[年报]通威股份(600438):通威股份有限公司2021年年度报告（英文版）
原标题:通威股份:通威股份有限公司2021年年度报告（英文版） Tongwei Co., Ltd. Annual Report 2021 Important Notice I. The board of directors, board of supervisors as well as directors, supervisors and senior managers of the Company are responsible for the authenticity, accuracy and completeness of the information contained in this Annual Report without false records, misleading statements or material omissions, and assume joint and several liability therefor. II. All directors of the Company have been presented in the board meeting. III. Sichuan Huaxin (Group) CPA (Special General Partnership) has issued a standard unqualified opinion on the Company. IV. Xie Yi, Head of the Company, Zhou Bin, Head of accounting affairs and Lei Jiaowen, Head of accounting department represent that they are responsible for the authenticity, accuracy and completeness of the financial statements in this Annual Report. V. The proposal on profit distribution or the proposal on conversion of capital reserve to share capital for the year of 2021 resolved in the board meeting Given the funds and investments of the Company in 2022, based on the total 4,501,548,184 shares of the Company, a cash dividend of 9.12 yuan (including tax) per ten shares would be distributed to all shareholders for a total distribution of 4,105,411,943.81 yuan. This proposal has been approved in the 28th session of the seventh board of directors, and has not been submitted to the shareholder meeting for approval. VI. Cautionary note on forward-looking statement "√ Applicable" "□ Not applicable" The forward-looking statements of the Company regarding its future development strategies and business plans do not constitute any substantial commitment of the Company to investors; and the investors should pay attention to risks. VII. Any funds possessed by the controlling shareholder and other related parties for non-operating purposes? No VIII. Any outward guarantee by the Company in violation of the prescribed decision-making procedures? No IX. More than half of the directors cannot guarantee the authenticity, accuracy and completeness of this Annual Report? No X. Note on significant risks The Company had detailed possible risks in this Report. Please refer to VI Discussion and Analysis on the Company's Future Development in Section III Management Discussion and Analysis for more information on possible risks and actions. XI. Others "□ Applicable" "√ Not applicable" Contents Section I. Definitions ........................................................................................................................... 4 Section II. Company Profile and Major Financial Indicators ............................................................... 6 Section III. Management Discussion and Analysis ................................................................................ 9 Section IV. Company Governance ....................................................................................................... 37 Section V. Environmental and Social Responsibility ......................................................................... 54 Section VI. Important Matters .............................................................................................................. 67 Section VII. Share Changes and Shareholders ...................................................................................... 82 Section VIII. Preference Shares .............................................................................................................. 95 Section IX. Bonds ................................................................................................................................ 95 Section X. Financial Report ................................................................................................................ 98
Section I. Definitions I. Definitions Unless otherwise indicated in the context, the following terms shall have the following meanings in this Report:
Section II. Company Profile and Major Financial Indicators I. Company information
II. Contacts and contact details
III. Basic information
IV. Information disclosure and site
V. Stock information
VI. Other information
VII. Major accounting data and financial indicators within the latest three years (I). Major accounting data
(II). Major financial indicators
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
X. Non-recurring gain and loss items and amounts "√ Applicable" "□ Not applicable" Unit: 元 Currency: CNY
