[年报]通威股份(600438):通威股份有限公司2023年年度报告（英文版）
原标题:通威股份:通威股份有限公司2023年年度报告（英文版） Tongwei Co., Ltd. 2023 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 expressed a standard unqualified opinion on the financial statements of 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 2023 based on its total share capital on the record date. A cash dividend of 9.05 yuan per 10 shares (including tax) will be distributed to all shareholders. As of December 31, 2023, the total share capital of the Company was 4,501,973,746 shares, based on which the total cash dividend to be distributed is 4,074,286,240.13 yuan (including tax). If there is any change in the total share capital before the record date, the dividend per share will remain unchanged and the total dividend amount 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 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. Others "□ Applicable" "√Not applicable" Contents Section I Definitions ................................................................................. 4 Section II Company Profile and Major Financial Indicators ............... 7 Section III Management Discussion and Analysis ................................. 11 Section IV Company Governance ........................................................... 49 Section V Environmental and Social Responsibility ............................ 73 Section VI Important Matters ................................................................. 91 Section VII Share Changes and Shareholders ....................................... 114 Section VIII Preference Shares ................................................................. 120 Section IX Bonds ..................................................................................... 121 Section X Financial Report ................................................................... 127
English version here was only used for investors’ reference. Section I Definitions I. Definitions Unless otherwise indicated in the context, the following terms shall have the following meanings in this
components are attributed to rounding. 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 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" On December 13, 2022, the Ministry of Finance issued Interpretation No. 16 of the Accounting Standards for Business Enterprises (“Interpretation No. 16”), which stipulates the following: ① The accounting treatment of deferred income tax related to assets and liabilities arising from individual transaction does not exempt initial recognition; ② The accounting treatment of the income tax impact of dividends related to financial instruments classified as equity instruments by the issuer; ③ The accounting treatment of cash-settled share-based payments changed by enterprises to equity-settled share- based payments. Among these ① is effective from January 1, 2023, and ② and ③ are effective from the date of publication. 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. 2023 major financial data by quarters
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"
Where the Company defines an item and the item has a significant amount not listed in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-Recurring Gain and Loss Items as a recurring gain and loss item, or defines an item listed in Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-Recurring Gain and Loss Items as a recurring gain and loss items item, 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 2023, the global economy experienced a slow recovery with a year-on-year decline in growth rates. The global landscape continued to present challenges, with major economies such as the United States and Europe maintaining stringent monetary policies. Financial markets remained volatile and uncertain, while geopolitical conflicts persisted and even escalated. Manufacturing activity was on a downturn, and international trade growth remained sluggish. Economic recovery showed significant regional disparities. Additionally, issues such as energy crises, food security, and climate change remained pressing concerns for the world. China's economy was still in a phase of transition, characterized by a dynamic, sometimes turbulent journey towards new growth drivers. With a GDP exceeding 126 trillion yuan for the year, marking a 5.2% year-on-year growth, the country maintains a prominent position among the world’s major economies. China’s contribution to global economic growth is expected to exceed 30%. Notably, exports of cutting-edge products such as electric passenger vehicles, lithium-ion batteries, and solar panels— representing the “new three”—have surpassed the trillion-yuan milestone, with an impressive year-on- year growth of 29.9%. In the reporting period, the photovoltaic industry, in which the Company operates, continued its rapid development, although prices across the supply chain significantly declined due to the release of a large supply. In contrast, the feed industry showed clear differentiation: while livestock and poultry feed maintained high levels due to high quantity of pigs and improved poultry farming, aquatic feed production decreased significantly due to subdued demand at the end market. In the context of challenging and pressured conditions, the Company firmly focused on its two main sectors: photovoltaics, and agriculture and animal husbandry. We continued to enhance and consolidate our core competencies in technology, quality, scale, and cost, achieving positive operating results. In 2023, our shipments of high-purity polysilicon and solar cell products ranked the world's first again, while module shipments entered the top five across the world (according to InfoLink Consulting). Feed sales remained steady with incremental progress, resulting in a year-on-year increase in profits. However, increased sales volume did not offset the negative effect of significant downturn in prices across the photovoltaic industry chain. Concurrently, the Company actively promoted technological innovation within the photovoltaic industry, aligning with market trends. Based on prudent principles, impairment charges were recorded for major assets related to PERC cells. The Company achieved a full-year operating revenue of 139.104 billion yuan, a decrease of 2.33% year-on-year, with a net profit attributable to shareholders of the listed company of 13.574 billion yuan, down by 47.25% year-on-year. Adjusted net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, was 13.613 billion yuan, down by 48.73% year-on-year. (I) Feed and industry chain After more than 40 years of continuous development, the feed industry has evolved into a stage of scale and centralization, toward high-quality growth. In 2023, feed producers faced heightened operational pressures due to factors including diminished profitability in farming, ongoing expansion of farming scale, and sustained declines in demand for market-oriented feed procurement. Specifically, aquatic feed production declined by 4.9% year-on-year to 23.444 million tons, affected by factors such as reduced feeding by aquaculture farms, delayed stocking, reduced stocking quantities, and even abandonment of farming. While pig feed saw a 10.1% year-on-year increase to 149.752 million tons, driven mainly by high quantity of pigs, this growth was largely from feed produced by farming conglomerates. Professional feed producers continued to face intense competition. Meanwhile, the raw material costs, a significant concern for feed producers, has been steadily rising in recent