[年报]阳光电源(300274):2023年年度报告（英文简版）
原标题:阳光电源:2023年年度报告（英文简版） 2023 Annual Report Section I Important Notes, Contents and Definitions The Board of Directors, the Board of Supervisors, directors, supervisors and executives of the Company hereby guarantee that the information presented in this annual report is truthful, accurate and integrate, free of any false records, misleading statements or material omissions, and assume individual and joint legal liabilities thereof. Cao Renxian as the President of the Company, Tian Shuai as the Chief Accountant, and Li Pan as the head of accounting department (accounting supervisor) hereby guarantee the truthfulness, integrity, and accuracy of financial statements in this annual report. All directors have attended the board meeting to review this report. Contents in this report concerning future plans, performance forecasts, and etc., do not constitute any commitment made by the Company to any investor or related party. Investors and related parties should maintain adequate risk awareness and understand the possible difference between plans, forecasts, and commitments. Investors are kindly advised to pay attention to investment risks. (1) Policy-related risks Although technologies related to renewable energy power generation are still evolving and grid parity has been achieved in most regions around the world, there are still a few regions where the power generation cost or the on-grid electricity price is higher than that of fossil energy, and the unit electricity cost per kilowatt-hour from wind-solar-storage integrated applications remains relatively high. In addition, considering the various constraints including grid consumption, intermittent fluctuations in new energy availability, as well as land and taxation, policy support and encouragement from governments are still necessary. Since the supportive policies are formulated by the governments of various countries, despite of the constant global trend of energy conservation and emission reduction, major changes in the macro economies of major markets or relevant supportive policies will affect the growth pace of the industry and the Company’s profitability to a certain extent. To this end, the Company actively makes global presence, and continually delves into the global market to minimize the impact of policy fluctuations within a single country. (2) Risk of gross margin reduction due to intensified competition As the world's largest PV inverter manufacturer, the Company's core product, PV inverters, enjoys an obvious market advantage. However, the huge potential of Chinese and foreign markets has also attracted fierce market competition. If the Company fails to maintain the leading edge in technological innovation, new product development, and cost control, the products will face the risk of gross margin declination. As such, the Company needs to further accelerate new product upgrade and iteration through R&D innovation and increasing R&D investment, speed up the research and application of AI technologies, so as to continually provide customers with value-added services, deliver better customer experience, and consolidate product advantages in the market. (3) Risk of collecting accounts receivables As the Chinese market grows rapidly, the Company puts more efforts in product sales. On perusal of the huge project investment and long payment term prevailing in China’s PV industry, fast business growth of the Company will lead to a quick increase of receivables and certain risks in payment collection. To prevent credit risks and accelerate capital turnover, the Company has formulated strict credit management systems and sale-on-credit policies, and actively reduce the risk of non- performing loans and bad accounts through legal actions. (4) Risk of international trade frictions Currently, some countries restrict PV-related imports and exports, raise tariffs, or set other trade barriers in order to grow their native PV industry, posing foreign trade risks on the PV industry where the Company operates in. The Company has developed a series of defensive measures and lean production plans to actively respond to the complicated global situation and expand the global market. By strengthening the global manufacturing and supply chain layout, improving supply chain management, the Company strives to reduce trade frictions and other adverse impacts, ensuring that the annual tasks are completed on time. (5) Risk of exchange rate fluctuation USD, AUD and EUR are the three major currencies used for the Company's overseas revenue settlement. The impact of exchange rate fluctuations is mainly reflected in the following two aspects: a. Because of the CNY exchange rate fluctuation, changes in operating income measured in local currency pose a direct impact on the gross margin of main products; b. From the moment sales revenue is confirmed and accounts receivable is generated to the moment of foreign currency collection, the Company is subject to exchange gains/losses from the fluctuations in the CNY exchange rate, hence the Company's performance is also affected. On the foundation of normal operation and relying on specific businesses, the