[年报]通威股份(600438):通威股份有限公司2022年年度报告（英文版）
原标题:通威股份:通威股份有限公司2022年年度报告（英文版） Tongwei Co., Ltd. 2022 Annual Report Important Notice I. The board of directors, supervisory committee as well as directors, supervisors and senior managers of the Company are responsible for the authenticity, accuracy and completeness of the information contained in this Annual Report without false records, misleading statements or material omissions, and assume joint and several liability therefor. II. All directors of the Company have been present in the board meeting. III. Sichuan Huaxin (Group) CPA (Special General Partnership) has issued a standard unqualified opinion on the Company. IV. Liu Shuqi, Head of the Company, Zhou Bin, Head of accounting affairs and Gan Lu, Head of accounting department represent that they are responsible for the authenticity, accuracy and completeness of the financial statements in this Annual Report. V. The proposal on profit distribution or the proposal on conversion of capital reserve to share capital for current period resolved in the board meeting The Company will distribute profits for the year 2022 based on its total share capital on the record date. A cash dividend of 28.58 yuan per 10 shares (including tax) will be distributed to all shareholders. As of December 31, 2022, the total share capital of the Company was 4,501,946,097 shares, based on which the total cash dividend to be distributed is 12,866,561,945.23 yuan (including tax). If there is any change in the total share capital before the record date, the total dividend amount will remain unchanged, and the dividend per share will be adjusted accordingly. The above profit distribution proposal will be submitted to the Company’s general meeting for approval before execution. VI. Cautionary note on forward-looking statement "√ Applicable" "□ Not applicable" The forward-looking statements of the Company regarding its future development strategies and business plans do not constitute any substantial commitment of the Company to investors; and investors should pay attention to risks. VII. Any funds possessed by the controlling shareholder and other related parties for non-operating purposes? No VIII. Any outward guarantee provided by the Company in violation of the prescribed decision-making procedures? No IX. More than half of the directors cannot ensure the truthfulness, accuracy, and completeness of the annual report disclosed by the Company? No X. Notice on material risks The Company had detailed possible risks in this Report. Please refer to “VI Discussion and Analysis on the Company’s Future Development” in Section III Management Discussion and Analysis for more information on possible risks and actions. XI. Others "□ Applicable" "√ Not applicable" *The 2022 Annual Report of Tongwei Co., Ltd. was published both in Chinese and English. Where any discrepancy arises between the English and the Chinese content, the Chinese version shall prevail. The English version here was only used for investors’ reference. Contents Section I. Definitions........................................................................................................................... 4 Section II. Company Profile and Major Financial Indicators ............................................................... 6 Section III. Management Discussion and Analysis ................................................................................ 9 Section IV. Company Governance ....................................................................................................... 40 Section V. Environmental and Social Responsibility ......................................................................... 62 Section VI. Important Matters .............................................................................................................. 75 Section VII. Share Changes and Shareholders ...................................................................................... 91 Section VIII. Preference Shares .............................................................................................................. 98 Section IX. Bonds ................................................................................................................................ 98 Section X. Financial Report .............................................................................................................. 102
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" The Ministry of Finance issued the “Interpretation No. 15 of Accounting Standard for Business Enterprises” (Cai Kuai [2021] No. 35) (“Interpretation No. 15”) on December 31, 2021, which clarifies the accounting treatment of products or by-products produced by enterprises for sales before the fixed assets reach the intended usable state or during the research and development process. According to relevant provisions of Interpretation No. 15, the Company implemented the relevant provisions of Interpretation No. 15 and make retrospective adjustments from January 1, 2022. VIII. Differences between accounting data under domestic and foreign accounting standards (I). Difference in net profit and net assets attributable to shareholders of the listed company contained in the financial statements disclosed simultaneously under International Accounting Standard and China Accounting Standard "□ Applicable" "√ Not applicable" (II). Difference in net profit and net assets attributable to shareholders of the listed company contained in the financial statements disclosed simultaneously under Foreign Accounting Standard and China Accounting Standard "□ Applicable" "√ Not applicable" (III). Note on differences between China and foreign accounting standards: "□ Applicable" "√ Not applicable" IX. 2022 major financial data by quarters
