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

I. Definition

Unless otherwise required, the following terms shall have the following meanings in this report:

Section II Company Profile and Major Financial Indexes

I. Company Information

II. Contact and Contact Information

III. Basic Information

IV. Information Disclosure and Location

V. Stock Information

VI. Other information

VII. Major Accounting Data and Financial Indexes in the Recent Three Years

(I) Major accounting data

Unit: Yuan Currency: RMB

(II) Major financial indexes

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

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

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:

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

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 farming in the bottom" to realize the green integration of smart farming and clean energy. In terms of fishery, the Company guides the intensive, intelligent and efficient development of aquaculture through effective water surface modification, rational application of fishery facilities, and optimization and innovation of aquaculture models. In terms of PV power generation, the Company adheres to the implementation of cost strategic planning, and continuously reduces the installed cost of PV systems through design optimization and technological innovation.

The "Fishery& PV Integration" development model can promote the coordinated development of primary, secondary and tertiary industries, integrate and create a "three-new" modern industrial park integrating new fishery, new energy, and new rural area, promote industrial transformation and upgrading, provide an effective way for the construction of new rural areas, and form the unique competitive model of the Company.

(VI) Enriched corporate culture

An effective corporate culture is the key to strengthen cohesion and creativity and an important part of the core competitiveness of the Company. “Striving for Excellence Contributing to Society” is the corporate purpose, and “For Better Life” is the corporate vision, which indicates the value and goals of existence for the Company; “Honesty, Trust, Fairness and Excellence” is the management philosophy, that is, being sincere and candid, winning trust by credibility, running business with fairness and legitimacy, taking the lead with guaranteed excellence; "three decides" is the important management principle of the Company, that is, efficiency decides profit, detail decides success, speed decides life and death; "work hard, work with intelligence, work with the spirit of seizing the day" is the code of conduct for employees. After years of development, the elemental spirit advocated by the Company’s corporate culture is closely integrated with our business targets and daily work, guiding the benchmarking operations of all business segments, branch companies and subsidiaries of the Company, continuously and deeply advancing the fine-tuning of management and constantly boosting the high-quality development of various business activities.

Section IV Discussion and Analysis on Operation

I. Discussion and Analysis on Operation

In 2020, the raging COVID-19, the turbulent international situation and the global economic recession affected the feed and PV industries seriously. Faced with multiple pressures such as hindered resumption of work, delayed terminal demand, sharp rise in raw material prices, and rising operating costs, the Company has firmly implemented the business policy of "gathering and focusing, implementing in place, and efficient operation". On the one hand, the Company coordinated and promoted the Company's epidemic prevention and control work to ensure the safety of employees, without one confirmed or suspected case of "COVID-19" throughout the year. On the other hand, it took the lead in the industry to resume work and production, which ensuring the smooth development of the Company's business operations throughout the year and the effective implementation of various business plans. During the reporting period, the Company achieved operating revenue of 44.20 billion yuan, with a year-on-year increase of 17.69%; net profit attributable to shareholders of the listed company was 3.608 billion yuan, with a year-on-year increase of 36.95%, and net profit net of non-recurring gains and losses attributable to shareholders of the listed company was 2.409 billion yuan, with a year-on-year increase of 4.06%.

(I) Feed and industrial chain business

After the outbreak of the COVID-19, downstream aquaculture and terminal consumer demands were affected. In order to ensure sufficient supply and price stability of residents’ meat products, governments at all levels accelerated the implementation of residents’ "vegetable basket" projects, such as supporting the expansion of live pig production and expanding the farming scale of poultry meat. With the strong support of the policy, driven by factors such as the continuous recovery of live pig production, high poultry stocks, and booming production and sales of cattle and sheep products, the national feed output achieved rapid growth, but there were obvious differences between different feed varieties. According to statistics from the National Feed Industry Association, the total domestic feed output in the year was 252.761 million tons, with a year-on-year increase of 10.4%. Among them, the output of pig feed was 89.225 million tons, with a year-on-year increase of 16.4%; the output of egg and poultry feed was 33.519 million tons, with a year-on-year increase of 7.5%; the output of meat and poultry feed was 91.758 million tons, with a year-on-year increase of 8.4%; the output of ruminant animal feed was 13.188 million tons, with a year-on-year increase of 18.9 %; and the output of aquatic feed was 21.236 million tons, with a year-on-year decrease of 3.6%. While the feed industry is welcoming production growth, competition has also continued to intensify and polarization has increased. Among them, large-scale enterprises have rapidly expanded the scale of intensive aquaculture by virtue of their advantages in capital, management and the construction of the epidemic prevention system. Small-scale aquaculture and free-range breeding have gradually withdrawn from the market, the concentration of aquaculture has accelerated, and the scale of the vertically integrated industrial chain of large-scale enterprises has continued to expand. The market share has further increased, and the industry competition pattern has shifted from competition in the feed processing industry to comprehensive competition in the entire industrial chain of agriculture and animal husbandry.

During the reporting period, the Company standardized the awareness and behavior of all employees with the goal of "maximizing farming benefits", strictly controlled the entire process of product quality formation, design, manufacturing, and use at the level of specialization, standardization, scale, and continued to improve the quality management system, provided customers with safe and stable products and achieve win-win development between the Company and customers. In 2020, the feed, food and related businesses of the Company achieved operating revenue of 20.851 billion yuan, with a year-on-year increase of 12.14%, and the sales volume of feed was 5,249,200 tons, with a year-on-year increase of 7.12%. Under the situation of the year-on-year decline in the output of the aquatic feed industry, the sales volume of aquatic feed continued to grow. The proportion of high value-added products continued to increase. The expanded feed increased 11.37% year-on-year, and specialty materials increased 18.81% year-on-year.

The Company focused on the following tasks throughout the year:

1. In-depth practice of the "quality policy" and comprehensive implementation of "standardized" management. During the reporting period, the Company comprehensively upgraded the "Quality Policy", carried out publicity and implementation activities, in-depth interpretation, comprehensive implementation and strict implementation, and a normative awareness and corporate culture with the "Quality Policy" everywhere was formed. Based on the "quality policy", the Company promoted the construction of "standardization" firstly in the industry, created on-site standardization and operation standardization, improved product quality, reduced production costs, and formed a Standardization Work Manual and operation mode, and employees' thinking was changed fundamentally, "internalized in heart, externalized in industry" was realized, and a standardized management model in the feed industry was established. With the help of on-site standardization, the Company vigorously carried out "home marketing", allowing customers to intuitively feel the standardization and normalization of company management, personally experience how a good feed was produced, and enhanced customers' recognition of the Company's brand and product quality.

2. Broke through the concept and innovatively introduced the business philosophy of "full production and full sales". It was a common phenomenon in the industry that the capacity utilization rate of feed enterprises fluctuates with the seasons. During the reporting period, the Company broke the conventional thinking of producing according to sales in the feed industry, changed the concepts, and introduced the business philosophy of "full production and full sales", formulated corresponding implementation plans, and quickly promoted and implemented the plans in various subsidiaries. After several months of pilot promotion, the capacity utilization rate and per capita efficiency of many companies were effectively improved. The full production and full sales model became an effective way for the Company to increase the level of scale further.

3. Two-wheel drive of technology and market, consolidate product competitive advantage

During the reporting period, the Company focused on building a leading product terminal expressive force, promoting the transformation of technical system functions, allowing technology to deeply participate in operations, relying on technical solutions, solidifying the scientific breeding model, and vigorously promoting the three-in-one breeding and profit model of "product + model + service", realizing the two-wheel drive of technology and market, and gradually transformed from a product provider to a comprehensive solution provider. At the same time, the integrated product development model (IPD) was implemented; starting from customer needs, the precise positioning and rapid development of products were achieved, a full-process control of the product line was formed, the product terminal competitive advantages were consolidated, and more value was created for the Company and customers.

4. Strengthened strategic supplier cooperation and optimized purchasing costs

During the reporting period, the Company continued to optimize the supplier catalog, strengthen cooperation with strategic suppliers, change the traditional business cooperation model, and improve business efficiency and strategic supplier viscosity. Affected by the epidemic, the prices of raw materials raised sharply. The Company used a professional purchasing team and a centralized purchasing platform to accurately grasp the purchasing nodes, so it can ensure that the purchasing costs of main raw materials were better than the average market.

In terms of food and processing business, through business focus, optimizing the business model and deepening the management reforms, the annual sales revenue was 1.982 billion yuan, with a year-on-year increase of 4.03%. The Company strictly adhered to the red line of food safety, established a whole-process traceability system of the product, and strived to provide terminal consumers with safe, healthy and delicious aquatic and livestock food. Among them, Tongwei brand fresh fish gradually realized "one fish, one yard, scanning code for traceability", which formed a clear difference from other fresh fish products, and won the recognition and praise of consumers. In 2020, the "Tongwei Fish" brand won awards such as "Leading Brand in China's Food Industry", "Trusted Brand by Chinese Consumers", "Top 100 Iconic Brands of China's Agricultural Products" and "Most Influential Brands in China's Agriculture".

And the brand recognition and reputation were further improved.

(II) PV new energy business

At present, climate warming has become a common survival problem faced by all humankind, and energy transition and green development have become a global consensus. In order to cope with climate change and implement climate governance, many countries around the world have successively announced carbon neutrality targets in recent years. On September 22, 2020, China solemnly promised at the UN General Assembly that China would aim to achieve peak CO2 emissions before 2030 and carbon neutrality before 2060. On December 12, 2020, President Xi Jinping emphasized at the Climate Ambition Summit that the non-fossil energy in China will account for about 25% of primary energy consumption in 2030, of which the total installed capacity of wind power and solar power will reach more than 1.2 billion KW.

Japan and South Korea announced that they would achieve carbon neutrality by 2050. The European Union plans to improve the greenhouse gas emission reductions (compared to 1990) from 40% to 60% in 2030. On February 19, 2021, the United States rejoined the Paris Agreement. According to incomplete statistics, more than 40 countries and economic entities around the world have announced carbon neutrality targets and are actively formulating corresponding targets and measures to guide energy conservation, emission reduction, and energy consumption transformation by the end of 2020. Under this background, the renewable clean energy focusing on wind power and PV is developed quickly, the installed capacity is steadily increased year by year, and the global green transformation has entered a new stage. Among them, PV will become the main form of clean energy in the world due to the high conversion efficiency, simplicity, reliability, economy and environmental protection, so as to contribute to global climate governance and green sustainable development.

Affected by the spread ofthe epidemic in the firsthalfof2020,globaldemand forPVinstallationswasdelayed,the operating rate ofthe industrialchain wasgenerally insufficient,and productpricesfellsharply.In the second halfofthe year,the epidemic was gradually broughtundercontrol,demand forinstalled capacity resumed,and the volume and price ofPVproducts rebounded.According to CPIAstatistics,globalPVinstalled capacity wasexpected to be 130GWin 2020,hitting a newhigh.Amongthem,domestic PVinstalled capacity was 48.2GW,with a year-on-yearincrease of60.1%.The newlyinstalledcapacityhasrankedfirstintheworldfor8consecutiveyears.Atthesametime,thegloballeadingadvantage ofPVmanufacturing industry in China wasfurtherenhanced.In 2020,domestic polysiliconoutputwas392,000MT,with a year-on-yearincrease of14.6%;the silicon waferoutputwas161.3GW,with a year-on-yearincrease of19.7%;the celloutputwas 134.8GW,with a year-on-yearincrease of22.2%;and themoduleoutputwas124.6GW,with ayear-on-yearincreaseof26.4%.Although thesevereoverseasepidemic,themoduleexportvolumeofourcountry in 2020 wasabout78.8GW,with ayear-on-yearincrease of18.3%.With the continuous advancementoftechnology,the levelized costofenergy (LCOE)ofPVpowergeneration continued to decrease.Atpresent,mostcountries and regions in theworldhaveachievedparity,andsomeareevenlowerthanthecostofthermalpower.PVpowergenerationwillwelcomeabroaderdevelopmentspace.

Based on the strategic development positioning of "building a world-class clean energy operator" and the comprehensive advantages of technology, cost, and management accumulated in the PV industrial chain, and actively seizing industry development opportunities, the Company has formulated the Development Plan of High-purity Polysilicon and Solar Cell Business in 2020-2023 (see the relevant announcement on February 12, 2020 for details), to accelerate the promotion of the capacity expansion and technological progress of the two core business links of high-purity polysilicon and solar cells, continuously consolidate the leading advantages of the Company in the above fields, and maintain the rapid and steady development of the Company in the industry. During the reporting period, the Company initiated the project construction with a total annual capacity of 150,000MT, including high-purity silicon Leshan Phase-II, Baoshan Phase-I, and Baotou Phase-II. It is expected that the Leshan Phase II and Baoshan Phase I projects with a total annual capacity of 100,000MT will be put into operation before the end of 2021. At that time, the Company will form a high-purity polysilicon capacity exceeding 180,000MT.

The 50,000MT Baotou Phase- II project is expected to be completed and put into operation in 2022. In terms of solar cells, the Company closely followed the market’s large-size development trend. During the reporting period, the Company invested the Meishan Phase-I 7.5GW 21X large-size cell project, started the Meishan Phase-II 7.5GW, Jintang Phase- I 7.5GW, and Jintang 15GW 21X large-size cell project cooperating with Trina Solar, which will be put into production in 2021. At that time, the capacity will exceed 55GW, of which 166 and above will account for more than 90%, and the product structure will be further optimized. On the other hand, the monocrystalline ingots and wafers project cooperating with Trina Solar has been started in 2020. The project is divided into two phases, each phase is 7.5GW. It is expected to be put into production in 2021 and 2022 respectively, to further guarantee the supply of the large size silicon wafers.

In order to give full play to the professional advantages of the Company, strengthen upstream and downstream cooperation in the industrial chain, and promote the industry's professional division of labor, complementary advantages, and win-win cooperation, the Company has established strategic partnerships with LONGi, Trina Solar, Jinko Solar, etc. to carry out industrial chain project investment cooperation and long-term order purchasing and sales cooperation, and sign long-term supply chain orders with a number of industry companies.

(1) High-purity polysilicon business

During the reporting period, the Company focused on the implementation of safe production and operation responsibilities, strengthened team performance and due diligence work style, and ensured the safe, stable and efficient operation of the production facilities in Leshan and Baotou bases while effectively fighting the epidemic and responding to sudden natural disaster. Focusing on optimizing the core competitiveness goals of high-purity polysilicon quality, cost, efficiency, on the one hand, the Company strengthened technological innovation and research and carried out a number of technical research projects throughout the year; the monocrystalline rate, density rate, reduction power consumption, steam consumption and other core technologies indicators achieved phased results; on the other hand, the Company further promoted "Amoeba management" and "team building" to build an intelligent and smart factory, improved the level of refined management, and achieved efficient operation and continuous cost reduction and efficiency enhancement.

During the reporting period, the high-purity polysilicon capacity of the Company was operating at full load, and various indicators continued to be optimized. The annual sales volume of high-purity polysilicon was 86,600MT, with a year-on-year increase of 35.79%, and the gross profit margin was 36.78%. The product production costs continued to decrease, with an annual average production cost of 38,700 yuan/MT, of which new capacity was 36,300 yuan/MT.

Based on the development trend of further improving the quality and efficiency of products in the PV industry, the Company has continuously improved the quality of high-purity polysilicon products while taking into account the advantages of production costs. At present, the proportion of mono-grade in the products has reached more than 98%, and the batch supply of N-type material can be achieved. At the same time, the Company is promoting the construction of new projects orderly. The newly-built capacity has a larger single-line scale and a more complete production process technology, and the cost will be further reduced.

(2) Solar cell business

During the reporting period, the Company closely mastered the market changes, optimized product structure, increased the proportion of products with sizes of 166 and above, and met the needs of different customers; strengthened internal and external benchmarking to guide the Company to continuously improve quality and reduce costs; focused on technology research and development, carried out the pilot test and transformation of new technologies such as HJT and TOPCON based on the further improvement and optimization of product conversion efficiency and reliability of the mainstream PERC technology, so as to help the Company maintain its leading technology advantage. Due to the terminal demand impact caused by the epidemic, the solar cell market fluctuated greatly throughout the year. In the first half of the year, solar cell market prices fell by 30% year-on-year. In the second half of the year, as demand gradually picked up, solar cell prices stabilized and rebounded. During the reporting period, the Company continued to maintain full production and full sales, the cell and module shipments was 22.16GW, with a year-on-year increase of 66.23%, and the gross profit margin of monocrystalline cells was 16.78%. According to data released by PVInfoLink, the solar cell shipments of the Company continued to rank first in the world in 2020.

During the reporting period, the Company continued to improve the production process through technology research and development, intelligent manufacturing, and delicacy management and control.

The key production indicators such as product A-level rate, fragmentation rate, and CTM value continued to maintain the leading advantage in the industry. The new project gradually carried out the application of 5G in the industrial Internet field, creating a smart park and 5G standard unmanned workshop. At the same time, process equipment and production processes were automated, intelligent, and informationized to further optimize production indicators and reduce non-silicon costs. In terms of marketing, it adhered to value marketing, continue to promote the brand value of “Tongwei cells inside”, actively promoted the market process of large-size products, and use product quality as the backing and market changes as an opportunity to strengthen in-depth cooperation with downstream leading component manufacturers and sign multiple long-term supply order to ensure the stable shipments of the Company. In terms of comprehensive management, the Company actively promoted the "cost reduction benchmark line", "efficiency golden line", "process baseline", "TQM improvement star", and "TQM excellent team" within the Company, and rewarded "innovative proposals" and "reasonable suggestions" timely, a large number of outstanding employees and valuable proposals emerged to promote the further improvement of multiple production indicators and enhance the operating performance of the Company.

(3) PV power generation business

During the reporting period, the Company continued to focus on the development, construction, operation and maintenance of the "Fishery & PV Integration", and achieved cost reduction and efficiency enhancement of the powerplant through system optimization in the overall project design, centralized purchasing, engineering construction, and operation management, created a compound efficiency model of “generating clean energy on water and high-quality aquatic products underwater” to enhance the differentiated competitiveness of the Company. As of the end of the reporting period, the Company built 45 main PV powerplants with “Fishery& PV Integration”, with a cumulative installed capacity of more than 2GW and a total of 2,164,980,000 kWh of power generation throughout the year. At present, PV power generation has fully entered the era of parity. The Company will continue to focus on cost targets and the development and operation of "scaled", "clustered", and "beneficial" projects, and gradually realize the large-scale layout of "Fishery& PV Integration".

II. Major Operation Conditions in the Reporting Period

Refer to "Discussion and Analysis on Business Conditions" in this Section for details.

(I) Major business analysis

1. Analysis of changes in the related items of the income statement and cash flow statement

Unit: Yuan Currency: RMB

2. Revenue and cost analysis

√Applicable □Inapplicable

1) Due to the expansion of the production and sales of high-purity polysilicon and solar cells of the Company, operating revenue increased year-on-year.

2) The Company has implemented the Accounting Standards for Business Enterprises No. 14-Revenue revised by the Ministry of Finance from January 1, 2020, and the transportation costs, export costs and other expenses (originally reported as sales expenses) related to the contract performance will be directly changed to the operating costs. If retrospectively adjusted according to the same caliber, the operating costs were increased by 19.32% year-on-year, and sales expense was decreased by 2.37% year-on-year.

(1). Major business by industry, product, and region

Unit: Yuan Currency: RMB

(2). Production and sales analysis table

√Applicable □ Inapplicable

Explanation of production and sales

During the reporting period, the production and sales of high-purity polysilicon and solar cells increased significantly year-on-year, mainly due to the increased capacity of high-purity polysilicon and solar cell projects. At the same time, with the further optimization of various indicators, the production and management efficiency continued to improve, and the product quality and comprehensive cost performance were highly recognized by the market.

(3). Cost analysis

Unit:Yuan

(4). Information on major sales customers and suppliers

√Applicable □Inapplicable

The top five customers had sales of RMB 10,312,816,300, accounting for 23.33% of the total annual sales; in the sales of the top five customers, the sales of related parties were RMB 0, which accounted for 0% of the total annual sales.

The purchasing amount of the top five suppliers was RMB 9,859,830,400, accounting for 25.53% of the total annual purchase; in the purchasing amount of the top five suppliers, the purchasing amount of related parties was RMB 0, which accounted for 0% of the total annual purchase.

3. Expense

□ Applicable √Inapplicable

4. R&D investment

(1).R&D investment situation table

√Applicable □Inapplicable

Unit: Yuan

(2).Explanation of the situation

□Applicable √Inapplicable

5. Cash flow

√Applicable □Inapplicable

The net cash flow from operating activities was 3.025 billion yuan, with a year-on-year increase of 667 million yuan, an increase of 28.31%, mainly due to the expansion of the operation scale of high-purity polysilicon and solar cells, and the corresponding increase in the generated net cash flow.

The net cash flow from investment activities was -4.74 billion yuan, with a year-on-year decrease of 449 million yuan, a decrease of 10.48%, mainly due to the increased cash paid for new production lines and fixed assets purchases during the current period.

The net cash flow from financing activities was 5.795 billion yuan, with a year-on-year increase of 4.354 billion yuan and a year-on-year increase of 302.15%, mainly due to the increased proceeds received from the non-public offering during the current period.

(II) Explanation of major changes in profit caused by non-main business

√Applicable □Inapplicable

1. In 2020, due to the transfer of 98% equity of Chengdu Tongwei Industrial Co., Ltd., the Company confirmed investment income of RMB 1,521,815,100, increasing net profit of RMB 1,293,542,800.

2. Asset impairment of PV powerplants

By the end of 2020, among the completed grid-connected PV power generation projects of the Company, 138.79MW has not yet obtained the subsidy indicator in full, and the possibility of obtaining additional subsidy indicators in the future is small, and there are signs of impairment. The situation is as follows:

1) Two PV power generation projects (Phase-I and Phase-II) in Maanshan, Anhui

According to the regulations of WNYXN [2016] No.13 “Notice on Improving Construction and Management of "First Building and First Getting" Distributed PV Powerplants” issued by Anhui Energy Administration, National Energy Administration East China Regulatory Bureau, Anhui Price Bureau, and State Grid Anhui Electric Power Company issued on February 17, 2016, the ground distributed PV powerplants were built firstly and got firstly. After the project was completed, it would be included in the annual construction scale of our province in accordance with the order of grid connection. The Company has built the first and second phases of Fishery& PV Integration PV powerplants, with a grid-connected scale of 64.59MW, which were connected to the grid for power generation at the end of July 2017 and January 2018 respectively, and received a subsidy indicator of 3.9MW in March 2020. It was expected that the possibility of subsidizing the target was small by the end of 2020.

2) PV Power Project in Fengnan, Tangshan of Hebei

Fishery & PV Integration PV Powerplant in Fengnan Tangshan Hebei obtained record with the JFGNYBZ No. [2017] No. 107 of Hebei Provincial Development and Reform Commission on May 31, 2017, and was connected to the grid in December 2018, with a grid size of 74.2MW. The subsidy indicator of 24MW has been obtained. By the end of 2020, it was expected that the possibility of obtaining the subsidy indicator in the future was small.

The above PV power generation projects were expected to have future cash inflows lower than the investment and construction expectations, and there were signs of impairment. For this reason, in accordance with the principle of prudence, impairment tests were conducted based on the existing subsidy indicators, and impairment reserves of RMB 221,877,000 were accrued.

3. In 2020, there was a loss of 399,711,800 yuan from scrapped fixed assets, mainly including:

1) Sichuan Yongxiang Polysilicon Co., Ltd. dismantled assets and lost 288.4797 million yuan

The Company upgraded the distillation and reduction sections of the original 20,000MT high-purity

polysilicon project, and dismantled part of the equipment. In the fourth quarter of 2020, after on-site survey and appraisal by engineering technology and equipment management personnel, the corresponding assets were no longer used, and it was scrapped. The original book value of the scrapped assets was 573,125,100 yuan, the book value was 293,318,500 yuan, and the net loss after deducting the estimated residual value was 288,479,700 yuan.

2) Tongwei Solar (Hefei) Co., Ltd. lost RMB 60,521,800 from dismantling assets

According to data from PVInfolink, the market share of multicrystalline cells in 2020 was about 10%, and it was expected that the market share of multicrystalline cells would further reduce to 2% in 2022.

However, due to the price advantage of multicrystalline modules, there is still a certain market demand in the market of Southeast Asia, India, etc.; in order to reduce production costs, the Company optimized and upgraded the polycrystalline production line in the fourth quarter of 2020 to extend the life cycle of polycrystalline products and scrap the dismounted equipment; the original book value of the scrapped assets was 201,261,800 yuan, the book value was 68,568,500 yuan, and the net loss after deducting the estimated residual value was 60,521,800 yuan.

3) Tongwei Solar (Chengdu) Co., Ltd. lost 27,562,600 yuan from dismantling assets

With the development trend of large-size products in the market, after full demonstration, the original small-size R&D equipment has no further R&D value, and the Company dismantled and scrapped the equipment. At the same time, in order to extend the life cycle of the 156-size production line as much as possible, the Company carried out technical innovation to the 156-size production line in the fourth quarter of 2020, and part of the equipment was dismantled in the process. The original book value of the above assets was RMB 46,827,300, the book value was RMB 29,382,600, and the net loss after deducting the estimated residual value was RMB 27,562,600.

(III) Analysis of assets and liabilities

√Applicable □Inapplicable

1. Assets and liabilities

Unit: Yuan

Proportion

The Company's PV industry generally used bill settlement. With the growth of business scale and the development of the "bill pool" business, the Company used unexpired bills as pledge to issue bills payable for payment to suppliers, etc., so the bills receivable and payable increased significantly. At the end of 2020, the balance of bills receivable (listed as financing receivables) and bills payable reached 9.712 billion yuan and 9.364 billion yuan, accounting for 15.12% and 28.63% of total assets and total liabilities respectively, and it had an impact of 8.38 percent points on the debt-to-asset ratios, see the following table for details (amount unit: RMB 10,000):

2. Restrictions on major assets by the end of the reporting period

√Applicable □Inapplicable

3. Other notes:

□Applicable √Inapplicable

(IV) Industry operational information analysis

√Applicable □Inapplicable

The Company involves PV industry, agriculture, forestry, livestock husbandry and fishery industry.

Analysis of Operational Information in the PV Industry

1. PV equipment manufacturing business

□Applicable √Inapplicable

2. Key technical indicators of PV products

√Applicable □Inapplicable

3. PV powerplant information

√Applicable □Inapplicable

Unit: 10,000Yuan Currency:RMB

√Applicable □Inapplicable

Unit: 10,000Yuan Currency: RMB

□Applicable √Inapplicable

4. Recommended tables

(1). Capacity of PV products completed and under construction

√Applicable □Inapplicable

Unit:10,000Yuan Currency:RMB

Analysis of the cause and impact of major changes in capacity utilization rate: Inapplicable

(2). Major financial indicators of PV products

√Applicable □Inapplicable

Unit：10,000Yuan Currency: RMB

Product type Production and sales rate (%) Sales revenue Gross profit margin (%)

If the PV products are sold overseas, they should be listed by country or region

√Applicable □Inapplicable

Unit:10,000Yuan Currency:RMB

Unit:10,000Yuan Currency:RMB

Unit:10,000Yuan Currency:RMB

(3). Project information of PV powerplant project contracting or development

□Applicable √Inapplicable

5. Other notes:

□Applicable √Inapplicable

(V) Investment status analysis

1. Overall analysis on external equity investment

√Applicable □Inapplicable

According to the development strategy plan, the Company is committed to the coordinated integration of the two major industries of “agriculture (fishery) + PV” and the further development and expansion of their respective segments, makes full use of the Company's existing technology and cost advantages, accelerates the scale layout, expands the competition gap, and strives to consolidate and builds the leading position of the Company in the core link of the industrial chain.

(1) Significant equity investment

□Applicable √Inapplicable

(2) Significant non-equity investment

√Applicable □Inapplicable

Unit: 10,000 Yuan

(3) Financial assets measured at fair value

□Applicable √Inapplicable

(VI) Major assets and equity sales

√Applicable □Inapplicable

During the reporting period, the Company sold 98% of the equity of Chengdu Tongwei Industrial Co., Ltd. and 100% of creditor's rights held by Tongwei based on maximizing the interests of the Company and investors in accordance with the resolutions and authorizations of the general meeting of shareholders; Chengdu Yihua Real Estate Co., Ltd. (hereinafter referred to as "Yihua Real Estate"), a wholly-owned subsidiary of Guangdong Aoyuan Commercial Real Estate Group Co., Ltd., won the equity and creditor's rights of the above bidding at a price of RMB 1,936,265,300. The Company signed an agreement on equity transfer with Yihua Real Estate and related parties on July 10, 2020. This matter was reviewed and approved by the ninth meeting of the seventh board of directors held on July 14, 2020 and the second extraordinary general meeting of shareholders held on July 30, 2020. For details, please refer to the Company’s relevant announcements disclosed on the designated information disclosure media and the Shanghai Stock Exchange website (http://www.sse.com.cn) on July 31, 2020. During the reporting period, the Company received all transaction payments and capital occupation fees paid by the counterparty Yihua Real Estate, and completed the transfer of the equity, industrial and commercial change registration, and the transfer of various assets and data.

(VII) Analysis of major holding companies and joint-stock companies

√Applicable □Inapplicable

Unit: 10,000 Yuan

(VIII) Situation of the structured entities controlled by the Company

□Applicable √Inapplicable

III. Discussion and Analysis of the Company about Further Development

(I) Industry pattern and trends

√Applicable □Inapplicable

1. Feed industry

(1) The total quantity of the feed industry maintains a growing trend

Due to the effective control of "African Swine fever" and the support of governments at all levels to encourage the expansion of livestock and other meat breeding, the feed production in our country achieved a restorative growth in 2020. According to the statistics of the National Feed Industry Association, the total output of industrial feed in our country was about 253 million tons, with a year-on-year increase of 10.4%. The goal of total industrial feed output reaching 220 million tons in the "Thirteenth Five-Year Development Plan for the National Feed Industry" has been successfully completed; and it increased by 26.3% compared with 2015. On February 25, 2021, the Ministry of Agriculture and Rural Affairs issued the Implementation Opinions on the Implementation Key Agricultural and Rural Work Deployments of the Party Central Committee and the State Council in 2021. The document requires that each province must promote the stable development of pig and other livestock production, stabilize the pig farm, brood sow and realize the production of large provinces, large counties and large enterprises. At the same time, the document requires to strengthen the guidance to small farms to ensure that the annual pig capacity is restored to the normal level. Meanwhile, the circulating water, deep sea and geoidal ecological fishery were greatly developed so as to promote the saline-alkali aquaculture, standardized development of integrated rice-fishing cultivation, and promote the quality and efficiency increasing in fishery. With the recovery and continuous development of related breeding activities, total feed output in our country will maintain a growing trend.

(2) Feed safety and environmental protection requirements are continuously upgraded

In recent years, feed regulatory agencies have intensified random inspections of feed companies and penalties for companies that violate regulations, which have promoted the steady improvement of product quality in the feed industry. According to the Notification on the National Feed Quality and Safety Supervision and Sampling Results in 2020 issued by the Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and Rural Affairs, the national feed quality and safety sampling inspection pass rate reached 98.1% in 2020, which was higher than the goal of sampling inspection pass rate above 96% in Thirteenth Five-Year Development Plan for the National Feed Industry. In 2020, the feed industry in our country entered an era of comprehensive “antibiotic-free", which indicated that the feed industry in our country started a process of high-quality development. At present, feed companies must not only meet the requirements of ensuring the safety of animal products, but also take into account new requirements such as consumption upgrades and environmental safety. This poses challenges to small and medium-sized feed companies with weak financial strength, low technical level, and poor production control capabilities. With stronger comprehensive strength, leading feed companies can meet the requirements of feed safety and environmental protection well, and promote the green development and transformation of the industry.

(3) Accelerate the process of large-scale, intensive and integrated feed industry

According to data released by the National Feed Industry Association, from the perspective of production methods, there were 749 feed production plants with a scale of more than 100,000 tons in our country in 2020, with an increase of 128 over the previous year and a total production of 134 million tons, which account for 52.8% of the total national feed output, with an increase of 6.2 percent points over the previous year. There are 33 feed enterprise groups with an annual output of more than one million tons, accounting for 54.6% of the total national feed output, and with increase of 4.1 percent points over the previous year. In terms of sales methods, the total amount of bulk feed (for large-scale breeding farms) was 58.976 million tons, with a year-on-year increase of 33.6%, accounting for 25.6% of the total compound feed output, and it increased by 4.6 percent points over the previous year. With the continuous acceleration of the concentration and intensification of the feed processing industry, the advantages of leading companies in efficiency, technology, management, capital, and talent have been strengthened, the differentiation of the industry echelon is obvious, and the clearance of small-scale feed output has accelerated. At the same time, leading companies continue to increase investment in breeding, food processing and trade links, the integrated scale of industrial chain continues to expand, and the competitive landscape has begun to transform into a comprehensive strength competition in the entire industrial chain of agriculture and animal husbandry.

(4) Accelerate the promotion of green and healthy aquaculture

On April 1, 2020, the General Office of the Ministry of Agriculture and Rural Affairs issued the Notice on Implementing the "Five Actions" for Green and Healthy Aquaculture in 2020; all places were required to focus on the promotion action plan of ecological and healthy aquaculture model, the promotion action plan of farming tail water treatment model, medicine reduction action plan for aquaculture, the action plan for replacing juvenile trash fish with formula feed, and the "five-action" of action plan for improving the quality of aquaculture to ensure the stable supply of aquatic products in our country throughout the year and the green development of the aquaculture. Affected by this, new aquaculture modes such as integrated rice farming, factory-based circulating aquaculture, and container-type circulating aquaculture have emerged in various places, and the demand for high-quality feed that meets the requirements of the new aquaculture model is increased. At the same time, 12 provinces (regions) including Liaoning and Jiangsu have successively carried out the test of replacing juvenile trash fish with formula feed, which will further increase the demand for aquatic feed. Leading feed companies actively participate in the development and promotion of new aquaculture models by virtue of their strong technical research and development capabilities and promotion service capabilities, launch supporting feeds and animal protection products in a targeted manner, and expand their brand influence and product market share.

2. PV new energy industry

(1) "Carbon neutrality" has become a global consensus, and PV new energy is ushering in major development opportunities

On December 12, 2015, the 196 parties to the United Nations Framework Convention on Climate Change passed the Paris Agreement at the Paris Climate Change Conference, with the purpose of making arrangements for the global response to climate change after 2020. According to the Paris Agreement, countries need to control the global average temperature rise within 2 degrees Celsius above the pre-industrial level in this century, and strive to control it within 1.5 degrees Celsius. This means that the world needs to achieve "carbon neutrality" before 2050. In 2020, the COVID-19 seriously dragged the global economy. In order to restore economic vitality and revitalize climate governance, many countries have successively implemented energy-saving emission reduction and renewable energy development plans. As more countries participate in the ranks of "carbon reduction" and "carbon neutrality", the global green transformation has entered a new stage, and as the main force of renewable energy, PV will usher in major development opportunities.

(2) The continuous improvement of PV technology and processes will help continuously reduce the cost of PV power generation

Cost reduction is the forever theme of the development of the PV industry. According to IRENA statistics, it has found that the cost of solar PV power generation dropped by 82% from 2010 to 2019. The sharp drop in cost was mainly due to technological progress, economies of scale, supply chain competition and the increase in developer experience. According to CPIA statistics, the global minimum bid-winning electricity price for PV power generation was 0.0112 Euro/kWh in 2020, which was equivalent to approximately RMB 0.091/kWh, and reduced by 19.7% than the lowest bid-winning electricity price in 2019; the domestic lowest bid-winning electricity price in 2020 was RMB 0.2427/kWh, which was reduced by 6.7% than the lowest bid-winning electricity price in 2019. In addition, the initial full investment cost of the ground PV system in our country in 2020 was about 3.99 yuan/W, which was decreased by 0.56 yuan/W than 2019, the decrease was12.3%. It was expected that the initial full investment cost of PV systems in 2021 would be reduced to 3.81 yuan/W, so that most areas in our country can achieve PV parity online, and promote our country to accelerate the realization of energy transformation and power structure transformation. With the increased proportion of large-size and double-sided modules, the large-scale mass production of cutting-edge technologies such as HJT and TOPCON, and the wide application of tracking brackets, the cost of PV power generation will continue to decline, and the advantage as the main force of renewable energy will be consolidated.

