the end of the reporting period, the Company owns more than 70 subsidiaries 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. The production and sales network of the Company has covered the most parts of China and Southeast Asian countries such as Vietnam, Bangladesh, and Indonesia. In new energy segment, the Company focuses on the research, production, and sales of high-purity polysilicon and solar cells, and is committed to the investment, construction and operation and maintenance of the "Fishery& PV Integration" powerplant. As of the end of the reporting period, the Company has formed an annual capacity of 80,000MT of high-purity polysilicon, and an annual capacity of 27.5GW of solar cells, of which the annual capacity of monocrystalline cells is 24.5GW. On the comprehensive application, the Company focuses on the development and construction of large-scale "Fishery& PV Integration" bases, and strives to create a model with core competitive advantages of ecological farming + green energy, strengthens the coordinated development of industries, explores new aquaculture models by selecting high-quality water resources and on the premise of ensuring power consumption conditions, continuously promotes the large-scale, professional and intelligent development of the "Fishery& PV Integration ", and brings new profit for companies, farmers and other partners. II. Explanation of Major Changes in the Company’s Principal Assets in the Reporting Period √Applicable □Inapplicable Item name December 31, 2020 December 31, 2019 Year-on-year change amount Change proportion (%) Cash at bank and on hand 6,264,168,242.03 2,692,681,748.77 3,571,486,493.26 132.64 Receivables financing 9,711,898,567.92 4,392,541,416.88 5,319,357,151.04 121.10 Prepayments 1,113,458,878.37 389,875,898.15 723,582,980.22 185.59 Long-term prepaid expenses 835,269,963.57 607,333,082.04 227,936,881.53 37.53 Deferred tax assets 415,550,864.14 244,903,723.68 170,647,140.46 69.68 Other non-current assets 1,547,022,743.45 1,056,166,007.39 490,856,736.06 46.48 The increased cash at bank and on hand is mainly due to the non-public offering of the Company and the received raised funds; The increased receivables financing is mainly due to the bill pool business of the Company, and the increased bank acceptance bills into the pool with the expansion of the business scale; The increased prepayments are mainly due to the expansion of the business scale of the Company, and the increased prepayments for electricity and raw material purchase; The increased long-term prepaid expenses are mainly due to the expansion of the business scale of the Company and the increased water surface lease fees; The increased prepaid income tax assets are mainly due to the provision of asset impairment loss, and the prepaid income tax assets confirmed by the corresponding tax difference; Other increased non-current assets are mainly due to the increased new projects of the Company and the increased prepayments for engineering equipment. Among them: overseas assets 1,173,166,229.60 (unit: yuan currency: RMB), accounting for 1.83% of total assets. III. Core Competitiveness Analysis in the Reporting Period √Applicable □Inapplicable (I) Clear strategic planning and positioning The Company, on the one hand, focuses on technological innovation and intelligent manufacturing in the main components of the PV industry, and promotes the large-scale application of clean energy, and on the other hand, is committed to creating a green healthy aquatic product industrial chain to meet people’s consumption demands 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-medium-term development plan is "to build and consolidate the leading position of global high-purity polysilicon, solar cells and aquatic feed." (II) Leading technical research and development capabilities Regarding science and technology as the primary productive force, the Company attaches great importance to technology research and development. For each business segment, it has built a scientific research team led by experts, and has increased the investment in technology research and development. As a result, the Company has achieved great achievements in scientific research over the years, which has created value for the Company. (1) Agriculture and animal husbandry segment The technology center of the Company is a national-level enterprise technology center jointly affirmed by five ministries and commissions including the National Development and Reform Commission and the Ministry of Science and Technology. After years of construction and operation, the technical center has established a complete organizational structure and operating mechanism of scientific research and innovation, which specializes in animal nutrition and feed, animal breeding and cultivation, animal health, automated breeding facility project, aquatic and livestock products processing, and other research and technology integration related to the biotechnology; and the important technical support is provided for the Company's development by transforming innovative research results into actual productivity. The aquatic product research institute, special aquatic product research institute, livestock research institute, animal health research institute, facility fishery engineering research institute, aquatic product engineering center, testing center and other scientific research institutions are set under