X. Non-recurring gain and loss items and amounts "√ Applicable" "□ Not applicable"
Where the Company lists the non-recurring gain and loss items defined in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-Recurring Gain and Loss Items as recurring gain and loss items, notes should be provided. "□ Applicable" "√ Not applicable" XI. Items measured at fair value "□ Applicable" "√ Not applicable" XII. Others "□ Applicable" "√ Not applicable" Section III. Management Discussion and Analysis I. Operation discussion and analysis In 2022, against the backdrop of escalating Russia and Ukraine conflict, the world political and economic situation was turbulent, and games between greater powers were impacting global supply chains. The prices of commodities, in particular energy and food, continued to rise, and structural supply shortages pushed up inflation levels in major economies. According to the International Monetary Fund estimates, the world’s average consumer price index grew by 8.8% in 2022, the highest inflation level since the 21st century started. The economic growth rate declined, and the recovery fell short of expectations across the globe. Although facing triple pressures of shrinking demand, supply shocks, and weakening expectations, economy. According to the data from the National Bureau of Statistics, China’s GDP reached 121 trillion yuan in 2022, a year-on-year increase of 3%, continuing to lead the world’s major economies in terms of growth rate. During the reporting period, the photovoltaic industry maintained high-speed growth, and the feed industry made steady progress. The Company firmly grasped the opportunities for industrial development and adhered to the operation policy of “focus, execution and efficiency” as a response to the complicated economic environment, having conducted businesses in a stable manner with great performance. In 2022, the Company recorded a revenue of 142.423 billion yuan for a year-on-year growth of 119.69%; net profit attributable to shareholders of the listed company of 25.726 billion yuan for a year-on-year growth of 217.25%; net profit excluding non-recurring gain and loss attributable to shareholders of the listed company of 26.547 billion yuan for a year-on-year growth of 216.50%. The Company’s net weighted average return on assets for the year was 52.36%, and the year-end debt to asset ratio was 49.57%, a decrease of 3.44 percentage points from the end of last year. (I) Feed and industry chain In 2022, China’s feed industry continued to develop stably in the context of significant economic growth pressures. The total production of industrial feed reached 302.234 million tons, a year-on-year increase of 3%. Among them, the production of pig feed was 135.975 million tons, a year-on-year increase of 4.0%; the production of poultry feed 121.363 million tons, a year-on-year decrease of 0.04%; and the production of aquatic feed 25.257 million tons, a year-on-year increase of 10.2%. Affected by international situation and extreme weather, the cost of feed raw materials has significantly increased. According to Wind, the prices of corn and soybean meal increased by 7.3% and 31.9% respectively, compared to the beginning of 2022 year. On the other hand, in some domestic regions, there was a temporary economic slowdown and insufficient consumer demand, which resulted in lower than expected prices for breeding products. Feed companies faced dual pressures from upstream and downstream operations. While top companies effectively withheld risks with their comprehensive competitive advantages, survival and development for small and medium-sized companies remained difficult. In 2022, the Company integrated its feed and related industrial chain businesses by establishing Tongwei Agriculture Development Co., Ltd., further enhancing its level of specialized operation. For maximizing customer benefits, everyone at Tongwei adhered to the “quality policy”, deeply promoted specialization, standardization and scaled development for mutual development with customers. During the reporting period, the Company’s feed and industrial chain businesses achieved operating income of 31.646 billion yuan, a year-on-year increase of 28.69%. The total sales volume of feed was 7.194 million tons, a year-on-year increase of 30.42%, with sales volumes of livestock and poultry feed and aquatic feed reaching historical highs with year-on-year increases of 41.23% and 18.94% respectively. In the reporting period, the Company performed the following key tasks: 1. Full effort into specialization, standardization and scaled development for higher core competitiveness The Company adhered to the “quality policy” throughout the year, and focused on promoting “specialization, standardization and scaled” development, achieving remarkable results and further strengthening its competitive advantages, which has