years. Although there was a slight overall decline in 2023, they remained at historically high levels with significant differentiation and substantial fluctuations. This trend placed increasingly higher demands on the purchasing capability of feed producers. The Company has consistently maintained a keen insight into emerging industry trends. Since 2020, after adopting the “quality policy” approach, we have pursued technological and marketing transformations. With the goal of “maximizing farming efficiency,” we have unified the awareness and behavior of all employees, controlling product quality through specialization, standardization, and scale across the entire process of design, manufacturing, and usage. This approach has enabled us to build core competitiveness focused on minimizing production costs, ensuring the highest product quality, and optimizing farming benefit. After nearly four years of continuous transformation and breakthroughs, we have achieved significant results in various aspects including product quality, customer recognition, benefit per person, and comprehensive costs. These accomplishments have made important contributions to the Company’s growth in profitability in recent years. In 2023, building upon the accumulated reforms from previous years, the Company embarked on the initiative to create Tongwei Year of Excellence in Product. With a focus on a product positioning of “stable raw materials, and consistent quality”, the Company further advanced its feed business to serve customers in maximizing farming efficiency, yielding positive market feedback. For the entire year, the Company sold 7.4134 million tons of feed, marking a 3.05% increase compared to the previous year. 1. With the full implementation of the Year of Excellence in Product, the marketing team centered its efforts around maximizing farming efficiency, promoting the Company’s product reputation. In 2023, the Company officially launched the Year of Excellence in Product around maximizing farming efficiency. Continuing to drive marketing transformation, the Company showcased its comprehensive competitiveness and the end-farming effects of its products through means such as home- field marketing, farming competitions, and case studies. This further established and promoted the reputation of the Company’s products. In the livestock and poultry feed business, the Company continued to focus on developing large-scale customers and deepening strategic cooperation with farming conglomerates, having achieved steady sales growth through stable and excellent product quality and professional technical services. In the aquaculture feed business, the Company employed methods such as labeling digestible protein content, promising feed coefficients, conducting bait soaking experiments with users, and disclosing actual farming yields to all farmers. Through these measures, farmers were invited to supervise and verify the quality of Tongwei products, which showcased the Company’s commitment to product quality. Capitalizing on launch meeting for the Year of Excellence in Product, the Company started nationwide events including the Spring Fish Protection Competition and the Spring Seedling Culture Competition, attracting nearly 15,000 participants nationwide. These events not only addressed farmers’ challenges but also fostered solidarity during difficult times, earning widespread market recognition for the Company. As a result, the Company's aquaculture feed business achieved outstanding operational results, particularly evident in the fourth quarter with a remarkable 15% year-on-year increase in sales volume despite the overall industry downturn. 2. Maintaining a commitment to stable raw materials and consistent quality, the procurement team prioritized cost competitiveness to enhance the comprehensive competitive edge of the supply chain. Faced with the challenges imposed by substantial price fluctuations of commodity agricultural products in 2023, the Company guided by the quality policy and aligned with the objectives of the Year of Excellence in Product, emphasized the enhancement of cost competitiveness in its raw material procurement. This strategic focus led to continuous breakthroughs in key metrics such as raw material costs, inventory turnover days, and bulk rates, reinforcing the Company’s overall competitive advantage in the feed supply chain. In the reporting period, the Company leveraged a coordinated mechanism among technology, quality control, and procurement to secure high-quality raw materials. While ensuring product quality, the Company optimized product formulations to maximize farming efficiency for end-users. Furthermore, by giving full play to the specialized market analysis system, the Company accurately assessed market trends in raw materials, identified optimal procurement opportunities, and achieved significant cost advantages relative to the industry in the procurement of various key raw materials. The diversification and globalization of the supply chain channels have further strengthened the Company’s cost competitiveness. For many years, the Company has remained committed to strategic procurement of raw materials and sourcing directly from factories. In 2023, strategic procurement accounted for an increased proportion of 77%, with ongoing diversification of international procurement channels. The number of countries from which high-value raw materials are imported has been expanded to 18, with a year-on-year increase of 169%. This strategy has ensured the supply of key materials while reducing costs. 3. Advancing the second phase of standardization effort, the production team developed intelligent feed factories to continue optimizing production indicators. Since 2020, the feed production system within the Company has begun to focus on standardization efforts. Through the participation of all staff in the first phase of standardization efforts, comprehensive measures were taken to address on-site issues, standardize VI signage, and carry out checklist management, resulting in a significant improvement in on-site management and establishing a model of standardized management in the feed industry. The second phase focuses on promoting comprehensive cost reduction and quality improvement in feed production through production automation, business digitization, and operational standardization. This has resulted in a replicable and scalable feed production management mode, paving the way for simplified production operations, transparent production management, and cost reduction with improved product quality in the industry. In 2023, building upon our established achievements, the Company maintained its focus on advancing the second phase of standardization efforts. We fully integrated the Amoeba mechanism to enhance production competitiveness indicators. Furthermore, we embarked on the independent development of intelligent feed factories by leveraging self-developed technologies, self-built systems, and our own intellectual property rights. Through standardized and intelligent production processes, we ensure leading and consistently high quality while achieving cost reduction and efficiency improvement. 4. Exploring new drivers of growth in agriculture and animal husbandry, we saw our industry chain business develop steadily and robustly. While maintaining a focus on the feed business, the Company capitalizes on opportunities presented by the shift towards intensified aquaculture and the rising demand for premium aquatic products and （未完）  |