(3) The scale of newly installed PV capacity continues to grow, and the industrial chain develops steadily

In the face of the raging COVID-19, the global PV market kept growing in 2020, showing strong trend. According to CPIA, the newly installed PV capacity in the next five years will maintain an average annual compound growth rate of 15-20%. In 2025, the global newly installed PV capacity is expected to reach 270-330GW, of which domestic new installed capacity will reach 90-110GW. At present, the PV industrial chain in our country has the leading advantages of scale, cost, and technology in the world. Up to now, the cumulative installed capacity, newly installed capacity, polysilicon output, and PV module output in our country have ranked first in the world for 6 consecutive years, 8 years, 10 years, and 14 years respectively. With the continuous expansion of PV installations, the PV industry in our country will continue to maintain high growth.

(4) The concentration of the PV industry continues to increase and the Matthew effect continues to strengthen

At present, leading companies continue to increase their market share by virtue of their leading advantages in technology, cost, management, and scale. The backward output is gradually withdrawn from the market after multiple rounds of reshuffle, and the industry concentration continues to increase. According to statistics, the output of the top five polysilicon companies accounted for 87.5% of the total domestic polysilicon output in 2020; the output of the top five silicon wafer companies accounted for 88.1% of the total domestic silicon wafer output; the output of the top five crystalline silicon cell companies accounted for 53.2% of total domestic cell output, the output of the top five crystalline silicon module companies accounted for 55.1% of the total domestic module output, all of which achieved substantial growth over the same period. The scale of leading enterprises continues to expand, their profitability is effectively improved, and their comprehensive competitive advantages continue to increase.

(II) Development strategy of the Company

√Applicable □Inapplicable

The Company's development strategy is to build a world-class safe food supplier and clean energy operator. Utilizing the comprehensive strength and large-scale advantages accumulated for a long time in scientific research, branding, comprehensive operations, etc., it adapts to industry development trends, adheres to the specialization, large-scale, and industrialization process of the PV new energy segment and agriculture and animal husbandry segments, and optimizes and improves their respective industrial chain, strives to promote the Company's sustainable and stable development by both endogenous and extensional investment methods, promotes the continuous and stable development and realizes the Company's vision of "For Better Life".

1. Agriculture and animal husbandry segment: to build a world-class safe food supplier

Feed industry: consolidate the Company's leading position in the global aquatic feed industry, and adhere to the parallel of specialization and large-scale in accordance with the development trend of the industry. Improve and optimize the industrial chain, and realize the stable development of the industry through extensional development and endogenous growth such as overseas plant construction, domestic and foreign mergers and acquisitions.

Aquaculture: based on the Company's leading resource advantages (aquaculture resources, channel resources) in the industry, expand aquaculture to the downstream, and increase output under the premise of ensuring quality. Improve the automation, intelligence and environmental protection standards of aquaculture, promote the transformation and upgrading of traditional fishery to modern fishery, and build a leading production base for safe aquatic products with full traceability.

Aquatic product trade and processing: accelerate the promotion of aquatic product trade and deep processing business, and open up the industrial chain from the breeding end to the consumer end. The Company's green and safe food benchmark "Tongwei Fish" has been highly recognized in the regional market, and the successful model will be replicated in many places in the future. At the same time, it is actively deploying big data for aquatic product sales, combining e-commerce platforms with offline aquatic product wholesale markets to create a fresh and live aquatic product circulation system. Give full play to the advantages of the "Tongwei Fish" brand, and strive to expand along the path of breeding-wholesale-retail-consumer end, to achieve full coverage of breeding, production, processing, and trade.

2. PV new energy segment: build a world-class clean energy operator

The Company has become one of the leading product manufacturers in the PV industry. In the future, it will continue to expand its scale advantages in key aspects of PV manufacturing, accelerate the promotion of the "Fishery& PV Integration" coordinated development model, and move towards a world-class clean energy operator.

In the field of PV manufacturing, give full play to the Company's leading technology research and development and cost control capabilities to consolidate the Company's leading position in the product manufacturing field. Accelerate the expansion of high-purity polysilicon capacity, grasp the time window for import substitution and elimination of backward output; in the solar cell link, grasp the opportunity of increasing industry concentration, and continue to expand scale and cost leading advantages.

In the field of PV power generation, unswervingly promote the development model of "Fishery& PV Integration". The Company's advantageous agricultural resources are combined with the resources of the PV industry to form a three-dimensional "Fishery& PV symbiosis" economy, build a business model integrating feed, safe aquatic product production and green new energy development, and create the

differentiated core competitiveness of the Company.

(III) Business plan

√Applicable □Inapplicable

In 2021, the Company will resolutely implement the business policy of “gathering and focusing, execution in place, and efficient operation”, continue to consolidate the leading advantages in aquatic feed, high-purity polysilicon, solar cells and other industries, enhance the Company's value, and increase shareholder returns.

1. Agriculture and animal husbandry segment

In 2021, the Company's feed, food and related industrial chain businesses will strive to achieve a year-on-year increase of more than 10% in operating revenue, exceeding 23 billion yuan. To ensure that the goal is achieved, the Company plans to adopt the following operating measures:

(1) Focus on consolidating product strength. Resolutely implement the "quality policy", take multiple measures simultaneously to create stable and leading product quality; continue to optimize the product structure, focus on superior products, and create a leading product cost performance advantage.

(2) Continue to promote the two-wheel drive of technology and market. Using technology as the starting point, research and verification of aquaculture solutions are carried out around "product + mode", the three-in-one professional demonstration base of "product + mode + service" is established, a comprehensive aquaculture solution is output for the marketing system to achieve accurate delivery and precise performance of product value at the aquaculture terminal.

(3) Fully implement standardization. Continue to standardize operation improve on-site management level and professional operation capabilities, and form a highly efficient operation model with well-qualified employees, guaranteed quality, highest efficiency, optimal cost, and continuous value-added.

(4) Continue to promote digital transformation. Provide customers with a more convenient and efficient sales service experience, and help the Company achieve customer-centric marketing transformation; deepen the promotion and application of new technologies such as RPA, AI, and establish a more efficient and intelligent operation management platform for the Company; and improve the operation efficiency and strengthen risk management and control.

2. PV new energy segment

In 2021, the high-purity polysilicon business strived to achieve production and sales of more than 90,000MT, and the solar cell business strived to achieve production and sales of more than 30GW; the PV power generation business was expected to invest more than 1GW in the construction of the "Fishery& PV Integration" project. Therefore, the Company intended to take the following operating measures: (1) High-purity polysilicon business

The Company took safety and environmental protection as the operating premise, consolidated the responsibility of safe production management during the operation process, and achieved the goal of "zero accident, zero unscheduled shutdown, zero instance of non-compliance, zero wrongful operation"; continued to carry out technological innovation and refined benchmarking to eliminate the problems and difficulties in the production and operation process, achieved further improvement of process level and business performance, continued to promote the transformation of technology research and development results; continued to consolidate the leading position of high-purity polysilicon. Firstly, the Company focused on creating high-quality projects, used standardized list management to ensure that new projects were strictly put into operation according to the high standards, high quality and strict requirements. Secondly, the Company continued to build smart factories, focused on the five themes of “safety, environmental protection, quality improvement, cost reduction, and efficiency”, and integrated digitalization and intelligence into the entire process of design, construction, and plant operation management to realize the high-efficiency operation model of digital production and operation, intelligent operation and management, and intelligent decision-making support of "Leshan + Baotou + Baoshan" three bases; strengthened the construction of talent echelon, took corporate culture as the link, performance appraisal as the starting point, and built a team that can know operation and can manage and speak with data to improve the overall quality and professional capabilities of the team.

(2) Solar cell business

In terms of solar cells, the Company firmly adhered to the "Pareto principle" and continued to maintain its leading advantages in scale, cost, and technology. In terms of capacity scale, it was guaranteed that the projects under construction would be put into production within the year as planned. The cell capacity of the Company was expected to exceed 55GW by the end of 2021. In terms of cost reduction and efficiency enhancement, the Company continued to promote delicacy management and manufacturing to achieve cost reductions in procurement, production, and management. In terms of technology research and development, the Company closely followed cutting-edge processes and technologies. On the one hand, it continued to optimize and improve the multi-grid, back passivation, SE technology, high resistance dense grid, alkali polishing of the existing technology; on the other hand, it accelerated the promotion of the research and development process of TOPCON, HJT and other new technologies. The smooth operation of the 1GW scale HJT pilot line will be realized in 2021, which will provide sufficient verification for the mass production introduction of later research and development results. In terms of market development, it focused on improving product cost performance, meeting the high-cost performance needs of downstream customers, using the synergistic advantage of the silicon material to cell industrial chain, strengthening cooperation with strategic suppliers and strategic customers, and achieving mutual trust and win-win results. The Company actively explored domestic and overseas markets to cover more customer groups.

(3) PV power generation business

The Company continued to promote the development of the "Fishery& PV Integration" project, in order to ensure the quality of development, give priority to selecting large-scale bases with good water surface resources and good consumption conditions, the Company continued to promote the cost reduction process of "Fishery& PV Integration", participated in market competition, and continued to make use of the unique land efficient use in this model and competitive advantage of multi-industry integration.

（IV）Possible risks

√Applicable □Inapplicable

1. Feed industry

(1) The impact of raw material price fluctuations. The major component of feed cost is the cost of raw materials. The current raw material prices are very susceptible to many factors such as the international political and economic situation, changes in the output of the main producing areas, national collection and storage and subsidies, exchange rate fluctuations, and changes in logistics costs. Large fluctuations of the raw material price may affect the product gross profit level of the Company.

Risk response measures: the Company strengthened team business ability training, closely tracked changes in disturbance factors, predicted the price trend of raw materials through systematic research and analysis; combined supply, production, and sales requirements, rationally arranged purchasing plans, and implemented optimal inventory management; participated in the operation and management of the IPD product line together with formula product managers and quality control; ensured the continuous follow-up of research and development, and met the needs of raw material substitution under extreme conditions.

(2) The impact of market fluctuations. Feed sales are directly affected by downstream aquaculture. Natural disasters, abnormal temperature and the spread of diseases will adversely affect aquaculture, leading to fluctuations in feed demand.

Risk response measures: the Company paid close attention to the climate, natural disasters, and diseases, with prevention first and remedy as the supplement, quickly formulated response measures, and actively helped farmers to resume breeding activities; increased investment in disease prevention and control research, promoted scientific aquaculture model according to the needs of aquaculture species and helped farmers maximize their benefits; the rich feed varieties of the Company and reasonable regional layout of branch companies can effectively cope with systemic market fluctuation risks.

(3) Policy impact. With the implementation of the new Environmental Protection Law, green aquaculture norms and policy subsidies, the aquaculture industry is towards antibiotic-free, green, large-scale, and intelligent development, and scattering raising-households are facing greater challenges.

Risk response measures: according to the development trend of aquaculture, the Company rationally adjusted the Company's business strategy and increased the development of large-scale farms; resolutely implemented antibiotic-free feeds, made reasonable formulas according to the nutritional needs of different aquaculture species at each growth stage, and launched high-quality feed products, enhanced the level of product profitability; guided the transformation and upgrading of scattering raising-households with strong operating capabilities, and actively strived for relevant subsidy support policies to achieve large-scale development.

(4) The risk of exchange rate fluctuations. With the increased international raw material trade demand and the expanded overseas feed business of the Company, frequent two-way fluctuations in the RMB exchange rate will have a more obvious impact on business operations.

Measures taken: the Company paid close attention to and studied the development trends of the international foreign exchange market, and selected favorable payment settlement currencies and settlement methods accordingly; improved the research and forecast capabilities of the foreign exchange market, strengthened the management of import and export business, and used financial instruments such as future foreign exchange settlement, change over and foreign exchange options business to lock the exchange rate risks. The Company made full use of the advantages of the Company in scale, technology, and brand, and actively strived for the initiative in the negotiation and negotiation mechanism for prices, currencies, and settlement cycles.

(5) The risk of force majeure. At present, the domestic COVID-19 has been effectively controlled, and social and economic activities have returned to normal. However, there have been repeated epidemics overseas. Due to the continuous international trade and exchanges, the country is still facing potential threats of COVID-19.

Measures taken: the Company strengthened the analysis and prediction of force majeure risks such as the epidemic, and actively took corresponding measures to respond to changes in the market environment.

2. PV industry

(1) The imbalance of supply and demand in the industrial chain and the impact of product price fluctuations. In 2020, the PV supply chain was affected by the uneven supply and demand, and the overall price fluctuated greatly. Considering that the COVID-19situation is still uncertain, and the supply of raw materials such as polysilicon and glass continues to be tight, there may be large price fluctuations in the industrial chain, which will have an adverse impact on the construction of PV projects.

Measures taken: the Company strengthened industrial chain tracking and prediction, strict benchmarking management, continued to promote refined management, continued to consolidate the competitive advantages of the Company in quality, scale, technology, and cost, and further increased its market share in the field of high-purity polysilicon and high-efficiency market rate.

(2) Impact risks of industry policies. The cost of PV power generation in most countries and regions in the world is lower than the cost of traditional fossil energy power generation, so the PV power generation has become the main form of energy for most countries to achieve carbon emission reduction, and various countries have successively issued relevant incentive policies to promote the continuous increase of PV power generation scale. If the policies of various countries are greatly adjusted, the installed capacity of PV is expected to be significantly affected.

Measures taken: the Company closely followed the changes in related policies, combined its own strategic development, and formulated a reasonable business development plan for PV powerplants.

(3) Technology iteration risk. The PV industry is undergoing rapid technology upgrades, and the pressure to reduce costs is forcing companies to continue to develop new technologies. With the continuous improvement of cell and module efficiency and further reduction of costs, companies will face survival of the fittest. In recent years, PV companies have made breakthroughs in the production of crystalline silicon cells such as TOPCON, HJT, and IBC, and have continuously set new records. At the same time, crystalline silicon cells are also facing competition from thin film, perovskite and other amorphous silicon technology routes.

Measures taken: the Company actively carried out pilot trials and transformations, including HJT and TOPCON, which may become the mainstream technology routes for next-generation mass production, while maintaining the tracking and R&D demonstration of forward-looking technologies to ensure the technological leading of the Company.

(4) The risk of force majeure

The World Health Organization pointed out that humans may continue to coexist with the COVID-19 for a long time. At present, overseas markets account for about 2/3 of the global PV market demand. Combined with the emergence of the mutated COVID-19, if the overseas epidemic cannot be effectively controlled, the weakening of PV terminal demand cannot be ruled out.

Measures taken: the Company strengthened the analysis and prediction of force majeure risks such as the epidemic, actively took corresponding measures to respond to changes in the market environment, increased the development of strategic customers, enhanced product market competitiveness, and reduced the adverse effects of force majeure risks.

(V) Others

□Applicable √Inapplicable

IV. Explanation of the situation and reason that the Company does not disclose in accordance with the Code due to special reasons such as inapplicability of the Code, state secrets, trade secrets and so on

□Applicable √Inapplicable

Section V Important Matters

I. Common Stock Profit Distribution Plan or Capital Reserves Share Capitalization Plan

(I) Formulation, implementation or adjustment of cash dividend policy

√Applicable □Inapplicable

In accordance with the requirements of the Guidelines for the Supervision of Listed Company No. 3-Cash Dividend for the Listed Company issued by the China Securities Regulatory Commission, combined with the actual situation of the Company, the Company has revised and improved the profit distribution clauses in the Articles of Association for many times; and effective system guarantee is provided for cash dividend and the minimum dividend ratio, and it will be implemented strictly. In 2012, 2015, and 2018, the Company held a general meeting of shareholders to review and approve the Company Dividend Plan for the Next Three Years (2012-2014), Company Dividend Plan for the Next Three Years (2015-2017), Company Dividend Plan for the Next Three Years (2018-2020), which further clarify the implementation rules for cash dividend.

During the reporting period, the Company implemented profit distribution in strict accordance with the above relevant policies. After deliberation at the eighth meeting of the seventh board of directors of the Company on April 17, 2020, the Profit Distribution Plan and Capital Reverses Share Capitalization Plan in 2019 was approved at 2019 general meeting of shareholders of the Company on May 12, 2019; based on the total capital stock of 4,287,855,684 shares, the Company paid a cash dividend of RMB 1.86 (tax included) for every 10 shares to all shareholders; 797,541,157.22 yuan of cash dividend were distributed, and the plan was completed on May 26, 2020.

During the reporting period, the profit distribution policy and plan implementation of the Company were based on the premise of fully protecting the legitimate rights and interests of small and medium investors, conform to the Articles of Association; the corresponding review procedures were performed, and independent directors issued clear opinions.

The distribution plan of the Company in 2020 is: based on the total share capital of 4,501,548,184 shares, a cash dividend of 2.41 yuan (tax included) will be distributed to all shareholders for every 10 shares, and the total cash dividend will be 1,084,873,112.34 yuan. The plan will be submitted to the 2020 annual general meeting of shareholders for deliberation.

On April 9, 2021, the Company held the eighteenth meeting of the seventh board of directors, and reviewed and approved the Shareholder Dividend Plan for the Next Three Years (2021-2023). The plan still needs to be submitted to the 2020 general meeting for deliberation.

(II) The Common Stock Dividend Distribution Plan of the Company for the past three years (including the reporting period), and the Capital Reserves Share Capitalization Plan

Unit:Yuan Currency:RMB

(III) Situation of repurchasing shares in cash and being included in cash dividend

□Applicable √Inapplicable

(IV) In the reporting period, if the parent Company is profitable and the profit available for distribution to ordinary shareholders is positive, but does not propose a plan for the distribution of cash profit on common shares, the Company shall disclose the reasons and the use and use plan of the undistributed profit in detail

□Applicable √Inapplicable

II. Implementation of commitments

(I) The actual controllers, shareholders, related parties, acquirers, and the Company promised the commitments of related parties during the reporting period or continuing into the reporting period

√Applicable □Inapplicable

(II) The assets or projects of the Company have profit forecasts, and the reporting period is still in the profit forecast period, the Company explains the reasons whether the assets and items reach original profit forecast;

□Realized □Unrealized √Inapplicable

(III) Completion of performance commitments and its impact on goodwill impairment test

□Applicable √Inapplicable

III. Occupation of funds during the reporting period and progress in clearing debt

□Applicable √Inapplicable

IV. Explanation of the Company about the "non-standard opinion audit report" of the accounting firm

□Applicable √Inapplicable

V. The analysis and explanation of the Company about the reasons and impact of changes in accounting policies, accounting estimates or corrections of major accounting errors

(I) The analysis and explanation of the Company about the reasons and impact of changes in accounting policies and accounting estimates

√Applicable □Inapplicable

The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 14-Revenue in 2017. The revised standard stipulates that for the first implementation of the standard, the amount of retained earnings and other related items in the financial statements at the beginning of the year should be adjusted according to the cumulative impact, and the information during the comparable period should not be adjusted.

The Company has implemented the new revenue standard from January 1, 2020. According to the standards, the Company only adjusts the retained earnings at the beginning of 2020 and the amount of other related items in the financial statements for the cumulative impact of contracts that have not been completed on the date of the first implementation, and the comparative financial statements are not adjusted.

The Company adjusted the receivable electricity price subsidies corresponding to powerplants not included in the national subsidy catalog from the original "accounts receivable" item to the "contract assets" item for presentation. The tax-exclusive amount of advance receipts related to sales of goods was adjusted from the original “advance receipts” item to “contract liabilities” and the corresponding added-value tax and output tax were adjusted from the original “advance receipts” item to “other current liabilities” "or "other non-current liabilities" presentation according to the liquidity, this change only affects the presentation of financial statements, and does not affect total assets, net assets and net profit.

The impact of the above accounting policy changes on the financial statements is as follows:

① Consolidated balance sheet

Unit: Yuan Currency: RMB

② The balance sheet of the parent company

Unit: Yuan Currency: RMB

Except for the above changes, other important accounting policy changes did not occur during the reporting period.

(II) Analysis and explanation of the Company about the reasons and impact of the correction of major accounting errors

□Applicable √Inapplicable

(III) Communication with the former accounting firm

□Applicable √Inapplicable

(IV) Other notes

□Applicable √Inapplicable

VI. Appointment and dismissal of accounting firms

Unit: 10,000Yuan Currency: RMB

Explanation of appointment and dismissal of accounting firms

√Applicable □Inapplicable

Approved by the company shareholders meeting of 2019, the Company renewed the appointment of Sichuan Huaxin to provide services such as 2020 audit and internal control audit on May 12, 2020.

Explanation of reappointing an accounting firm during the audit

□Applicable √Inapplicable

VII. Face with the risk of listing suspension

(I) Reasons for the suspension of listing

□Applicable √Inapplicable

(II) Response measures to be taken by the Company

□Applicable √Inapplicable

VIII. Situation and reason for the termination of listing

□Applicable √Inapplicable

IX. Bankruptcy and reorganization related matters

□Applicable √Inapplicable

X. Major litigation and arbitration matters

□Have annually major litigation and arbitration matters √No annually major litigation and arbitration matters

XI. Punishment and rectification of the listed company and their directors, supervisors, senior managers, controlling shareholders, actual controllers, and acquirers

□Applicable √Inapplicable

XII. Explanation of the integrity status of the Company and its controlling shareholders and actual controllers during the reporting period

□Applicable √Inapplicable

XIII. The situation and impact of the Company’s equity incentive plan, employee stock ownership plan or other employee incentive measures

(I) Relevant incentive matters have been disclosed in the temporary announcement and there is no progress or change in subsequent implementation

□Applicable √Inapplicable

(II) The temporary announcement is not disclosed or has follow-up progress incentives

Equity incentive situation

□Applicable √Inapplicable

Other notes

□Applicable √Inapplicable

Employee stock ownership plan

√Applicable □Inapplicable

The Company held the 20th meeting of the sixth board of directors on December 15, 2017, and reviewed and approved the Employee Stock Ownership Plan (Draft) and its Summary of Tongwei Co., Ltd. in 2017. It was reviewed on the first extraordinary general meeting of shareholders of 2018 held on January 5, 2018; please refer to the related announcements of the employee stock ownership plan of the Company in 2017 published on the designated information disclosure media and the Shanghai Stock Exchange website (www.sse.com.cn) on December 16, 2017 (Hereinafter referred to the "Employee Stock Ownership Plan"). On May 7, 2018, the Company’s employee stock ownership plan "Yunxin-Hongrui No. 28 Collective Capital Trust Plan" bought 77,703,944 shares of the Company through the trading system of the Shanghai Stock Exchange, accounting for 2.00% of the Company’s total equity; the total transaction amount was 897,979,400 yuan, the average transaction price was 11.56 yuan/share, the lock-up period was from May 8, 2018 to May 7, 2019, and the duration was 36 months, that is, until to January 5, 2021, the Company has sold all company stocks held by the employee stock ownership plan before the expiration, and the employee stock ownership plan has been implemented and terminated.

Other incentive measures

□Applicable √Inapplicable

XIV. Significant related transactions

(I) Related transactions related to daily operations

1. Matters that have been disclosed in the temporary announcement and have no progress or changes in subsequent implementation

□Applicable √Inapplicable

2. Matters that have been disclosed in the temporary announcement, but there are progress or changes in subsequent implementation

□Applicable √Inapplicable

3. Matters not disclosed in the temporary announcement

□Applicable √Inapplicable

(II) Related transactions in the acquisition or sale of assets or equity

1. Matters that have been disclosed in the temporary announcement and have no progress or changes in subsequent implementation

□Applicable √Inapplicable

2. Matters that have been disclosed in the temporary announcement, but there are progress or changes in subsequent implementation

□Applicable √Inapplicable

3. Matters not disclosed in the temporary announcement

□Applicable √Inapplicable

4. If the performance agreements are involved, the performance achieved during the reporting period shall be disclosed.

□Applicable √Inapplicable

(III) Significant related transactions for joint foreign investment

1. Matters that have been disclosed in the temporary announcement and have no progress or changes in subsequent implementation

□Applicable √Inapplicable

2. Matters that have been disclosed in the temporary announcement, but there are progress or changes in subsequent implementation

□Applicable √Inapplicable

3. Matters not disclosed in the temporary announcement

□Applicable √Inapplicable

(IV) Related credit and debt transactions

1. Matters that have been disclosed in the temporary announcement and have no progress or changes in subsequent implementation

√Applicable □Inapplicable

2. Matters that have been disclosed in the temporary announcement, but there are progress or changes in subsequent implementation

□Applicable √Inapplicable

3. Matters not disclosed in the temporary announcement

□Applicable √Inapplicable

(V) Others

□Applicable √Inapplicable

XV. Major contracts and their performance

(I) Custody, contracting and leasing matters

1. Custody situation

□Applicable √Inapplicable

2. Contracting situation

□Applicable √Inapplicable

3. Leasing situation

□Applicable √Inapplicable

(II) Guarantee situation

√Applicable □Inapplicable

Unit:10,000Yuan Currency:RMB

(III) Situation entrusting others to manage cash assets

1. Situation entrusting financial management

(1) The overall situation of entrusted financial management

√Applicable □Inapplicable

Unit:10,000Yuan Currency:RMB

Other information

□Applicable √Inapplicable

(2) Situation of individual entrusted financial management

√Applicable □Inapplicable

Unit:10,000Yuan Currency:RMB

Other situations

□Applicable √Inapplicable

(3) Impairment provision of entrusted financial management

□Applicable √Inapplicable

2. Entrusted loan situation

(1) General situation of entrusted loans

□Applicable √Inapplicable

Other situations

□Applicable √Inapplicable

(2) Individual entrusted loans

□Applicable √Inapplicable

Other situations

□Applicable √Inapplicable

(3) Entrusted loan impairment provision

□Applicable √Inapplicable

3. Other situations

□Applicable √Inapplicable

(IV) Other major contracts

√Applicable □Inapplicable

XVI. Explanation of other important matters

√Applicable □Inapplicable

On April 17, 2020, the eighth meeting of the Company’s seventh board of directors deliberated and approved the Proposal on the Company’s Non-public Offering of Stocks and other related proposals. For details, please refer to the related announcements disclosed on the designated information disclosure media and the Shanghai Stock Exchange of the Company on April 21, 2020 (www.sse.com.cn). This matter has been reviewed and approved by the General Meeting of Shareholders in 2019. On October 14, 2020, the Company obtained the China Securities Regulatory Commission’s Reply of Approving Non-public Offering of Shares of Tongwei Co., Ltd. (ZJXK [2020] No. 2492). For details, please refer to the related announcements disclosed on the designated information disclosure media and the Shanghai Stock Exchange website (http://www.sse.com.cn). According to the reply document, the Company issued 213,692,500 RMB common shares (A-shares) to 16 targets, the face value of each share is RMB 1.00, and the issue price is RMB 28.00/share. The total amount of funds raised is RMB 5,983,390,000.00, and the actual net amount of funds raised after deducting issuance costs is RMB 5,942,711,270.11. Sichuan Huaxin has issued the "CHXY [2020] No.0084 Capital Verification Report" for the matter of the receipt of the raised funds. The net raise funds from the non-public offering of shares will be used for 7.5GW high-efficiency crystalline silicon solar cell projects in Meishan and Jintang and supplementing working capital. On December 8, 2020, the non-public offering of shares was completed in the Shanghai Branch of China Securities Depository and Clearing Co., Ltd., and the total share capital of the Company was changed from 4,287,855,684 shares to 4,501,548,184 shares. The shares subscribed in this non-public offering shall not be transferred within six months from the end of the issuance.

XVII. Actively fulfill social responsibilities

(I) Poverty alleviation work of the listed company

√Applicable □Inapplicable

1. Targeted poverty alleviation planning

√Applicable □Inapplicable

As an energy poverty alleviation model, PV poverty alleviation is also a kind of targeted poverty alleviation. While protecting the ecological environment, it has effectively promoted the steady increase of per capita income in poverty-stricken areas, and achieved the transformation of poverty alleviation development from "help- the -poor " to " thoroughgoing ". In 2016, National Energy Administration and National Development and Reform Commission promulgated the Opinions on the Implementation of PV Power Generation to Alleviate Poverty and Management Measures of PV Powerplants for Poverty Alleviation, which made proposals for the healthy development of PV industry for poverty alleviation and called on enterprises to the PV poverty alleviation put into practice.

2. Summary of annual targeted poverty alleviation

√Applicable □Inapplicable

In order to promote the sustainable and healthy development of PV poverty alleviation and actively practice corporate social responsibility, the Company has constructed a number of PV poverty alleviation powerplant projects in Jilin, Shandong, Ningxia, Inner Mongolia, Sichuan and other regions. This model not only effectively changes the extreme lack of electricity in local production and life, but also provides monthly income and annual economic sources to poor households. It can solve the problem of economic development for the next 10 years, 20 years or even a longer period, and take a new road of industrial poverty alleviation, ecological development for poverty alleviation, and construction of clean energy resources for poverty alleviation. Hence, The Company carries out important exploration and makes positive contribution to China’s PV poverty alleviation, and poverty-stricken groups may get rid of poverty and become rich and prosperous. It sets a complete “Tongwei example” for the poverty alleviation of China. During the reporting period, the Company invested RMB 9,586,300 in poverty alleviation.

3. Achievements of targeted poverty alleviation

√Applicable □Inapplicable

Unit:10,000Yuan Currency：RMB

Index Quantity and development

4. Follow-up targeted poverty alleviation plan

√Applicable □Inapplicable

On March 26, 2020, the Poverty Relief Office of State Council released the Recent Progress of Key Poverty Alleviation Work in Recent Years, which summarized the poverty alleviation work until March 20. As one of the top ten targeted poverty alleviation projects, PV poverty alleviation has been affirmed due to the contribution to poverty alleviation. The Company will continue to fulfill the corporate social responsibility, actively respond to the country’s call for targeted poverty alleviation, and continue the “PV poverty alleviation” work in combination with the industrial advantages. The project not only promotes the development of local green new energy industry, but also drives the local industrial development, improves the ecological environment, helps people to get rid of poverty and achieves the goal of lucid water and green mountain and common prosperity.

(II) Social responsibility work

√Applicable □Inapplicable

Since the establishment, the Company has always been centered on the corporate vision of "For Better Life", is committed to becoming a safe food supplier and clean energy operator, and realizes a high degree of unification of corporate development and social value through the in-depth integration of the dual-green main business. In terms of agriculture, while maintaining its own healthy development, the Company continues to lead the sustainable development of aquaculture industry in our country, especially in the aquaculture field, the original "Fishery& PV Integration" model of the Company has led the transformation and upgrading from the traditional aquaculture model to automation, intelligence, and large-scale modern aquaculture model, realized the efficient and compound utilization of the harvests of “fish, electricity and environment”; in terms of PV new energy, under the urgent needs of global carbon emission reduction and energy consumption transformation, the Company has continuously promoted the cost reduction and efficiency enhancement of PV products by long-term scientific research and innovation and the application of technological achievements, and has made contributions to accelerating the progress of China and the global carbon-neutral process and jointly achieving the carbon neutrality goal. The Company will continue to implement the "craftsmanship spirit" to deeply cultivate agriculture and clean energy industries that are closely related to human life, and make efforts to continuously improve the quality of human life. In the development process, the Company attaches great importance to the construction of social responsibility, and constantly fulfills the corporate social responsibility:

1. Protection of shareholders' rights and interests

The Company attaches great importance to safeguarding the interests of shareholders, especially small and medium shareholders. In accordance with the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, the Code of Corporate Governance of Listed Company, the Stock Listing Rules of Shanghai Stock Exchange and other requirements, the Company has established and improved the corporate governance structure, promoted standardized operations, and ensured the legitimate rights and interests of shareholders, especially small and medium shareholders through the authenticity, accuracy and completeness of information disclosure. During the reporting period, the Company held three shareholder meetings, twelve meetings of the board of directors and eleven meetings of supervisors. The Company attaches great importance to communication with investors, and strengthens communication with investors through methods such as telephone, e-mail, investor relations interactive platforms, and on-site research. The Company is committed to giving back to shareholders. It has revised and improved the relevant articles on profit distribution in the "Regulations" for many times, and formulated the Company Dividend Plan for the Next Three Years (2012-2014), Company Dividend Plan for the Next Three Years (2015-2017) and Company Dividend Plan for the Next Three Years (2018-2020) in accordance with the provisions of the Articles of Association and relevant laws and regulations. The Company strictly follows the plan and maintains a relatively high proportion of dividends, which is really creating value for shareholders. The Company has always resolutely implemented the maintenance of the legitimate rights and interests of shareholders and the return to shareholders as the established tasks of the Company. Therefore, the Company has been recognized by the regulatory authorities for many years.

2. Protection of the creditor's rights and interests

The Company attaches great importance to the protection of the rights and interests of creditors and has established a complete creditor protection mechanism. The Company has a sound internal control management system. Through using advanced information management methods, it has achieved efficient and centralized management of funds and financing. Strict graded approval and review management can ensure the safety of funds. The Company has a good reputation and maintains long-term cooperation with policy banks, state-owned banks, joint-stock banks, and foreign banks. The Company uses credit funds in strict accordance with the relevant regulations of the national regulatory authorities and bank management requirements, and conducts complete life-cycle management of loans. During the reporting period, the Company repaid the principal and interest of various loans in a timely manner and had no bad credit records. The Company has a complete purchasing management process system to ensure the unification of logistics, capital flow, and information flow. During the reporting period, the Company strengthened its cooperation with strategic suppliers. The Company strictly implemented the purchasing agreement with suppliers, paid for goods in time, and effectively maintained the interests of the company and creditors, and obtained the good evaluation from the supplier.

3. Protection of the rights and interests of employees

The Company pays attention to protecting employees' rights, caring about the physical and mental health of employees, and is committed to providing employees with a broad development platform. The Company strictly abides by the Labor Law, Labor Contract Law, Social Insurance Law, Trade Union Law and other laws and regulations to fully protect the legitimate rights and interests of employees. In terms of employee care, the Company established the “Employee Care Mutual Fund” and established and improved the corresponding management system. The fund is mainly used as medical expenses for employees and their families, expenses for serious natural disasters, scholarship expenses for college entrance of employees’ children, and expenses for employees’ marriage and childbirth. Until now, the funds have been widely supported by the employees. The Company has established channels for employees to provide suggestions and complaints, so that they can listen to their voices and build a better working atmosphere together with them. In terms of employee growth, the Company continues to optimize the two promotion channels, the management channel and the professional channel, to encourage employees to continuously improve.

4. Supplier management and quality management

The Company has formulated a supplier management system and standardized the full life cycle management of suppliers. Regular evaluations on supplier product qualification rate, customer complaints, return rate and other product performance, delivery time, service quality, product control standards, etc. are carried out, to ensure the product quality of the Company from the source. At the same time, through close cooperation with suppliers, the Company promotes the exchange of advanced technology and management concepts, promotes green supplier management, calls on suppliers to save energy, protect the environment, and promote the coordinated development of industrial economic, environmental and social benefits. The Company has established a full-process quality management system and management system to fully ensure product quality, protect the rights and interests of customers and consumers, and improve customer and consumer satisfaction.

5. Safe production and environmental protection

Safe production is the basic prerequisite for ensuring the steady development of the Company. The Company complies with the requirements of relevant national laws and regulations, and has established and improved a safety production management system. The Company introduced the Dupont safety management concept earlier. In recent years, the Company has continued to promote the construction of Amoeba + Team and is committed to making safety production awareness be implemented in every team and every employee. The Company attaches great importance to environmental protection, and is committed to strengthening environmental pollution control and developing a circular economy industrial chain. In addition to strictly implementing various environmental protection laws and regulations and national environmental protection standards and emission standards, the Company also continuously strengthens resource recycling, material closed operation, and by-product recycling in the production process, and promotes the implementation of various energy-saving and emission-reduction measures, and actively practices the concept of harmonious development of enterprise development and ecological environment.

6. Community construction and public welfare undertakings

The Company actively participates in community construction and public welfare activities to promote the harmonious development of the Company and the community. Since its establishment, the Company always regards the provision of social welfare as its responsibility, insists on the corporate objective of “Striving for Excellence, Contributing to Society”, gives back to the society with love, widely participates in the public welfare undertakings of construction of education and science popularization bases, community donations, education donations and PV poverty alleviation, provides the local employment post.

(III) Environmental information situation

1. Explanation of the environmental protection situation of companies and their important subsidiaries that are key pollutant discharge units announced by the environmental protection department

√Applicable □Inapplicable

(1) Emission information

√Applicable □Inapplicable

During the reporting period, the Company strictly implemented related laws and regulations of environmental protection, and the construction and operation of environmental protection facilities can meet the requirements of environmental protection management. The emission of wastewater, waste gas, and solid waste in the production process of the Company can meet the requirements of relevant emission standards, and clean production was realized. The relevant environmental information is as follows: 1) Production of Sichuan Yongxiang Polysilicon

① The main pollutants in wastewater: COD, ammonia nitrogen, and PH;

Emission method: continuous and stable emission.