been highly recognized by customers. Specialization in procurement ensures stable feed quality from the source and effectively supports breeding results; specialization in technology combines product development with user needs through a closed-loop process of “market insights, R&D management, product design, and optimization by tracking”, achieving maximum breeding benefits; product specialization includes regular dynamic reviews of product structure, optimizing it to ensure consistent product quality. In 2022, the Company focused on “production automation, business digitalization, and operation standardization” promoting comprehensive cost reduction and efficiency improvement in feed production. Through the creation of a “benchmark factory”, it further explored new models of digital production and intelligent management. In 2022, the Company applied for 24 patents relating to the “intelligent management system for feed production” and environmental protection in feed production. The company achieved one-click startup management for the puffing machine and developed a set of feed production management modes that can be rolled out, opening new ways to reduce production costs and improve product quality by reducing labor and increasing automation. The company focused on both production and sales for scaled development. It improved the efficiency by continuously optimizing the production process and promoting team building, and promoted sales through innovative models such as host marketing and breeding competitions. Through the “Marketing Communication”, a digital application system developed by the Company, it integrated the supply and demand of its customers, achieving high synergy between production and sales. As a result, several subsidiaries achieved full production and sales, and the Company's capacity utilization rate 2. Maintaining leading quality by strengthening the advantage in procurement of raw materials As a manufacturing process, feed production relies heavily on raw materials, which make up over 90% of the cost and the quality of raw materials directly affects the breeding results. During the reporting period, the prices of feed raw materials were affected by internal and external macro factors, continuing to rise with significant fluctuations, which has significantly increased the operating pressure on feed companies. Some companies even resorted to low-quality and low-cost raw materials to cut costs. In this context, the Company adhered to the quality by keeping the procurement strategy of “stable raw materials and consistent quality”. With a long-term specialized procurement team and mode, it closely tracked the feed raw material market, assessed the timing of procurement, accurately understood the impact of factors such as exchange rate fluctuations on raw material procurement to avoid future cost fluctuations. The Company implemented a rolling cost budget mechanism and used advance procurement for core materials to achieve cost optimization. It continued to strengthen cooperation with strategic suppliers, enhanced strategic procurement of raw materials and factory direct procurement, with major raw material suppliers accounting for over 75% of the procurement volume and a direct supply rate of 94% for local raw materials, further consolidating its competitive advantage in the raw material supply chain. Through a reasonable supplier evaluation system, the Company adopts site visits before supplier onboarding, spot checks, and evaluation ranking to strictly guard against raw material quality risks, and ensured long-term and leading feed quality from the source. 3. Creating new highlights in agriculture and husbandry sectors through a reasonable degree of diversification During the reporting period, while focusing on feed, the Company also fully utilized its professional advantages in the fisheries sector and moderately extended its reach around the green aquatic industry chain, creating new highlights in agriculture and husbandry sectors. In 2022, the Company's food business saw a high-speed growth in profits, driven in part by its seafood export, which demonstrated a keen understanding of market trends, seized opportunities, and expanded production capacity. As a result, gross margins increased significantly, and profits reached an all-time high. The Company also continued to develop its offline business by opening new stores and hosting various themed events, such as the “Fresh Journey” and the “Tongwei Fish Banquet”, which increased customer loyalty and attracted new customers. The e-commerce business adopted a “platform + community” supply chain model and focused on mid-to-high-end consumers, resulting in a rapid increase in membership numbers and a significant improvement in operational efficiency. Tongwei Fresh Fish worked hard to build differentiated competitive strength in product quality with the standardization of facilities and having borne fruits of consistent quality. Throughout the year, the brand’s influence steadily increased, and it secured partnerships with large-scale e-commerce platforms such as Hema and PuPu. Leveraging its accumulated aquaculture technologies and complete resources in the industry chain, during the reporting period, the Company strategically developed its shrimp farming business. By focusing （未完）  |