Company takes various means, including hedging, continuous monitoring, and timely settling foreign currency sales to reduce exchange-related loss and control operating risks. (6) Risks in construction management of new energy investment and development projects New energy projects feature large amount of investment and short project lead time. Such projects involve not only ground resources but also commercial and residential roofs. For such projects, the investment decision-making is quite challenging, and a lot of uncertainties exist in project engineering and implementation, which may lead to project delays and jeopardize timely grid connection for power generation. While challenging the Company's project management, the projects also require a huge amount of working capital. In response to such risks, the Company makes cautious considerations when selecting new energy power generation projects to prioritize those with better grid connection conditions, controllable construction cost and higher gross margin. Meanwhile, the Company enhances engineering management and improves project management. After entering into sales contracts with customers, the Company reinforces project construction management in a timely manner, adequately communicates with customers on project progress, and adjusts the work schedule according to the result of communication, so that the impact of project delay on the Company's production and operation is eliminated or alleviated to the most extent. By providing customers with safe, efficient and intelligent new energy power stations to their satisfaction, the Company's brand reputation in new energy investment and development is improved. The board meeting has reviewed and approved the following profit distribution proposal: Based on a base quantity of 1,468,642,351 shares, a cash dividend of CNY 9.65 per 10 shares (tax inclusive) will be distributed to all shareholders, no bonus share (tax inclusive) will be distributed, and 4 shares will be transferred from capital reserve to every 10 shares held by shareholders. Contents SECTION I IMPORTANT NOTES, CONTENTS AND DEFINITIONS ...................................................................... 2 SECTION III MANAGEMENT’S DISCUSSION AND ANALYSIS ............................................................................ 11 SECTION IV CORPORATE GOVERNANCE ................................................................................................................ 50 SECTION V ENVIRONMENT AND SOCIAL RESPONSIBILITIES ........................................................................ 69 SECTION VI SIGNIFICANT EVENTS ............................................................................................................................ 71 SECTION VII CHANGES IN SHARES AND INFORMATION ABOUT SHAREHOLDERS ............................. 102 SECTION VIII PREFERENCE SHARES ...................................................................................................................... 111 SECTION IX BONDS ......................................................................................................................................................... 112 SECTION X FINANCIAL REPORTS ............................................................................................................................. 113 Documents for Future Reference 1. Accounting statements signed and stamped by the Legal Respective, the Chief Accountant, and the head of the accounting department of the Company. 2. The original Audit Report signed and stamped by the certified public accountants and stamped by the accounting firm. 3. The originals of company documents and announcements publicly disclosed on www.cninfo.com.cn during the reporting period. 4. Other relevant documents. Definitions
Section II Company Profile & Key Financial Indicators I. Company Profile
Accounting firm engaged by the Company
V. Key Accounting Data and Financial Indicators Whether the Company performed a retroactive adjustment or restatement of previous accounting data ? Yes □ No Reason for retroactive adjustment or restatement Changes in Accounting Policies
(hereinafter referred to as the Interpretation No. 16). The Company started implementing the “Accounting treatment for deferred income tax related to assets and liabilities arising from individual transactions that is not subject to initial recognition exemption” as of January 1, 2023, and adjusted applicable individual transactions throughout the period from the beginning of the earliest period in financial statements where the provision was implemented for the first time to the first day of implementation. For lease liabilities and right of use assets recognized at the beginning of the earliest period in financial statements where the provision was implemented for the first time, and for estimated liabilities and corresponding assets related to abandonment obligations recognized, should there be taxable temporary differences and deductible temporary differences, the cumulative impact should be adjusted in the initial retained earnings and other related financial statement items of the earliest period in accordance with this provision and the provisions in Accounting Standards for Business Enterprises No. 18—Income Tax. The lower of the Company's net profit including extraordinary and net profit excluding extraordinary is negative in the last three fiscal years, and the audit report for the last year shows that uncertainties exist in the Company's business continuity □ Yes ? No The lower of net profit including extraordinary and net profit excluding extraordinary is negative □ Yes ? No VI. Key Financial Indicators by Quarter (in CNY)