Number of emission ports: 1 main emission port.

Emission standard: standard value Integrated Wastewater Discharge Standard (GB8978-1996) Table 4 First Level Standard); COD≤100mg/l; ammonia nitrogen≤15mg/l; 6≤PH≤9;

Emission concentration: COD: 11.77mg/l; ammonia nitrogen: 0.57mg/l; PH: 7.5; all meet environmental protection emission standards.

Approved annual emissions: no limit on COD; and no limit on ammonia nitrogen;

Total emissions in 2020: COD: 3.703 tons; ammonia nitrogen: 0.205 tons.

②The main pollutants in boiler flue gas: sulfur dioxide, nitrogen oxides, and particulate matter.

Emission method: continuous and stable emission.

Number of emission ports: 2 emission ports.

Emission standard: standard value: special emission limit value in Table 3 of Emission Standard of Air Pollutants for Boiler (GB13271-2014), sulfur dioxide ≤50mg/m3; nitrogen oxides ≤150mg/m3 (80mg/m3 according to EIA requirements); particulate matter ≤20 mg/ m3;

Emission concentration: sulfur dioxide: 1.04mg/m3; nitrogen oxides: 43.34mg/ m3; particulate matter: 1.05mg/ m3, all meet environmental protection emission standards.

Approved annual emissions: no limit on sulfur dioxide; no limit on nitrogen oxides ≤53.1 tons/year; and no limit on particulate matter;

Total emissions in 2020: sulfur dioxide: 0.247 tons; particulate matter: 0.249 tons; nitrogen oxides: 10.329 tons, which are less than the approved annual emissions.

2) Production of Yongxiang New Energy High-purity Polysilicon

① The main pollutants in wastewater are: COD, ammonia nitrogen, and PH;

Emission method: continuous and stable emission.

Number of emission ports: 1 main emission port.

Emission standard: standard value Integrated Wastewater Discharge Standard (GB8978-1996) Table 4 First Level Standard); COD≤100mg/l; ammonia nitrogen≤15mg/l; 6≤PH≤9;

Emission concentration: COD: 12.189mg/l; ammonia nitrogen: 1.895mg/l; PH: 7.718, all meet environmental protection emission standards.

Approved annual emissions: no limit on COD; and no limit on ammonia nitrogen;

Total emissions in 2020: COD: 7.34 tons; ammonia nitrogen: 1.14 tons, all meet the emission standards.

②The main pollutants in boiler flue gas are: sulfur dioxide, nitrogen oxides, and particulate matter. Emission method: continuous and stable emission.

Number of emission ports: 2 emission ports.

Emission standard: standard value: special emission limit value in Table 3 of Emission Standard of Air Pollutants for Boiler (GB13271-2014); sulfur dioxide ≤50mg/ m3; nitrogen oxides ≤150mg/m3 (80 mg/m3 according to EIA requirements); particulate matter ≤20mg/ m3.

Emission concentration: sulfur dioxide: 0.1585mg/ m3; nitrogen oxide: 49.99mg/ m3; particulate matter: 5.76mg/ m3, all meet environmental protection emission standards.

Approved annual emissions: no limit on sulfur dioxide, nitrogen oxides ≤59.904 tons/year; and no limit on particulate matter;

Total emissions in 2020: sulfur dioxide: 0.025 tons; nitrogen oxides: 8.01 tons; particulate matter: 0.924 tons, all meet emission standards.

3) Production of Inner Mongolia Tongwei High-purity Crystalline Silicon

The main pollutants in boiler flue gas are: sulfur dioxide, nitrogen oxides, and particulate matter.

Emission method: continuous and stable emission.

Number of emission ports: 2 emission ports.

Emission standard: Standard value: newly-built boiler emission limits in Table 2 of Emission Standard of Air Pollutants for Boiler (GB13271-2014); sulfur dioxide ≤50mg/m3; nitrogen oxide ≤200mg/m3; particulate matter ≤20mg/m3.

Emission concentration: sulfur dioxide: 1.35mg/ m3; nitrogen oxide: 56.2mg/ m3; particulate matter: 9.83mg/ m3, all meet environmental protection emission standards.

Approved annual emissions: sulfur dioxide ≤1.36 tons/year; nitrogen oxides ≤67.36 tons/year;

Total emissions in 2020: sulfur dioxide: 0.338 tons; nitrogen oxides: 13.027 tons, both of which are less than the approved annual emissions.

4) Production of Yongxiang PVC and Sodium hydroxide:

① The main pollutants in wastewater are: COD, ammonia nitrogen, and PH;

Emission method: continuous and stable emission.

Number of emission ports: 1 main emission port.

Emission standard: standard value: Emission Standard of Pollutants for Caustic Alkali and Polyvinyl Chloride Industry (GB15581-2016); COD≤60mg/l; ammonia nitrogen≤15mg/l; 6≤PH≤9.

Emission concentration COD: 20.99mg/l; ammonia nitrogen: 5.19mg/l; PH: 6~9, all meet environmental protection emission standards.

Approved annual emissions: COD≤39 tons/year; ammonia nitrogen≤9.75 tons/year;

Total emissions in 2020: COD: 4.89 tons; ammonia nitrogen: 1.21 tons, both of which are less than the approved annual emissions.

②Heavy metals: mercury chloride, which is mainly used as the vinyl chloride synthesis catalyst. The annual output of waste mercury-containing catalysts is 183.49 tons. It is in the Catalogue of National Hazardous Wastes, the code is HW29, and it will be uniformly sent to qualified manufacturers for recycling.

5) Production of Yongxiang cement:

The main pollutants in the waste gas: smoke (powder) dust, SO2 and NOX.

Emission method: continuous and stable emission.

Number of emission ports: 2 emission ports.

Emission standards: air pollutants: standards in Emission Standards of Air Pollutants for Cement Industry (GB4915-2013).

Emission concentration: smoke (dust) dust: kiln concentration: 3.85 mg/m3, kiln tail concentration: 1.39 mg/m3; kiln emission: 5.55 tons, kiln tail emission: 2.24 tons; SO2: 6.18mg/m3; NOX: 121.32mg/m3; all meet environmental protection emission standards.

Approved annual emissions: SO2: 140 tons/year; NOX: 450.3 tons/year.

Total emissions in 2020: SO2: 10.89 tons; NOX: 216.16 tons, both of which are less than the approved emissions.

6) Production of Chengdu solar cell:

①The main pollutants in wastewater:

General pollutants: COD, ammonia nitrogen, pH;

Particular pollutants: fluoride.

Emission method: continuous and stable emission.

Number of emission ports: 2 emission ports.

Emission standard: indirect emission standards for solar cells in Table 2 of the Emission Standard of Pollutants for Battery Industry (GB30484-2013); COD≤150mg/l; ammonia nitrogen≤30mg/l; 6≤pH≤9; fluoride≤8mg/l. Emission concentration: COD: 27.16mg/l; ammonia nitrogen: 5.1 mg/l; pH: 7.51; fluoride: 4.84 mg/l. All meet environmental protection emission standards.

Approved annual emissions: COD≤1109.8 tons/year; ammonia nitrogen≤221.9 tons/year;

Total emissions in 2020: COD: 115.64 tons; ammonia nitrogen: 27.5 tons, both of which are less than the approved annual emissions.

The main pollutants in the waste gas: fluoride, hydrogen chloride, chlorine, sulfuric acid mist, ammonia, particulate matter, and volatile organic compounds;

Particular pollutants: fluoride.

Emission method: continuous and stable emission.

Number of emission ports: 30.

Emission standards: ammonia implements the standard limits in Table 2 of the Emission Standards for Odor Pollutants (GB14554-1993); volatile organic compound implements the manufacturing standard of electronic product industry in Table 3 of Sichuan Emission Control Standard for Volatile Organic Compound (DB51/2377-2017); and the remaining waste gas implements the standard values of solar cells in Table 5 of the Emission Standard of Pollutants for Battery Industry (GB30484-2013). Ammonia ≤14kg/h; volatile organic compounds ≤60 mg/m³; fluoride ≤3 mg/m³; chlorine ≤5 mg/m³; particulate matter ≤30 mg/m³; hydrogen chloride ≤5mg/m³; nitrogen oxides ≤30 mg /m³.

Emission concentration: fluoride 0.45mg/m3; chlorine 1.61mg/m³; particulate matter 8.09 mg/m³; nitrogen oxides 8.98mg/m³; volatile organic compounds 1.62 mg/m³; hydrogen chloride 0.68mg/m³; ammonia 0.37kg/h; and all meet environmental protection emission standards.

Approved annual emissions: nitrogen oxides ≤107.05 tons/year, volatile organic compounds ≤34.72 tons/year;

Total emissions in 2020: nitrogen oxides: 52.29 tons; volatile organic compounds: 7.3 tons, both of which are less than the approved annual emissions.

② Environmental protection facilities and operation conditions:

According to the different natures of the waste gas emitted by the workshop, the Company selects the matching treatment process:

Phase-I project

Acid and alkali waste gas: alkali texturing and pickling acid and alkali waste gas, diffusion acid and alkali waste gas are discharged through a 25-meter high exhaust cylinder after being respectively collected by 2 sets of negative pressure exhaust systems and treated by lye spray tower; PSG cleaning acid and alkali waste gas is discharged through a 25-meter high exhaust cylinder after being treated by a set of four-stage acid and alkali redox scrubbing tower.

Coating waste gas: after burned through 8 combustion chambers, the coating waste gas is collected by one set of negative pressure exhaust system, and the coating waste gas is discharged through a 25-meter high exhaust cylinder after being treated by an acid scrubbing tower.

Organic waste gas: the organic waste gas is discharged through a 15-meter high exhaust cylinder after being treated by 2 sets of activated carbon + low temperature plasma treatment system.

Phase-II project

Acid and alkali waste gas: a set of four-stage acid and alkali scrubbing tower is respectively installed on the first and second floors of the alkali texturing, pickling, and diffusion acid and alkali waste gas workshops for treatment, and then the waste gas is discharged through a 25-meter high exhaust cylinder; the first and second floors of PSG cleaning acid and alkali waste gas workshop share a set of four-stage acid alkali rebox scrubbing tower for treatment and then is discharged through a 25-meter high exhaust cylinder.

Coating waste gas: after burned through 14 combustion chambers, the two floors of the coating waste gas are collected by one set of negative pressure exhaust system, and the coating waste gas is discharged through a 25-meter high exhaust cylinder after being treated by an acid scrubbing tower.

Organic waste gas: the first and second floors of the organic waste gas are discharged through two 25-meter high exhaust cylinders after being treated by 1 set of activated carbon + low temperature plasma treatment system.

Phase-III project

Acid and alkali waste gas: a set of first-stage acid and alkali scrubbing tower is respectively installed on the alkali texturing, pickling, and diffusion acid and alkali waste gas workshops in south and north areas for treatment, and then the waste gas is discharged through a 25-meter high exhaust cylinder; a set of four-stage acid alkali rebox scrubbing tower is respectively set in the PSG cleaning acid and alkali waste gas workshop for treatment, and then the waste gas is discharged through a 25-meter high exhaust cylinder.

Coating waste gas: after burned through 12 combustion chambers, the coating waste gas in south and north areas is collected by one set of negative pressure exhaust system, and the coating waste gas is discharged through a 25-meter high exhaust cylinder after being treated by an acid scrubbing tower.

Organic waste gas: the organic waste gas in the north and south areas is discharged through a 25-meter high exhaust cylinder after being treated by a set of activated carbon + low-temperature plasma treatment system.

Phase-IV project

Acid and alkali waste gas: a set of first-stage acid and alkali scrubbing tower is set in the south and north areas of alkali texturing, pickling, diffusion, and PSG cleaning acid alkali waste gas for treatment, and then the waste gas is discharged by 25-meter high exhaust cylinder.

Coating waste gas: after burned through 11 combustion chambers, the coating waste gas in south and north areas is collected by one set of negative pressure exhaust system, and the coating waste gas is discharged through a 25-meter high exhaust cylinder after being treated by an acid scrubbing tower.

Organic waste gas: the organic waste gas in the north and south areas is discharged through the 25-meter high exhaust cylinder after being treated by the front-end combustion chamber + the end activated carbon treatment system.

Waste gas in wastewater treatment station: a small amount of waste gas will be produced during the waste water treatment process. The main pollutants are fluoride, hydrogen chloride, hydrogen sulfide, and ammonia. The project will cover and seal the waste liquid collection pool, emergency pool and dosing tank system structures of the waste water treatment station, collect and treat the waste gas pollutants generated by each structure, and use the H2SO4/NaOH/NaClO three-stage spray method for treatment, and the treated waste gas is discharged through a 25m exhaust cylinder.

Production wastewater and domestic wastewater are equipped with different treatment facilities due to different natures and treatment processes:

Phase-I and phase-II projects: the production wastewater is treated by the self-built sewage treatment station through three-stage physical and chemical + two-stage A/O biochemical treatment, with a maximum daily treatment capacity of 4200m³; the domestic wastewater is treated by a set of buried domestic sewage treatment equipment; after reaching the standard through treatment, the domestic sewage and production wastewater are discharged to the downstream Maojiawan Sewage Treatment Plant through a total sewage treatment emission port of the Company.

Phase-III and phase-IV projects: the production wastewater is treated by the self-built sewage treatment station through the three-stage physical and chemical + two-stage A/O biochemical treatment, with a maximum daily treatment capacity of 11,600m³. Domestic wastewater is drained to the sewage treatment station for treatment. After reaching the standard, the wastewater will be discharged to the downstream Maojiawan Sewage Treatment Plant through a total sewage treatment emission port of the Company, and the environmental protection treatment facilities are operating normally.

Solid waste: general industrial solid waste is mainly sludge generated in wastewater stations, ammonium sulfate waste liquid, and packaging material waste generated in production; hazardous waste mainly includes acid and alkali hazardous waste, waste activated carbon, waste engine oil, etc.

In 2020, 44473.4 tons of industrial solid waste was generated and 44473.4 tons were treated reasonably. 77.44 tons of hazardous waste was generated and 67.613 tons were treated reasonably. Up to now, the industrial solid waste and hazardous waste have been treated in accordance with the requirements of relevant environmental protection regulations.

7) Production of Meishan solar cell:

① The main pollutants in wastewater: general pollutants: COD, ammonia nitrogen, pH, total nitrogen; particular pollutants: fluoride.

Emission method: continuous and stable emission.

Number of emission port: there are 3 total wastewater emission ports, namely production wastewater emission port, general wastewater emission port and domestic sewage emission port; the general wastewater emission port and the production wastewater emission port are located on the west side of the plant, and domestic sewage emission port is located on the south side of the plant.

Emission standard: the production wastewater implements the indirect emission standard in Table 2 of the Emission Standard of Pollutants for Battery Industry (GB30484-2013), and the pollution factors and chlorides meet the design influent water quality standards for the first zone of Xiuwen Town Sewage Treatment Plant in Ganmei Industrial Park; the general wastewater implements the design the influent water quality standards for the auxiliary constructed wetland in the second zone of Xiuwen Town Sewage Treatment Plant in Ganmei Industrial Park; the domestic wastewater implements the three-stage standard in Table 4 of the Integrated Wastewater Discharge Standard (GB 8978-1996), and B-level standard limits in Table 1 of Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T 31962-2015) Table 1, and meets the designed water quality standards for the second zone of Xiuwen Town Sewage Treatment Plant in Ganmei Industrial Park;

Wastewater emission concentration: COD: 85mg/l; ammonia nitrogen: 20.5mg/l; pH: 7.5; total nitrogen: 18.4mg/l; fluoride: 4.64mg/l, all meet environmental protection emission standards.

Total emissions in 2020: COD: 87.22 tons; ammonia nitrogen: 16.93 tons

②The main pollutants in the waste gas: fluoride, chlorine, particulate matter, hydrogen chloride and volatile organic compounds; particular pollutants: fluoride.

Emission method: continuous and stable emission.

Number of emission ports: 8 waste gas emission ports.

Emission standard: the emission standard value of solar cell waste gas in Table 5 of Emission Standard of Pollutants for Battery Industry (GB30484-2013): nitrogen oxide ≤ 30mg/m³; fluoride ≤ 3mg/m³; chlorine ≤ 5mg/m³; particulate matter ≤ 30mg/m³; hydrogen chloride ≤5mg/m³; in Emission Standard for Odor Pollutants (GB14554-93): ammonia ≤14mg/m³ (process waste gas); ammonia ≤20mg/m³ (wastewater station waste gas); hydrogen sulfide ≤0.9kg/ h; odor concentration: in 6000 Sichuan Emission Control Standard for Volatile Organic Compound (DB 51/2377-2017) standard: volatile organic compound ≤60mg/m³.

Emission concentration of waste gas: fluoride: 1.66mg/m3; chlorine: 1.56mg/m3; particulate matter: 20.113mg/m3; hydrogen chloride: 0.49mg/m3, VOCs: 2.34mg/m3, all meet environmental emission standards.

Total emissions in 2020: particulate matter: 0.622 tons, VOCs: 3.44 tons.

Construction and operation of pollution prevention facilities:

Wastewater treatment facilities: a wastewater treatment station is built in the plant, with a daily treatment capacity of 5,800 tons, and the "three-stage physical and chemical (coagulation and sedimentation) + two-stage biochemical (A/O)" treatment process is adopted.

Waste gas treatment facilities: the Company selects matching treatment processes according to the different natures of the waste gas emitted by the workshop.

Acid and alkali waste gas: the acid and alkali waste gas produced by texturing, diffusion, and PSG cleaning is discharged through two 30m high exhaust cylinders after being treated by 2 sets of alkaline scrubbing towers. One set of waste gas treatment system is respectively installed on the east and west sides of the workshop.

Coating waste gas: the coating waste gas comes from the PECVD process, and is discharged by two 30m exhaust cylinders after being treated by 20 sets of process end burners + 2 sets of two-stage water and sulfuric acid scrubbing towers.

Organic waste gas: the organic waste gas mainly comes from the printing, drying and sintering processes. The organic waste gas of each workshop is discharged by two 20m exhaust cylinders after being treated by 2 parallel combustion towers + three-use and one-standby activated carbon adsorption device.

Boiler waste gas: the powerplant is equipped with two 3.5MW/h gas boilers, the fuel is natural gas, and a low-nitrogen combustion device is installed. The boiler flue gas emission volume is 36050 N m³/h. The main pollutants in the flue gas are NOx, soot and SO2, which are discharged through a 15m chimney.

Waste gas in wastewater treatment station: a small amount of waste gas will be produced during the waste water treatment process. The main pollutants are fluoride, hydrogen chloride, hydrogen sulfide, and ammonia. The project will cover and seal the waste liquid collection pool, emergency pool and dosing tank system structures of the waste water treatment station, collect and treat the waste gas pollutants generated by each structure, and use the H2SO4/NaOH/NaClO three-stage spray method for treatment, and the treated waste gas is discharged through a 25m exhaust cylinder.

Solid waste: general industrial solid waste is mainly sludge generated in wastewater stations, ammonium sulfate waste liquid, and packaging material waste generated in production; hazardous waste mainly includes acid and alkali hazardous waste, waste activated carbon, waste engine oil, etc.

In 2020, 6,156 tons of industrial solid waste was generated and 6,156 tons were treated reasonably. 0.788 tons of hazardous waste was generated. Up to now, the industrial solid waste and hazardous waste have been processed in accordance with the requirements of relevant environmental protection regulations.

8) Production of Hefei solar cell:

① The main pollutants in wastewater: general pollutants: COD, ammonia nitrogen, pH, total nitrogen; particular pollutants: fluoride.

Emission method: continuous and stable emission.

Number of emission ports: 1 main wastewater emission port.

Emission standard: the indirect emission limit of solar cells in Emission Standard of Pollutants for Battery Industry (GB30484-2013) and the takeover standard of Hefei Western Group Wastewater Treatment Plant; COD≤150mg/l; ammonia nitrogen≤30mg/l; 6≤pH≤9, total nitrogen≤40mg/l; fluoride≤8mg/l.

Wastewater emission concentration: COD: 24.75mg/l; ammonia nitrogen: 12.30mg/l; pH: 6.73; total nitrogen: 16.95mg/l; fluoride: 4.43mg/l, all meet environmental protection emission standards.

Total emissions in 2020: COD: 44.129 tons; ammonia nitrogen: 21.386 tons

②The main pollutants in the waste gas: fluoride, chlorine, particulate matter, nitrogen oxides, hydrogen chloride and volatile organic compounds; Particular pollutants: fluoride.

Emission method: continuous and stable emission.

Number of emission ports: 31 waste gas emission ports of Hefei Company.

Emission standard: the emission standard value of solar cell waste gas in Table 5 of Emission Standard of Pollutants for Battery Industry (GB30484-2013): nitrogen oxide ≤ 30mg/m³; fluoride ≤ 3mg/m³; chlorine ≤ 5mg/m³; particulate matter ≤ 30mg/m³; hydrogen chloride ≤5mg/m³; volatile organic compounds refer to the Tianjin Industrial Enterprise Volatile Organic Compound Emission Control Standard (DB16297-2014): volatile organic compounds ≤50mg/m³.

Emission concentration of waste gas: nitrogen oxide: 9.75mg/m3; fluoride: 0.07mg/m3; chlorine: 2.36mg/m3; particulate matter: 4.56mg/m3; hydrogen chloride: 1.0mg/m3, VOCs: 1.65mg/m3, all meet environmental protection emission standards.

Total emissions in 2020: nitrogen oxides: 12.84 tons, VOCs: 3.183 tons.

In 2020, 9003.73 industrial solid wastes and 64.64 tons of hazardous wastes were generated, 8247.9 tons of solid wastes and 64.64 tons of hazardous wastes were treated reasonably. Up to now, the industrial solid waste and hazardous waste have been processed in accordance with the requirements of relevant environmental protection regulations.

Construction and operation of pollution prevention facilities:

Wastewater treatment facilities: there is a set of three-stage physical and chemical + biochemical pretreatment + two-stage A/O wastewater treatment system, with a designed daily treatment capacity of 4,320 tons and normal operation;

Waste gas treatment facilities: the Company selects matching treatment processes according to the different natures of the waste gas emitted by the workshop.

Acid and alkali waste gas: the waste gas generated in the cleaning and texturing process is processed by the oxidation spray tower + reduction spray tower, the waste gas generated in the diffusion process is processed by the first-stage NaOH solution sieve packing tower, and the waste gas generated by the etching is discharged by a 25-meter exhaust cylinder after being treated by the three-stage SDG chemical catalytic adsorption tower.

Coating waste gas: the waste gas generated in the PECVD process is treated by an incinerator + water spray, and the waste gas from the above process is discharged through a 25-meter exhaust cylinder after the treatment.

Organic waste gas: the waste gas generated in the printing and sintering processes is discharged through a 15-meter exhaust cylinder after on-line combustion + activated carbon adsorption treatment; the waste gas generated in the module M1 workshop is discharged through a 15-meter exhaust cylinder after activated carbon adsorption treatment, and the waste gas generated in module M2 workshop is discharged through a 25-meter high exhaust cylinder after low-temperature plasma + activated carbon adsorption treatment, and the waste gas generated in the M3 workshop is discharged through a 25-meter high exhaust cylinder after low-temperature plasma + activated carbon adsorption treatment.

9) Production of Anhui solar cell:

① The main pollutants in wastewater: general pollutants: COD, ammonia nitrogen, pH, total

nitrogen; Particular pollutants: fluorine.

Emission method: continuous and stable emission.

Number of emission ports: 1 main wastewater emission port.

Emission standard: the indirect emission limit of solar cells in Emission Standard of Pollutants for Battery Industry (GB30484-2013) and the takeover standard of Hefei Western Group Wastewater Treatment Plant; COD≤150mg/l; ammonia nitrogen≤30mg/l; 6≤pH≤9, total nitrogen≤40mg/l; fluoride≤8mg/l.

Wastewater emission concentration: COD: 48.55mg/l; ammonia nitrogen: 7.10mg/l; pH: 7.15; total nitrogen: 17.56mg/l; fluoride: 4.015mg/l. All meet environmental protection emission standards.

Total emissions in 2020: COD: 139.23 tons; ammonia nitrogen: 14.106 tons

②The main pollutants in the waste gas: fluoride, chlorine, particulate matter, nitrogen oxides, hydrogen chloride and volatile organic compounds; particular pollutants: fluoride.

Emission method: continuous and stable emission.

Number of emission ports: 10 waste gas emission ports of the Anhui Company.

Emission standard: the emission standard value of solar cell waste gas in Table 5 of Emission Standard of Pollutants for Battery Industry (GB30484-2013): nitrogen oxide ≤ 30mg/m³; fluoride ≤ 3mg/m³; chlorine ≤ 5mg/m³; particulate matter ≤ 30mg/m³; hydrogen chloride ≤5mg/m³; volatile organic compounds refer to the Tianjin Industrial Enterprise Volatile Organic Compound Emission Control Standard (DB16297-2014): volatile organic compounds ≤50mg/m³.

Emission concentration of waste gas: nitrogen oxide: 13mg/m3; fluoride: 0.89mg/m3; chlorine: 1.99mg/m3; particulate matter: 9.31mg/m3; hydrogen chloride: 0.58mg/m3, VOCs: 5.67mg/m3, all meet environmental protection emission standards.

Total emissions in 2020: nitrogen oxides: 8.141 tons, VOCs: 11.461 tons.

In 2020, 10235.6 industrial solid wastes and 46.31 tons of hazardous wastes were generated, 10189.31 tons of solid wastes and 44.11 tons of hazardous wastes were treated reasonably. Up to now, the industrial solid waste and hazardous waste have been treated in accordance with the requirements of relevant environmental protection regulations.

Construction and operation of pollution prevention facilities:

Wastewater treatment facilities: there is a set of two-stage physical and chemical + biochemical pretreatment + two-stage A/O wastewater treatment system, with a designed daily treatment capacity of 8,000 tons and normal operation.

Waste gas treatment facilities: the Company selects matching treatment processes according to the different natures of the waste gas emitted by the workshop.

Acid and alkali waste gas: the waste gas generated in the cleaning and texturing process is treated by the alkali spray tower, the waste gas generated in the diffusion process is treated by the NaOH solution sieve packing tower, and the waste gas generated by etching is treated by the oxidation spray tower + reduction spray tower, and then discharged at high altitude through a 30-meter exhaust cylinder.

Coating waste gas: the waste gas generated in the PECVD process is treated by incineration tower + water spray, and the waste gas generated in the printing and sintering process is treated by on-line combustion + low temperature plasma + activated carbon adsorption and discharged by a 30-meter exhaust cylinder.

(2) Construction and operation of pollution prevention facilities

√Applicable □Inapplicable

In accordance with the requirements of the environmental assessment report, various pollution control facilities have been constructed:

1) Wastewater treatment facilities mainly include: domestic sewage treatment devices, sewage treatment stations, and high-salt wastewater concentration devices, all operate normally;

2) Waste gas treatment facilities mainly include: process waste gas leaching devices, dust removal systems, etc., all operate normally;

3) The solid waste related facilities mainly include: waste slag shed, hazardous waste temporary storage room, etc., which are managed in strict accordance with environmental protection requirements;

4) Noise control facilities mainly include: noise reduction and vibration reduction measures are taken for the noise equipment, and silencers are installed at the vents, and they are operating normally.

(3) Environmental impact assessment of construction projects and other environmental protection administrative permits

√Applicable □Inapplicable

Tongwei Solar:

1) Annual capacity of 3.8GW high-efficiency solar cell project of Chengdu Solar passed independent acceptance and online registration on August 26, 2020. At present, the output of the workshop is stable, and various environmental protection facilities and equipment are operating normally. Chengdu Solar strictly follows the emission permit for major pollutants in Shuangliu District, Chengdu. The permit number is: 915101225722584966001Q.

2) On January 10, 2020, Meishan Solar obtained the Approve of the Environmental Impact Report on the Application Project of Tongwei Solar (Meishan) Co., Ltd. with an Annual Capacity of 3.8GW High-efficiency Crystalline Silicon Solar Cell Domestic Intelligent Equipment (System) from the Meishan Municipal Bureau of Ecology and Environment. (MSHJH [2020] No. 8). In April 2020, the Company changed the cell size used in the first phase of the project. Before and after the change, the cell size was changed from 156mm*156mm to 210mm*210mm; after the change, the power generation of the cell is increased, and the power generation of the product has changed from the original annual capacity of 3.8GW to the annual capacity of 7.5GW, but the number of purchased silicon wafers and the total number of cells will not change. The project does not involve major changes, after being approved by Meishan Ecological Environment Bureau, 3.8GW project of our Company was renamed as "application project of domestic intelligent equipment (system) with an annual capacity of 7.5GW high-efficiency crystalline silicon solar cells". The original environmental assessment approve is still valid. On April 16, 2020, it obtained the "Explanation on the Relevant Situation of the Tongwei High-efficiency Crystalline Silicon Solar Cell Project" from the Meishan City Ecological Environment Bureau. On July 17, 2020, the project obtained the "emission permits" issued by the Leshan Ecological Environment Bureau, with the pollutant discharge permit number: 91511400MA686MWR2C001Q. Project acceptance and online registration were completed on October 28, 2020.

3) The Meishan Phase-II 7.5GW high-efficiency solar cell project was put on record at the Meishan Development and Reform Commission on February 27, 2020 (CTZB [2020-511400-38-03-426415] FGQB-0019 No.), the project obtained the Approve of the Environmental Impact Report of Tongwei Solar (Meishan) Co., Ltd. with Annual Capacity of 7.5GW High-efficiency Crystalline Silicon Solar Cell Domestic Intelligent Factory Project On June 15, 2020 from Meishan City Ecological and Environment Bureau (MSHJH [2020] No. 37).

4) Hefei solar high-efficiency module project: the project obtained Approval Opinions on High-efficiency Module Project Environmental Impact Report Form about Tongwei solar (Hefei) Co., Ltd. from high-tech branch of Hefei Environmental Protection Bureau on October 16, 2019 (HGS [2019] No.088). The project carried out the design and construction of environmental protection facilities in accordance with environmental protection laws and regulations and environmental assessment requirements. The Company strictly implements pollution emission in accordance with the emission permit, the permit number is 91340100560687779D001V.

5) Anhui Solar high-efficiency solar cell project with annual capacity of 250MW: the project obtained the Approve of Environmental Impact Assessment Report for 250MW Annual Output High-efficiency Solar Cell Project about Tongwei Solar (Anhui) Co., Ltd. from Hefei Environmental Protection Bureau on August 5, 2020 (HJS [2020] No. 34). The project carried out the design and construction of environmental protection facilities in accordance with environmental protection laws and regulations and environmental assessment requirements. The Company strictly implements pollution emission in accordance with the emission permit, the permit number is 91340100083692631N001V. On June 3, 2020, a letter that the cleaning production audit report of Tongwei Solar (Anhui) Co., Ltd. is passed from the Ecological Environment Branch of Hefei High-tech Industrial Development Zone (HGHQS [2020] No. 4) was obtained.

Yongxiang:

1) Leshan Phase-II 50,000MT High-purity Polysilicon Project

On December 31, 2020, the approval opinion of Leshan Ecological Environment Bureau was obtained (LSHS [2020] No. 56). The project was designed in accordance with relevant laws and regulations, environmental assessment and environmental assessment approval requirements, and is currently under construction.

2) Baoshan Phase-I 50,000MT High-purity Polysilicon Project

On December 14, 2020, the approval opinions of Baoshan Ecological Environment Bureau (BHZ [2020] No. 29) and the project environmental impact report were obtained. The project was designed in accordance with relevant laws and regulations, environmental assessment and environmental assessment approval requirements, and is currently under construction.

(4) Emergency plans for environmental emergencies

√Applicable □Inapplicable

In order to prevent and reduce environmental pollution accidents, standardize the emergency management and emergency response procedures of the Company for environmental emergencies, establish a unified command, hierarchical responsibility, and rapid response emergency work mechanism, carry out emergency rescue work in a timely and effective manner, and form a strong prevention, order command, fast, efficient and coordinated environmental pollution emergency response system, Tongwei Solar and Yongxiang have formulated emergency plans for environmental emergencies and reported them to the local ecological environment bureau. The record numbers are as follows:

1) Emergency Plan for Environmental emergencies in east plan of Tongwei Solar (Chengdu) Co., Ltd. (record number: 510122-2020-875-M).

2) Emergency Plan for Environmental emergencies of application project of Tongwei Solar (Meishan) Co., Ltd. with annual output of 7.5GW high-efficiency crystalline silicon solar cell domestic intelligent equipment (system), record number: 51140020200031-L.

3) Emergency Plan for Environmental emergencies of Tongwei Solar (Hefei) Co., Ltd., record number: 340105-2019-013-M.

4) Emergency Plan for Environmental emergencies of Tongwei Solar (Anhui) Co., Ltd., record number: 340105-2019-026-M.

5) Emergency Plan for Environmental emergencies of Sichuan Yongxiang Co., Ltd., record number: 511112-2018-025-H.

(5) Environmental self-monitoring plan

√Applicable □Inapplicable

1) Tongwei Solar: It has a safety environment department, complete safety and environmental protection technicians and advanced environmental testing instruments. The main emission port of the Company is equipped with online detection equipment to monitor wastewater COD, NH3-N, pH, fluoride ion and other items online in real time, and regularly transmit the detection data to the environmental protection information platform. At the same time, the wastewater station of the Company is equipped with a wastewater testing laboratory, and laboratory technicians regularly test all links of wastewater treatment to ensure that the wastewater emission reaches the standards. In addition, the Company has formulated an annual environmental testing plan, entrusted a third-party testing unit to conduct monthly testing on the waste gas, wastewater, noise, plant boundary waste gas, and groundwater.

2) Yongxiang: It has a safety environment department, complete safety and environmental protection technicians and advanced environmental monitoring instruments. At the same time, the emission ports are equipped with online monitoring equipment for wastewater and waste gas according to the specifications, which can monitor the wastewater flow, COD, ammonia nitrogen, total nitrogen, pH and other items, and the waste gas SO2, NOX, particulate matter and other items in real time, and transmit them to the pollution source monitoring platform in real time. Environmental protection staff conducts daily inspections on the online equipment of the emission port. The quality control department of the Company conducts manual analysis of various indicators of the wastewater emission port and compares with the online monitoring data to ensure the accuracy of the online equipment analysis data and the standard emission of all indicators. In accordance with the environmental impact assessment report and the technical specifications of the industry’s pollutant emission permit, the self-monitoring plan has been compiled, and qualified units are entrusted to carry out the monitoring according to the plan.

(6) Other environmental information that should be disclosed

□Applicable √Inapplicable

2. Explanation of the environmental protection situation of companies other than the key pollutant discharging units

√Applicable □Inapplicable

The waste gas of the feed industry has the characteristics of high temperature, high humidity, high dust, and large air volume. The Company has developed a "water spray + biological treatment" process based on the research and analysis of the pollutant composition and its physical and chemical properties by the professional environmental protection team for a long time. The environmental treatment process standards of the Company are determined according to the difference in odor during the production. During the reporting period, after a comprehensive assessment of the environmental protection engineering effects in recent years, and combining with industry waste gas treatment processes and parameters, the existing environmental protection standards of the Company have been revised, especially the waste gas treatment process and parameters produced during the production of special water materials are designed again; the complex composition of special water waste gas and large peculiar smell are fully considered; the design safety factor is increased, and the effective treatment effects are ensured. At the same time, the operation guidelines for environmental protection equipment have been formulated to ensure the effective operation of on-site equipment and ensure that operators have the ability to basically identify and deal with common equipment faults. At present, the waste gas emission indicators of the Company are far below the emission standards for odor pollutants (GB14554). The Company still spares no effort to promote environmental protection innovation and technological research. On the basis of the "zero waste gas emission process technology" proposed in 2019, the technology has been fully replicated and promoted through continuous optimization, adjustment, and verification. Now, it has been promoted and applied in a number of feed subsidiaries.