the technology center; the innovative research is guided effectively, the innovation goals are clarified, the innovation tasks are refined to ensure innovation results. During the reporting period, the technology center increased R&D investment in the quality control and quality improvement of intelligent breeding, used advanced domestic and foreign equipment, promoted the construction of bases, and enhanced the core competitiveness of the Company in the field of aquaculture and intelligent breeding; and an open experimental research and service platform is provided in the industry. As of the end of the reporting period, the Company had applied for 699 patents and obtained 506 authorized patents. The Company is approved to establish a testing method standardization working group of the National Feed Industry Standardization Technical Committee, and it indicates that the Company has taken an important step on the road to participate in the national standardization work actively. At the same time, the Company presided over the revision of Determination of Isothiocyanate in Feed, Determination of Oxazolidine Thione in Feed and the two industry standards Turbot Formula Feed, Determination of Unsaponifiable Matter in Feed Ingredients- n-hexane Extraction Method has been officially released and implemented, and the two industry standards of Procambarus Clarkii Formula Feed and Tanghead Bream Formula Feed have passed preliminary review; and other nine national standards and five industry standards that the Company presided over or participated in the formulation and revision are under study and formulation. In addition, the group standard of General Technical Specification for the Integration of Fishery and PV, which was initiated by the China Fishery Association and formulated by the Company, has been formally implemented in January 2021. For a long time, the Company has established a young, high-quality scientific and technological innovation team, which continuously consolidates the Company's scientific research capabilities and continuously improves product competitiveness under the lead of the experts with special government allowances from the State Council. (2) PV new energy segment To further strengthen independent research and development capabilities, grasp future development opportunities in core technologies, products and application fields, continue to strengthen the Company's core competitiveness, and ensure the sustainable and healthy development, the Company has established a PV technology center based on the original scientific research system of various PV business segments, and set up a scientific research and technical team mainly composed of well-known experts in the industry, promoted the technology research and development and technology integration in all links of the PV industrial chain, and focused on the cross-segment link and integration work of new technologies and new products (such as TOPCON, HJT) during the mass production process, deepened 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 of the industry (including HBC, perovskite, laminated cell/module, PV + storage Technology). In terms of high-purity polysilicon, after years of development, the Company has formed a number of achievements with independent intellectual property rights in the core technology fields of cold hydrogenation, large-scale energy-saving rectification, high-efficiency reduction, tail gas recovery, trichlorosilane synthesis and anti-disproportionation. It is at an advanced level in the industry, the proportion of mono-grade in the current products has reached more than 98%, and the batch supply of N- type materials can be realized, and the situation that domestic high-quality silicon materials still need to be partly imported is effectively alleviated. As of the end of the reporting period, Yongxiang has applied for 365 patents and obtained 222 authorized patents. In terms of solar cells, the Company has formed a number of technological achievements with independent intellectual property rights in the core technology fields of atomic layer deposition back passivation, selective emitter technology, double-sided cells, multi-grid, HJT cells, and high-efficiency modules. On the one hand, the Company focuses on the current mainstream PERC technology, and improves and optimizes the technology by superimposing other process technologies (such as multi-grid, high-resistance dense grid, alkali polishing, TOPCON, etc.) to improve conversion efficiency and reduce production cost. On the other hand, the Company continues to increase the investment in tracking and research and development of new cell technologies. The HJT cell R&D production line of the Company was officially put into operation in June 2019. After continuous R&D and improvement, the current maximum conversion efficiency of HJT cell has reached 25.18%. At the same time, the Company will build a 1GW HJT pilot line to further improve equipment selection, optimize process technology and improve product cost-effectiveness based on the research and development production lines. (III) Scale and cost advantage (1) Agriculture and animal husbandry segment The Company is a national key leading enterprise in the industrialization of agriculture. At present, the business covers China and Southeast Asia with the annual feed capacity is more than 10 million tons. It is the leading aquatic feed and important