quarterly and half-year reports disclosed by the Company □ Yes ? No VII. Differences in Accounting Data between Chinese and Overseas Accounting Standards 1. Differences in the net profits and net assets disclosed in the financial statements as per the international accounting standards and China accounting standards □ Applicable ? Not Applicable There is no difference in the net profits and net assets disclosed in the financial statements as per the international accounting standards and China accounting standards. 2. Differences in the net profits and net assets disclosed in the financial statements as per the local (overseas) accounting standards and China accounting standards □ Applicable ? Not Applicable There is no difference in the net profits and net assets disclosed in the financial statements as per the local (overseas) accounting standards and China accounting standards. VIII. Non-recurring Items and Their Gains/Losses ? Applicable □ Not Applicable (in CNY)
There are no other gains or losses in the Company that fit in the definition of extraordinary items. Explanation on defining the extraordinary items listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Publicly Offering Securities - Extraordinary Items as recurring gains or losses ? Applicable □ Not Applicable
Section III Management’s Discussion and Analysis I. Discussion and Analysis of Business Situation In the reporting period, the PV industry grew sustainably and vigorously under the guidance of the global low-carbon goals thanks to the joint efforts of policy guidance, economic growth, and technological advancement. According to data from the National Energy Administration, China Photovoltaic Industry Association, and third-party institutions, installed capacity of PV increased by 390 GW (ac) worldwide in 2023, a year-on-year increase of 69%. In addition to traditional markets such as China, Europe, and North America, emerging markets such as the Asia Pacific, Latin America, the Middle East, and Africa benefited from the continuous reduction in PV costs and the advantages of clean and flexible PV power generation, developed rapidly with huge potential ahead. In 2023, GW-level markets increased from 26 to 32, and the diversification of the global PV installation market accelerated. Among them, China's PV market application grew beyond expectation, with an annual installed capacity of 216.8 GW (ac) and a year-on-year increase of 148% hitting a historic high. In addition, China's PV industry achieved remarkable results in various aspects. In terms of the industrial chain, growth continued in the output of main components, including 1.43 million tons of polycrystalline silicon, 622 GW of silicon wafers, 545 GW of cells, and 499 GW of modules, accounting for a year-on-year growth of more than 60%. In terms of export, although the export amount declined slightly due to the decrease in export prices, rapid growth was maintained in export volume. In terms of technological innovation, the speed of technological iteration accelerated further, industrialization of TOPCon, HJT, and BC cell technologies speeded up, the conversion efficiency of perovskite solar cells and stacked solar cells set world records repeatedly, hitting a world-leading technological level. In the reporting period, developing renewable energy was once again established as a global consensus on sustainable development. At COP28, the installation targets for global solar power and wind power were increased. China and the United States released The Sunnylands Statement on Enhancing Cooperation to Address the Climate Crisis, pursuing efforts to triple renewable energy capacity globally by 2030 and intending to sufficiently accelerate renewable energy deployment in their respective economies through 2030 from 2020 levels. The Central Economic Work Conference of China further specified the widespread application of green technology, the development of green consumption, the emphasis on supporting energy conservation, emission reduction, and carbon reduction, thereby actively and steadily promoting carbon peaking and carbon neutrality, and accelerating the establishment of a new energy system. Globally speaking, confidence in developing new energy became stronger. According to the International Energy Agency (IEA) and third-party institutions, the cumulative installed capacity of PV worldwide will exceed that of hydropower in 2024, and PV will become the largest non-fossil energy source for power generation. In 2026, the cumulative installed capacity of PV systems worldwide will exceed that of natural gas. By 2027, the cumulative installed capacity of PV systems worldwide will exceed that of coal, and PV will become the world's largest form of electricity with a broad prospect. II. Business Scope in the Reporting Period Sungrow Power Supply Co., Ltd. is a national key high-tech enterprise specializing in R&D, manufacturing, sales and service of solar energy, wind energy, energy storage, electric vehicles, and other new energy power supply equipment. With a wide range of products including PV inverters, wind energy converters, energy storage systems, electric drive system for new energy vehicles, floating PV systems, and smart energy operation and maintenance service, the Company is committed to providing world-class solutions for the full life cycle of clean energy. 