3. Explanation of the reasons why companies other than key pollutant discharging units did not disclose environmental information

□Applicable √Inapplicable

4. Explanation of the follow-up progress or changes of the environmental information content disclosed during the reporting period

□Applicable √Inapplicable

(IV) Other notes

□Applicable √Inapplicable

XVIII Convertible corporate bonds

√Applicable □Inapplicable

(I) Issuance of convertible bonds

√Applicable □Inapplicable

Approved by the China Securities Regulatory Commission on Approve of the Public Issuance of Convertible Bonds by Tongwei Co., Ltd. (ZJXU [2018] No.1730), the Company publicly issued 50 million convertible bonds on March 18, 2019 (bond abbreviation: Tongwei Convertible Bonds, bond code: 110054), the issue price is 100 yuan/piece, the total amount of raised funds is 5 billion yuan, and the actual net amount of raised funds is 4,937,801,000 yuan. The conversion period is from September 23, 2019 to March 17, 2025. The convertible bonds issued on April 10, 2019 can be listed on the Shanghai Stock Exchange.

(II) Status of convertible bond holders and guarantors during the reporting period

√Applicable □Inapplicable

bonds, and the "Tongwei Convertible Bonds" completed the conversion and was delisted on the Shanghai Stock Exchange. There were no bond holders at the end of the reporting period.

(III) Changes in convertible bonds during the reporting period

□Applicable √Inapplicable

Unit:Yuan Currency:RMB

Cumulative conversion of convertible bonds during the reporting period

√Applicable □Inapplicable

(IV) Previous adjustments to the conversion price

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(V) The liabilities, credit changes, and cash arrangements for debt repayment in future years

√Applicable □Inapplicable

At the end of the reporting period, the total assets of the Company were 64.252 billion, total liabilities were 32.708 billion yuan, and the debt-to-asset ratio was 50.91%. On June 17, 2019, CCXR issued the Tracking Rating Report of Public Issuance of A-Shares Convertible Corporate Bonds of Tongwei Co., Ltd.

(2019), the entity credit rating of the Company was maintained as "AA+", and the rating outlook is stable; the credit rating of this bond is maintained as "AA+". During the reporting period, neither the company's rating nor the current convertible bond rating changed. During the reporting period, the Company exercised the early redemption right of "Tongwei Convertible Bonds". As of the redemption registration date, a total of 4,979,353,000 yuan of "Tongwei Convertible Bonds" has been converted into company stocks, and the Company implemented compulsory redemption for the remaining 20,647,000 yuan of "Tongwei Convertible Bonds". By the end of the reporting period, the Company had no convertible bonds in circulation, and there was no cash arrangement for subsequent redemption of convertible bonds.

(VI) Explanation of other circumstances of convertible bonds

√Applicable □Inapplicable

According to the Prospectus for the Company’s Public Issuance of A-Shares Convertible Corporate Bonds: “during the conversion period of this issue of convertible bonds, if the closing price of A-shares of the Company is not lower than 130% (including 130%) of the current conversion price for at least 15 trading days in 30 consecutive trading days, or the non-converted balance of the convertible bonds issued this time is less than RMB 30 million, the Company has the right to redeem all or part of the convertible bonds that have not been converted according to the bond face value and the current accrued interest price". From January 14, 2020 to March 3, 2020, the closing price of 15 trading days within 30 consecutive trading days of the Company is not less than 130% of the current conversion price of "Tongwei Convertible Bonds" (namely, 15.96 yuan/share), the redemption clause of "Tongwei Convertible Bonds" has been triggered.

On March 3, 2020, the Company held the sixth meeting of the seventh board of directors, at which the Proposal on Early Redemption of "Tongwei Convertible Bonds" was reviewed and approved, and the Company was approved to exercise the early redemption right of "Tongwei Convertible Bonds", and redeem all "Tongwei Convertible Bonds" registered on the "Redemption Registration Date".

By the market close on the redemption registration date (March 16, 2020), the face value balance of the "Tongwei Convertible Bonds" was RMB 20,647,000, accounting for 0.41% of the total amount of RMB 5,000,000,000 of the "Tongwei Convertible Bonds". On March 17, 2020, the Company redeemed all balance of the above "Tongwei Convertible Bonds". By the market close on the redemption registration date, the cumulative face value of RMB 4,979,353,000 "Tongwei Convertible Bonds" was converted into company shares, accounting for 99.59% of the total amount of “Tongwei Convertible Bonds”; the cumulative conversion number was 405,483,464 shares, accounting for 10.44% of the total number of issued shares of the Company before the "Tongwei Convertible Bonds". After completing the conversion, the total number of shares of the Company has changed from 3,882,372,220 shares to 4,287,855,684 shares. From March 17, 2020, "Tongwei Convertible Bonds" and "Tongwei Convertible Shares" will be delisted on the Shanghai Stock Exchange.

Section VI Changes in Common Stock Equity and Shareholders

I. Changes in common capital shares

(I) List of changes in common shares

1. List of changes in common shares

Unit: share

2. Explanation of changes in common shares

√Applicable □Inapplicable

On March 3, 2020, the Company held the sixth meeting of the seventh board of directors, at which the Proposal on Early Redemption of "Tongwei Convertible Bonds" was reviewed and approved, and the Company was approved to exercise the early redemption right of "Tongwei Convertible Bonds", and redeem all "Tongwei Convertible Bonds" registered on the "Redemption Registration Date" on March 17. By the market close on the redemption registration date (March 16, 2021), the cumulative face value of RMB 4,979,353,000 "Tongwei Convertible Bonds" has been converted into company shares, and the cumulative number of shares converted was 405,483,464 shares. After completing the conversion, the total number of shares of the Company was changed from 3,882,594,596 shares to 4,287,855,684 shares at the beginning of the reporting period.

After the Reply of Approving Non-public Offering of Shares of Tongwei Co., Ltd. (ZJXK [2020] No. 2492) of China Securities Regulatory Commission, the Company issued 213,692,500 RMB common shares (A-shares) with a face value of 1.00 each to 16 subjects, the issue price is RMB 28.00/share, the shares issued this time shall not be transferred within 6 months from the end of the issuance. On December 8, 2020, the non-public offering of shares was completed in the Shanghai Branch of China Securities Depository and Clearing Co., Ltd., and the total share capital of the Company was changed from 4,287,855,684 shares to 4,501,548,184 shares.

3. The impact of changes in common shares on financial indicators such as earnings per share and net assets per share in the most recent year and the most recent period (if any)

√Applicable □Inapplicable

During the reporting period, the total share capital of the Company increased from 3,882,594,596 shares to 4,501,548,184 shares due to the company’s conversion of convertible bonds and non-public offering of shares. The above matters will have a dilution effect on the 2020 earnings per share, net assets per share and other financial indicators of the Company. In 2020, the basic earnings per share of the Company were RMB 0.8581 and net assets per share were RMB 6.78.

4. Other content that the Company deems necessary or required by the securities regulatory agency to disclose

□Applicable √Inapplicable

(II) Changes in restricted shares

√Applicable □Inapplicable

Unit: Share

II. Securities issuance and listing

(I) The issuance of securities by the reporting period

√Applicable □Inapplicable

Unit:Share Currency RMB

Explanation of the issuance of securities as of the reporting period (for bonds with different interest rates during the duration, please explain separately):

□Applicable √Inapplicable

(II) The total number of common shares of the Company, changes in the shareholder structure, and changes in the assets and liabilities structure of the Company

√Applicable □Inapplicable

On March 3, 2020, the Company held the sixth meeting of the seventh board of directors, at which the Proposal on Early Redemption of "Tongwei Convertible Bonds" was reviewed and approved, and the Company was approved to exercise the early redemption right of "Tongwei Convertible Bonds", and redeem all "Tongwei Convertible Bonds" registered on the "Redemption Registration Date" on March 17. By the market close on the redemption registration date (March 16, 2021), the cumulative face value of RMB 4,979,353,000 "Tongwei Convertible Bonds" has been converted into company shares, and the cumulative number of shares converted was 405,483,464 shares. After completing the conversion, the total number of shares of the Company was changed from 3,882,594,596 shares to 4,287,855,684 shares at the beginning of the reporting period.

After the Reply of Approving Non-public Offering of Shares of Tongwei Co., Ltd. (ZJXK [2020] No. 2492) of China Securities Regulatory Commission, the Company issued 213,692,500 RMB common shares (A-shares) with a face value of 1.00 each to 16 subjects, the issue price is RMB 28.00/share. On December 8, 2020, the non-public offering of shares was completed in the Shanghai Branch of China Securities Depository and Clearing Co., Ltd., and the total share capital of the Company was changed from 4,287,855,684 shares to 4,501,548,184 shares.

In view of the above equity changes, as the controlling shareholder, the shareholding ratio of Tongwei Group has changed from 51.47% to 44.39%, and it is still the controlling shareholder of the Company. At the end of the reporting period, the total assets of the Company were 64.252 billion, total liabilities were 32.708 billion yuan, and the debt-to-asset ratio was 50.91%.

(III) Existing internal employee shares

□Applicable √Inapplicable

III. Actual controller situation

(I) Total number of shareholders

(II) Shareholding situation of top ten shareholders and top ten shareholders of tradable shares (or shareholders without trading limited condition) as of the end of the reporting period

Unit:Share

Shares held by the top ten shareholders with trading conditions and the detailed information about the trading conditions

√Applicable □Inapplicable

Unit: Share

(III) Strategic investor or general legal entity becoming top ten shareholders due to rights issue

□Applicable √Inapplicable

IV. Controlling Shareholders and Actual Controllers

(I) Controlling shareholders

1 Legal person

√Applicable □Inapplicable

2 Natural person

□Applicable √Inapplicable

3 Special notes on the absence of controlling shareholders in the Company

□Applicable √Inapplicable

4 Index and date of the changes in controlling shareholders during the reporting period

□Applicable √Inapplicable

5 Block diagram of property rights and control relationships between the Company and the controlling shareholders

√Applicable □Inapplicable

(II) Information on the actual controllers

1 Legal person

□Applicable √Inapplicable

2 Natural person

√Applicable □Inapplicable

3 Special statement for the condition that the Company has no actual controller

□Applicable √Inapplicable

4 Index and date of change of actual controllers during the reporting period

□Applicable √Inapplicable

5 Block diagram of property right and control relationship between the Company and the actual controllers

√Applicable □Inapplicable

6 Actual controllers control the Company by trust or other asset management methods

□Applicable √Inapplicable

(III) Other information about controlling shareholders and actual controllers

□Applicable √Inapplicable

V. Other Institutional Shareholders Holding Shares more than 10%

□Applicable √Inapplicable

VI . Explanation on theRestriction in Reduction ofHolding-Shares

□Applicable √Inapplicable

Section VII Preferred Shares

□Applicable √Inapplicable

Section VIII Conditions on Directors, Supervisors, Senior Management and Staff

I. Changes in Shareholding and Compensation

(I) Changes in shareholding and compensations of directors, supervisors and senior management currently in office and leaving posts during reporting period

√Applicable □Inapplicable

Unit:Share

Note: In 2015, the A-shares market experienced a continuous irrational decline, leading to the great fluctuation of Company's share price and serious deviation of the Company's market value from the Company's value. Based on confidence in China's economy, China's capital market and the Company's development prospects, management increased holding-shares to stabilize the Company's share price and promote the value return of the Company's market value. During reporting period, due to individual demand, part of management members reduced holding-shares with behavior and amount conforming to the requirements of laws and regulations as well as SSEfs Rules for Implementation of the Several Provisions on the Shareholding Reduction by the Principal Shareholders, Directors, Supervisors, and Senior Management of Listed Company.

□Applicable √Inapplicable

(II) Equity incentive awarded to directors and senior management during reporting period

□Applicable √Inapplicable

II. Service status of directors, supervisors and senior management currently in office and leaving posts during reporting period

(I) Conditions on service in shareholder unit

√Applicable □Inapplicable

(II) Conditions on service in other units

√Applicable □Inapplicable

III. Compensation of directors, supervisors and senior management

√Applicable □Inapplicable

IV. Changes in the Company’s directors, supervisors and senior management

√Applicable □Inapplicable

V. Explanation on the Punishment from the Securities Regulatory Commission in Last Three Years

□Applicable √Inapplicable

VI. Employee Status of Parent Company and Major Subsidiaries

(I) Employee status

(II) Compensation policy

√Applicable □ Inapplicable

The Company has been adhering to the principle of "external competition and internal fairness" to formulate the Company's compensation incentive policy. In order to ensure the sustainable development of the Company and the effective absorption and retention of talents, the Company continuously improves and optimizes the salary performance management system, and through the leverage of salary performance, it strives to effectively mobilize employees' work enthusiasm, enhance the Company's profitability, and increase employee income. In order to ensure the appropriate competitiveness of the Company's salary, the Company regularly adjusts its salary incentive policies through market research and salary cost analysis. At the same time, it has formulated matching salary according to factors such as job value and work intensity to maximize the internal fairness of the salary incentive system.

(III) Training plan

√Applicable □Inapplicable

As the most important source of the sustainable development of the Company, talent is an important strategic resource for the Company's development. The Company continuously strengthens the work of talent selection, employment, education and retention, and guarantees the retention of talents and personal development through effective incentive policies and growth training plans. The Company relies on the internal training mechanism of Tongwei University as the core, effectively integrates internal and external high-quality educational resources, effectively refines excellent business models and management methods internally, absorbs high-quality educational resources externally, and learns from advanced management experience and advanced technology. In order to meet the development needs of employees of different levels, different professions, and different types of work, the Company has built a complete training system with Tongwei University as the core and linkages between various business lines and various subsidiaries. At the same time, in order to encourage employees to actively improve their work skills and business level, the Company encourages employees to improve their academic qualifications, participate in professional skills training, and provide certain economic encouragement and support.

(IV) Labor outsourcing

□Applicable √Inapplicable

VII. Others

□Applicable √Inapplicable

Section IX Company Governance

I. Explanation on the Company Governance

√Applicable □Inapplicable

During the reporting period, the Company further improved its company governance structure and various internal systems based on the actual situation of the Company in strict accordance with the Company Law, Code of Corporate Governance for Listed Company and other laws requirements. The shareholders meeting, the board of directors, the board of supervisors and the management of the Company have clear powers and responsibilities. The decision-making power, the supervision power and the management power perform respective functions, check and balance and operate in coordination; and a standardized corporate governance structure is formed. The board of directors of the Company believes that the actual status of the corporate governance structure of the Company complies with the requirements of the Code of Corporate Governance for Listed Company, and there is no difference.

(I) Organization of three meetings

During the reporting period, the Company held one annual and two interim shareholders meeting. The procedures of the Company's shareholders meeting comply with the relevant provisions of Rules Governing the Listing of Stocks on the Shanghai Stock Exchange, Company Articles of Association and Rules of Procedure for Shareholders Meeting, safeguarding the legitimate rights and interests of the Company and the majority of shareholders. A total of 12 meetings of the Board of Directors were held during the reporting period. The directors of the Company attended the board meeting in accordance with the Articles of Association and the Rules of Procedures for the Board of Directors and other systems. They discussed deeply on various proposals submitted for deliberation, provided suggestions for the Company's operation and development and fully considered the interests and demands of small and medium shareholders when making decisions, which has improved the scientificity of their decisions and promoted the stable and healthy development of the Company's production and operation. During the reporting period, a total of 11 meetings of the board of supervisors were held. Supervisors of the Company attended the meetings of the board of supervisors in accordance with the regimes such as Articles of Association and the Rules of Procedure for the Board of supervisors. The supervisors of the Company have performed their supervisory duties earnestly.

(II) Implementation of information disclosure

The Company has always attached great importance to information disclosure. In accordance with the Shanghai Stock Exchange's requirements for implementing the relevant regulations on information disclosure of listed company in the new Securities Law, the directors, supervisors and senior executives of the Company signed written confirmation opinions on the company’s periodic reports to ensure that the information disclosure is true, accurate and complete. At the same time, the Company strictly abides by the principle of "openness, fairness and justice" to ensure that all shareholders have equal opportunities to obtain the disclosed information.

(III) Registration system for insiders of inside information

Regarding the registration of insider information, in accordance with the refinancing requirements of the new Securities Law, the chairman of the Company and secretary of the board of directors have issued relevant written commitments in strict accordance with the requirements. In the daily work of the Company, the Company has also done a good job of keeping inside information confidential in strict accordance with the requirements of the system, maintaining the principle of fairness in the company's information disclosure, and effectively protecting the legitimate rights and interests of the Company's shareholders.

(IV) Investor relations management

In the process of daily operation and management, the Company strictly abides by relevant laws and regulations, answers investors’ calls, mails, visits, and Shanghai Stock Exchange E-interaction questions carefully and patiently, and continuously strengthens communication with investors, which enhances investors’ understanding and trust to the Company; and the Company's image in the capital market is maintained well.

(V) Return to shareholders

During the reporting period, the Company continued to perform its due social responsibility obligations and actively shared the Company's operating results with investors. The Company implemented the profit distribution for 2019 in strict accordance with the Dividend Plan for the Next Three Years (2018-2020). By implementing dividends strictly according to the plan, the Company has created value for shareholders while also enhancing social reputation and social image.

The Company has a complete governance structure, a sound internal control system, and a stable operation. Through the strengthening of corporate governance from top to bottom, the level of corporate governance continues to improve, and all links and tasks are carried out legally and orderly.

Is there any significant difference between the Company governance and the requirements of the China Securities Regulatory Commission (CSRC)? If any, the reasons shall be given.

□Applicable √Inapplicable

II. Introduction to Shareholders Meeting

Explanation of Shareholders Meeting

□Applicable √Inapplicable

III. Directors' Performance of Duties

(I) Directors’ Attendance at the Board of Directors and Shareholders Meeting

Explanation on failure to attend in person at the meeting of board of directors for two successive times □Applicable √Inapplicable

(II) Objection to the Company's related issues raised by independent director

□Applicable √Inapplicable

(III) Others

□Applicable √Inapplicable

IV. The specific information should be disclosed in case of any objections to the important opinions and suggestions raised by the Special Committee under the Board of Directors during its performance of duties in the reporting period.

√Applicable □Inapplicable

Under the Company's board of directors, there are four special committees: Audit Committee, Remuneration and Evaluation Committee, Strategic Decision Committee, and Nomination Committee. During the reporting period, the four special committees carried out relevant work in strict accordance with the regulations and requirements of the working rules formulated by the Company, and effectively performed the duties of the members of the special committees. During the reporting period, the four special committees raised no objections to any of the proposals.

V. Explanation by the Board of Supervisors on the Company’s risks

□Applicable √Inapplicable

VI. The Company’s Explanation on Failure of the Company and Its Controlling Shareholders to Remain Independent and Autonomous Management Capacity in Respect of Business, Personnel, Assets, Institution and Financial Affairs

□Applicable √Inapplicable

The Company should prepare the solution measures, job schedule and follow-up work plan to cope with horizontal competition.

□Applicable √Inapplicable

VII. About the Establishment and Implementation of the Evaluation System and Incentive Mechanism for Senior Management in the Reporting Period

√Applicable □Inapplicable

The remuneration of the Company's senior management is based on the Company's Remuneration Management System and linked to the Company's operating performance and personal performance.

VIII. Whether the Report on Internal Control Self-evaluation should be disclosed?

√Applicable □Inapplicable

The Company's Report on Internal Control Self-evaluation in 2020 was disclosed on the Shanghai Stock Exchange's website (www.sse.com.cn) on April 13, 2021.

Explanation of great defects in internal control during reporting period

□Applicable √Inapplicable

IX. Information on Internal Control Audit Report

√Applicable □Inapplicable

Sichuan Huaxin employed by the Company has audited the Company's internal control in 2020 and issued a standard and unqualified auditor's report on internal control. For details, please refer to the "Internal Control Audit Report of Tongwei Co., Ltd. in 2020" disclosed on April 13, 2021 by the Company on the website of Shanghai Stock Exchange (www.sse.com.cn).

Whether internal control audit reports are disclosed：Yes

Type of opinion of internal control audit report: standard and unqualified opinion

X. Others

□Applicable √Inapplicable

Section X Information on Company Bonds

□Applicable √Inapplicable

Section XI Financial Report

I. Auditor’s Report

√Applicable □Inapplicable

The Company's annual financial report has been audited by Feng Yuan, He Shoufu and Gou Jing, certified public accountants of Sichuan Huaxin, and an unqualified auditor's report has been issued.

Auditor’s Report

CHXS (2021) No.0014

All shareholders of Tongwei Co., Ltd.:

I. Audit Opinion

We have audited the financial statements of Tongwei Co., Ltd. (hereinafter referred to as “Tongwei Co., Ltd.”), including Consolidated and Parent Company’s Balance Sheets dated on December 31, 2020, as well as 2020 Consolidated and Parent Company’s Income Statements, Consolidated and Parent Company’s Cash Flow Statements, Consolidated and Parent Company’s Statements of Changes in Owner’s Equity, and Notes to Financial Statements.

In our opinion, the attached financial statements were compiled as per the provisions of Accounting Standards for Business Enterprises in all major aspects and can fairly present the merger of Tongwei Co., Ltd. on December 31, 2020 and parent company’s financial position as well as the merger in 2020 and business performance and cash flows of parent company.

II. Basis Forming Audit Opinions

We have performed the audit work in accordance with the provisions of the auditing rules of Chinese Certified Public Accountant. The "Responsibility of Certified Public Accountants for Auditing Financial Statements" in the audit report further explains our responsibilities under these guidelines. In accordance with the Code of Professional Ethics of Chinese Certified Public Accountant, we are independent of Tongwei Co., Ltd. and have fulfilled other responsibilities in aspect of professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

III. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of current year. These matters were addressed in the context of our audit for the entire financial statements and the formation of our opinions thereon. We do not declare a separate opinion on these matters.

(I) Revenue recognition

1. Matter explanation

As shown in Note V. 45 "Operating Revenue and Operating Cost" of Financial Statements and Note XIV. 2 "Segment Information" of Financial Statements, in 2020, Tongwei Co., Ltd.'s consolidated operating revenue was RMB 44.20 billion, of which: PV business was the main business revenue of 22.502 billion yuan, and the main business revenue of agriculture and animal husbandry business was 20.936 billion yuan. Operating revenue is a key performance indicator of Tongwei Co, Ltd.. There is an inherent risk of management manipulating revenue recognition in order to achieve specific goals or expectations. Therefore, we identify revenue recognition as a key audit matter.

2. Audit response

(1) Understand whether the design and operation of internal control related to test sales and collection are effective, and evaluate the rationality of the basis and timing of revenue recognition.

(2) Implement analysis procedures on sales revenue, including comparison with the same period, comparison by product category, etc., to evaluate the rationality of related changes.

(3) Select major customers, check contracts, orders, invoices, customer signatures, etc., and verify the transaction amount and balance of the end of the period to confirm the authenticity, completeness and accuracy of the transaction; for other customers, randomly check sales contracts, customer purchasing orders, shipping documents, transportation documents, payment receipts, customer receipt records and other materials to verify the authenticity, completeness and accuracy of the sales revenue amount.

(4) Recalculate and verify PV power generation revenue according to the unit price and settlement power confirmed in the electricity purchase and sale agreement and related documents of power generation subsidies; send a letter to the State Grid Electric Power Company for the settlement of power and the settlement of desulfurization electricity fees.

(5) Check export sales and shipments and customs declaration data, combined with the implementation of letter verification procedures for export sales customers’ advance payment balances to verify the authenticity, completeness and accuracy of export sales revenue.

(6) Query the industrial and commercial information of important customers and ask the relevant personnel of Tongwei Co., Ltd. to confirm whether these customers have an associated relationship with Tongwei Co., Ltd.

(7) Select the cut-off test for sales revenue recognition before and after the balance sheet date, pay attention to the date when the customer signs the receipt, and also pay attention to whether there is a large return after the period to verify whether the corresponding revenue is included in the appropriate accounting period.

(II) The existence of bank acceptance bills receivable and the integrity of bank acceptance bills payable

1. Matter explanation

As shown in Note V. 5 "Financing of Accounts Receivable" and Note V. 25 "Notes Payable-Bank Acceptance Draft" of the financial statements, as of December 31, 2020, accounts receivable financing, bills payable-bank acceptance balances were respectively 9.712 billion yuan and 9.364 billion yuan, which accounted for 15.12% of total assets and 28.63% of total liabilities respectively, affecting 8.38 percent points of the debt-to-asset ratio. The PV industry of Tongwei Co., Ltd. generally uses bill settlement. With the growth of business scale and the development of its "bill pool" business with banks, Tongwei Co., Ltd. has a relatively large balance of bank acceptance bills receivable and payable, and the bills receivable has the situation of pledged restricted. The amount of bank acceptance bills receivable and payable is significant. Therefore, we consider the existence of bank acceptance bills receivable and the integrity of bank acceptance bills payable as key audit matters.

2. Audit response

(1) Understand and test the design and operation of key internal controls related to the management bills, and evaluate whether they are effective.

(2) Obtain the reference book of Tongwei Co., Ltd., check the consistency of the record of the reference book and the amount of the book, and take a sample from the receipt and payment records of the bill for inspection, check the bill information, etc.

(3) Check the bill discount agreement and bill pool agreement, check whether the discount interest and accounting treatments are correct, and check the bill margin, pledged bills receivable and the bills payable that are restricted due to the issuance of bills payable.

(4) Information on bills payable, pledged bills receivable and discounted bills issued at the end of bank confirmation;

(5) Obtain the corporate credit report and check whether the information on the notes payable and discounted notes issued at the end of the period is consistent with the book records.

(6) At the end of the period, the bills receivable shall be monitored to confirm whether the bills receivable at the end of the period actually exist and the accuracy of the bill information, and at the same time check the restrictions on the pledge of the bills receivable.

(7) Review whether the consideration of bill settlement in the cash flow statement prepared by the management of Tongwei Co., Ltd. is appropriate and whether the relevant presentation is correct.

IV. Other Information

The Management of Tongwei Co., Ltd. shall be responsible for other information. Other information comprises the information included in the 2020 Annual Report, but does not include the financial statements and our audit report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If we conclude that there is a material misstatement in such other information based on the work we have performed, we are required to report that fact. We have nothing to report in this regard.

V. Responsibilities of Management and Governance for the Financial Statements

The Management of Tongwei Co., Ltd. shall be responsible for preparing Financial Statements that give a true and fair presentation in accordance with Accounting Standards for Business Enterprises, and designing, implementing and maintaining necessary internal control to prevent material misstatement caused by fraud or error in Financial Statements.

When preparing the financial statements, the management is responsible for assessing the sustainable operation ability of Tongwei Co., Ltd., disclosing matters related to the sustainable operation (if applicable), and applying the sustainable operation assumption, unless the management plans to liquidate Tongwei Co., Ltd., terminate operations or has no other realistic choice.

The Governance shall be responsible for supervising the financial reporting process of Tongwei Co., Ltd.

VI. CPA's Responsibilities for Auditing the Financial Statements

Our objective is to obtain reasonable assurance that the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee to detect a material misstatement in an audit conducted in accordance with Auditing Standards. Misstatement can arise from fraud or error is considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions users would take on the basis of these financial statements.

As part of an audit in accordance with Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. Meanwhile, we also:

(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of failing to detect a material misstatement due to fraud is higher than that of failing to detect a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or overriding of internal control.

(2) Understand the audit-related internal control to design appropriate audit procedures.

(3) Assess the appropriateness of adopted accounting policies and the reasonableness of accounting estimates and relevant disclosures made by the Management.

(4) Conclude the appropriateness of the going-concern assumption made by the Management. Besides, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast a significant doubt on the Tongwei Co., Ltd.’s ability to continue as a going concern; if we conclude that the material uncertainty does exist, according to the Auditing Standards, we shall bring the users’ attention in our auditor’s report to the relevant disclosures in the financial statements; if the disclosures are inadequate, we shall modify our opinion. Our conclusions are based on the information that has been available till the date of our auditor’s report. However, future events or conditions may cause Tongwei Co., Ltd. to cease to continue as a going concern.

(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the Financial Statements provide a fair representation of the underlying transactions and events.

(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within Tongwei Co., Ltd. to express an opinion on the Financial Statements. We are responsible for the direction, supervision and performance of the audit on the Group, and we remain solely responsible for our audit opinion.

We communicate with those charged with Governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings etc., including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with Governance with a statement that we have complied with those relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and related safeguards, where applicable.

From the matters communicated with the Governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless the laws or regulations preclude public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter shall not be communicated in our report because the adverse consequences of doing so will reasonably be expected to outweigh the public interest benefits of such communication.

Sichuan Huaxin (Group) CPA Firm China Certified Public Accountants: Feng Yuan

(Project partner)

(Special General Partnership) China Certified Public Accountant: He Shoufu

Chengdu, China China Certified Public Accountant: Gou Jing

April 9, 2021

II. Financial Statement

Consolidated Balance Sheet

December 31, 2020

Prepared by: Tongwei Co., Ltd.

Unit:Yuan Currency: RMB

Legal Representative: Xie Yi

Person in Charge of Accounting Work: Zhou Bin

Person in Charge of Accounting Firm: Lei Jiaowen

Balance Sheet of the Parent Company

December 31, 2020

Prepared by: Tongwei Co., Ltd.

Unit:Yuan Currency:RMB

Legal Representative: Xie Yi

Person in Charge of Accounting Work: Zhou Bin

Person in Charge of Accounting Firm: Lei Jiaowen

Consolidated Income Statement

January-December 2020

Unit:Yuan Currency:RMB

In case of business merger under common control in the current period, the net profit realized by the merged party before merger is RMB 0 and the net profit realized by the merged party in the previous period is RMB 0.

Legal Representative: Xie Yi

Person in Charge of Accounting Work: Zhou Bin

Person in Charge of Accounting Firm: Lei Jiaowen

Income Statement of the Parent Company

January-December 2020

Unit:Yuan Currency:RMB

Legal Representative: Xie Yi

Person in Charge of Accounting Work: Zhou Bin

Person in Charge of Accounting Firm: Lei Jiaowen

Consolidated Cash Flow Statement

January-December 2020

Unit:Yuan Currency:RMB

Legal Representative: Xie Yi

Person in Charge of Accounting Work: Zhou Bin

Person in Charge of Accounting Firm: Lei Jiaowen

Cash Flow Statement of the Parent Company

January-December 2020

Unit:Yuan Currency:RMB

Person in Charge of Accounting Work: Zhou Bin

Person in Charge of Accounting Firm: Lei Jiaowen

Consolidated Statement of Changes in Owners’ Equity

January-December 2020

Unit:Yuan Currency:RMB

IV. Ending balance in the current period 4,501,548,184.00 16,105,693,787.44 -73,914,221.72 16,401,063.07 925,322,362.44 9,066,353,854.50 30,541,405,029.73 1,002,541,280.46 31,543,946,310.19

Legal Representative: Xie Yi Person in Charge of Accounting Work: Zhou Bin Person in Charge of Accounting Firm: Lei Jiaowen

Statement of Changes in Owner's Equity of the Parent Company

January-December 2020

Unit:Yuan Currency: RMB

Legal Representative: Xie Yi Person in Charge of Accounting Work: Zhou Bin Person in Charge of Accounting Firm: Lei Jiaowen

III. Company Information

1. Company profile

√Applicable □Inapplicable

(1) History of the Company

Tongwei Co., Ltd. (hereinafter referred to as "the Company") is a limited liability company founded from the overall change of the Sichuan Tongwei Feed Co., Ltd. and incorporated under sponsorship. On October 21, 2000, with the approval of Official Reply of Sichuan Provincial People’s Government on Establishing Sichuan Tongwei Co., Ltd. of CFH [2000] No. 311 of the People's Government of Sichuan Province official, Sichuan Tongwei Feed Co., Ltd. changed as a whole and set up Tongwei Co., Ltd. in the form of incorporation by means of sponsorship. The total share capital of the Company is converted into shares at a ratio of 1: 1 with a net asset of RMB 111.88 million of Sichuan Tongwei Feed Co., Ltd. audited by Sichuan Huaxin (Group) CPA Firm as of August 31, 2000, totaling 111.88 million shares. On November 8, 2000, the Sichuan Administration for Industry and Commerce issued the business license of Tongwei Co., Ltd. (registration number: [5100001812986]). On November 19, 2001, the State Administration for Industry and Commerce approved the change of the Company name to "Tongwei Co., Ltd." according to (Guo) MCBHNZ [2001] No.419 of the Enterprise Name Change Approval Notice.

On February 16, 2004, the Company publicly issued 60 million RMB common shares (A-shares) as approved by the document ZJFXZ [2004] No.10 of CSRC. The method of pricing and placing to secondary market investors was used for all issues, with the issuance price of RMB 7.50 per share. The post-change registered capital was RMB 171,880,000.

On February 20, 2006, the Company's equity division reform plan was reviewed and approved by the shareholders meeting on the equity division reform plan of Tongwei Co., Ltd. According to the plan, the tradable shareholders of the Company received 1.5 shares of consideration paid by non-tradable shareholders for every 10 shares of Tongwei, and the tradable shareholders received a total of 9 million shares of consideration. The Company completed the share change registration for the equity division reform on March 3, 2006.

On May 25, 2006, the Company converted and increased its share capital with capital reserves, converting and increasing 5 shares for every 10 shares, awarding 5 shares for every 10 shares with profit, and the total share capital after conversion and bonus was 343.76 million shares; on May 23, 2007, the Company converted and increased its share capital with capital reserves, converting and increasing 7 shares for every 10 shares, awarding 3 shares for every 10 shares with profit, and the share capital after conversion and bonus was 687.52 million shares.

On July 4, 2013, the Company issued 129,589,632 shares to Tongwei Group Co., Ltd. The share capital after the issuance was 817,109,600 shares.

With the approval of the Reply on Approving Tongwei Co., Ltd. to Purchase Assets and Raise Supporting Funds by Issuing Shares to Tongwei Group Co., Ltd. (ZJXK [2016] No. 190) from the CSRC on January 27, 2016, the Company issued 238,324,880 RMB common shares to 17 legal persons such as Tongwei Group Co., Ltd., Sichuan Giastar Group Co., Ltd. and 29 natural persons such as Tang Guangyue, the face value of each share was RMB 1.00, and the share capital after issuance was 1,055,434,512 shares.

On May 19, 2016, the Company converted and increased its share capital with capital reserves, converting and increasing 4 shares for every 10 shares, awarding 6 shares for every 10 shares with profit, and the total share capital after conversion and bonus was 2,110,869,024 shares.

On June 22, 2016, the Company issued 350,262,697 shares to eight institutions such as Tianhong Asset Management Co., Ltd. The share capital after the issuance was 2,461,131,721 shares.

With the approval of the Reply on Approving Tongwei Co., Ltd. to Purchase Assets and Raise Supporting Funds by Issuing Shares to Tongwei Group Co., Ltd. (ZJXK [2016] No. 2054) from the CSRC on September 8, 2016, the Company issued 922,901,629 RMB common shares to Tongwei Group Co., Ltd., the face value of each share was RMB 1.00, and the share capital after issuance was 3,384,033,350 shares.

On December 23, 2016, the Company issued 498,338,870 shares to 5 institutions such as Essence Fund Management Co., Ltd. The share capital after the issuance was 3,882,372,220 shares.

Approved by the document (ZJXK [2018] No. 1730) from the CSRC, the Company issued 50 million pieces convertible corporate bonds of 5 billion yuan on March 18, 2019, with a term of 6 years; after approved by the document (ZLJGJDS [2019] No.052) from the Shanghai Stock Exchange, the convertible corporate bonds are listed for transaction on the Shanghai Stock Exchange from April 10, 2019; the bonds are named as Tongwei Convertible Bonds for short, the bond code is 110054; the corporate stock was not lower than 130% (namely 15.96yuan/share ) of the current conversion price of Tongwei Convertible Bonds for at least 15 trading days in 30 consecutive trading days from January 14, 2020 to March 3, 2020; the redemption clause of "Tongwei Convertible Bonds" has been triggered. Through the sixth meeting of the seventh board of directors, the Company is approved to exercise the early redemption right to redeem all "Tongwei Convertible Bonds" registered on the "Redemption Registration Date"; the deadline of the redemption registration date is March 16, 2020; the face value of RMB 4,979,353,000 "Tongwei Convertible Bonds" was converted into company shares, the conversion number was 405,483,464 shares, and the conversion shares was 4,287,855,684.

On November 20, 2020, the Company issued additional 213,692,500 shares to 16 institutions including Qamdo Tongrui Industrial Partnership (Limited Partnership). After the additional issuance, the share capital was 4,501,548,184 shares.

(2) Registered address, organizational form and headquarters address of the Company

The registered address of the Company is No. 588 Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, and its organizational form is Limited Liability Company. Its headquarters is located at No. 588, Tianfu Avenue Middle Section, High-Tech Zone, Chengdu.

(3) Nature of businesses and main operating activities of the Company

1) Business nature

The Company involved Agriculture, Forestry, livestock husbandry and Fishery. In 2016, after the Company completed the merger of Sichuan Yongxiang Co., Ltd., Tongwei New Energy Co., Ltd. and Tongwei Solar (Hefei) Co., Ltd. under the same control, it added "PV new energy business".