Note on listing the non-recurring gain and loss items mentioned in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-Recurring Gain and Loss Items as recurring gain and loss items "□ Applicable" "√ Not applicable" XI. Items measured at fair value "□ Applicable" "√ Not applicable" XII. Others "□ Applicable" "√ Not applicable" Section III. Management Discussion and Analysis I. Operation discussion and analysis In 2021, the global economy recovery encountered rounds of the coronavirus pandemic outbreaks. Stimulated by eased money policies and fiscal policies, major economies have rebounded clearly. With the demand recovery faster than supply recovery, adequate liquidities and international tensions, the prices of commodities like energy and raw materials surged due to short supply, which significantly increased the global inflation. In China, supported by the robust pandemic control and measures for stabilizing the prices and supplies of commodities, the GDP grew by 8.1% (from the National Bureau of Statistics) and kept its leading position in the world. However, in the context of global supply chain crisis and global inflation, businesses still experienced unprecedented pressures and challenges in production and operation. In the reporting period, with firm adherence to the operation policy of “focus, execution and efficiency” as a response to the complicated economic environment, the Company conducted businesses in a stable manner with great performance. In the reporting period, the Company recorded a revenue of 63.491 billion yuan for a year-on-year growth of 43.64%; net profit attributable to shareholders of the listed company of 8.208 billion yuan for a year-on-year growth of 127.50%; net profit excluding non- recurring gain and loss attributable to shareholders of the listed company of 8.486 billion yuan for a year- on-year growth of 252.35%. (I) Feed and industry chain Boosted by the accelerated recovery of swine production and the continued growth of aquatic and ruminant production, China's feed industry kept a great growth in 2021. According to China Feed Industry Association, the total feed production reached 293,443,000 tons for a year-on-year growth of 16.1%. By feed type, the swine feed production was 130,765,000 tons for a year-on-year growth of 46.6%, egg-producing poultry feed production was 32,314,000 tons for a year-on-year growth of -3.6%; meat producing poultry feed production was 89,096,000 tons for a year-on-year growth of -2.9%, ruminant feed production was 14,803,000 tons for a year-on-year growth of 12.2%, and aquatic feed production was 22,930,000 tons for a year-on-year growth of 8.0%. With the rise of feed demand, prices of raw materials were up. In the reporting period, main raw materials for feed production surged due to factors including decreased production of major raw materials, pandemic-caused supply chain disruptions and inflations. Specifically, the spot prices of corn and soybean meal increased by 27.2% and 19.5% from the previous year (Wind). Feed companies experienced increased costs and operation difficulties. Facing increasingly competitive markets and rising prices of raw materials, with the intention of “maximizing the farming benefit to users”, the Company imposed strict measures on product quality to supply premium products and provide the comprehensive “product + model + service” farming solutions to farmers, in order to sustain the stable development of its agriculture and husbandry business. In the reporting period, the feed and industry chain business of the Company received a revenue of 22.379 billion yuan for a year-on-year growth of 18.60%, with 5,515,900 tons of feed sold for a year-on-year growth of 5.08%. In the reporting period, the Company mainly performed the following tasks: 1. Three special programs under the quality first framework Quality is the foundation and precondition of market share and benefit and the fundamental for a business to survive and develop. In 2021, the Company kept exercising the quality policy with a focus on three tasks: standardization, marketing transformation, and product appeal development. In the reporting period, the Company started field standardization to eliminate gas and fluid leak, regulate VI marks and perform list-base management so that the field management was refreshed and changed the traditionally perceived feed industry. Its benchmark companies greatly increased the production per person and reduced production costs. With great progress in field standardization, the Company also started standardizing operation activities through measures including control of key energy consumption indicators, optimization of management procedures, upgrading of equipment and facilities, so that the pilot companies gained higher per capita efficiency, lower variable production costs, and stable product quality assured by full process controls. Regarding marketing activities, the Company shifted from the top-down model “company to distributors to farmers” and directly focused on end farmers. To maximize the farming benefit, the Company used new marketing approaches around product quality like event marketing and base marketing, and boosted the effective combination of high-quality products and end farmers and increased the effective implementation of Company's quality policy in end users, by having its market teams guide customers, technical teams provide deep services and serving the pain points of users, to achieve the win-win effect for the Company and farmers. Additionally, the Company continued sending technical teams to end farmers to perform all-around product tracking from market positioning, processing quality and ultimate effect and to conclude a product appeal report. These teams worked together with market teams so that feedback and corrections were made in a timely manner to ensure the market competitiveness of its products. In 2021, the Company rolled out the integrated product development (IPD) with a focus on the product appeal expression in end farmers, which greatly enhanced the benefits for farmers and received the high recognition from markets and customers. In the reporting period, the Company released a high-end “Kaikoule” feed series for fish fry, which significantly lowered the feed conversion ratio and increased the fry survival rate by over 25 ppts, the best-in-class level, and consistently welcomed by farmers. 