1. PV inverters Since the establishment in 1997, the Company has been concentrating on the R&D and manufacturing of PV system equipment, with PV inverters being the core product. Adhering to the mission of “Clean power for all”, the Company provides cutting-edge PV system solutions to users around the globe. PV inverter is one of the main components in a PV power generation system, which connects PV arrays to the grid and plays a critical role in ensuring the long-term and reliable operation of PV power stations and improving the project investment return. Sungrow’s PV inverter family, consisting of residential inverters, string inverters, centralized inverters, and modular inverters, covers a power range from 3 kW to 8,800 kW, and is widely used in residential, industrial and commercial, large ground power station, among other application scenarios. Residential PV inverters feature high power density, appealing exterior design, and simple installation and maintenance, which can automatically adapt to complicated grid environment, prolong power generation, and effectively improve power generation revenue. With built-in lightning protection and high-precision leakage current protection, as well as energy storage interfaces and various communication modes, they can meet various application requirements indoor and outdoor, and are widely used in residential PV power generation systems on residential roofs or in courtyards. String PV inverters feature high power density and simple installation and maintenance, which are suitable for different indoor and outdoor applications, hence are widely used in small and medium PV power generation systems in parking lots or on commercial roofs, as well as in large-scale ground power stations on complex terrains. Centralized PV inverters feature high conversion efficiency, safety and reliability, are highly grid-friendly and cost effective. They can cope with various environments such as extremely low temperature and high altitude, and are widely used in large and medium-sized PV power generation systems in deserts, plateaus, and on commercial roofs. Modular inverters mark a new category in the industry. At a unit power of 1.1 MW, modules can be connected in parallel to form a flexible subarray configuration of 1.1 MW to 8.8 MW. Integrating the advantages of centralized inverters and string inverters, each module features an independent MPPT design and operates independently, is built with higher tracking accuracy and plug-and-play operation and maintenance, capable of addressing the diverse needs and application scenarios of different markets around the world. Sungrow Cloud: Capitalizing on the Internet of Things, artificial intelligence, big data, and blockchain technologies, Sungrow Cloud enables group customers to collectively operate and manage solar energy, energy storage, charging poles and other energies, and creates a smart energy brain. It comprehensively satisfies the management needs of customers at different levels throughout the entire energy lifecycle, and delivers four core values: stabilizing investment returns, guaranteeing asset safety, standardizing operation and management, and assisting the group’s decision-making. Sungrow's PV inverters are exported to more than 170 countries around the world. For the second time, the Company topped the S&P Global’s list of 2022 Global PV Inverter Shipment with a total shipment of 77 GW. 2. Energy storage system (ESS) As one of the first companies involved in energy storage, Sungrow relies on the world-leading technology integration of power electronics, electrochemistry, and grid support to build professional energy storage systems. With a focus on the R&D, production, sales, and service of lithium battery ESS, the Company offers a range of ESS solutions for auxiliary new energy grid connection, power frequency and peak regulation, demand side response, micro-grid, and residential scenarios, and is acknowledged a world-class supplier of energy storage equipment and system solutions. 