2) Main business activities

Main business activities: Production and sale of Tongwei brand fish feed, pig feed, poultry feed and fresh water and seawater aquaculture feed; aquaculture and seedling cultivation; production, wholesale and retail of veterinary drugs and feed additives; slaughtering and processing fish, pig and duck food and selling live fish; production and sales of polysilicon and monocrystalline silicon, polyvinyl chloride and its series products, sodium hydroxide and ancillary products, carbide slag cement; research and development of new chemical products; production and sales of monocrystalline and multicrystalline silicon wafers, solar cell wafers, solar cell modules, solar heat pipes, solar water heaters, water heating systems and solar photothermal applications; energy technology research and development; research and development of solar power generation technology and technical consultation; design and construction of power engineering and power system installation engineering; sales of PV equipment and providing technical advice; solar power generation; electricity supply; electrical installation; engineering design; science and technology promotion and application service industry; comprehensive utilization of waste resources; environmental governance industry; wholesale and retail of commodities; rental and commercial services; import and export industry; internet information service, etc.

(4) Names of the largest shareholder and the ultimate substantive controller

At present, the largest shareholder of the Company is Tongwei Group Co., Ltd. (hereinafter referred to as "Tongwei Group"), and the ultimate actual controller is Liu Hanyuan.

(5) Approver of financial statements

The Company's financial statements are approved by the Company's board of directors. This financial statement was approved by the 18th meeting of the Company's 7th board of directors on April 9, 2021.

2. Scope of consolidated financial statements

√Applicable □Inapplicable

(1) The 80 first-level subsidiaries included in the consolidation scope in the current period are listed as follows:

(4) First-level subsidiaries that have not been absorbed, merged or disposed of in the current period Please refer to "Change of Consolidation Scope" and "Rights and Interests in Other Entities" for details.

IV. Preparation Basis of Financial Statements

1. Preparation basis

The Company's financial statements were prepared based on the assumption of going concern and actual transactions and events, in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and its supporting guidelines as well as explanations (hereinafter collectively referred to as "ASBE") and the disclosure provisions in the Rules for the Compilation Submission of Information Disclosure by Companies That Offer Securities to the Public (No. 15)— General Rules on the Financial Statements revised by CSRC in 2014.

2. Going concern

√Applicable □Inapplicable

The Company's business activities have sufficient financial support. Based on the information currently obtained from the Company and considering the macro-policy risks, market operation risks, current or long-term profitability, solvency and financial resources support of the enterprise and other factors, the Company believes that there are no matters or situations that have serious doubts about the Company's going concern ability in the next 12 months, and it is reasonable to prepare financial statements on the basis of going concern.

V. Significant Accounting Policies and Accounting Estimates

Notes to the specific accounting policies and accounting estimates:

□Applicable √Inapplicable

1. Declaration on compliance with ASBE

The financial statements and notes prepared by the Company meet the requirements of ASBE, truly and fully reflect its financial status on December 31, 2020 and relevant information such as business performance and cash flow in 2020. Additionally, all major aspects of the Company’s financial statements comply with the requirements for the disclosure of the financial statements and the notes in the Rules for the Compilation and Submission of Information Disclosure by Companies That Offer Securities to the Public (No. 15) — General Rules on the Financial Statements revised by CSRC in 2014.

2. Accounting period

The accounting year of the Company runs from January 1 to December 31.

3. Business cycle

√Applicable □Inapplicable

The normal business cycle refers to the period from the time when the Company buys assets for processing to the time when such assets become cash or cash equivalents. For the Company, 12 months/year constitute a business cycle and this business cycle is used as a criterion for determining the liquidity of assets and liabilities.

4. Recording currency

The Company takes RMB as its recording currency.

5. Accounting for business merger under common control and different control

√Applicable □Inapplicable

Business merger refers to a transaction or event that two or more individual enterprises form into a reporting entity through merging. The merger is divided into business merger under common control and business merger under different controls.

(1) Business merger under common control

A business merger under common control is a business merger in which all of the merging companies are ultimately controlled by the same party or parties both before and after the business merger, and that control is not transitory. In a business merger under common control, the party which obtains control of other merging companies on the merger date is the merging party, the other merging companies are the merged parties. Merger date refers to the date on which the merging party actually obtains control rights on the merged party.

The initial investment cost of long-term equity investments is taken to be the share acquired of the owners' equity of the merged party, at its book value in the consolidated financial statements of the ultimate controlling party. The balance between the net book value of assets acquired by the merging party and book value of the paid merging consideration (or total face value of issued shares) shall be used to adjust the capital reserves (share premium); where capital reserves (share premium) cannot be charged off, retained earnings shall be adjusted.

Direct expenses incurred to the merging party during the business merger shall be included in the current profit or loss when incurred.

(2) Business merger under different control

A business merger not under common control is a business merger in which the merging companies are not ultimately controlled by the same party or the same parties both before and after the business merger. In a business merger under different control, the party that acquires the right of controlling other companies involved in the merger on acquisition date is the acquirer, and other enterprises involved in the merger are the acquirees. Acquisition date refers to the date on which the acquirer actually obtains control rights on the acquiree.

In a business merger under different control, the merger cost consists of assets paid, liabilities incurred or borne and the fair value of issued equity securities paid by the acquirer on the acquisition date to obtain control rights on the acquiree. Intermediation costs such as audit, legal service, assessment and consultation fees and other general and administrative expenses shall be included in the current profit or loss when incurred. The transaction expenses of equity securities or debt securities issued by the acquirer as merging consideration will be included in the initially recognized amount of equity securities or debt securities. Involved contingent consideration must be included in merger cost at the fair value at the acquisition date; where the contingent consideration is to be adjusted due to new or further evidence for existing conditions at acquisition date within 12 months after acquisition date, consolidated goodwill must be correspondingly adjusted. The merger cost incurred to the acquirer and net identifiable assets obtained during business merger must be measured as per the fair value at the acquisition date. Where the merger cost is greater than the fair value of net identifiable assets obtained on the acquisition date from the acquiree, the balance between them must be recognized as goodwill. Where the merger cost is less than the fair value of net identifiable assets obtained from the acquiree during business merger, the fair value and merger cost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Where the merger cost is, after recheck, still less than the fair value of net identifiable assets obtained from the acquiree during business merger, the balance must be included in the current profit or loss.

Where the temporary deductible difference obtained by the acquirer from the acquiree is not recognized due to its non-compliance with deferred income tax assets recognition criteria at the acquisition date, new or further information obtained within 12 months since the acquisition date reveals that relevant conditions were present at the acquisition date, and the economic benefit brought by temporary deductible difference at the acquisition date can be realized for expected acquiree, relevant deferred income tax assets must be recognized, business reputation be decreased (where the business reputation is not sufficient to offset, the balance must be recognized as current profit and loss); except aforementioned conditions, deferred income tax assets which are confirmed to be linked with business merger must be included in current profit and loss.

As to business merger under different control that was accomplished step by step through multiple transactions, judge whether the multiple transactions belong to “package deal” in accordance with judgment standard of “package deal” stipulated in Notice of the Ministry of Finance on Issuing Interpretation No. 5 of the Accounting Standards for Business Enterprises issued by Ministry of Finance (CK [2012] No. 19) and Article 51 of Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements (refer to "preparation method of consolidated financial statements").

For transactions that belong to “package deal”, refer to “Long-term equity investment” to make accounting treatment; for transactions that do not belong to “package deal”, distinguish individual financial statement and consolidated financial statement to make relevant accounting treatment.

In individual financial statements, the sum of book value of the equity investment from the acquiree held before the acquisition date and the newly added investment cost on the acquisition date shall be taken as initial investment costs of the investment; for acquiree’s equity held before the acquisition date that involve other comprehensive incomes, the investment and its related other comprehensive incomes shall be subject to accounting treatment using the same basis on which the acquiree directly disposes related assets or liabilities (namely, except for the corresponding shares for the changes arising from the acquiree’s re-measurement of net liabilities or net assets of defined benefit plan calculated by equity method, the rest will be transferred to investment income of current period at the acquisition date.).

In the consolidated financial statements, acquiree’s equity held prior to the acquisition date must be re-measured as per its fair value at the acquisition date, and the balance between fair value and book value must be included in the investment income of current period; for acquiree’s equity held prior to the acquisition date involving other comprehensive incomes, the incomes shall be subject to accounting treatment using the same basis on which the acquiree directly disposes relevant assets or liabilities (namely, except for the corresponding shares for the changes arising from the acquiree’s re-measurement of net liabilities or net assets of defined benefit plan calculated by equity method, the rest will be transferred to investment income of current period at the acquisition date.).

6. Preparation method of consolidated financial statements

√Applicable □Inapplicable

(1) Principles for determining consolidation scope

The consolidation scope of consolidated financial statements is determined on the basis of control. Control means the power of the Company over the investee, and the investor can enjoy variable returns through participating in related activities of the investee and is able to influence its amount of return with the power over the investee. The consolidation scope consists of the Company and all its subsidiaries.

"Subsidiaries" refer to the entities under control of the Company.

(2) Preparation method of consolidated financial statements

The Company shall incorporate the subsidiaries into the scope of consolidation since its acquisition of the actual control over the subsidiaries' net assets and rights of management and decision-making and exclude it from the scope of consolidation when losing such control over the subsidiaries. For subsidiaries went through settlement, their financial performance and cash flows before the disposal date have been properly included in the consolidated income statement and consolidated cash flow statement; while for subsidiaries going through settlement, the opening balance in the consolidated balance sheet is not adjusted.

For subsidiaries acquired through business merger under different control, their financial performance and cash flows after the acquisition date have been properly included in the consolidated income statement and consolidated cash flow statement; in addition, the beginning balance and comparative amount in the consolidated financial statements are not adjusted. For subsidiaries acquired through business merger under common control and merged parties, their financial performance and cash flow from the opening of the current period of business merger to the merging date have been properly included in the consolidated income statement and consolidated cash flow statement; meanwhile, comparative amount in the consolidated financial statements are adjusted.

During compilation of consolidated financial statements, in the event that accounting policy or accounting period adopted by the subsidiaries are not in line with those of the Company, the financial statements of the subsidiaries shall be adjusted according to the accounting policy and accounting period of the Company. For subsidiaries acquired through business merger under different control, their financial statements shall be adjusted based on the fair value of net identifiable assets on the acquisition date.

Balance of major dealings and transactions and unrealized profit of the Company shall be offset during preparation of the consolidated financial statements.

The portion of stockholders equity and that of current net profit or loss of subsidiaries which are not owned by the Company must be respectively recognized as minority equity and minority interest income and separately listed under the shareholders’ equity and net income in the consolidated financial statements.

The portion current net profit or loss of the subsidiaries which belongs to minority equity shall be presented as “Minority profit and loss” in the Net Profit column in the Consolidated Income Statement. If the loss of the subsidiaries borne by minority shareholders exceeds the amount of shareholders' equity share in the subsidiaries at the beginning of the current period, the excess shall write down the minority equity.

In the event the Group loses the right of control over its subsidiaries due to disposal of partial equity investment or other reasons, the residual equity must be recalculated according to its fair value on the day when the Group loses the right of control. The difference by using the sum of value received from disposal of equity and fair value of the residual equity to deduct share in net assets continually counted from the acquisition date of the original subsidiaries (calculated as per original shareholding proportion) shall be recorded in the investment income of the current period without the right of control. Other comprehensive incomes in connection with equity investment of the original subsidiaries shall be subject to accounting treatment using the same basis on which the acquiree directly disposes relevant assets or liabilities when the right of control is lost (namely, except for the changes arising from the original subsidiaries’-measurement of net liabilities or net assets of defined benefit plan, the rest will be transferred to investment income of current period). Subsequently, the residual equity shall be measured as per the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments or Accounting Standards for Business Enterprises No.22 - Financial Instrument Recognition and Measurement or other relevant regulations. See “Long-term equity investments” or “Financial instrument” for details.

For the various transactions for step-by-step equity disposal by the Company that lead to the loss of controlling power over the subsidiaries, it is necessary to distinguish whether the transactions belong to the package deal. When the terms, conditions and economic impacts of the transactions for subsidiaries equity investment disposal conform to one or more following situations, then it indicates that the transactions shall be subject to accounting treatment as part of the package deal:① the transactions are established simultaneously or at the consideration of mutual impact;② the transactions can constitute a complete commercial result only when operating as a whole;③ the occurrence of one transaction rests with that of another one or more;④ individually, a single transaction is not economical while, when combined with other transactions, it is economical. For those that do not belong to the package deal, the transactions shall be subject to accounting treatment as per “disposes of the long-term equity investment to its subsidiaries partially without losing the right of control” (refer to the “Disposal of long-term equity investment” for details) and “Company losses the right of control over its subsidiaries due to disposal of partial equity investment or other reasons” (refer to the preceding paragraph for details). For the various transactions belong to the package deal for equity disposal by the Group that lead to the loss of controlling power over the subsidiaries, the transactions are subject to the accounting treatment oriented for subsidiaries disposal and loss of controlling power; but, the difference between each disposal amount and the corresponding subsidiaries net asset shares entitled to the disposal investment is recognized as other comprehensive income in the consolidated financial statements, which is not transferred into the current profit or loss until the controlling power is lost.

7. Classification of joint operation arrangement and accounting treatment methods for joint

operations

√Applicable □Inapplicable

Joint venture arrangement refers to an arrangement jointly controlled by two or more participants. The Company, based on the rights and obligations under the joint arrangement, divides the joint arrangement into joint operation and joint venture. Joint operation refers to an arrangement that the Company enjoys assets related to the arrangement and bears liabilities related to the arrangement. Joint venture refers to an arrangement that the Company only has the power governing net assets of the arrangement.

The Company's investment in joint venture is calculated with equity method and handled by accounting policies described in long-term equity investment of "Long-term equity investment calculated by equity method".

The Company, as a part of a joint operation, fully recognizes assets and liabilities held/owed alone and assets and liabilities jointly held/owed based on its share. It fully recognizes income from selling its share of joint operations output, and the income from sales of jointly-produced output based on its share; it fully recognizes expenses solely incurred itself, and expenses jointly incurred based on its share.

Where the Company, as a joint party, invests or sells assets (excluding the asset constituting business, similarly hereinafter) to a joint operation, or purchase asset from a joint operation, before the said assets are sold to a third party by joint operation, the Company shall only recognize the part of profit or loss attributable to itself and other participants in the joint operation. When any impairment specified in Accounting Standards for Business Enterprises No. 8 - Asset Impairment, occurs to said assets in the course of investing or selling assets to a joint operation, the Company shall recognize the full amount of the loss; in case of purchasing asset from a joint operation, the Company shall recognize based on its share of the assets purchased.

8. Standards for recognition of cash and cash equivalents

The Company’s cash equivalents determined during the preparation of the cash flow statement are recognized as investment that is short-term (generally due within three months since the acquisition

date), highly liquid and readily convertible to a known amount of cash, and has an insignificant risk of changes in value.

Restricted bank deposits are not regarded as cash and cash equivalents in the cash flow statement.

9. Foreign currency conversion and foreign currency statement translation

√Applicable □Inapplicable

(1) Foreign currency business accounting method:

When foreign currency business occurs, it shall be converted into standard money for bookkeeping according to the benchmark exchange rate published by the People's Bank of China on the actual date of occurrence (generally referred to as the middle rate of the foreign exchange quote price of that day announced by the People’s Bank of China, the same below); At the end of the period, the foreign currency monetary items should be converted at the ending spot rate; foreign currency non-monetary items measured at historical cost should still be converted at the spot rate; the foreign currency non-monetary items measured at fair value should be converted at the spot rate on the date of determination of the fair value. For the occurred balance from conversion that is related to acquisition and construction of fixed assets and has reached the expected serviceable condition should be included in acquisition and construction cost of fixed assets, and that is unrelated to acquisition and construction of fixed assets and in the start-up period should be included in the administration expense, and that is unrelated to acquisition and construction of fixed assets and in the production and operation period should be included in current financial expenses.

(2) Conversion method for foreign currency financial statements:

The asset items and liability items in the balance sheet adopt the exchange rate of the balance sheet date for conversion; the owner’s equity items adopt the exchange rate of date when the transactions occurred, except for the items of “undistributed profit”. Income and expense items in the income statement are converted using the approximate exchange rate of the current spot exchange rate. The differences arising from the translation of financial statements dominated in foreign currencies by the above-mentioned method are separately listed in the “other comprehensive incomes” under the ownership rights and interests items in the balance sheet.

Foreign currency cash flow and cash flow of overseas subsidiaries shall be converted at the approximate exchange rate of spot rate on the cash flow date.

10. Financial instruments

√Applicable □Inapplicable

Financial instruments refer to contracts that form the financial assets of a party, and form financial liabilities or equity instruments of other parties. When the Company becomes a party to a financial instrument, it recognizes a financial asset or liability.

(1) Classification of financial assets

Financial assets transacted in a conventional way are subject to accounting recognition and derecognition on the transaction day. Financial assets are divided into the following categories upon initial recognition: financial assets measured at amortized cost; financial assets measured at fair value with changes included in other comprehensive income; financial assets measured at fair value with changes included in current profit and loss.

Where the financial assets of the Company meet all the following conditions, they will be classified as financial assets measured at amortized cost:① The business mode of the Company for managing such financial assets is to collect contract cash flows.② The contract of such financial assets specifies that the cash flows generated at a particular date are only for the payment of principal and interest based on the amount of outstanding principal.

Where the financial assets of the Company meet all the following conditions, they will be classified as financial assets measured at the fair value through other comprehensive income. ① The business mode of the Company for managing such financial assets is to collect contract cash flows and to sell the financial assets.② The contract of such financial assets specifies that the cash flows generated at a particular date are only for the payment of principal and interest based on the amount of outstanding principal.

The Company will classify the financial assets other than the financial assets measured at the amortized cost and the financial assets at fair value through other than comprehensive income into the financial assets at fair value through current profit and loss. At the time of initial recognition, if eliminating or significantly reducing accounting mismatch, financial assets can be designated as financial assets measured at fair value and whose changes are included in the profit and loss of the current period. Such designation, once made, shall not be revoked.

(2) Measurement of financial assets

The financial assets and financial liabilities initially recognized by the Company are measured at the fair value. For financial assets at fair value through profit or loss, related transaction expenses shall be directly included in the current profit or loss; the related transaction expenses of other financial assets shall be included in the initially recognized amount. For accounts receivable or bills receivable arising from the sale of products or the provision of services that do not include or take into account significant financing components, the Company takes the consideration amount entitled to receive in expectation as the initially recognized amount. Subsequent measurement of financial instruments depends on their classification.

1) Financial assets measured at amortized cost

The Company adopts the effective interest rate method for financial assets measured at amortized cost and carries out subsequent measurement at amortized cost. Gains or losses arising on financial assets measured at amortized cost that are not any hedging relationship are included in current profit and loss when derecognized, reclassified, amortized using the effective interest method or recognized for impairment.

2) Debt instruments investment measured at fair value with its changes included in other comprehensive incomes

For such financial assets, follow-up measurement shall be based on fair value in the Company. Interest, impairment losses or gains and exchange gains and losses of such financial assets calculated by the effective interest rate method are included in the profit and loss of the current period, and other gains or losses arising therefrom are included in other comprehensive income. At the derecognition, the accumulated gains or losses previously included in other comprehensive incomes are transferred from there to the current profit or loss.

3) Non-tradable equity instrument investments measured at fair value and whose changes are included in other comprehensive income

The Company carries out follow-up measurement of such financial assets at fair value. Except for dividends (except those that belong to the part of investment cost recovery) which are included in the current profit and loss, other relevant gains or losses (including exchange gains and losses) shall be included in other comprehensive income, and shall not be transferred into the current profit and loss. When its recognition is terminated, the accumulated gains or losses previously booked into other comprehensive incomes shall be transferred from other comprehensive incomes and recorded into retained earnings.

4) Financial assets measured at fair values and whose changes are included in current profit and loss For financial assets measured at fair value and whose changes are included in the current profit and loss (except for those related to hedge accounting), the gains or losses resulting from changes in fair value are included in the current profit and loss.

(3) Impairment of financial assets

Based on the expected credit loss, the Company conducts impairment accounting of financial assets classified as measured at amortized cost, financial assets classified as measured at fair value and whose changes are included in other comprehensive income and recognizes loss reserves.

The Company considers reasonable and reliable information about past events, current situation and forecast of future economic situation, taking the risk of default as the weight, calculates the probability weighted amount of the present value of the difference between the cash flow receivable from the contract and the cash flow expected to be received, and recognizes the expected credit loss.

On each balance sheet date, the Company separately measures the expected credit loss of financial instruments at different stages. If the credit risk of financial instruments has not increased significantly since the initial recognition, it is in the first stage. The Company will measure the provision for loss according to the expected credit loss in the next 12 months. If the credit risk of a financial instrument has increased significantly since its initial recognition but no credit impairment has occurred, it is in the second stage, and the Company measures the provision for loss according to the expected credit loss of the instrument throughout its life. If a financial instrument has suffered credit impairment since its initial recognition, it is in the third stage. The Company measures the provision for loss according to the expected credit loss of the instrument throughout its life.

For financial instruments with low credit risk on the balance sheet date, the Company assumes that the credit risk has not increased significantly since the initial recognition, and measures the provision for loss according to the expected credit loss in the next 12 months.

For financial instruments in the first and second stages and with low credit risk, the Company calculates interest income according to the book balance before deducting provision for impairment and the actual interest rate. The interest income shall be calculated according to their book balance minus the amortized cost after impairment provision and the effective interest rate for financial instruments in the third stage.

For notes receivable, accounts receivable and receivables financing arising from daily business activities such as selling commodities and providing labor services, regardless of whether there is any significant financing component, the Company measures the provision for loss based on expected credit loss over the whole duration.

For accounts receivable without objective evidence of impairment or when information of the expected credit loss for a single financial asset cannot be evaluated at a reasonable cost, the Company divides the accounts receivable into several portfolios according to the credit risk characteristics, calculates the expected credit loss on the basis of the portfolios, and determines the portfolio on the following basis:

departments within one year after the balance sheet date during the settlement period, for example, the receivables from government subsidies, without risks and excluding provision for bad debt; It is expected that the receivables collected from relevant government departments will be settled one year after the balance sheet date, for example, the allowance for electricity receivables. Considering the time value of assets, the bad debt reserves will be set aside at 5.00% of the receivable balance. The bad debt reserves exceeding 5.00% of the receivable balance has already been set aside according to the account receivable age. Based on the principle of prudence, it will not be reversed until it is collected.

Note 2: Portfolio 4: The Company combines receivables other than the above combinations according to credit risk characteristics (account receivable age) and estimates the accrual proportion of bad debt provision for the receivables based on all reasonable and reliable information, including forward-looking information:

and loss. For debt instruments held at fair value through other comprehensive income, the Company adjusts other comprehensive income while recording impairment loss or profit included in the current profit or loss.

(4) Recognition basis and measurement method of financial asset transfer

Financial assets should be derecognized when any of the following conditions is met:① the contractual right to acquire cash flow of the said financial assets is terminated;② the financial assets have been transferred and almost all risks and rewards from the ownership of the said financial assets are transferred to the transferee;③ the financial assets has been transferred and the transferor waives its control over the said assets, despite the enterprise has not transferred or retained any risks and rewards from the ownership of the said financial assets.

Where the enterprise neither transfers nor retains any risks and rewards on the financial asset ownership, if the control over the financial asset is not waived, relevant financial asset shall be recognized to the extent of continuing involvement in the transferred financial assets, and relevant liabilities shall be recognized correspondingly. “Continuing involvement in the transferred financial assets” refers to the risk level that the Company will be faced with due to the change in value of such financial assets.

If the entire transfer of the financial assets meets derecognition conditions, the difference between the book value of the transferred financial asset and the sum of the consideration received due to the transfer and the cumulative changes in fair value that has been formerly recognized in other comprehensive incomes, is included in the current profit or loss.

Where the partial transfer of the financial assets meets derecognition conditions, the book value of the transferred financial assets shall be amortized between the derecognized and non-derecognized portions as per their relative fair values respectively; and the balance between the sum of the consideration from the transfer and the accumulative amount of changes in fair value which was previously recognized in other comprehensive incomes of the derecognized portion and aforementioned book value shall be included in the current profit or loss.

For non-transactional equity instruments which are designated to be measured at fair value with their changes included in other comprehensive income. If the investment termination is recognized, the accumulated gains or losses previously included in other comprehensive income will be transferred out from other comprehensive income and included in retained earnings.

(5) Classification and measurement of financial liabilities

1) Financial liabilities measured at fair value with their changes included in current profit and loss Financial liabilities measured at fair value with their changes included in current profit and loss include transactional financial liabilities (including the derivative instruments which belong to financial liabilities) and financial liabilities designated to be measured at fair value with their changes included in current profit and loss. The financial liabilities which are measured at fair value and whose changes are recognized in the current period profit or loss are subsequently measured at fair value. The gains or losses resulting from the changes in fair value and the dividends and interest expenses related to such financial liabilities are recorded in the current period profit or loss.

2) Other financial liabilities

If derivative financial liabilities have no quotation in an active market and they are linked with equity instruments which cannot be reliably measured for fair value and settled by delivering such equity instruments, they are measured subsequently at cost. Other financial liabilities are subsequently measured at amortized cost by using the effective interest method. Gains or losses resulting from derecognition or amortization is included in current profit and loss.

(6) Derecognition of financial liabilities

When the current obligations of financial liabilities have been wholly or partially released, such financial liabilities or part of them can be derecognized. The Company (the Debtor) and the Creditor sign an agreement in which the existing financial liabilities are replaced by means of undertaking new financial liabilities; and the contractual terms of the new financial liabilities and those of existing financial liabilities are different in essence. Therefore, the existing financial liabilities shall be derecognized and the new financial liabilities shall be recognized.

If the financial liabilities, are entirely or the partially derecognized, the difference between the book value of the portion terminated in recognition and the consideration afforded (including the non-cash assets transferred or the new financial liabilities assumed) is recognized into current profit or loss.

(7) Offset of financial assets and financial liabilities

When the Group is entitled to offset the recognized financial assets and financial liabilities, this legal right is currently enforceable, and meanwhile the Group intends to either settle on the net basis or realize the financial assets and repay the financial liabilities simultaneously, financial assets and financial liabilities are presented in the balance sheet with the amount obtained after mutually offsetting. Besides, financial assets and financial liabilities are presented separately in the balance sheet and are not mutually offset.

(8) Determining fair value of financial instruments

Fair value refers to the price to be received for sale of an asset or to be paid for transfer of a liability by market participants in the orderly transaction on the measurement date. When a financial instrument has active market, the Company uses the quotation in the active market to recognize the fair value. The quotation in the active market refers to the price to be readily and regularly obtained from the exchange, broker, industry association, pricing service agency and the like and represents the actual market transaction price in a fair deal. When a financial instrument does not have active market, the Company uses the valuation techniques to recognize the fair value. Valuation techniques include reference to the prices used by the well-briefed and willing-to-transact parties in the latest market transactions, reference to the current fair values of other financial instruments similar in nature, discounted cash flow technique and option pricing models.

11. Notes receivable

Recognition method and accounting treatment of expected credit loss of notes receivable

√Applicable □Inapplicable

Notes receivable refer to banker’s acceptance bill, commercial acceptance bills and letters of credit that are held until maturity to recover principal and interest. Commercial acceptance bills use the same method as accounts receivable to accrue bad debt reserves. See "Financial Instruments" for details.

12. Accounts receivable

Recognition method and accounting treatment of expected credit loss of accounts receivable

√Applicable □Inapplicable

See "Financial Instruments" for details.

13. Receivables financing

√Applicable □Inapplicable

Receivable financing refers to banker's acceptance bill received by the company for the purpose of recovering principal and interest at maturity, endorsement transfer and bank discount. If the remaining term of a banker's acceptance bill is short and the book balance is close to the fair value, the book value shall be taken as its fair value. See "Financial Instruments" for details.

14. Other receivables

Recognition method and accounting treatment of expected credit loss of other receivables

√Applicable □Inapplicable

See "Financial Instruments" for details.

15. Inventories

√Applicable □Inapplicable

(1) Classification of inventories

Classification of inventories: raw materials, packaging materials, in-process products, inventory goods, goods in transit, turnover materials (including packaging materials, low-value consumables, scaffolding of construction enterprises, etc.), consigned goods, issued goods, consigned processed goods, consumable biological assets, engineering construction, etc.

(2) Pricing method for sent out inventory

Inventories are priced at the actual cost at the time of acquisition. Inventory collection and issue except revolving materials shall be accounted for according to the weighted average method.

(3) Basis for determining the inventory’s net realizable value and drawing methods for provision for obsolete inventories

At the end of the year, the inventories shall be valued by the lower one between cost and net realizable value. If the inventory cost is greater than the balance of net realizable value, provision for inventory falling price shall be withdrawn and included in current profit and loss. As to inventories related to the series produced and sold in the same area which have similar purposes or final application and are hard to separate from other items, the provision can be drawn by combination; as to inventories large in quantities and low in price, the provision is drawn by classification.

For material held for production, if the net realizable value of the finished product is higher than the cost, the material shall be measured with the cost; if the reduction of the material price indicates that the net realizable value of the finished product is lower than the cost, the material shall be measured with the net realizable value.

(4) Inventory system

The perpetual inventory system is applied to inventories.

(5) Amortization method for revolving materials

When the revolving materials (low-value consumables) are collected and used, the 50%-50% amortization method shall be adopted for the unit value above RMB 500 and one-time amortization for the unit value below RMB 500. Tongwei Solar (Hefei) Co., Ltd., a wholly-owned subsidiary of the Company, and its subsidiaries' low-value consumables are amortized at one time when they are collected.

The impact is small, and the amount of impact is difficult to calculate accurately. It has not been adjusted in the consolidated statement.

16. Contract assets

(1). Recognition methods and standards of contract assets

√Applicable □Inapplicable

The Company considers that the customer has not yet paid the contract consideration, but the company has fulfilled its performance obligations in accordance with the contract, and is not unconditionally (that is, only depending on the passage of time) right to collect payments from the customer, which is listed as contract assets in the balance sheet. Contract assets and contract liabilities under the same contract are listed in net amount, and contract assets and contract liabilities under different contracts are not offset.

(2). Recognition method and accounting treatment method of contract assets' expected credit loss

√Applicable □Inapplicable

See "Financial Instruments" for details.

17. Held-for-sale assets

√Applicable □Inapplicable

Where the Company recovers its book value mainly through the sales (including the exchange of non-monetary assets of commercial nature, similarly hereinafter) other than the continuous use of a non-current asset or disposal group, the non-current asset or disposal group shall be classified as held-for-sale.

Non-current assets or disposal groups classified as held for sale shall meet the following conditions: (1) Based on the practice of selling such assets or disposal groups in similar transactions, those can be sold immediately under current conditions;

(2) Their sales are very likely to happen, that is, the Company has already made a resolution on a sales plan and obtained a certain purchase commitment and their sales are expected to be completed within one year. The relevant approval has been obtained from relevant authorities of the Company or regulators for those available for sale as required by the relevant regulations.

The Company measures the non-current assets or disposal group held for sale at the book value and net value of the fair value minus the selling expenses. If the book value is higher than the net amount of fair value minus selling expenses, the net amount of fair value minus selling expenses shall be reduced from the book value to the net amount of fair value. The reduced amount shall be recognized as an asset impairment loss and included in the current profit and loss. At the same time, provision for impairment of assets held for sale shall be made. If the net amount obtained by deducting the selling expenses from the fair value of non-current assets or disposal groups held for sale on the subsequent balance sheet date increases, the previous write-down amount shall be recovered and reversed from the asset impairment loss recognized after being classified as the held-for-sale assets, and the reversed amount shall be included in the current profit or loss. The book value of goodwill in the disposal group held for sale that has been offset and the impairment loss of assets recognized before the non-current assets held for sale are classified as held for sale shall not be reversed.

No depreciation or amortization is provided for non-current assets held for sale or non-current assets in the disposal group. The interest of liabilities and other expenses in the disposal group held for sale shall be recognized continuously.

When non-current assets or disposal groups are no longer classified as held for sale because they no longer meet the classification criteria for held for sale categories, and non-current assets are removed from the held for sale disposal groups, they shall be measured according to the lower of the followings:

(1) The book value before being classified as held for sale, adjusted according to depreciation, amortization or impairment that should have been recognized if it had not been classified as held for sale; (2) Recoverable amount.

18. Debt investment

(1). Recognition method and accounting treatment of expected credit loss of debt investment

□Applicable √Inapplicable

19. Investment in other debentures

(1). Recognition method and accounting treatment of expected credit loss of other debt investments

□Applicable √Inapplicable

20. Long-term receivables

(1). Recognition method and accounting treatment of expected credit loss of long-term receivables

□Applicable √Inapplicable

21. Long-term equity investments

√Applicable □Inapplicable

The long-term equity investments of the Company refers that investors control the investees's equity investment or significantly influence the investees, and the equity investments of the joint venture.

(1) Determination of investment cost

Long-term equity investments forming in business merger: as to long-term equity investments forming in merger of enterprises under common control, the portion of book value in the consolidated financial statement of the final controlling party based on the shareholder's equity of the merged party on the merger date shall be taken as the initial capitalized costs. As to that forming in merger of corporations under different control, the merger costs consist of assets paid, liabilities incurred or undertaken and fair value of equity securities issued by the purchaser. Intermediation costs such as audit, legal service and assessment and consultation and other administration costs shall be included in current profit and loss when incurred during business merger. The transaction expenses of equity securities or debt securities issued as merger consideration by the purchaser shall be included in the initially recognized amount thereof.

Other equity investment other than that forming in business merger shall be calculated initially as per costs. According to acquiring ways of long-term equity investment, the costs shall be determined as per cash purchasing price actually paid by the Company, the fair value of equity securities issued by the Company, value agreed in investment contract or agreement, fair or book values of exchanged assets in non-monetary asset exchanging, fair value of the long-term equity investment itself, and other ways.

Expenses, taxes and other necessary expenditures directly related to the acquisition of the long-term equity investments shall be included in the investment cost.

(2) Methods of subsequent measurement and recognition of profit and loss

Long-term equity investment having common control (except for joint operation) or significant influence on the investee shall be calculated with the equity method. In addition, long-term equity investments, regarding which the Company can exercise control on the investee, are accounted for under the cost method.

① Long-term equity investment calculated by using cost method

When calculated by cost method, the long-term equity investment will be valued as per initial investment costs. Except the declared but not released cash dividend or profit which is included in actual amount or consideration paid for acquiring investment, the current investment profit will be determined as per the cash dividend or profit which is declared to release in the investee.

② Long-term equity investments calculated by equity method

For long-term equity investments calculated by the equity method, where their initial investment costs exceed the share of the fair value of the investee’s identifiable net assets at the time of the investment, the initial investment costs of the long-term equity investment are not adjusted; where their initial investment costs are less than the share of the fair value of the investee’s identifiable net assets at the time of the investment, the balance shall be included in the current profit or loss and the costs of the long-term equity investment are adjusted accordingly.

When calculated by equity method, the current investment profit or loss shall be the portion of the net profit or loss of the investee in the current year to be enjoyed or shared. When determining the portion to enjoy in the investee, the Company will adjust the net profit of the investee based on the fair value of identifiable assets in the investee during acquiring of investment, and accounting policies and period of the Company. The internal trading profit and loss incurred but not realized between the Group and joint venture/cooperative enterprise will be offset by the portion belonging to the Group as per shareholding ratio and then the investment profit and loss will be determined accordingly. But internal transaction profit or loss incurred but not realized between the Company and the investee which belong to impairment loss of transferred assets as per the Accounting Standards for Business Enterprises No. 8 - Asset Impairment, shall not be offset. Other comprehensive income of the investee shall be recognized as other comprehensive income by corresponding adjustment of the book value of the long-term equity investment.

For other changes of the owner's equity except net profit and loss of interested entities, other comprehensive profit and profit distribution in investee, the book value of long-term equity investment should be adjusted and included in the shareholders' equity. In the subsequent disposal of the long-term equity investment, the amount included in the shareholders' equity shall be transferred to the investment income in proportion or in full.

When determining the net loss occurring in the Investee to share, the long-term equity of the net investment in the Investee shall be written off by the book value of the long-term equity investment and other essential parts till the equity is nil. In addition, if the Company has obligation to bear extra loss of the investee, the estimated liabilities shall be recognized by the estimated obligation and included in the current investment loss. When the investees realize net profit later, the Company will recover the sharing amount of recognized profit after the sharing amount offsets the unrecognized sharing loss.