2. Moderate expansion for higher market share While keeping the stable endogenous development, the Company actively looked for external expansion opportunities. The Company signed the Strategic Framework Agreement with Tech-Bank Food in July 2021 based on the division of businesses, complementary development and cooperation, which indicated that the two reached an agreement on the Company's purchase of all the aquaculture feed assets and a portion of the swine feed assets from Tech-Bank Food, and on their cooperation on swine feed supply. As of the end of the reporting period, the share purchase and business integration had completed, and the long-term supply of swine feed was under execution. This acquisition and deep strategic cooperation helped strengthen the Company's professionalism and scale in feed business, increase its market share and secure its market leading position. 3. Industry chain strategy for building a comprehensive competitiveness While focusing on its feed business, the Company moderately extended its industry chain in order to build a comprehensive competitiveness for the agriculture and husbandry business. Adhering to the vision of "For Better Life" the Company strictly followed food safety standards for providing safe, healthy and delicious aquatic food for consumers. In the reporting period, the Company recorded sales of 1.135 billion yuan for a year-on-year growth of 20% from the processing and circulation of aquatic products. Despite of the overseas pandemic, the export income from aquatic products grew rapidly by 29%; the quality of Tongwei Fish, a fresh fish brand, was further improved; its farming bases got Organic and ANTIBIOTIC FREE certifications. The fish barcode mode helped with the full-cycle tracking from source to dinner table. In terms of fish fry business, the Company exerted R&D efforts to the pain points and difficulties of farmers. In the reporting period, the high synergy of shrimp seed business and feed business contributed to the outstanding prawn farming effect. Prawn seeds recorded great increase in both volume and profit. The giant tiger prawn seeds were highly accepted by farmers for excellent growth indicators and good farming benefits, with the sale volume growing by up to 272% and a market share of about 80% in the region. (II) PV business The global PV industry kept its high-speed development in 2021. According to CPIA, the new installed capacity over the world was 31% higher than the previous year, reaching the new high of 170 GW. China newly installed 54.88 GW which secured its number one place, followed by the US (26.8 GW), EU (25.9 GW) and India (11.89 GW) all of which received rapid year-on-year growths; the growth rate of new installed capacity in India was as high as 218%. Regarding the industry chain, China continued its leading position in the globe. The outputs of polysilicon, silicon wafers, cells, and modules were 505,000 tons, 227 GW, 198 GW and 182 GW, for year-on-year growths of 27.5%, 40.6%, 46.9% and 46.1%. Regarding overseas market, the total export of PV products from China was about 28.43 billion US dollars with a year-on-year growth of 43.9%; the total export of modules was about 98.5 GW with a year-on-year growth of 25.1%, both the export volume and amount reached new highs. Driven by expected rapid growth of demand, the whole industry chain actively expanded the capacity. Due to high technological barriers, large investments and long construction period, as well as the long-term weakness of prices from 2018 to 2020, businesses engaged in upstream silicon material were far less willing to expand than downstream businesses, which resulted in the mismatch between upstream and downstream businesses in 2021. This mismatch and the rising prices of commodities, energy consumption control and pandemic outbreaks led to high volatility of prices in the industry chain and pressures on businesses. 1. High-purity polysilicon In the reporting period, the Company still placed work safety and stable operation as the first priority. By implementing the standardized management for work safety, advancing the IT-based safety development, and highlighting safety management accountability, the Company achieved the “Four Zero” target, i.e., zero work injury, zero accident, zero wrong operation and zero unplanned downtime with the production facilities running smoothly throughout the year, and received great rating in the work safety check organized by the Ministry of Emergency Management. Also, the Company continued increased efforts into research and development, improved the delicacy management, optimized technical indicators and lowered production costs. In the reporting period, the