3. New energy investment and development In recent years, Sungrow Renewables, as the Company's new energy project development and investment platform, has upheld to the development concept of "More Power Generation in a Friendlier Way" to comprehensively advance development efforts for residential PV stations, industrial and commercial PV stations, energy storage stations, centralized PV and wind power stations, exploring a new model of green and ecological development featuring multiple-energy complementation and industrial synergy. Under the dual propulsion of technology and market, Sungrow has established a diversified and collaborative business landscape featuring a solid foundation in China and rapid development overseas. As of end 2023, the Company has developed and built PV and wind power stations with a cumulatively capacity of more than 40 million kilowatts. Residential PV power stations: The annual installed capacity of Sungrow residential PV power stations has increased by 200%. By implementing the "Rest-assured installation" service strategy and redefining residential PV, Sungrow provides users with assuring services and leads the industry into a quality service era of higher values. With intelligence and digitalization as the foundation, the Company upgrades products for various installation scenarios such as flat roofs, flat-to-slope roofs, slope roofs, courtyards, and sunrooms. The proprietary iSolarRoof intelligent design software for residential PV is widely used by channel partners. Featuring optimized component layout, system wiring, rack cutting, and quick design drawing, the software helps improve power station design efficiency by 400%. Industrial and commercial PV power stations: The Company capitalizes on its world-leading new energy technological strength as well as innovative and efficient industrial and commercial PV power station products to provide enterprises with new energy full lifecycle solutions covering consulting, development, investment, and delivery. In response to the surging demand for green energy across various industries, Sungrow continually explores the channel ecosystem and implement the 2188 Galaxy Project, and establishes a multi-win landscape for the brand, channel operators, partners, industrial and commercial enterprises based on the core advantages of “technology + platform”. With in-depth insights on energy consumption scenarios and characteristics of industries, Sungrow has developed innovative zero carbon solutions for automobiles, home appliances, cement, warehousing, logistics, among other industries to address the green energy demand and accelerate the zero carbon transformation of various industries. Centralized PV power stations: Covering various application scenarios, centralized PV power stations leverage advanced R&D capabilities and extensive project experiences to largely improve the ROI of PV power stations, creating greater value for customers. In the meanwhile, comprehensive development models such as PV desertification control, reclamation of saline and alkaline land, PV- agriculture complement, and floating systems are adopted to enable efficient and composite utilization of wind, solar, and land resources, providing integrated development examples for comprehensive environmental treatment and new energy industry application. Wind power station: Wind farms can fit in different operating environments such as high/low temperatures, high altitude, low wind speed, coastal areas, and are intended for plain wind power, mountain wind power, decentralized wind power, wind-PV complementary systems and other healthy ecosystems and development patterns to meet the diverse needs of customers and maximize value. Multi-energy integration: Relying on the PowMart smart energy solution featuring independent intellectual property, Sungrow incorporates advanced system integration technology into the wind-PV-storage integration, wind-PV-hydrogen production, PV- storage-charging integration and other new energy integration application scenarios, establishes innovative examples in multi-energy collaboration, intelligent scheduling, grid friendliness, safety and reliability, and provides support for building a new type of power system running on new energies. 4. Wind power converters Sungrow’s Wind Energy Division is committed to promoting high-power and high-performance power electronic conversion technology and its engineering applications. It specializes in high-power energy conversion, high-performance grid connection control, and high-power motor drive and control technologies, with a business scope covering wind power converters, wind power pitch drives, wind power aftermarkets, grid simulation power supplies, and drive frequency converters. The Company’s shipment of wind power converters ranked first in the world. In the future, Sungrow Wind Energy Division will keep exploring high-power energy conversion and control, and strive to become the leader in global wind power conversion and transmission technology. 5. Smart operation and maintenance Relying on the Company’s 20+ years of power electronic conversion technology and power station investment and development practice, Sungrow Smart Operation adheres to the service concept of “Secure with technology, be reliable and trustworthy” to provide one-stop asset management services for new energy assets, and continues to ensure customers' stable return and asset safety with advanced technology. In the reporting period, Sungrow Smart Operation was recognized as the National High-Tech Industry enterprise, the National SRDI （未完）  |