③ Purchase of minority share holding

When consolidated financial statements are prepared, the capital reserves are adjusted by offsetting the difference between the newly increased long-term equity investment from purchase of minority holding and the net asset portion of the subsidiaries to share which is continuously calculated since acquisition date (or merger date) as per newly increased holding ratio; where the capital reserves are not sufficient to be offset, the retained earnings shall be adjusted.

④ Disposal of long-term equity investment

In consolidated financial statements, the parent company disposes the long-term equity investment to its subsidiaries partially without losing the right of control. The difference between the disposal amount and the net assets enjoyed in the subsidiaries corresponding to disposal of long-term equity is included in the shareholders' equity; if the parent company loses its control power to subsidiaries because of disposal of the long-term equity investment in the subsidiaries, the disposal shall be dealt with by relevant accounting policies stated in “Method for preparation of consolidated financial statements”.

As for the disposal of the long-term equity investment under other circumstances, the difference between the book value and the actual purchase price will be included in the current profit and loss; for the long-term equity investment calculated by equity method, other comprehensive income originally recorded in the stockholder's equity is subject to accounting treatment in proportion on the same basis as the investee directly disposing related assets or liabilities. For the remaining equity, it will be recognized as long-term equity investment or other relevant financial assets according to its book value and measured subsequently in the light of above-mentioned accounting policies of long-term equity investment or financial assets. If the remaining equity will be measured with equity method instead of cost method, it will be retroactively adjusted in accordance with relevant stipulations.

(3) Basis for determining existence of jointly control or significant influence over investees

Control refers to the power of the investor over the investee, the exposure of the investor to variable returns by participating in related activities of the investee and the ability to use the power of the investor over the investee to influence the amount of the investor's returns. Common control refers to the sharing of control over certain arrangement under related agreements, and related activities of the arrangement can be determined only when the unanimous consent of the parties sharing the control is obtained. Material influence refers to the situation that a company has power to participate in making financial and operating decisions of an enterprise, but cannot control or jointly control with other parties over the formulation of these policies. In determining whether the control or significant influence can be imposed on the investee, such potential factors concerning voting rights as the current convertible bonds and current executable warrants of both the investor and the invested entity have been considered.

(4) Impairment test methods and drawing methods for impairment provision

The Company checks whether there are signs of possible asset impairment for the long-term equity investment at every balance sheet date. If any evidence shows that there is possible asset impairment, the recoverable amount thereof will be estimated. If the recoverable value of the asset is less than its carrying amount, the impairment provision is provided according to the balance and included in current profit or loss.

Once any impairment loss of long-term equity investment is recognized, it will not be reversed in the future accounting period.

22. Investment real estate

(1). If measured at cost:

Depreciation or amortization method

Investment property is property held to earn rentals or for capital appreciation or for both. It includes a land use right that is leased out; a land use right held for transfer upon capital appreciation; and a building that is leased out.

1) Initial measurement

When the Company is able to obtain rental income or value-added income related to investment real estate and the cost of investment real estate can be measured reliably, the Company will initially measure it according to the actual expenditure of purchase or construction:

The cost of outsourcing investment real estate, including the purchase price and relevant taxes and fees directly attributable to the asset;

The cost of self-built investment property includes all the necessary expenses for constructing the asset to achieve the intended usable status;

The cost of investment property acquired by other methods shall be determined as per regulations of relevant accounting standards.

2) Subsequent measurement

In general, the Company adopts the cost model to carry out subsequent measurement on the subsequent expenditure of investment real estate. Depreciation or amortization shall be accrued for

investment real estate according to the Company's accounting policies for fixed assets or intangible

assets.

Where there is conclusive evidence that the fair value of the investment properties can be obtained continuously and reliably, in principle, use the fair value model to measure the investment properties subsequently. When using the fair value model for measurement, the Company does not draw

depreciation for or amortize investment properties. It also adjusts its book value based on the fair value of investment properties on the balance sheet date and includes the difference between the fair value and the original book value in current profit and loss.

3) When the Company changes the use of investment real estate, it will transfer the relevant investment real estate to other assets.

23. Fixed assets

(1). Recognition conditions

√Applicable □Inapplicable

Fixed assets refer to houses, buildings, machinery and equipment, means of transportation and other tools and appliances related to production and operation held by the Company for the purpose of producing commodities, providing labor services, leasing or operation management with a service life of more than one year. Only when the relevant economic benefits in connection to such fixed assets are likely to flow into the enterprise and their costs can be reliably measured, the fixed assets can be recognized.

The leased fixed assets meet the finance lease conditions, and the company shall recognize and present it as fixed assets.

(2). Depreciation method

√Applicable □Inapplicable

property right and needs no amortization for long-term use. Impairment tests were conducted at the end of the reporting period.

When the depreciation of a fixed asset with impairment provision drawn is withdrawn, the depreciation rate and amount shall be recalculated and determined as per the book value and available service life of the fixed asset (i.e. the original price of the fixed asset minus accumulated depreciation and drawn impairment provision).

On the balance sheet date, fixed assets are priced according to the book value or recoverable amount (whichever is lower).

(3). Confirmation basis, valuation methods and depreciation methods for fixed assets acquired

under finance leases

√Applicable □Inapplicable

The leased fixed assets meet the finance lease conditions, and the company shall recognize and present it as fixed assets. The lower of the fair value of the leased asset and the present value of the minimum lease payment on the lease commencement date shall be taken as the recorded value of the leased asset, and depreciation shall be calculated according to the classification standard of fixed assets and its depreciation method.

24. Construction in progress

√Applicable □Inapplicable

(1) Valuation of construction in progress

Projects under construction are priced at actual costs. Borrowing interest and related expenses incurred during construction shall be capitalized and included in the costs of projects under construction.

When the construction in progress reaches its intended purpose and is delivered for use, the fixed assets shall be carried forward at the actual cost. For construction in progress that has been delivered for use but has not yet completed final accounts, it shall be valued and transferred to fixed assets according to the data such as construction budget, construction cost or actual cost of construction, and depreciation shall be accrued. After the completion of the final accounts, the original valuation and drawn depreciation shall be adjusted according to the final accounts.

On the balance sheet date, construction in progress is priced according to the lower of book value and recoverable amount.

(2) Provision for impairment of construction in progress

In case of one or several of the following circumstances, the Company shall make provision for impairment of construction in progress based on the difference between the recoverable amount at the end of the construction in progress and its book value. Once recognized, the impairment loss of assets shall not be reversed in future accounting periods.

① The construction has been suspended for a long time and will not be restarted within three years; ② The construction in progress has fallen behind both functionally and technologically, and it will bring great uncertainties to the Company's economic benefit;

③ Other circumstances sufficient to prove that impairment has occurred in the construction in progress.

25. Borrowing costs

√Applicable □Inapplicable

The Company only capitalizes the related borrowing costs that can be directly attributed to assets that meet the capitalization conditions during the capitalization period. Capitalization of borrowing costs starts when the following three conditions are met at the same time:① expenditures for the asset have already been incurred;② borrowing costs have already been incurred;③ the necessary acquisition and construction activities have been started to make the assets reach the expected serviceable condition and will end when the fixed assets reach the expected serviceable condition. Capitalization of borrowing costs will be suspended and recognized as current expenses when abnormal interruption occurs in the acquisition and construction activities of fixed assets, with the interruption lasting for more than three consecutive months.

The capitalization amount of borrowing costs is calculated as follows: As to special borrowings borrowed for the acquisition, construction or production of assets eligible for capitalization, the amount shall be determined by interest expenses from special borrowings actually occurred in the current period deducting the interest income acquired from unused borrowings which are deposited in banks, or deducting investment profit gained from the unused borrowings temporarily invested; as for general borrowings for the acquisition, construction or production of assets eligible for capitalization, the amount shall be determined by multiplying the weighted average of difference between accumulative assets expenditure and assets expenditure of specially borrowed loans by the capitalization rate of general borrowings; the capitalization amount of interest in each accounting period shall not exceed the actual interest of relevant borrowings incurred in the current period. If there is a discount or premium on the borrowings, the amount of discount or premium to be amortized in each accounting period shall be recognized according to the actual interest rate method, and the amount of interest in each period shall be adjusted. Ancillary expenses incurred by special borrowings, which occurred before the relevant assets reached the expected serviceable or saleable condition, are capitalized according to the incurred amount when they occurred, and those occurred after the relevant assets reached the expected serviceable or saleable condition, are recognized as expenses and included in the current profit and loss.

26. Biological assets

√Applicable □Inapplicable

(1) Classification of productive biological assets

The productive biological assets of the Company are divided into: boars, parent ducks, parent fish (shrimp), etc.

(2) Valuation of productive biological assets

① Cost valuation of purchased productive biological assets, including purchase price, relevant taxes, traffic expenses, insurance premiums and other expenditures directly attributable to the purchase of the assets;

②The cost of self-created or propagated productive biological assets includes necessary expenditures such as feed, labor and indirect expenses that shall be amortized before reaching the intended production and operation purpose (reaching maturity).

(3) Subsequent measurement of productive biological assets

The Company determines the service life, residual value rate, and depreciation rate according to the nature, use of productive biological assets, and the expected realization of related economic benefits as follows:

value and recoverable amount.

27. Oil and gas assets

□Applicable √Inapplicable

28. Right-of-use assets

□Applicable √Inapplicable

29. Intangible assets

(1). Valuation method, service life and impairment test

√Applicable □Inapplicable

Intangible assets refer to the recognizable non-monetary assets without physical form held or controlled by the Company.

The initial measurement of intangible assets shall be made at their cost. Where the payment of the acquisition price for intangible assets is delayed beyond the normal credit terms, for those with financing nature, the cost of intangible assets is determined at the present value of the acquisition price. Difference between actually paid amount and present value of purchase amount shall be calculated into current profit and loss within credit period excluding those that are capitalized.

When acquiring the intangible assets, the Company shall analyze their service life. The intangible assets with limited service life are amortized by the straight-line method while those with uncertain service life are not amortized.

The service life of intangible assets with uncertain service life shall be rechecked by the Company in each accounting period. At the end of each year, the service life and the amortization method of intangible assets with limited service life shall be rechecked.

On the balance sheet date, intangible assets are priced according to the book value or recoverable amount (whichever is lower).

(2). Accounting policies of expenditures on internal R&D

√Applicable □Inapplicable

Expenditures of the Company's internal research and development projects at the research stage shall be included in the current profit and loss when incurred; expenditures incurred by the Company's internal research and development projects at the research stage shall be recognized as intangible assets when the following conditions are met, otherwise they will be included in the current profit and loss when incurred:

① It is technically feasible to complete the intangible asset so that it will be available for use or sale; ② There is an intention to complete the intangible asset and use or sell it;

③ Where the usefulness of methods for intangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for the products manufactured by applying the intangible assets or there is a potential market for the intangible assets themselves or the intangible assets will be used internally;

④ With sufficient support of technology, financial resources and other resources for finishing development of the intangible assets as well as capacity for using or selling the assets;

⑤ With reliable measurement of the expenditures belonging to development stage of the intangible assets.

30. Impairment of long-term assets

√Applicable □Inapplicable

As to fixed assets, construction in progress, intangible assets with limited service life, investment properties measured by cost model, long-term equity investment to subsidiaries, joint ventures and associates, and other non-current and non-financial assets, the Company will determine whether they have signs of impairment on the balance sheet date. If any, the recoverable amount shall be estimated and the impairment tests shall be conducted. Impairment test shall be conducted on intangible assets every year with uncertain goodwill and service life and the intangible assets not yet available, no matter whether there is any sign of impairment.

If the impairment test result shows that the recoverable amount of the assets is less than the carrying amount, the impairment provision shall be provided as per their difference and included in impairment loss. The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses or the present value of the expected future cash flow of the assets, whichever is higher. The fair value of the assets shall be recognized as per the price in sales agreement of fair dealing. If there is no sales agreement but assets active market exists, the fair value shall be recognized as per the buyer’s price.

If there is neither sales agreement nor assets active market, the fair value of the assets shall be estimated based on the best information available. Disposal expenses shall include legal expenses, relevant taxes and handling expenses arising from assets disposal and other direct expenses for enabling the assets to be available for sale. The discounted present value of the expected future cash flow of the assets shall be recognized at suitable discount rate as per the expected future cash flow generated in the process of continuous use and final disposal of the assets. Impairment provisions of assets shall be calculated and recognized on a single asset basis. If it is difficult to estimate the recoverable value of the single assets, the recoverable value shall be recognized as per the asset portfolio to which the single asset belongs. An asset portfolio is the smallest portfolio of assets that is able to generate independent cash inflows.

In conducting the impairment test, the book value of goodwill presented in the financial statements shall be allocated to the related asset portfolios or groups of asset portfolios which are expected to benefit from the synergies of the business merger. If the test result indicates that the recoverable value of an asset portfolio or group of asset portfolios, including the allocated goodwill, is lower than its carrying amount, the corresponding impairment loss shall be recognized. The impairment loss shall be first deducted from the book value of goodwill that is allocated to the asset portfolio or group of asset portfolios, and then deducted from the carrying amounts of other assets within the asset portfolios or groups of asset portfolios in proportion to the book values of assets other than goodwill.

Once impairment loss is recognized for the above-mentioned asset, the part with value recovered shall not be reversed.

31. Long-term prepaid expenses

√Applicable □Inapplicable

Long-term prepaid expense shall be recorded according to the actual amount incurred and amortized within the benefit period or the specified amortization period by the straight-line method. If the long-term prepaid expenses are no longer beneficial to the subsequent accounting periods, the amortized value of unamortized expenses will be completely carried forward to profit and loss of current period.

32. Contract liabilities

(1). Confirmation method of contract liabilities

√Applicable □Inapplicable

Contract liabilities refer to the Company's obligation to transfer goods to customers for consideration received or receivable from customers. If the customer has already paid the contract consideration or the Company has obtained the unconditional right to receive payment before the Company transfers the goods to the customer, the Company shall list the received or receivables as contract liabilities at the earlier of the time between the actual payment by the customer and the payment due. Contract assets and contract liabilities under the same contract are listed in net amount, and contract assets and contract liabilities under different contracts are not offset.

33. Employee compensation

(1). Accounting treatment methods for short-term compensation

√Applicable □Inapplicable

Short-term compensation mainly includes salary, bonus, allowances and subsidies, employee welfare expenses, medical insurance premiums, birth insurance premium, work injury insurance premium, housing fund, labor union funds and personnel education fund, non-monetary welfare, etc. During the period of accountant when staffs provide services for the Company, the actual short-term employee compensation would be recognized as liabilities by the Company and be included in the current profit and loss or relevant asset cost. The non-monetary welfare shall be measured based on the fair value.

(2). Accounting treatment methods for post-employment welfare

√Applicable □Inapplicable

The post-employment benefit plan includes the defined contribution plan and defined benefit plan. The defined contribution plan mainly includes basic pension insurance premiums and unemployment insurance premiums. The corresponding amount payable is included in the cost of a relevant asset or the current profit and loss upon occurring. The Company's defined benefit plans specifically provides benefits such as living allowance and medical expenses for retirees according to relevant national policies, company regulations and considering the length of service for the Company.

For defined benefit plans, the Company performs actuarial valuation on the balance sheet date. Actuarial gains and losses are recognized in other comprehensive income. Service costs and net interest on net liabilities or net assets of defined benefit plans are included in current profit and loss.

(3). Accounting treatment methods for dismissal welfare

√Applicable □Inapplicable

Dismissal welfare refers to compensation provided to employees for terminating the labor relationship with employees before the expiration of the labor contract between the Company and the employee, or for encouraging the employees to voluntarily accept the reduction. The Company will include the dismissal welfare arising therefrom into the employee compensation liabilities and the current profit and loss when paying. If it is expected that such dismissal welfare cannot be paid off within 12 months at the end of the annual reporting period, then the dismissed employees shall be paid the same as other long-term employee.

The Company provides social insurance premiums and living allowances for the internally retired staff before their formal retirement. The internal retirement plan is treated by using the same principles for dismissal welfare as described above. Salaries and social insurance premiums to be paid by the Company to the internally retired staff during the period from the date when the staff ceases to provide services to the normal retirement date are included in current profit and loss when the recognition criteria for provisions are met (dismissal welfare).

(4). Accounting treatment methods for other long-term employee welfare

√Applicable □Inapplicable

Other long-term employee welfare provided for employees by the Company are under accounting treatment by defined contribution plan for that meets defined contribution plan, and is under accounting treatment by defined benefit plan for the rest part.

34. Lease liabilities

□Applicable √Inapplicable

35. Estimated liabilities

√Applicable □Inapplicable

If obligations related to contingencies occur and meet the following conditions at the same time, they will be recognized as estimated liabilities.

① Such obligation is a current obligation undertaken by the Company;

② The performance of such obligation will probably cause outflow of economic interest of the Company;

③ The amount of such obligation can be measured reliably.

If all or part of payment necessary for the estimated liabilities are expected to be compensated by a third party or the other party, only when the amount of compensation is basically recognized to be received, it can be independently recognized as assets, while recognized amount of compensation cannot exceed the book value of the recognized liabilities.

The book value of estimated liabilities shall be reviewed by the Company on the balance sheet date. If there is concrete evidence showing that the book value cannot truly reflect the current best estimate, the book value shall be adjusted as per the current best estimate.

36. Share-based payment

□Applicable √Inapplicable

37. Other financial instruments as preferred shares and perpetual bond

□Applicable √Inapplicable

38. Revenue

(1). Accounting policies used in revenue recognition and measurement

√Applicable □Inapplicable

Applicable from January 1, 2020

1) General principles of revenue recognition

Revenue is the total inflow of economic benefits formed in the Company's daily activities that will increase the owner's equity and have nothing to do with the owner's capital invested.

The Company has fulfilled the performance obligations in the contract, that is, when the customer obtains control of the relevant goods or services, the revenue is recognized.

If the contract contains two or more performance obligations, the Company will allocate the transaction price to each individual performance obligation in accordance with the relative proportion of the stand-alone selling price of the goods or services promised by each individual performance obligation on the date of the contract. The income is measured according to the transaction price of each individual performance obligation.

The transaction price is the amount of consideration that the Company expects to be entitled to receive due to the transfer of goods or services to customers, excluding payments collected on behalf of third parties. The transaction price confirmed by the Company does not exceed the amount at which the accumulated confirmed income will most likely not be subject to a significant reversal when the relevant uncertainty is eliminated. It is expected that the money returned to the customer will not be included in the transaction price as a liability. If there is a significant financing component in the contract, the Company shall determine the transaction price based on the amount payable in cash when the customer assumes control of the goods or services. The difference between the transaction price and the contract consideration shall be amortized by the effective interest method during the contract period. On the starting date of the contract, the Company expects that the interval between the customer's acquisition of control of the goods or services and the customer's payment of the price will not exceed one year, regardless of the significant financing components in the contract.

When one of the following conditions is met, the Company will perform its performance obligations within a certain period of time, otherwise, it will perform its performance obligations at a certain time: ①The customer obtains and consumes the economic benefits brought by the company's performance at the same time as the company's performance;

②The customer can control the products under construction during the performance of the Company; ③ The goods produced by the Company during the performance of the contract have irreplaceable uses, and the Company has the right to collect payment for the cumulative performance part that has been completed so far during the entire contract period.

For performance obligations performed within a certain period of time, the Company recognizes revenue in accordance with the performance progress during that period of time. When the performance progress cannot be reasonably determined, if the cost incurred by the Company is expected to be compensated, the revenue shall be recognized according to the amount of the cost incurred until the performance progress can be reasonably determined.

For performance obligations performed at a certain point in time, the Company recognizes revenue at the point when the customer obtains control of the relevant goods or services. When judging whether a customer has obtained control of goods or services, the Company will consider the following signs:

①The Company has the current right to receive payment for the goods or services;

② The Company has transferred the goods in kind to the customer;

③ The Company has transferred the legal ownership of the product or the main risks and rewards of ownership to the customer;

④ The customer has accepted the goods or services.

The Company’s unconditional (only depending on the time lapses) right to collect consideration from customers are listed as receivables; the Company has transferred goods or services to customers and has the right to collect consideration (and this right also depends on other factors other than the time lapses) are listed as contract assets, and contract assets are impaired on the basis of expected credit loss; the Company’s obligation to transfer goods or services to customers for consideration received or receivable from customers is listed as contract liabilities.

2) The specific method recognition for revenue

① Revenue from commodity sales

The Company recognizes revenue when it transfers control of goods to customers.

The Company mainly produces and sells high-purity polysilicon, cells and components, polyvinyl chloride, sodium hydroxide and cement, feed, fish, pigs, ducks and other products, which belong to the performance obligations performed at a certain point time, including:

Conditions that must be met for revenue recognition of domestic sales: the Company has delivered the product to the purchaser in accordance with the contract and the purchaser has signed for the receipt or the transportation company entrusted by the customer to sign for the receipt, the amount of product sales revenue has been determined, and the payment has been recovered or obtained the receipt of payment rights certificate and related economic benefits are likely to flow in, and product-related costs can be reliably measured.

Conditions that must be met for the recognition of income from export products: according to the interpretation of the general rules of interpretation of international trade terms, combined with revenue recognition standards and contract law, the realization of revenue is recognized when the control of goods is transferred to the customer under different trading terms.

The Company's PV powerplants sell electricity online, and revenue is recognized when the grid company confirms the electricity online.

② Revenue from rendering labor services

The Company provides labor services such as engineering construction and equipment installation, which belong to the performance obligation performed in a certain period. The revenue is recognized according to the performance progress, and the performance progress is recognized according to the proportion of the invested cost to its budgeted cost. If the labor cost incurred is not expected to be compensated, no revenue will be recognized, and the incurred cost will be included in the current profit and loss.

③ Revenue from abalienation of right to use asset

Use the straight-line method to apportion and confirm revenue within the period of the transfer of asset use rights

The following revenue accounting policies are applicable to 2019 and previous years;

1) Revenue from commodity sales

Revenue realization is recognized when the following conditions are met: the Company has transferred the main risks and remunerations related to the proprietary rights of the commodity to the purchaser; the Company does not reserve the continuing management rights which are always related to the proprietary rights, or executes control on the sold commodities; the economic benefits related to trades can inflow into the Company; and relevant revenues and costs can be measured reliably.

The Company produces and sells food and animal drugs such as feed, fish, pigs and ducks, and the specific conditions for revenue recognition are: for domestic products after delivery and receipt by customers, and for export products after declaration and release. The Company produces and sells high-purity polysilicon, polyvinyl chloride, sodium hydroxide, cement products, cells, components, etc. and the specific conditions for revenue confirmation are: for products after delivery and receipt by customers or the transportation companies entrusted by the customers.

2) Revenue from rendering labor services

The earning of the labor service provided and finished in the same accounting year shall be recognized when the labor service is finished; the relevant earning of the labor service provided and finished in different accounting years shall be recognized by the percentage of completion method on the balance sheet date, given that the result of the labor service provided can be reliably estimated; if the result of the labor service provided cannot be reliably estimated, the earning of the labor service shall be recognized and measured in accordance with the principle of prudence.

3) Revenue from abalienation of right to use asset

Provided that the economic benefits related to transactions can flow into the enterprise and that the amount can be reliably measured, the revenue from such use can be recognized.

(2). Differences in accounting policies for revenue recognition caused by the adoption of different

business models for similar businesses

□Applicable √Inapplicable

39. Contract cost

√Applicable □Inapplicable

Contract costs are divided into contract performance costs and contract acquisition costs.

(1) Contract performance cost

The cost incurred by the Company for the performance of the contract is recognized as an asset of the contract performance cost when the following conditions are met at the same time:

① The cost is directly related to a current or anticipated contract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costs clearly borne by the customer, and other costs incurred solely due to the contract.

② This cost increases the Company's future resources for fulfilling contract performance obligations.

③ The cost is expected to be recovered.

The asset is presented in inventory or other non-current assets based on whether the amortization period at the time of initial recognition exceeds a normal operating cycle.

(2) Contract acquisition cost

The incremental cost incurred by the Company in order to obtain the contract is expected to be recovered, and it shall be recognized as an asset when obtaining the cost.

Incremental costs refer to costs that the Company will not incur without obtaining a contract, such as sales commissions. If the amortization period does not exceed one year, it shall be included in the

current profit and loss when occurred.

(3) Amortization of contract costs

Assets related to contract costs are amortized when the performance obligation is performed or according to the performance of the performance obligation on the same basis as the revenue recognition of goods or services related to the asset, and included in the current profit and loss.

(4) Impairment of contract costs

If the book value of the asset related to the contract cost is higher than the difference between the remaining consideration that the Company can expect to obtain due to the transfer of the commodity related to the asset and the estimated cost for the transfer of the related commodity, the excess shall be provided for impairment; if it is confirmed as an asset impairment loss, and it shall further consider whether to withdraw the estimated liabilities related to the loss contract:

① The remaining consideration expected to be obtained due to the transfer of goods or services related to the asset;

② Estimate the cost that will be incurred for the transfer of the related goods or services.

After the provision for impairment is made, if the impairment factors in the previous period change and the difference between the above two items is higher than the book value of the asset, the original provision for asset impairment shall be reversed and included in the current profit and loss, but transferred book value of the asset does not exceed the book value of the asset on the return date under the assumption that no impairment provision is made.

40. Government subsidies

√Applicable □Inapplicable

(1) Judgment basis and accounting treatment method of asset-related government subsidies

Asset-related government subsidies refer to the governmental subsidies that are obtained by the Company and used for acquisition or construction, or forming the long-term assets in other ways; if no government document specifies the grant object, the judgment basis for dividing the government subsidies into asset-related or income-related shall be explained separately.

Accounting treatment method: from the month when the relevant assets reach the expected serviceable condition and begin depreciation and amortization, asset-related government subsidies are recognized as deferred revenue, and are distributed evenly over their service life (i.e. within the depreciation and amortization period) and included in the current profit and loss. In case of early disposal of relevant assets, the remaining deferred revenue will be included in the current profit and loss at one time when the assets are disposed of. However, the government subsidies measured as per nominal amount shall be directly included in current profit and loss.

(2) Judgment basis and accounting treatment method of revenue-related government subsidies

The revenue-related government subsidies refer to those obtained by the Company other than government subsidies related to assets;

Accounting treatment methods:

① The amount used to compensate for related expense or loss during future periods of the Company, it shall be recognized as deferred revenue, and shall be included in current profit and loss or offset the related costs during the period of recognizing the related expenses;

② The amount used to compensate for the incurred related expenses or loss of the enterprise shall be included to current profit and loss or offset the related costs directly.

③ Timing for government subsidies recognition

The government subsidies shall be recognized when all the attached conditions can be satisfied and the government subsidies can be received by the Company.

④ Measurement of government subsidies

If government subsidies are monetary assets, they shall be measured as per amount received or amount receivable. If the government subsidies are non-monetary assets, they shall be measured based on fair value; if the fair value cannot be acquired reliably, they shall be measured based on the nominal amount.

41. Deferred income tax assets/Deferred income tax liabilities

√Applicable □Inapplicable

The accounting of the Company's income tax shall be conducted by using the balance sheet liability method.

The Company recognizes deferred income tax assets when the following conditions are met at the same time: (1) the temporary differences are likely to be reversed in the foreseeable future; (2) the amount of taxable income that can be used to offset temporary deductible differences is likely to be obtained in the future, and is limited to the amount of taxable income that is likely to be obtained.

On the balance sheet date, the current income tax liabilities (or assets) formed in the current period and previous period shall be measured at the amount of income tax to be paid (or returned) calculated as per the tax laws; deferred income tax assets and deferred income tax liabilities shall be measured according to the applicable tax rate during the period when the assets are expected to be recovered or the liabilities are settled according to the tax laws.

On the balance sheet date, the Company reviews the book value of deferred income tax assets and deferred income tax liabilities. Except for income tax arising from business mergers, transactions or events directly recognized in owner's equity, the current income tax and deferred income tax of the Company are included in the current profit and loss as income tax expenses or income.

42. Lease

(1). Accounting treatment methods of operating lease

√Applicable □Inapplicable

1) The lease expenses paid for renting the assets by the Company shall be amortized based on the straight-line method and included in the current expenses during the whole lease period including the rent-free period. The initial direct expenses related to the lease transaction paid by the Company shall be included in current expenses.

When the asset lessor bears the lease-related expenses that shall be borne by the Company, the Company will deduct this part of the expenses from the total rent, and amortize the lease expenses after deduction within the lease period and include them in current expenses.

2) The rent charged for leasing the assets by the Company shall be amortized based on the straight-line method and included in lease-related revenue during the whole lease period including the rent-free period. The initial direct expenses related to the lease transaction paid by the Company shall be included in current expenses; if the amount is relatively large, it shall be subject to the capitalization, and be included by stages in current revenue as per the same basis for lease-related income recognition within the whole lease term.

Where the Company bears the lease-related expenses that shall be borne by the lessee, the Company will deduct this part of the expenses from the total rent, and allocate the lease expenses after deduction within the lease period.

(2). Accounting treatment methods of finance lease

√Applicable □Inapplicable

1) Basis to determine finance lease

Finance lease is a kind of lease in which all or most of risks and rewards regarding the ownership of the said assets are actually transferred. Its ownership may be transferred or not in the end. The lease which meets one or more standards below shall be recognized as the finance lease:

First, upon the expiration of the lease term, ownership of the leasing assets is transferred to the lessee. It usually means that the lessor can transfer the ownership of the asset to the lessee when the lease term expires, either as agreed in the lease contract or after making a reasonable judgment based on relevant conditions on the lease start date.

Second, the lessee has option on the purchase of leasing assets. The purchase price is expected to fall far below the fair value when the option is performed so that it can be reasonably determined since the commencement date of the lease that the lessee will exercise the option.

Third, even if the ownership of the leasing assets is not transferred, the lease term accounts for most of the service life of the leasing assets. Among them, the “most” is usually controlled above 75% (including 75%) which the lease term accounts the service life of the leasing assets.

Fourth, the present value of the minimum amount paid by the lessee at the commencement of the lease is almost equal to the fair value of the leasing assets at that time. The present value of the minimum amount received by the leaser at the commencement of the lease is almost equal to the fair value of the leasing assets at that time. Among them, "almost equal to" is usually controlled above 90% (including 90%).

Fifth, the property of the leasing assets is special. The leasing assets can be used by the lessee only if not changed significantly.

2) Accounting treatment methods of finance lease

① Financing lease assets: on the commencement date of the lease term, the Company recognizes the fair value of leasing assets or the present value of minimum lease payment (whichever is lower) as the entry value of the leasing assets, and recognizes the minimum lease payment as the entry value of long-term payables and the difference between the entry values as the unrecognized financing charges. The unrecognized finance charge shall be amortized by the Company by the effective interest method during the asset lease period and included in financial expenses. The initial direct costs incurred in the Company shall be included in value of leased assets.

② Financing leased assets: on the commencement date of the lease, the Company shall recognize the finance lease receivables and the balance between the sum of unguaranteed residual value and the present value as the unrealized financing income, and as the lease revenue in future periods when the rents are received. The initial direct expenses related to the lease transaction incurred by the Company shall be included in initial measurement of the finance lease receivables, and the amount of income recognized in the lease period shall be reduced.

(3) Accounting treatment method of recognizing sale and leaseback transactions as a finance lease The contract, signed by and between the Company and the leasing company, does not change the right of use and management of the assets, and is essentially the sale-leaseback business financed by asset mortgage. It is recognized as a long-term payable when it obtains the finance lease payment, and the payable rent and service fee during the finance lease payment period are recognized as unrecognized finance charges, which are amortized according to the actual interest rate during the lease period and included in the cost expense.

The sale and leaseback transaction recognized as an operating lease shall be provided with accounting treatment separately based on asset disposal and lease.

(3). Determination method and accounting treatment method of lease under new lease standards

□Applicable √Inapplicable

43. Other significant accounting policies and accounting estimates

□Applicable √Inapplicable

44. Changes of significant accounting policies and accounting estimates

(1). Change of significant accounting policies

√Applicable □Inapplicable

The impact of the above changes in accounting policies on the financial statements is as follows: ① Consolidated Balance Sheet

② Balance Sheet of the Parent Company

Except for the above changes, other important accounting policy changes did not occur during the

reporting period.

(2). Changes in significant accounting estimates

□Applicable √Inapplicable

(3). The details of relevant items adjusted and implemented in the financial statements at the

beginning of the year upon the implementation of the New Financial Instrument Standards, new income standards or new lease standards since 2020

√Applicable □Inapplicable

Consolidated Balance Sheet

Unit:Yuan Currency: RMB

Explanation of adjustment of each item:

□Applicable √Inapplicable

Balance Sheet of the Parent Company

Unit:Yuan Currency: RMB

Explanation of adjustment of each item:

□Applicable √Inapplicable

(4). Explanation of retroactive adjustment of comparative data in the earlier stage upon the

implementation of the New Financial Instrument Standards or the new leasing standards since 2020

□Applicable √Inapplicable

45. Others

□Applicable √Inapplicable

VI. Taxes

1. Main tax category and tax rates

Main tax category and tax rates

√Applicable □Inapplicable

For taxpayers with different enterprise income tax rates, the information note should be disclosed.

□Applicable √Inapplicable

2. Tax preference

√Applicable □Inapplicable

(1) Value-added tax

According to the provisions of CS [2001] No.121 document of the Ministry of Finance of the People's Republic of China and State Taxation Administration, sales of feed are exempted from VAT.

Sichuan Yongxiang New Material Co., Ltd. implements the VAT policy of immediately refunding 70% upon payment for cement sales according to CS [2015] No. 78 document issued by the Ministry of Finance and State Taxation Administration.

According to the Provisional Regulations of the People’s Republic of China on Value-Added Tax (Order No. 538 of the State Council) and the Implementing Rules for Provisional Regulations of the People's Republic of China on Value-added Tax (Order No. 50 of the Ministry of Finance and the State Taxation Administration), the self-produced agricultural products sold by agricultural producers shall be exempted from VAT for the cultivation business of Nanjing Tongwei Aquatic Technology Co., Ltd. and Chengdu Tongwei Aquatic Technology Co., Ltd.

According to the provisions of CS [2016] No. 36 document issued by the Ministry of Finance and the State Taxation Administration, the Company will be exempted from VAT when it transfers the land use right to agricultural producers for agricultural production from May 1, 2016.

(2) Enterprise income tax

1) Collective tax payment of parent company (including management headquarters and branches) According to the Enterprise Income Tax Law and the Measures for the Administration of Collection of Enterprise Income Tax on the Basis of Consolidation of Trans-regional Business Operations (Announcement No. 57, 2012 of the State Taxation Administration), the parent company shall implement the measures for the administration of collection of enterprise income tax of "unified calculation, hierarchical management, local prepayment, consolidated liquidation and financial transfer".

2) Units enjoying preferential enterprise income tax rate in the development of the western region According to the Notice of Tax Policy Issues Concerning Further Implementing the Western Development Strategy (CS [2011] No. 58) jointly issued by Ministry of Finance, the General Administration of Customs of China and the State Taxation Administration, and the Notice on Issues Concerning Enterprise Income Tax Relating to Further Implementing the Western Region Development Strategy (GS [2012] No. 12), corporate income tax will be levied at a reduced rate of 15% on encouraged industrial enterprises located in the western region" from January 1, 2011 to December 31, 2020. Including Tongwei Co., Ltd. Sichuan Branch, Deyang Branch, Special Feed Branch, Kunming Branch and its subsidiaries, Chengdu Tongwei Animal Nutrition Technology Co., Ltd., Chengdu Ronglai Tongwei Feed Co., Ltd., Tongwei Agricultural Finance Guarantee Co., Ltd., Chongqing Tongwei Feed Co., Ltd., Sichuan Tongwei Feed Co., Ltd., Binyang Tongwei Feed Co., Ltd., Kunming Tongwei Feed Co., Ltd., Sichuan Tongwei Sanlian Aquatic Products Co., Ltd., Chengdu Tongwei Sanxin Pharmaceutical Co., Ltd., Tongwei Industrial (Tibet) Co., Ltd., Sichuan Yongxiang Polycrystalline Silicon Co., Ltd., Sichuan Yongxiang New Materials Co., Ltd., Sichuan Yongxiang New Energy Co., Ltd., Inner Mongolia Tongwei High-purity Crystalline Silicon Co., Ltd., Yunnan Tongwei High-purity Crystalline Silicon Co., Ltd., Tongwei Solar ( Chengdu) Co., Ltd., Tongwei Solar (Meishan) Co., Ltd., Tongwei Solar (Jintang) Co., Ltd., Tongwei Solar (Pengshan) Co., Ltd., Tonghe New Energy (Jintang) Co., Ltd., Sichuan Yongxiang Silicon Material Co., Ltd. and PV powerplant companies located in six provinces and autonomous regions including Tibet, Qinghai, Gansu, Ningxia, Xinjiang, and Inner Mongolia.