livestock feed manufacturer in the world. It has intensive advantages in raw material purchasing, production organization and market expansion. (2) PV new energy segment The Company has formed an annual capacity of 80,000MT of high-purity polysilicon, and the annual capacity under construction exceeds 150,000MT. Various consumption indicators and costs have been continuously reduced. The average cost of Leshan Phase-I and Baotou Phase-I was reduced to 36,300yuan/MT in 2020. With the continuous improvement of technical processes and the continuous expansion of capacity, the cost level will be further optimized after the projects under construction of the Company reach the target capacity. In terms of solar cells, with the production of the 7.5GW 21X large-size cell project of Meishan Phase-I in 2020, as of the end of the reporting period, the annual solar cell capacity of the Company has reached 27.5GW, and the non-silicon cost of monocrystalline PERC cell products has reached within 0.2 yuan/w. As the large-scale projects in Meishan and Jintang are put into production one after another, it is estimated that the annual solar cell capacity of the Company will exceed 55GW by the end of 2021, the size structure will be further optimized, and the cost advantage will be further improved. (IV) Quality and brand advantages (1) Agriculture and animal husbandry segment Since the establishment in 1992, the Company has formed a series of formula feeds that can meet the needs of various aquatic animals through continuous R&D and improvement. After years of market verification, the feed quality and market services of the Company have been highly recognized by farmers and have become 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", the aquatic and livestock food processing bases were built in Sichuan and Hainan, processed and produced strictly pursuant to the requirements of the HACCP quality management system, realized the quality monitoring and traceability “from source to table”, and effectively enhanced the value and competitiveness of the industrial chain. (2) PV new energy segment Relying on the Sichuan Polysilicon Engineering Technology Research Centre, the Company researches automatic reduction process technology, multiphase flow technology, reduction heat cascade utilization, boron/phosphorus/carbon and other impurity removal technologies to ensure that the high- purity polysilicon quality of the Company is at the industry’s leading level, the product structure is continuously optimized and the proportion of mono-grade products is increased greatly, and a long-term cooperative relationship with major downstream monocrystalline silicon wafer manufacturers is formed, and the quality has been highly recognized by customers. The high-purity polysilicon segment of the Company won the "Third National Petrochemical Advanced Group", "Safety Production Standardization Second-level Enterprise", "Sichuan Quality Benchmark and Advanced Quality Management Enterprise", and "Sichuan High-purity Crystalline Silicon Preparation Technology Engineering Laboratory", "Sichuan Province Postdoctoral Innovation Practice Base", "Sichuan Province Patent Innovation and Entrepreneurship Award", "Energy Saving and Emission Reduction Pioneer Enterprise", "Excellent Photovoltaic Material Supplier", "2020 Environmental and Social Responsibility Enterprise", "Practicing Corporate Responsibility, Promoting Green Development Award" and "OFweek Cup 2020 Excellent Photovoltaic Material Supplier" and other honors issued by the national, provincial and industry associations; and the brand value and social recognition of the Company are reflected completely. The solar cell conversion efficiency rate, yield rate, fragmentation rate, CTM value and many other indicators of the Company are at the leading level in the industry, and the quality is widely recognized by customers, and it has obtained a number of professional certifications at home and abroad. The cell segment of the Company has won many honorary titles including "Excellent Quality Supplier" awarded by Jinko Solar Co., Ltd., "Best Quality Supplier" awarded by GCL System Integration Technology Co., Ltd., "Excellent Supplier" and "Product Quality Inspection-Exempt Supplier" awarded by Canadian Solar Inc., "Excellent Supplier" awarded by Trina Solar Co., Ltd. and "Strategic Supplier" awarded by Risen New Energy Co., Ltd. In 2020, the Company also won the "National Smart Photovoltaic Pilot Demonstration Enterprise", "National Enterprise Technology Center", "National Green Supply Chain", "National Model Workers Home", "Sichuan Science and Technology Progress Award", "Sichuan Engineering Technology Research Center", "Sichuan Technological Innovation Demonstration Enterprise", "Top 100 Sichuan Enterprises", "Sichuan Province Worker’s Home Demonstration Site", "Anhui Province Manufacturing and Internet Integration Pilot Demonstration Enterprise", "Anhui Province 100 Excellent Private Enterprise", "Anhui Province Harmonious Labor Relations Demonstration Enterprise", "China Photovoltaic Top Ten Suppliers of Cells/Modules in 2020" and many other national, provincial and industry awards. (V) Unique development model of Fishery& PV Integration The Company has the unique advantages of resource integration in the terminal, and has formed an innovative development model of "Fishery &PV Integration" with "power generation on the top and fish （未完）  |