mono-grade rate of high-purity polysilicon produced by the Company was over 99%; the mass delivery of N type silicon was realized, and N-type silicon customers covered mainstream silicon wafer manufacturers. The average comprehensive electricity consumption and steam consumption per unit were lowered by 12% and 55% from the previous year, with other core indicators optimized to different extents, which helped enhance the Company's core competitiveness. In 2021, affected by the mismatch of the industry chain, high-purity polysilicon products were in short supply and lead to rising prices, which allowed the great improvement of profitability of high-purity polysilicon business. In the reporting period, production bases were running at full capacity with all products sold for 107,700 tons for a year-on-year growth of 24.30%. Thanks to the correct timing of the earlier capacity development and the efficient operation, as of the end of the reporting period, the Company had recovered the investment costs for Yongxiang Polysilicon (old capacity), Leshan Phase I Project and Baotou Phase I Project for a total capacity of 80,000 tons. In the reporting period, the new Leshan Phase II 50,000 - ton Project and Baoshan Phase I 50,000 - ton Project were put into production, with the quality indicators of the first batches meeting Special Solar- Grade, the leading level in the industry. According to the investment and construction schedule, the capacity of projects in construction totals 170,000 tons including the Baotou Phase II 50,000 - ton Project expected to be in service in 2022 and the Leshan Phase III 120,000 - ton Project expected to be in service in 2023. By that time, the capacity of the Company would be 350,000 tons. Leshan Phase III is the Company's first project that can provide over 100,000 tons per year. Lowered investment per unit, optimized processes and higher intelligence of the project will further strengthen the Company's advantage in quality and cost. 2. Solar cells In the reporting period, short supply of silicon wafers with rising prices pushed the costs of manufacturers of solar cells. According to PVInfoLink, the prices of main silicon wafers, i.e., 166 mm, 182 mm and 210 mm as of the end of 2021 were increased by 55%, 46% and 46% from the early 2021 while the prices of corresponding cells were only increased by 22%, 19% and 16%. This resulted in the sharp decrease in profitability and therefore the capacity utilization. Benefited by the deep strategic partnerships with upstream and downstream businesses, and its leading advantage in quality and cost control, the Company still secured a capacity utilization of 99.47% in the reporting period when the capacity utilization across the industry was significantly lowered, with its sales growth rapidly, and recorded a positive profit, which evidenced the Company's strong resistance to risks. Cells and modules sold in 2021 reached 34.93 GW, for a year-on-year growth of 57.61%, the gross margin from monocrystalline silicon cells was 8.28%, a decrease from the previous year. The Company continued its global number one place in delivery of solar cells in 2021, according to PVInfoLink. Following the market trends closely, the Company invested into the construction of Meishan Phase II Project, Jintang Phase I Project and Tonghe Project. The existing capacity for silicon cells of 182 mm and onwards account for over 70%, which can effectively meet the demand for large size products from downstream customers. At the same time, with increased efforts into internal and external alignment, the Company continued lowering its costs with improved quality. Throughout the year, key process indicators like grade A ratio, energy conversion efficiency and scrap ratio remained the best-in-class level. The average non-silicon cost for monocrystalline PERC cells was lowered to less than 0.18 yuan/w, a reduction of 11% from the previous year, the non-silicon costs for large-sized products were lowered more significantly. Regarding research and development, in addition to optimizing the prevalent PERC cell techniques, the Company attempted to lower the costs and improve the efficiency for the next generation cells from a technological perspective after the mass production was ensured. Apart from the 400 MW HJT trial line invested in 2019, the Company newly constructed a 1 GW HJT pilot line. The R&D and mass production efficiencies for HJT cells have been increased, with the uses of main auxiliary materials and consumables further lowered, and the development of silver paste alternatives made some progress. What is more, putting efforts for developing the TOPCon technology, the Company took the lead in the pilot run for 210 mm - based TOPCon cells; the 1 GW TOPCon Project has been put into production. The energy conversion efficiency of mass production products is leading the industry. 3. PV power generation In the reporting period, by following the country's green development strategy, the Company continued the focus on the development, construction, operation and maintenance of Aquaculture-Photovoltaic Integration projects, based on which, a moderate development of the tertiary sector including （未完）  |