3) Subsidiaries recognized as high-tech enterprises and enjoying the ratio of preferential enterprise income tax rate of 15%.

Jieyang Yongxiang Co., Ltd. was recognized as a high-tech enterprise in 2018 with the Certificate No. of GR201844001430.

Zhuhai Haiyi Aquatic Products Feed Co., Ltd. was recognized as a high-tech enterprise in 2018 with the Certificate No. of GR201844005634.

Sichuan Willtest Technology Co., Ltd. was recognized as a high-tech enterprise in 2018 with the Certificate No. of GR201851001142.

Tongwei Solar (Hefei) Co., Ltd. was recognized as a high-tech enterprise in 2018 with the Certificate No. of GR201834001139.

Tongwei Solar (Anhui) Co., Ltd. was recognized as a high-tech enterprise in 2020 with the Certificate No. of GR202034000630.

Sichuan Fishery-PV Wulian Technology Co., Ltd. was recognized as a high-tech enterprise in 2020 with the Certificate No. of GR202051001569.

Guangdong Tongwei Feed Co., Ltd. was recognized as a high-tech enterprise in 2020 with the Certificate No. of GR202044000114.

4) Companies engaged in mariculture and inland culture and enjoying half of the enterprise income tax

According to Article 86 of Regulation on the Implementation of the Enterprise Income Tax Law of the People's Republic of China issued on December 6, 2007, the enterprise income tax shall be reduced by half for the income of enterprises engaged in mariculture and inland culture projects. The enterprise income tax of the below enterprises shall be collected in half: Hainan Haiyi Aquatic Seed Co., Ltd., Zhanjiang Haiyi Aquatic Seed Co., Ltd., Tongwei Fishery & PV Integration Rudong Co., Ltd., Chengdu Tongwei Aquatic Seed Co., Ltd., Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd., Nanjing Tongwei Aquatic Products Technology Co., Ltd., Chengdu Tongwei Aquatic Technology Co., Ltd.

5) Overseas companies enjoying tax preference

According to document No. 218/2013/N-CP issued by the Vietnamese government on December 26, 2013, the statutory tax rate of enterprise income tax in Vietnam was reduced to 20% from January 1, 2016.

The tax preference policies enjoyed by Tongwei Vietnam Co., Ltd. are as follows: The main business of feed is given a preferential tax rate of 10%, and non-main business income does not enjoy the preferential tax policies. The preferential tax policies enjoyed by Heping Tongwei Co., Ltd. are as follows: a preferential period of 10 years is given from the beginning of the production and operation period for the main feed business, with 2-year free and 4-year half from the beginning of the profit period. The tax preference policies enjoyed by Qianjiang Tongwei Co., Ltd. are as follows: a preferential period of 15 years is given from the beginning of the production and operation period for the main feed business, with a preferential tax rate of 10% during the preferential period and 4-year free and 9-year half from the beginning of the profit period.

The interest income of the total bank deposit of Tongwei Feed Bangladesh Ltd. was levied with the tax of 35% of income (10% of bank withholding); the non-business income was levied with the income tax of 35% of income; the total profit apart from the interest and non-business income and expense is levied in sections: 3% for 0-1 million Taka (including 1 million), 10% for 1-2 million Taka (including 2 million) and 15% for the part greater than 2 million.

6) Enjoy tax preference of public infrastructure projects which are key supported by the state

According to the Notice of the Ministry of Finance of the People’s Republic of China and State Taxation Administration on Relevant Issues Concerning the Implementation of the Preferential Catalog of Enterprise Income Tax for Public Infrastructure Projects (CS 2008 [46]), the income from investment and operation of enterprises engaged in public infrastructure projects supported by the State shall be exempted from enterprise income tax from the first to the third year starting from the tax year in which the first production and operation income of the project is obtained, and the enterprise income tax shall be halved from the fourth to the sixth year.

According to the provisions of CS [2008] No. 116, the new solar power generation project approved by the competent investment department of the government is a public infrastructure project. Now, the new PV powerplant of the subsidiaries of Tongwei New Energy Co., Ltd. has been connected to the grid for power generation, enjoying the preferential enterprise income tax policy of 3-year free and 3-year half.

3. Others

□Applicable √Inapplicable

VII. Notes to Items in Consolidated Financial Statement

1. Cash at bank and on hand

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

2. Trading financial assets

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

√Applicable □Inapplicable

(1) Debt instrument investment is the bank structured deposit purchased by the Company.

(2) Derivative financial assets are the book floating profit formed by the difference between the lock-up exchange rate and the central bank exchange rate at the end of the period within the scope of the forward foreign exchange contract signed by the Company for export sales (hedging is invalid).

(3) Equity instrument investment is that after Tongwei Industrial (Tibet) Co., Ltd., the company’s wholly-owned subsidiaries, disposes of its 98% equity of Chengdu Tongwei Industrial Co., Ltd., it holds 2% of Chengdu Tongwei Industrial Co., Ltd. and it is measured at the fair value.

3. Derivative financial assets

□Applicable √Inapplicable

4. Notes receivable

(1). Classification list of notes receivable

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Notes receivable pledged by the Company at the end of the period

□Applicable √Inapplicable

(3). Notes receivable which have been endorsed or discounted but not yet expired on the balance

sheet date at the end of the period

□Applicable √Inapplicable

(4). Notes to be transferred for accounts receivable due to the drawer’s failure of performance at

the end of the period

□Applicable √Inapplicable

(5). Classified disclosure by bad debt provision

□Applicable √Inapplicable

Provision for bad debt reserves is made individually:

□Applicable √Inapplicable

Provision for bad debt reserves is made by portfolio:

□Applicable √Inapplicable

If the provision for bad debt reserves is made according to the general model of expected credit loss, please refer to the disclosure of other accounts receivable:

□Applicable √Inapplicable

(6). About provision for bad debt

□Applicable √Inapplicable

(7). About notes receivable actually written off in the current period

□Applicable √Inapplicable

Other notes

□Applicable √Inapplicable

5. Accounts receivable

(1). Disclosure by account receivable age

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Classified disclosure by bad debt provision

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Provision for bad debt reserves is made individually:

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Explanation of provision for bad debt according to a single item:

√Applicable □Inapplicable

The customers of overseas feed companies are fully guaranteed by the local bank. When the payment is due, the guarantee bank will pay for the goods without reason. The risk is low, so 1% is provided for bad debt.

Provision for bad debt reserves is made by portfolio:

√Applicable □Inapplicable

Portfolio provision item: portfolio 1

Unit: Yuan Currency:RMB

Recognition standards and explanation of bad debt provision made by portfolio:

√Applicable □Inapplicable

The above receivables have been paid back after the period.

Portfolio provision item: portfolio 2

Unit:Yuan Currency:RMB

Recognition standards and explanation of bad debt provision made by portfolio:

√Applicable □Inapplicable

The desulfurization electricity price receivable was recovered in the next month, without risk, and no provision for bad debt reserves was made. The electricity price subsidy in accounts receivable refers to the electricity price subsidy receivable that has been included in the national subsidy catalog, and the electricity price subsidy receivable that has not been included in the national subsidy catalog is listed and reported in the contract assets.

Portfolio provision items: portfolio 3

Unit:Yuan Currency:RMB

Recognition standards and explanation of bad debt provision made by portfolio:

√Applicable □Inapplicable

The amount due from the parent company and the subsidiaries of the joint venture has no risk, and no

provision for bad debt reserves was made.

Portfolio provision items: portfolio 4

Unit:Yuan Currency: RMB

Recognition standards and explanation of bad debt provision made by portfolio:

√Applicable □Inapplicable

The recovery risk of such accounts receivable formed in the reporting period is related to the account receivable age. Therefore, such portfolio accounts receivable shall be classified according to the account receivable age, and the bad debt provision proportion corresponding to the account receivable age shall be confirmed.

If the provision for bad debt reserves is made according to the general model of expected credit loss, please refer to the disclosure of other accounts receivable:

□Applicable √Inapplicable

(3). About provision for bad debt

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

conversion difference in foreign currency statements -75,261.84 yuan.

Among them, the amount of bad debt provision recovery or reversal of the current period is important: √Applicable □Inapplicable

Unit:Yuan Currency:RMB

(4). Accounts receivable actually written off in the current period

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

About important accounts receivable written off among above accounts receivable

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Explanation for accounts receivable written off:

□Applicable √Inapplicable

(5). About accounts receivable with top five ending balance collected as per the borrowers

√Applicable □Inapplicable

In the current period, accounts receivable with top five ending balance collected of the Company as per the borrowers is RMB 363,868,985.41, accounting for 30.73% of the total ending balance of accounts receivables, and the sum total of ending balance of provision for bad debt reserves made accordingly is RMB 20,506,034.28.

(6). Accounts receivable derecognized due to transfer of financial assets

□Applicable √Inapplicable

(7). Assets and liabilities formed by the transfer of accounts receivable and continuous involvement

□Applicable √Inapplicable

Other notes:

√Applicable □Inapplicable

Accounts receivable are disclosed by business category as follows:

6. Receivables financing

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Changes in the financing of receivables and changes in fair value during the current period:

√Applicable □Inapplicable

The ending balance of receivable financing increased significantly compared with the beginning balance, mainly due to the expansion of the company's business scale, the increase of the company's membership in the "bill pool", and the increase in the holding of pledged bank acceptance bills into the pool at the end of the period. If the remaining term of a banker's acceptance bill is short and the book balance is close to the fair value, the book value shall be taken as its fair value.

If the provision for bad debt reserves is made according to the general model of expected credit loss, please refer to the disclosure of other accounts receivable:

□Applicable √Inapplicable

Other notes:

√Applicable □Inapplicable

(1) At the end of the period, the banker's acceptance bill pledged by the Company was RMB 9,511,995,347.19.

(2) The banker's acceptance bill endorsed at the end of the period but not yet due on the balance sheet date is RMB 2,674,041,235.59.

(3) The banker's acceptance bill discounted at the end of the period but not yet due on the balance sheet date is RMB 170,995,392.75.

As the endorser of banker's acceptance bill endorsed or discounted at the end of the period but not yet due on the balance sheet date is a commercial bank, it has been derecognized due to the low possibility of not being paid at maturity and the low possibility of being claimed. However, if the bill fails to be paid at the due date, the Company will be jointly and severally liable to the holder in accordance with the provisions of the Law of the People's Republic of China on Negotiable Instruments.

(4) At the end of the period, the Company has no accounts receivable financing transferred to accounts receivable due to the drawer's inability to perform.

7. Advance payment

(1). Advances presented by account receivable age

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Explanation of the reason for no settlement of advances with the account receivable age over one year with significant amount:

No advances with the account receivable age over one year and with significant amount.

(2). About advances to suppliers with top five ending balance collected as per the suppliers

√Applicable □Inapplicable

The advances to suppliers from top five of prepaid parties classified based on the ending balance totals RMB 848,184,426.71 in the current period of the Company, accounting for 76.18% of the total ending balance of the advances to suppliers.

Other notes

√Applicable □Inapplicable

About no advances written off in the current period:

8. Other receivables

Item presentation

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

□Applicable √Inapplicable

Interest receivable

(1). Classification of interest receivable

□Applicable √Inapplicable

(2). Important overdue interest

□Applicable √Inapplicable

(3). About provision for bad debt

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

Dividend receivable

(4). Dividend receivable

□Applicable √Inapplicable

(5). Significant dividends receivable with account receivable age over one year

□Applicable √Inapplicable

(6). About provision for bad debt

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

Other receivables

(7). Disclosure by accocunt receivable age

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(8). About classification by payment nature

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Payment nature Book balance at the end of the period

Book balance at the beginning of the

(9). About provision for bad debt

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Explanation of significant changes in the book balance of other accounts receivable changed due to loss reserves in the current period:

□Applicable √Inapplicable

The provision amount of bad debt reserves in the current period and the basis for assessing whether the credit risk of financial instruments has increased significantly:

□Applicable √Inapplicable

(10). About provision for bad debt

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Significant bad debt reserves recovered or reversed among above accounts receivable:

□Applicable √Inapplicable

(11). About other accounts receivable actually written off in the current period

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

About other significant accounts receivable written off among above receivables:

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Explanation of other accounts receivable written off:

□Applicable √Inapplicable

(12). About other accounts receivable with top five ending balance collected as per the borrowers

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

age within one year is RMB 82,218,606.36 and the one with the account receivable age of 1-2 years is RMB 27,438,658.86.

(13). Accounts receivable involving government subsidies

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes

Note: the balance of the current period shall be determined according to the notice issued by the government or the agreement signed with the government, and it is expected to be recovered within one year.

(14). Other accounts receivable derecognized due to transfer of financial assets

□Applicable √Inapplicable

(15). Assets and liabilities formed by the transfer of other accounts receivable and continuous

involvement

□Applicable √Inapplicable

Other notes:

√Applicable □Inapplicable

The ending balances of other receivables are disclosed as follows according to the method of accruing bad debt:

① Accounts receivable with single-item provision for bad debt are mainly from Tianmen Jianhua Agricultural Technology Development Co., Ltd. (Chen Jianhua). In 2016, due to the death of Chen Jianhua, Tianmen Jianhua Agricultural Technology Development Co., Ltd. (hereinafter referred to as "Jianhua Technology") and Tianmen Changfeng Aquatic Products Technology Development Co., Ltd. (hereinafter referred to as "Changfeng Technology") became insolvent. The company signed the "Repayment Agreement" with Jianhua Technology, Changfeng Technology and Tianmen Industrial Park Management Committee (hereinafter referred to as the "Tianmen Park Management Committee"). The agreement stipulates: (1) Tianmen Park Management Committee recovers the land and fish ponds in the Lake Management Bureau and pays the related expenses, and then leases back to the Company. When the Company pays the land lease fee of the Tianmen Park Management Committee every year, the debt of Jianhua Technology, Changfeng Technology and Chen Jianhua are directly deducted; (2) Repayment plan is to repay 1 million yuan per year in 2016-2018, 1.5 million yuan in 2019-2027, and 593,900 yuan in 2028. So now the priority debt has been repaid. This amount of arrears is different from the arrears of normal sales of goods, so it is adjusted to other receivables for presentation. Due to the financing nature of this business, the Company discounted future cash flows at an approximate financing cost of 5% as the estimated recoverable amount, and confirmed the provision for bad debt based on the book balance minus the estimated recoverable amount.

② Portfolio1, risk-free other receivables, mainly margins, reserves funds, etc. During the settlement period, this part of the funds is risk-free, and no bad debt provision is made.

③ Portfolio 2, other receivables due from relevant government departments. This part of the payment is expected to be recovered or settled within the next year, without risk, and no provision for bad debt is made.

④Portfolio 4, other accounts receivable with provision for bad debt based on account receivable age analysis:

9. Inventories

(1). Classification of inventories

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(2). Inventory falling price reserves and contract performance cost impairment provision

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(3). Explanation of ending balance of inventories containing capitalization amount of loan costs

□Applicable √Inapplicable

(4). Explanation of the current amortization amount of contract performance costs

□Applicable √Inapplicable

Other notes

√Applicable □Inapplicable

The basis for the provision for inventory falling price reserves for raw materials, products in process and inventory products is the estimated net realizable value.

10. Contract assets

(1). Contract assets

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

receivable that has not been included in the national subsidy catalog. The electricity price subsidy

receivable that has been included in the national subsidy catalog is listed in accounts receivable.

(2). The amount and reason for the significant change in the book value during the reporting period

□Applicable √Inapplicable

(3). Provision for impairment of contract assets in the current period

□Applicable √Inapplicable

If the provision for bad debt reserves is made according to the general model of expected credit loss, please refer to the disclosure of other accounts receivable:

□Applicable √Inapplicable

Other notes:

√Applicable □Inapplicable

(1) Provision for impairment of contract assets:

Note: the other changes are the PV powerplants included in the national subsidy catalog in 2020, and the corresponding electricity price subsidies and impairment provisions are transferred to accounts receivable and bad debt provisions for accounts receivable.

11. Held-for-sale assets

□Applicable √Inapplicable

12. Current portion of non-current assets

□Applicable √Inapplicable

Significant debt investment and other debt investment at the end of the period:

□Applicable √Inapplicable

13. Other current assets

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Item Ending balance Beginning balance

14. Debt investment

(1). About debt investments

□Applicable √Inapplicable

(2). Significant debt investments at the end of the period

□Applicable √Inapplicable

(3). About provisions for impairment reserves

□Applicable √Inapplicable

The amount of provision for impairment reserves in the current period and the basis for assessing if the credit risk of financial instruments increases significantly

□Applicable √Inapplicable

Other notes

□Applicable √Inapplicable

15. Investment in other debentures

(1). Investment in other debentures

□Applicable √Inapplicable

(2). Significant other debt investments at the end of the period

□Applicable √Inapplicable

(3). About provisions for impairment reserves

□Applicable √Inapplicable

The amount of provision for impairment reserves in the current period and the basis for assessing if the credit risk of financial instruments increases significantly

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

16. Long-term receivables

(1). Long-term accounts receivable

□Applicable √Inapplicable

(2). About provision for bad debt

□Applicable √Inapplicable

The provision amount of bad debt reserves in the current period and the basis for assessing whether the credit risk of financial instruments has increased significantly:

□Applicable √Inapplicable

(3). Long-term accounts receivable derecognized due to transfer of financial assets

□Applicable √Inapplicable

(4). Assets and liabilities formed by the transfer of long-term accounts receivable and continuous

involvement

□Applicable √Inapplicable

Other notes

□Applicable √Inapplicable

17. Long-term equity investment

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes

(1) On July 9, 2020, Tongwei Huijin New Energy Co., Ltd., a holding subsidiary of Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of the company, signed an equity transfer agreement with Jiangsu Coastal Development Investment Co., Ltd. to transfer its holdings; all equity of the joint venture, Jiangsu Coastal Tongwei Fuyun New Energy Co., Ltd. is transferred, and all equity changes procedures were completed in July 2020.

(2) In December 2020, the Company invested 100,055,700.00 yuan in Bohai Aquatic Products Co., Ltd., subscribed for 10,390,000 shares, and held 9.10% of the equity of Bohai Aquatic Products Co., Ltd. The articles of association of Bohai Aquatic Products Co., Ltd. stipulate that there are 6 members of the board of directors, and the Company appoints one. In summary, the Company has a significant impact on the production and operation of Bohai Aquatic Products Co., Ltd., so the accounting is carried out according to the equity method.

(3) Suzhou Taiyangjing New Energy Co., Ltd. was established on April 25, 2017. Tongwei Solar, a subsidiary of the Company, paid an investment of 15,000,000.00 yuan in 2020. In addition to the subscribed registered capital of 1,315,750.00 yuan, 13,684,250.00 yuan was included in the capital reserves of Suzhou Taiyangjing New Energy Co., Ltd.

(4) There are no significant restrictions on the realization of the Company's investment and the remittance of investment income.

(5) The book value of each long-term equity investment of the Company at the end of the period is lower than its recoverable amount, so no provision for the impairment of long-term equity is made.

18. Other equity instrument investments

(1). Other equity instrument investments

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(2). About non-marketable equity instrument investment

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

□Applicable √Inapplicable

19. Other non-current financial assets

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

√Applicable □Inapplicable

Note: Sichuan Tongwei Green Energy Power Co., Ltd., a subsidiary of the Company, has a shareholding ratio of 1.25% in the equity investment in Sichuan Power Exchange Center. It has no board of directors and cannot have a significant impact on the Company. Therefore, it is classified as fair value and the changes are included in the financial assets of the current profit and loss. Because the Company intends to hold the equity of Sichuan Electric Power Exchange Center Co., Ltd. for a long time, it is listed in the item of "other non-current financial assets".

20. Investment real estate

Measurement model of investment properties

(1). Investment properties measured at cost

Unit:Yuan Currency: RMB

(2). About investment real estates which property certificates are not obtained

□Applicable √Inapplicable

Other notes

□Applicable √Inapplicable

21. Fixed assets

Item presentation

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

□Applicable √Inapplicable

Fixed assets

(1). About fixed assets

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

①The decrease in disposal of subsidiaries is due to the Company’s wholly-owned subsidiaries, Tongwei Industrial (Tibet) Co., Ltd. transferring its wholly-owned subsidiary Chengdu Tongwei Industrial Co., Ltd. equity in July 2020. On December 31, 2020, Chengdu Tongwei Industrial Co., Ltd. is no longer included in the scope of consolidation.

②The adjustment of the final accounts for completion is mainly the adjustment of the original pre-transferred fixed assets in the final accounts of the completion of the PV powerplant.

③The original value of fixed assets of 74,820,609.19 yuan was merged and increased in the current merger; and it was formed by the acquisition of Zibo Huixiang New Energy Co., Ltd. by Tongwei New Energy (Shenzhen) Co., Ltd., a holding subsidiary of Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of the Company.

④The provision for impairment of fixed assets was RMB 221,877,025.60, which was the provision for impairment of PV powerplants owned by the Company. For details, please refer to "Impairment Loss of PV Powerplants". There is no sign of impairment for other fixed assets at the end of the period, so no impairment provision has been made.

(2). About temporarily idle fixed assets

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Yangzhou Tongwei Feed Co., Ltd., and the corresponding fixed assets are suspended for use. When the relocation of the Company is completed, the relocated assets will be compensated accordingly. As there is no impairment, no provision for impairment reserves is made.

(3). About fixed assets acquired under finance lease

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(4). Fixed assets leased out under operating lease

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(5). About fixed assets which property certificates are not obtained

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Other notes:

□Applicable √Inapplicable

Liquidation of fixed assets

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

Note: the ending balance of fixed assets liquidation only retains the net residual value of scrapped fixed assets.

22. Construction in progress

Item presentation

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

□Applicable √Inapplicable

Construction in progress

(1). Construction in progress

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). About changes of construction in progress in the current period

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Notes:

1. Budget amount refers to the budget amount of project investment. The proportion of project investment in the budget refers to the proportion of accumulated investment in the budget of the project. The accumulated investment includes the amount of fixed assets carried forward in the previous year. The investment budget of the raised fund PV powerplant project includes the project construction cost and the fish ponds rental fee. The budget of the non-raised fund PV powerplant project does not include the fish ponds rental fee, which was reflected in the “long-term prepaid expenses”.

2. 300MW Fishery & PV Integration Project in Shandong Zhanhua accounted for 72.75% of the budget, and the project progress was 100.00%. The major difference is that the project investment budget includes powerplant energy storage projects, which are in the preliminary preparation stage and have not yet been invested.

3. In the current period, Tongwei New Energy (Shenzhen) Co., Ltd., a subsidiary of Tongwei New Energy (Shenzhen) Co., Ltd., a wholly-owned subsidiary of the company, was added to the acquisition of Zibo Huixiang New Energy Co., Ltd., with an increase of RMB 68,204,857.68.

4. The application project of domestically produced intelligent equipment (system) with an annual output of 7.5GW of high-efficiency crystalline silicon solar cells in Meishan Phase I was originally filed as an application project of domestic intelligent equipment (system) with an annual output of 3.8GW of high-efficiency crystalline silicon solar cells. The name of the project was changed on February 27, 2020, and the project was completed in August 2020, handed over to use and fixed.

5. The amount of other decrease is RMB 250,127,844.50, including RMB 168,171,796.41 carry-forward into intangible assets - land use right, RMB 45,627,532.08 in software, RMB 5,880,715.59 in transfer management expenses, RMB 243,829.36 decreased in the disposal of subsidiaries and RMB 30,203,971.06 transferred in long-term prepaid expenses.

(3). About provision for impairment reserves of construction in progress in the current period

□Applicable √Inapplicable

Other notes

√Applicable □Inapplicable

The impairment of construction in progress is the solar energy segment project. The initial impairment provision is RMB 12,650,688.56. There is no new increase in the current period. As the project is completed, it will be transferred to fixed assets of RMB 7,368,425.66, and the ending balance is RMB 5,282,262.90.

Engineering material

(4). About engineering materials

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

As no net realizable value of engineering materials is lower than the book cost at the end of the period, no provision for impairment reserves of engineering materials is made.

23. Productive biological assets

(1). Productive biological assets using cost measurement models

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Productive biological assets measured at fair value

□Applicable √Inapplicable

Other notes

√Applicable □Inapplicable

At the end of the period, there was no situation where the net realizable value of productive biological assets was lower than the book cost, so no provision for impairment of productive biological assets was made.

24. Oil and gas assets

□Applicable √Inapplicable

25. Right-of-use assets

□Applicable √Inapplicable

26. Intangible assets

(1). Intangible assets

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(2). Land use rights whose property certificates are not obtained

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

√Applicable □Inapplicable

At the end of the period, there was no situation where the net realizable value of intangible assets was lower than the book cost, so no provision for impairment of intangible assets was made.

27. Development expenditure

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

28. Goodwill

(1). Original book value of goodwill

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Impairment provision for goodwill

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(3). Information of the asset portfolios or groups of asset portfolios in which goodwill is located

√Applicable □Inapplicable

The products produced by the above-mentioned -companies with goodwill are in active market. Major cash inflows are independent of cash inflows from other assets or asset groups. Companies are identified as independent asset groups. These asset groups are consistent with the asset portfolios

recognized in the goodwill devaluation testing at the date of purchase.

(4). Explanation of recognition method for the process of goodwill devaluation testing, key

parameters (e.g. growth rate in the forecast period, growth rate in the stable period, profit rate, discount rate, forecast period when forecasting the present value of future cash flow, if applicable) and goodwill impairment loss

√Applicable □Inapplicable

The recoverable amounts of Tongwei Solar (Hefei) Co., Ltd., Hainan Haiyi Aquatic Feed Co., Ltd. and Zhuhai Haiyi Aquatic Feed Co., Ltd. are determined according to the present value of the expected future cash flows of the asset group. The future cash flow is determined based on the financial budget approved by the management from 2021 to 2025. The cash flow of the asset group over 5 years adopts stable and sustainable cash flow. Other key assumptions used in predicting future cash flows include: Estimated operating revenue, gross profit margin, expenses, depreciation and amortization, and increase in long-term asset investment based on the asset group's past performance, industry development trends, and management's expectation of market development. The management believes that any reasonable changes in the above assumptions will not lead the book value of the asset groups of Tongwei Solar (Hefei) Co., Ltd., Hainan Haiyi Aquatic Feed Co., Ltd. and Zhuhai Haiyi Aquatic Feed Co., Ltd. to exceed their recoverable amounts.

(5). Effect of goodwill devaluation testing

□Applicable √Inapplicable

Other notes

□Applicable √Inapplicable

29. Long-term prepaid expenses

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

(1) Rental fees mainly include the fees for Fishery & PV Integration Project and fish ponds for aquaculture, which are amortized on an average basis according to the lease term agreed in the contract.

Among them, the amortization of rental fees of land and fish ponds during the normal construction period of Fishery & PV Integration powerplant is included in the construction cost, and the amortization during the abnormal construction period is included in the current profit and loss.

(2) Other reductions were due to the long-term prepaid expenses of 29,340,469.89 yuan transferred out by the Company after the termination of the lease contract, and 1,238,252.69 yuan transferred to the intangible assets-the right to use transmission lines from the final accounts of the new energy segment.

30. Deferred income tax assets/Deferred income tax liabilities

(1). Deferred income tax assets not offset

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Deferred tax liabilities not offset

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(3). Deferred income tax assets or liabilities listed in net amount after offset

□Applicable √Inapplicable

(4). Details of unrecognized deferred tax assets

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(5). Deductible loss due in the following year of unrecognized deferred income tax assets

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Other notes:

□Applicable √Inapplicable

31. Other non-current assets

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

Note: it is estimated that the retained input tax that cannot be deducted within one year is presented in other non-current assets.

32. Short-term loans

(1). Classification of short-term loans

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Unpaid short-term loans in maturity

□Applicable √Inapplicable

The important short-term loans that have been overdue and have not been repaid are as follows:

□Applicable √Inapplicable

Other notes

√Applicable □Inapplicable

At the end of the period, the Company guaranteed RMB 1,813,559,433.63 in short-term loans. For details of the Company's guarantee by Tongwei Group Co., Ltd., refer to "related party guarantee", and the Company's guarantee for subsidiaries is as follows:

33. Trading financial liabilities

□Applicable √Inapplicable

34. Derivative financial liabilities

□Applicable √Inapplicable

35. Notes payable

(1). Presentation of notes payable

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

At the end of the current period, the total amount of notes payable that have not yet been paid is 0 yuan.

Note: at the end of the period, the company's bill guarantees for its subsidiaries are as follows:

Note: the Company has signed a maximum guarantee contract (XYR[EB] 1902 No.117) with the Chengdu Branch of Industrial Bank Co., Ltd. and a supplemental contract of XYR[EB] 2020 No.001 to provide a maximum guarantee of RMB 240 million for bills loans and other debt that its subsidiary Tongwei Solar (Chengdu) Co., Ltd. continuously incurred within a certain period of time in Chengdu Branch of Industrial Bank Co., Ltd.

36. Accounts payable

(1). List of accounts payable

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Significant payables with account receivable age over one year

□Applicable √Inapplicable

Other notes

√Applicable □Inapplicable

1） Accounts payable with account receivable age over one year mainly refer to the Company's accounts

payable for equipment and project funds.

2） Classification of accounts payable by nature:

37. Advance receipt

(1). List of accounts received in advance

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Major advances the with account receivable age over one year

□Applicable √Inapplicable

Other notes

√Applicable □Inapplicable

The advance receipts are mainly the advance receipts from the company's leasing business.

38. Contract liabilities

(1). About contract liabilities

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(2). The amount and reason for the significant change in the book value during the reporting period

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

39. Employee compensation payable

(1). List of employee compensation payable

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). List of short-term compensation

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(3). List of defined contribution plan

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

√Applicable □Inapplicable

Note: the balance of wages, bonuses, allowances and subsidies payable is the December wage and bonus of the current year paid in the next month, so there is no case of salary arrears.

40. Taxes and fees payable

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Other notes:

According to the Corporate Income Tax Law, the parent company of the Company pays corporate income tax. The taxable income of the headquarters and branches accounts for 50% of the total tax. The remaining branches are distributed based on income, employee remuneration, and assets. The proportions are 35%, 35%, and 30% respectively; the income tax payable is calculated by multiplying the allocated taxable income by the applicable tax rate of each institution. The income tax payable by the headquarters and branch offices accounts for 50%, and the remaining part is distributed based on income, employee compensation, and assets, and the proportions are 35%, 35%, and 30% respectively.

41. Other payables

Item presentation

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

□Applicable √Inapplicable

Interest payable

(1). Classification presentation

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Item Ending balance Beginning balance

Significant interest due but unpaid

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

Dividend payable

(2). Classification presentation

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

be disclosed:

1) The Company has no dividends payable unpaid for over one year;

2) Common stock dividends payable at the end of the period are dividends payable to minority shareholders by Sichuan Tongwei Sanlian Aquatic Products Co., Ltd.

Other payables

(1). List of other payables by nature

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Payables with significant amount and account receivable age over one year

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

□Applicable √Inapplicable

42. Held-for-sale liabilities

□Applicable √Inapplicable

43. Non-current liabilities due within one year

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

（1） Long-term loans due within one year

570,152,809.18, pledge + guaranteed loan is RMB 90,154,083.77, mortgage + guaranteed loan is RMB 300,403,333.34, mortgage + pledge + guaranteed loan is RMB 114,930,481.28, Tongwei Group Co., Ltd.

guarantees the company’s guarantee for the company, and see "related party guarantee". The company's guarantees for its subsidiaries are as follows:

within one year with mortgage guarantee by the powerplant assets of Xide Tongwei Huijin New Energy Co., Ltd., a wholly-owned subsidiary of Tongwei Huijin New Energy Co., Ltd. which is the controlling subsidiary of Tongwei New Energy Co., Ltd., and pledge guarantee by electricity fee income right of Xide Tongwei Huijin New Energy Co., Ltd. powerplant, and warrandice of the loans by the Company.

2) For details of pledged loans and mortgage, please refer to "Assets with Limited Ownership or Use Right".

3) There is no overdue loan in the current portion of long-term loans.

(2) For details of long-term payables due within one year, please refer to "Long-term Payables".

44. Other current liabilities

Other current liabilities

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Changes in short-term bonds payable:

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

√Applicable □Inapplicable

(1) On May 28, 2018, the Company received the Notification of Registration Acceptance (ZSXZ [2018] SCP No. 151) issued by National Association of Financial Market Institutional Investors showing the Association has receipted the registration for RMB 3 billion of Super & Short-term Commercial Paper of the Company, and the registration shall be effective for two years since the inscribed date of this Notification and will be co-lead underwritten by China Postal Savings Bank Co., Ltd., Industrial Bank Co., Ltd. and Agricultural Bank of China Limited. On November 12, 2020, the Company received the Notification of Registration Acceptance (ZSXZ [2020] SCP No. 631) issued by National Association of Financial Market Institutional Investors showing the Association has receipted the registration for RMB 3 billion of Super & Short-term Commercial Paper of the Company, and the registration shall be effective for two years since the inscribed date of this Notification and will be co-lead underwritten by China Postal Savings Bank Co., Ltd., China Minsheng Bank and Industrial Bank Co., Ltd.

(2) The provision for liability reserves not yet due shall be accrued at 50% of the guaranteed income, and the accrued provision for liability reserves not yet due shall be reversed after the cancellation of the guarantee liability upon expiration. The provision of guarantee compensation reserves shall be 1% of the ending guarantee balance.

45. Long-term loans

(1). Classification of long-term loans

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Explanation of classifications of long-term loans:

At the end of the period, the Company guaranteed RMB 3,255,292,828.00 in long-term loans, RMB 1,101,062,711.34 in mortgage + guaranteed loans and RMB 1,170,260,000.00 in pledge + mortgage + guaranteed loans. For details of the Company's guarantee by Tongwei Group Co., Ltd., refer to "related party guarantee", and the Company's guarantee for subsidiaries is as follows:

① The loan of RMB 98,260,000.00 obtained by Tongwei New Energy Co., Ltd. was pledged by the powerplant assets of the wholly-owned subsidiary of Tongwei Huijin New Energy Co., Ltd., a subsidiary of Tongwei New Energy Co., Ltd. The right of income from the electricity fee of the powerplant is pledged by the Company.

② The loan of RMB 69,000,000.00 obtained by Panzhihua Tongwei Huijin New Energy Co., Ltd. was pledged by the powerplant assets of Panzhihua Tongwei Huijin New Energy Co., Ltd., and the powerplant electricity fee income right was pledged by Panzhihua Tongwei Huijin New Energy Co. The loan is guaranteed by the Company.

③ The loan of RMB 681,987,360.10 obtained by Sihong Tongli New Energy Co., Ltd. was pledged by the powerplant electricity fee income right of Sihong Tongli New Energy Co., Ltd., which was secured by Hengfeng County Jingxin Power Co., Ltd. and Huludao City Lianshan Tongwei New Energy Co., Ltd.

and the shares held by Sihong Tongli New Energy Co., Ltd. provide equity pledge guarantee, and the Company provides guarantee.

④The loan of RMB 340,000,000.00 obtained by Aohanqi Xinhuo New Energy Co., Ltd. was pledged and guaranteed by the powerplant assets of Aohanqi Xinhuo New Energy Co., Ltd., and the

power income right of the powerplant was pledged and guaranteed by the 80% equity of Aohanqi

Xinhuo New Energy Co., Ltd.; and the Company provides guarantee.

⑤ The loan of RMB 156,900,000.00 obtained by Gaoan Tongwei Yuguang Integrated Technology Co., Ltd. was pledged and guaranteed by the powerplant assets of Gaoan Tongwei Yuguang Integrated Technology Co., Ltd. The power income right of the powerplant is pledged and guaranteed by the Company.

⑥ The loan of RMB 252,500,000.00 obtained by Tianjin Binhai New Area Tongli New Energy Co., Ltd. was pledged and guaranteed by the powerplant electricity fee income right of Tianjin Binhai New Area Tongli New Energy Co., Ltd., and 100% of equity pledge guarantee of the Tianjin Binhai New Area held by Tongwei New Energy Technology (Beijing) Co., Ltd.; and the Company provides guarantee.

⑦ The loan of RMB 166,575,351.24 obtained by Changde Dingcheng Tongwei New Energy Co., Ltd. was pledged and guaranteed by the powerplant power income right of Changde Dingcheng Tongwei New Energy Co., Ltd., and the Company provides guarantee.

⑧ The loan of RMB 76,100,000.00 obtained by Xichang Tongwei New Energy Co., Ltd. was pledged and guaranteed by the powerplant assets of Xichang Tongwei New Energy Co., Ltd., and the power income right of the powerplant was pledged and guaranteed; and the Company provides guarantee.

⑨The loan of RMB 430,000,000.00 obtained by Tonghui Ocean Technology Co., Ltd. in Zhanhua District of Binzhou City was pledged and guaranteed by the powerplant assets of Tonghui Ocean Technology Co., Ltd. in Zhanhua District, Binzhou City. (Shenzhen) Co., Ltd. The powerplant fee equity was used as the pledge and guarantee; 51% of stock equity of Binzhou Zhanhua District Tonghui Ocean Technology Co., Ltd. was used as pledge guarantee, and the Company provides guarantee.

Other notes, including the interest rate collar:

√Applicable □Inapplicable

The interest rate of long-term loans is between 2.65% and LPR+0.35% with five-year.

46. Bonds payable

(1). Bonds payable

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Increase/decrease of bond payable (preferred shares, perpetual bond and other financial

instruments classified as financial liabilities excluded)

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(3). Explanation of conversion condition and conversion time of convertible corporate bonds

√Applicable □Inapplicable

1) According to the twentieth meeting of the sixth board of directors of the Company held on December 15, 2017, and the resolutions of the first extraordinary general meeting of shareholders of 2018 held on January 5, 2018, after approved by Reply on Approval of the Public Issuance of Convertible Bonds of Tongwei Co., Ltd. (ZJXK [2018] No. 1730) of China Securities Regulatory Commission on October 27, 2018, the Company publicly issued 5 billion yuan of convertible bonds (6 years) on March 18, 2019; after deducting the sponsorship and underwriting costs, as of March 22, 2019, the Company received RMB 4,942,500,000.00 for the subscription of convertible bonds. The Company received the approval of the Self-Regulatory Decision [2019] No.052 of Shanghai Stock Exchange, and the 5 billion Convertible corporate bonds of the Company will be listed for trading on the Shanghai Stock Exchange on April 10, 2019. The abbreviation of the bond is "Tongwei Convertible Bonds" and the bond code is "110054".

According to the Prospectus of Tongwei Co., Ltd. about Public Issuance of A-Shares Convertible Corporate Bonds, the conversion price is RMB 12.44 yuan/share. As the Company reviewed and approved at the 2018 Annual General Meeting of Shareholders, based on the total share capital on the registration date of the dividend payment, a cash dividend of RMB 1.60 (including tax) will be distributed to all shareholders for every 10 shares; therefore the convertible bond conversion price was adjusted to 12.28 yuan/share, which took effect on May 23, 2019; the company’s shares had 15 shares in 30 consecutive trading days from January 14, 2020 to March 3, 2020. The closing price of each trading day was not less than 130% of the current conversion price of "Tongwei Convertible Bonds" (i.e 15.96 yuan/share), the redemption clause of "Tongwei Convertible Bonds" was triggered, which was reviewed at the sixth meeting of the seventh board of directors. The Company was approved to exercise the right of early redemption and redeem all the "Tongwei Convertible Bonds" registered on the "redemption registration date". As of the redemption registration date (March 16, 2020), the cumulative face value of RMB 4,979,353,000 was " Tongwei Convertible Bonds", which have been converted into company stocks, with 405,483,464 shares converted. Shanghai Branch was registered and settled in China on March 17, 2020, and the industrial and commercial registration was completed on May 19, 2020. The Company has redeemed 206,470 "Tongwei Convertible Bonds" with a face value of RMB 20,647,000. The total amount of redemption and redemption was RMB 20,750,028.53. The redemption payment date was March 17, 2020.

2) On April 2, 2020, the Company obtained the Notice of Acceptance of Registration issued by the China Interbank Market Exchange Association (ZSXZ [2020] MTN311), and accepted the company's medium-term note registration with a registered amount of 5 billion yuan. The quota is valid for 2 years from the date of inscription of the notice and is jointly underwritten by China Postal Savings Bank Co., Ltd. and China Securities Co., Ltd.

(4). Explanation of other financial instruments classified as financial liabilities

Basic information of other financial instruments as preferred shares and perpetual bonds externally

issued at the end of period

□Applicable √Inapplicable

Variation to other financial instruments as preferred shares and perpetual bonds externally issued at the end of period

□Applicable √Inapplicable

Basis for financial instruments classified as financial liabilities:

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

47. Lease liabilities

□Applicable √Inapplicable

48. Long-term payables

Item presentation

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

□Applicable √Inapplicable

Long-term payables

(1). Presentation of long-term payables by nature

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

1) The net amount of deferred debt repayment is listed as follows:

Innovation Park Management Co., Ltd., Management Committee of Hefei High-tech Industrial Development Zone, and Hefei High-tech Urban Construction Investment Co., Ltd jointly signed a supplementary agreement to the Debt Restructuring Agreement, stipulating that Tongwei Solar (Hefei) Co., Ltd. will transfer the debt receivable of RMB 925,439,587.58; it shall be paid off for 5 years from 2019; according to the agreement, the paid debt of Tongwei Solar (Hefei) Co., Ltd. was RMB 185,087,917.55; and the accumulated paid debt was RMB 370,175,835.10.

2) Financial leases are listed as follows:

3) The Company is listed by financial lease as follows:

①As of December 31, 2020, Inner Mongolia Tongwei High-purity Crystalline Silicon Co., Ltd. used direct lease financing to form a net financial lease of 125,127,268.43 yuan, which was guaranteed by the Company and Sichuan Yongxiang Co., Ltd.

② As of December 31, 2020, Sichuan Yongxiang New Energy Co., Ltd. used direct lease financing to form a net financial lease of RMB147,819,977.40, which was guaranteed by the Company and Sichuan Yongxiang Co., Ltd.

③ As of December 31, 2020, Tongwei Solar (Chengdu) Co., Ltd. used direct lease financing to form a net financial lease of RMB132,423,346.74, which was guaranteed by the Company and Sichuan Yongxiang Co., Ltd.

④As of December 31, 2020, the Company’s PV powerplant company used sale and leaseback financing to form a net financial lease of RMB3,061,255,232.25, all of which were provided by the Company as a joint liability guarantee. The leaseback subject provided mortgage guarantee, and the shareholders of the affiliated company provided equity pledge guarantee with their equity.

⑤ The annual interest rate range of the above financing is 4.55%-5.89%.

Special payables

(2). Presentation of special payables by nature

√Applicable □Inapplicable

Unit:Yuan Currrency: RMB

Other notes:

The amount of special fund for agricultural credit guarantee of Tongwei agricultural guarantee is RMB 2,480,000.00, including: risk subsidy for RMB 1,630,000.00 and compensation fund for RMB 850,000.00. This fund shall be managed and used in accordance with the "Financial Special Subsidy Fund Management Measures of Sichuan Provincial Agricultural Credit Guarantee" issued by Sichuan Provincial Finance Department on August 28, 2012. Article 18 of the Measures stipulates that: The funds will be used to increase the capital of guarantee institutions instead of subsidies, and will be injected in the form of state-owned capital. Whenever a guarantee institution receives a total amount of more than RMB 10 million (including RMB 10 million) in compensation funds, it shall promptly report to the relevant departments for approval before completing the change of industrial and commercial registration of registered capital, etc. in accordance with the relevant provisions; the risk subsidy fund shall be used to compensate for the guarantee risk loss when the risk reserves drawn by the guarantee institution is insufficient to compensate for the loss; balance (if any) will be carried forward to the next year. The fund received by the Company has been used in 2018 to make up for the loss of RMB 1,630,000.00 due to the irrecoverable part of the compensation receivable, with a balance of RMB 850,000.00.

49. Long-term employee compensation payable

□Applicable √Inapplicable

50. Estimated liabilities

□Applicable √Inapplicable

51. Deferred incomes

Deferred incomes

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Projects with government subsidies

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

√Applicable □Inapplicable

Other changes RMB 3,099,375.89 were due to the reduction of government subsidies of RMB 441,042.54 due to the fact that Chengdu Tongwei Industrial Co., Ltd. was no longer included in the scope of consolidation, and financial discounts of RMB 2,658,333.35 were transferred into financial expenses.

52. Other non-current liabilities

□Applicable √Inapplicable

53. Capital stock

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

The number of newly added shares in the current period is 618,953,588 shares, including:

1) Due to the 2019 convertible corporate bonds of conversion of Tongwei Co., Ltd., an increase of 405,261,088 shares, please refer to "Bonds Payable" for details;

2) Approved by CSRC [2020] No. 2492 about Reply of the Approval of Tongwei Co., Ltd. Non-public Offering of Stocks on October 9, 2020, the Company additional shares of 213,692,500 shares to 16 institutions, including Qamdo Tongrui limited partnerships).

54. Other equity instruments

(1). Basic information of other financial instruments as preferred shares and perpetual bonds

externally issued at the end of period

□Applicable √Inapplicable

(2). Variation to other financial instruments as preferred shares and perpetual bonds externally

issued at the end of period

√Applicable □Inapplicable

Financial instrument externally issued

Beginning Increase in the current period

Decrease in the current period

About changes and causes thereof in increase/decrease of other equity instruments in the current period and basis of related accounting treatment:

√Applicable □Inapplicable

The decrease in this period is due to the fact that the closing price of the Company’s shares for 15 trading days within 30 consecutive trading days from January 14, 2020 to March 3, 2020 is not less than 130% of the current conversion price of "Tongwei Convertible Bonds" (i.e.15.96 yuan/share), triggering the redemption clause of “Tongwei Convertible Bonds” (110054). The sixth meeting of the seventh board of directors approved the Company to perform the early redemption right to redeem all registered “Tongwei Convertible Bonds. As of the redemption registration date (March 16, 2020), the cumulative face value of RMB 4,979,353,000 “Tongwei Convertible Bonds” was converted to RMB 20,647,000; and the transfer corresponding other equity instruments is carried forward into the capital reserves.

Other notes

□Applicable √Inapplicable

55. Capital reserves

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes, including explanations about changes and causes thereof in increase/decrease in the current period:

Note: 1. The share premium increased by RMB 10,438,332,283.56, including:

(1) In 2020, 49,766,220 shares of the convertible corporate bonds issued by the company "Tongwei Convertible Bonds" (110054) were converted into company stocks, 405,261,088 shares were converted, and 206,470 bonds were redeemed. The book value of the converted convertible corporate bonds is RMB 4,257,900,109.22 plus the interest payable of RMB 22,891,188.60, minus the redemption amount of RMB 20,750,028.53 and the transferred equity amount of RMB 405,261,088 plus other equity instruments of RMB 854,235,969.85, totaling RMB 4,709,016,151.14 -equity premium.

(2) On November 20, 2020, the Company issued 213,692,500 additional shares to 16 institutions including Qamdo Tongrui Industrial Partnership (Limited Partnership), raising a total of 5,983,390,000.00 yuan, deducting the increased share capital of 213,692,500.00 yuan, and including additional issuance expenses in the premium 41,594,202.50 yuan, plus the deductible value-added tax input tax of 915,472.61 yuan such as underwriting expenses and capital verification expenses, increasing the capital reserves-equity premium of 5,729,018,770.11 yuan.

(3) In January 2020, Jinxian Tiancheng Copper Co., Ltd., a shareholder of Nanchang Tongwei Biotechnology Co., Ltd., a subsidiary of the company, increased its capital. After the capital increase, the company’s shareholding ratio in Nanchang Tongwei Biotechnology Co., Ltd. is changed to 80.00% from 82.76%. The transaction is an equity transaction. According to the accounting standards, the difference between the purchase price and the equity ratio of the Company’s net assets was 788.43 yuan, and the capital reserves-equity premium was increased.

(4) In September 2020, the Company negotiated with Zhao Yan and others to acquire the 1.36% equity of Sichuan Willtest Technology Co., Ltd., after the equity transfer, the company’s holding of Sichuan Willtest Technology Co., Ltd., the share ratio was changed from 81.68% to 83.04%. The transaction was an equity transaction. According to the accounting standards, the difference between the purchase price and the equity ratio of the Company’s net assets was 375.80 yuan, and the capital reserves-equity premium was increased.

(5) In December 2020, the Company increased its capital to Chengdu Tongwei Automation Equipment Co., Ltd. by RMB 10,229,800.00. After the capital increase, the Company’s shareholding in Chengdu Tongwei Automation Equipment Co., Ltd. was changed from 62.95% to 80.00%, forming an equity transaction increased capital reserves-equity premium of RMB 296,198.08.

Note 2: The share premium decreased by RMB 4,099,349.18, including:

(1) In 2020, the Company increased the capital of Sichuan Tongwei Food Co., Ltd. by RMB 44,500,000.00. After the capital increase, the Company’s shareholding in Sichuan Tongwei Food Co., Ltd.

was changed from 70.00% to 80.00%, forming an equity transaction to reduce capital-share premium of 3,062,846.31 yuan.

(2) In May 2020, the Company’s subsidiary Tongwei Solar Co., Ltd. negotiated with Fu Jiayun to acquire the 0.6% equity of Sichuan Yongxiang Silicon Materials Co., Ltd. After the equity transfer, the Company’s subsidiary Tongwei Solar Co., Ltd., the Company’s shareholding ratio in Sichuan Yongxiang Silicon Materials Co., Ltd. was changed from 91.55% to 92.15%. The transaction was an equity transaction. According to the accounting standards, the difference between the purchase price and the equity ratio of the Company’s net assets was 295,878.77 yuan; and capital reserves-equity premium was reduced.

(3) In August 2020, Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of the company, negotiated with Feng Dezhi and others to acquire 6.01% of the shares of Tongwei Huijin New Energy Co., Ltd. After the equity transfer, the company's wholly-owned subsidiary, the Company’s Tongwei New Energy Co., Ltd.’s shareholding ratio in Tongwei Huijin New Energy Co., Ltd. was changed from 88.75% to 94.75%. The difference in assets was RMB 617,462.18, and the capital reserves-equity premium was reduced.

(4) In December 2020, Sichuan Tongwei Food Co., Ltd., the holding subsidiary of the company, negotiated with Xue Feng and others to acquire 2.06% of the equity of Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. After the equity transfer, the Company’s holding subsidiary Sichuan Tongwei Food Co., Ltd.’s shareholding ratio in Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. was changed from 53.57% to 55.62%. The transaction was an equity transaction. According to the accounting standards, the purchase price and the equity ratio of the Company’s net assets were calculated. The difference was RMB 123,161.92, and the capital reserves-equity premium was reduced.

Note 3: the increase in other capital reserves, amounted to RMB 8,196.83, is due to changes in capital reserves caused by capital increase in the equity ratio of Lijiang LONGi Silicon Materials Co., Ltd. The Company adjusted its long-term equity investment and capital reserves-other capital reserves of RMB 8,196.83 based on the proportion of equity.

Note 4: the decrease of other capital reserves by RMB 1,212,144.27 was due to the fact that Chengdu Tongwei Industrial Co., Ltd. was no longer included in the scope of consolidation. Chengdu Tongwei Industrial Co., Ltd. used land occupation compensation in previous years for the demolition and restoration of gate walls and other demolition and restoration projects. The capital reserves of RMB 1,212,144.27 were transferred out.

56. Treasury shares

□Applicable √Inapplicable

57. Other comprehensive income

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

58. Special reserves

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

59. Surplus reserves

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

60. Undistributed profit

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Details of undistributed profit at the beginning of the adjustment period:

1. The amount that will affect the undistributed profit at the beginning of the period due to retroactive adjustment of ASBE and its relevant new regulations is RMB 0.00.

2. The amount that will affect the undistributed profit at the beginning of the period due to accounting policy alternation is RMB 0.00.

3. The amount that will affect the undistributed profit at the beginning of the period due to correction of major accounting error is RMB 0.00.

4. The amount that will affect the undistributed profit at the beginning of the period due to change of consolidation scope as a result of common control is RMB 0.00.

5. Amount of the undistributed profit at the beginning of the period that will be affected due to total of other adjustments is RMB 0.00.

61. Operating revenue and operating cost

(1). Operating revenue and operating cost

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). About income generated by the contract

□Applicable √Inapplicable

Explanation of the income generated by the contract:

□Applicable √Inapplicable

(3). Explanation of performance obligations

□Applicable √Inapplicable

(4). Explanation of allocation to remaining performance obligations

□Applicable √Inapplicable

62. Taxes and surcharges

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

Please refer to "Taxes" for details of the standard for calculation and payment various taxes.

63. Sales expenses

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

The Company will implement the Accounting Standards for Business Enterprises No. 14-Revenue revised by the Ministry of Finance from January 1, 2020, and change the transportation and export costs directly related to contract performance to be listed in operating costs.

64. Administrative expenses

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

65. R&D expenses

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

66. Financial expenses

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

67. Other incomes

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

Details of government subsidies related to daily operating activities are listed as follows:

68. Investment income

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

Investment income from disposal of long-term equity investments

69. Net exposure hedging income

□Applicable √Inapplicable

70. Income from changes in fair value

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

71. Credit impairment loss

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

72. Asset impairment loss

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

73. Incomes from assets disposal

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

74. Non-operating income

About non-operating income

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Government subsidies included in the current profit and loss

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

75. Non-operating expenses

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Note: the loss of non-current assets was RMB 400,228,648.84, which was mainly due to technical renovation and demolition assets of RMB 376,564,106.18 of Sichuan Yongxiang Polysilicon Co., Ltd., Tongwei Solar (Hefei) Co., Ltd., Tongwei Solar (Chengdu) Co., Ltd. For details, refer to "Fixed Assets Scrap Loss"; extraordinary loss of RMB 66,502,545.02, of which, flood loss was RMB 64,387,346.70, refer to "Flood Disaster Loss" for details.

76. Income tax expense

(1). List of income tax expenses

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(2). Adjustment process of accounting profit and income tax expenses

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

□Applicable √Inapplicable

77. Other comprehensive income

√Applicable □Inapplicable

Refer to Note.

78. Items of cash flow statement

(1). Other cash received concerning operating activities

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Other cash paid for related operating activities

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(3). Other cash received relating to investing activities

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(4). Other cash paid relating to investing activities

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(5). Other cash received relating to financing activities

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(6). Other cash paid related to financing activities

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

79. Supplementary Information of Cash Flow Statement

(1). Supplementary Information of Cash Flow Statement

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Net cash paid for acquisition of subsidiaries in the current period

□Applicable √Inapplicable

(3). Net cash received from disposal of subsidiaries in the current period

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(4). Composition of cash and cash equivalents

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

√Applicable □Inapplicable

The cash flow statement of the Company in the current period "Cash received from sales of goods and services provided" does not include the unreceived cash of RMB 6,425,225,991.93 for sales of goods and services caused by the endorsement of notes receivable.

80. Notes to items of changes in owners' equity

Explain the names and amounts of “others” items adjusted to the ending balance of the previous year.

□Applicable √Inapplicable

81. Assets with restricted ownership or use right

□Applicable √Inapplicable

Unit:Yuan Currency:RMB

82. Monetary items in foreign currency

(1). Monetary items in foreign currency

√Applicable □Inapplicable

Unit:Yuan

(2). The explanation of overseas operating entities, including major premises abroad, bookkeeping base currency and selection basis to be disclosed for the important overseas operating entities; reasons shall also be disclosed for the changed bookkeeping base currency

√Applicable □Inapplicable

83. Hedging

□Applicable √Inapplicable

84. Government subsidies

(1). Basic information of government subsidies

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

financial expense of RMB 2,658,333.35 in the current period.

(2). Refund of government subsidies

□Applicable √Inapplicable

85. Others

□Applicable √Inapplicable

VIII. Changes in Consolidation Scope

1. Business merger under different control

√Applicable □Inapplicable

(1). Business merger under different control in the current period

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Other notes:

Note: on January 1, 2020, Tongwei New Energy (Shezhen) Co., Ltd., the controlling subsidiary and natural persons Zhao Ling and Xu Guilian signed an equity transfer agreement to acquire 95.00% equity in Zibo Huixiang New Energy Co., Ltd. held by Zhaoling for a price of RMB 0.00 and 5.00% of equity in Zibo Huixiang New Energy Co., Ltd. held by Xu Guilian; the Company's Articles of Association were amended; and the new business license was obtained in January 2020 and the handover was completed.

(2). Merger cost and goodwill

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(3). Identifiable assets and liabilities of the acquiree on the acquisition date

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(4). Acquisition profit or loss arising from the revaluation of the equity held prior to the date at the

fair value

Whether there is a transaction that realizes business combination step by step through multiple transactions and obtains control during the reporting period

□Applicable √Inapplicable

(5). Relevant explanation of the merging consideration or the fair value of identifiable net assets

and liabilities of acquiree that cannot be confirmed rationally on the acquisition date or at the end of the current merging period

□Applicable √Inapplicable

(6). Other notes

□Applicable √Inapplicable

2. Business merger under common control

□Applicable √Inapplicable

3. Counter purchase

□Applicable √Inapplicable

4. Disposal of subsidiaries

Whether conditions of single disposal of the investment in subsidiaries with control lost occurred

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

√Applicable □Inapplicable

(1) In accordance with the resolutions and authorizations of the 2017 Annual General Meeting of Shareholders, on the basis of maximizing the interests of the Company and investors, the Company sold 98% of its subsidiary Chengdu Tongwei Industrial Co., Ltd. and 100% of the creditor's rights of Tongwei Industrial held by the company. Chengdu Yihua Real Estate Co., Ltd., a wholly-owned subsidiary of Guangdong Aoyuan Commercial Real Estate Group Co., Ltd., won the bid for the above equity and creditor rights at a price of RMB 1,936,265,300. The Company and Yihua Real Estate and related parties signed an agreement on equity transfer on July 10, 2020. In July 2020, the Company received most of the transfer money, and July 31, 2020 is used as the date of equity transfer of Chengdu Tongwei Industrial Co., Ltd. The Company received an equity transfer deposit of RMB 27,000,000.00 as the fair value of the remaining 2% of the equity.

(2) Dongying Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of the Company, signed an equity transfer agreement with Dongying Caijin Clean Energy Co., Ltd. on May 19, 2020. All equity change procedures were completed on May 21, 2015.

(3) Danzhou Tongwei Huijin New Energy Co., Ltd., a wholly-owned subsidiary of Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of the company, and Tongwei Huijin New Energy Co., Ltd. Jiangsu Santou Energy Co., Ltd. signed an equity transfer agreement and completed all equity change procedures on March 24, 2020.

5. Changes in consolidation scope for other reasons

Explain the changes in consolidation scope due to other reasons (such as establishment of new subsidiaries, liquidation of subsidiaries etc.) and related circumstances:

√Applicable □Inapplicable

In 2020, the Company invested in the establishment of Chengdu Tongwei Yuguang Technology Co., Ltd., Maoming Tongwei Biological Technology Co., Ltd., Hainan Tongwei Biological Technology Co., Ltd., and Guangdong Tongwei Biological Technology Co., Ltd.

In 2020, the Company's first-tier subsidiaries: Chengdu Tongwei Fish Co., Ltd., Tongwei (Chengdu) Aquatic Food Co., Ltd., Chengdu Xintaifeng Agricultural Development Co., Ltd., Tongwei Aquatic Products Co., Ltd., Tongwei (Chengdu) Salmon Co., Ltd., Sichuan Tongwei Sanlian Aquatic Products Co., Ltd., Chengdu Tongwei Quannonghui E-commerce Co., Ltd. and Chengdu Chunyuan Food Co., Ltd. were transferred to second-level subsidiaries.

6. Others

□Applicable √Inapplicable

IX. Equity in Other Entities

1. Equities in subsidiaries

(1). Composition of the Group

√Applicable □Inapplicable

Explanation of the fact that the shareholding percentage of the subsidiaries is different from proportion of votes:

None

Basis for the Company's control over the investee when holding half of the votes or less and the

Company’s loss of control over the investee when holding half of the votes or more:

None

Basis for control over the important structured entities incorporated in consolidated scope:

None

Basis to determine the Company is the agent or the principal:

None

Other notes:

① In 2020, the Company established Chengdu Tongwei Yuguang Technology Co., Ltd., Maoming Tongwei Biological Technology Co., Ltd., Hainan Tongwei Biological Technology Co., Ltd., and Guangdong Tongwei Biological Technology Co., Ltd.

② In 2020, the Company's first-tier subsidiaries: Chengdu Tongwei Fish Co., Ltd., Tongwei (Chengdu) Aquatic Food Co., Ltd., Chengdu Xintaifeng Agricultural Development Co., Ltd., Tongwei Aquatic Products Co., Ltd., Tongwei (Chengdu) Salmon Co., Ltd., Sichuan Tongwei Sanlian Aquatic Products Co., Ltd., Chengdu Tongwei Quannonghui E-commerce Co., Ltd. and Chengdu Chunyuan Food Co., Ltd. were transferred the subsidiaries of Sichuan Tongwei Food Co., Ltd., becoming the second-level subsidiaries of the Company.

③ Tongwei (Chengdu) Agricultural Investment Holding Co., Ltd., Suzhou Tongwei Special Feed Co., Ltd., Hainan Haiyi Biotechnology Co., Ltd., Gong'an County Tongwei Aquatic Products Technology Co., Ltd. and Chengdu Xintaifeng Livestock and Poultry Farming Co., Ltd. were cancelled in 2020.

(2). Important non-wholly-owned subsidiaries

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Explanation of the fact that shareholding percentage is different from the proportion of voting rights for minority shareholders in the subsidiaries:

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

(3). Major financial information of important non-wholly-owned subsidiaries

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(4). Major limitations on use of enterprise group assets and payment of enterprise group debt:

□Applicable √Inapplicable

(5). Financial support or other supports provided to structured entities incorporated into the scope

of consolidated financial statement

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

2. Transactions of the owner's equity portion variation in the subsidiaries and the subsidiaries still being under control

□Applicable √Inapplicable

(1). Explanation of the change in the share of the owner’s equity in the subsidiaries

√Applicable □Inapplicable

In January 2020, Jinxian Tiancheng Copper Co., Ltd., a shareholder of Nanchang Tongwei Biotechnology Co., Ltd., a subsidiary of the Company, increased its capital. After the capital increase, the company's shareholding ratio in Nanchang Tongwei Biotechnology Co., Ltd. was changed from 82.76% to 80.00%.

In May 2020, the Company has acquired 0.6% of its equity held by Fu Jiayun of Sichuan Yongxiang Silicon Material Co., Ltd. with RMB 654,500.00. After the acquisition, the equity ratio of Tongwei Solar Co., Ltd. in Sichuan Yongxiang Silicon Material Co., Ltd. was changed from 91.55% to 92.15%.

In August 2020, Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of the Company, acquired 6.01% of Tongwei Huijin New Energy Co., Ltd. held by Feng Dezhi and others for RMB 17,528,723.10. After the acquisition, the shareholding ratio of Tongwei Huijin New Energy Co., Ltd. held by Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of the Company was changed from 88.75% to 94.75%.

In September 2020, the Company has acquired 3.68% of its equity held by Zhao Yan of Sichuan Willtest Technology Co., Ltd. with RMB 343,861.76. After the acquisition, the Company's equity ratio in Sichuan Willtest Technology Co., Ltd. was increased from 81.68% to 83.04%.

In December 2020, the Company increased its capital to Chengdu Tongwei Automation Equipment Co., Ltd. by RMB 10,229,800.00. After the capital increase, the company's shareholding in Chengdu Tongwei Automation Equipment Co., Ltd. was changed from 62.95% to 80.00%.

In December 2020, Sichuan Tongwei Food Co., Ltd., a subsidiary of the Company, acquired 2.06% of Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. held by Xue Feng and others for RMB 943,000.00. After the acquisition, the shareholding ratio of Sichuan Tongwei Food Co., Ltd. in Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. was changed from 53.57% to 55.62%.

In 2020, the Company increased the capital of Sichuan Tongwei Food Co., Ltd. by RMB 44,500,000.00. After the capital increase, the Company's shareholding in Sichuan Tongwei Food Co., Ltd.was changed from 70.00% to 80.00%.

(2). The impact of the transaction on the minority shareholders' equity and the owner's equity

attributable to the parent Company

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Other notes

□Applicable √Inapplicable

3. Equity in joint ventures or associates

√Applicable □Inapplicable

(1). Important joint ventures or associates

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Explanation of shareholding proportion of joint ventures or associates different from proportion of

voting rights:

None

Basis for determining a shareholder holding less than 20% of the voting rights has significant influence, or a shareholder holding 20% or more of the voting rights does not have significant influence:

None

(2). Major financial information of important joint ventures

□Applicable √Inapplicable

(3). Major financial information of important associates

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Other notes

In February 2021, the Company signed an equity transfer agreement with Longi Green Energy Technology Co., Ltd., stipulating that the Company held 15% of the shares of Lijiang Longi Silicon Materials Co., Ltd.based on the audited net assets on September 30, 2020. After the profit distribution of Lijiang Longi Silicon Materials Co., Ltd. was multiplied by the shareholding ratio, the net assets are transferred to Longi Green Energy Technology Co., Ltd., so Lijiang Longi Silicon Materials Co., Ltd. was not an important joint venture in 2020. The corresponding data was reported in unimportant associates.

(4). Summary of financial information of unimportant joint ventures and associates

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(5). Explanation on major restrictions on the capability of transferring capital from joint ventures

or associates to the Company

□Applicable √Inapplicable

(6). Excess loss incurred to joint ventures or associates

□Applicable √Inapplicable

(7). Unrecognized commitments related to investment of joint ventures

□Applicable √Inapplicable

(8). Contingent liabilities related to investment in associates or joint ventures

□Applicable √Inapplicable

4. Significant joint operation

□Applicable √Inapplicable

5. Equity in the structured entities not included in consolidated financial statements

Explanation of the structured entities not included in consolidated financial statements: □Applicable √Inapplicable

6. Others

□Applicable √Inapplicable

X. Risks Related to Financial Instruments

√Applicable □Inapplicable

The Company is faced with all kinds of financial risks during operation: credit risk, market risk and liquidity risk.

(I). Credit risk

Credit risk refers to the risk of financial loss of one party due to the failure to perform obligations by another party of financial instruments. The Company is mainly confronted with customer credit risks arising from sale on credit. Before the conclusion of a new contract, the Company may evaluate the credit risk of a new customer, including external credit rating and, in some cases, bank reference letter (if available). The Company has set a credit limit for each customer which is the maximum limit without obtaining any additional approval.

Through credit monitoring and account receivable age management for existing customers, the financial department submits weekly changes in receivables of key customers to ensure that the Company's overall credit risk is within a controllable range. Customers shall be grouped according to the credit features in monitoring the credit risks of customers. Customers classified into "high risk" level will be listed in the list of restricted customers, and they must make corresponding payments in advance.

(II). Market risk

Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash flow of financial instruments due to market price development, including foreign exchange risk, interest rate risk and other price risk.

1. Interest rate risk

Interest rate risk refers to the risk of fluctuation in fair value or future cash flow of financial instruments due to change in market interest rate. Interest rate risks faced by the Company are mainly from bank borrowings.

By controlling the debt structure within a reasonable range, the Company's headquarters will uniformly dispatch the funds of domestic branches, enhance the liquidity of funds, prevent the occurrence of overdue loans, maintain good bank credit and effectively control interest rate risks.

2. Foreign exchange risk

Foreign exchange risk refers to the risk of fluctuation in fair value or future cash flow of financial instruments due to change in foreign exchange rate. The Company tries to match the foreign currency income and foreign expense to reduce foreign exchange risk. The foreign exchange risks faced by the Company mainly come from financial assets and financial liabilities denominated in foreign currencies such as us dollar, Vietnamese dong, Bangladesh taka, Indonesian rupiah, SGD, euro and HKD. Please refer to "monetary items for foreign currency" for the amount converted from foreign currency financial assets and foreign currency financial liabilities into RMB.

(III). Liquidity risk

Liquidity risk refers to the risk of capital shortage in performing obligation of settling accounts by cash payment or other financial assets. The policy of the Company is to ensure that there is sufficient cash to pay the matured debt. Liquidity risk is generally controlled by the finance department of the Company. The finance department ensures that the Company possesses sufficient capital to pay the debt through monitoring of cash reserves and negotiable securities which can be converted into cash at any time and rolling prediction of cash flow in the next 12 months.

XI. Disclosure of Fair Value

1 . Ending fairvalueofassetsand liabilitiesmeasured atfairvalue

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

2. Basis for recognition of market prices for continuous and non-continuous level 1 fair value measurement items

√Applicable □Inapplicable

Derivative financial assets are floating profit from US dollar forward foreign exchange purchase contracts, and the ending fair value is calculated from data published by the bank that signed the

contract.

3. Qualitative and quantitative information about valuation techniques and key parameters of items subject to continuous and non-continuous level 2 fair value measurement

□Applicable √Inapplicable

4. Qualitative and quantitative information about valuation techniques and key parameters of items subject to continuous and non-continuous level 3 fair value measurement

√Applicable □Inapplicable

Debt instrument investment is the structured deposit purchased by the company. Due to the short term and the book value is similar to the fair value, it is measured at the investment cost as the fair value. The equity instrument investment is the company’s equity holdings and the expected recovery amount is measured as the fair value.

The remaining period of receivables financing is relatively short, and the book value is close to the fair value. The book value is adopted as the fair value.

Investment in other equity instruments takes the net assets of the invested entity at the end of the period as an important reference basis for assessing its fair value. The fair value is determined by specific valuation techniques, and the important parameters include the interest rate that cannot be directly observed.

Other non-current financial assets have not undergone major changes due to the business environment, operating conditions, and financial status of the investee, and the company shall use the investment cost as its fair value to be measured.

5. Information on adjustment between beginning book value and ending book value of items subject to continuous level 3 fair value measurement and sensitivity analysis of non-observable parameters

□Applicable √Inapplicable

6. Reasons for transfer and the policies applicable at the time of transfer for items subject to continuous fair value measurement and having transferred between levels in the current period

□Applicable √Inapplicable

7. Change of valuation techniques incurred in the current period and the reasons thereof

□Applicable √Inapplicable

8. Fair value of financial assets and liabilities not measured at fair value

□Applicable √Inapplicable

9. Others

□Applicable √Inapplicable

XII. Related Parties and Related Party Transactions

1 . Parentcompany oftheCompany

√Applicable □Inapplicable

Unit:10,000Yuan Currency:RMB

Instructions to the parent company of the Company

Company name: Tongwei Group Co., Ltd.; nature of enterprise: limited liability company; Registered Address: No. 588, Tianfu Avenue Middle Section, High-Tech Zone, Chengdu; office location: No.588, Tianfu Avenue Middle Section, High-Tech Zone, Chengdu; legal Representative: Guan Yamei; registered capital: RMB 200 million. Scope of business: (The following scope does not include items requiring prior approval, and items subject to ex-post approval are operated with license or approval documents) Feed processing; manufacturing of special equipment for electronic industry; manufacturing of PV equipment and components; cell manufacturing; manufacturing of domestic appliances for gas, solar and similar energy sources; aquaculture (the above items are limited to branches); wholesale and retail of commodities; livestock husbandry; science and technology promotion and application services; software and information technology services; import and export industry; real estate development and management; property management; leasing industry; advertising; solar power generation. (For the items that are subject to approval according to laws, the business activities shall be carried out only with approval from relevant departments.)

Ultimate controller of the Company is Liu Hanyuan

Other notes:

None

2. Subsidiaries of the Company

For detailed information about subsidiaries of the Company, see Notes.

√Applicable □Inapplicable

For detailed information about subsidiaries of the Company, see “Equity in Other Entities”.

3. Information of joint ventures and associates of the Company

For detailed information about important joint ventures or associates of the Company, see Notes.

□Applicable √Inapplicable

The information on other joint ventures or associates which produced balance for conducting related party transaction with the Company in the current period or in the previous period is shown as follows

√Applicable □Inapplicable

Other notes

□Applicable √Inapplicable

4. Information of other related parties

√Applicable □Inapplicable

Other notes

None

5. Related party transactions

(1). Related transactions of purchasing or selling goods and rendering or receiving labor services

Table of purchasing goods/receiving labor services

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Table of selling goods/rendering labor services

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Explanation for related party transactions of purchasing or selling goods and rendering or receiving labor services

□Applicable √Inapplicable

(2). Related entrusted management/contracting and entrusting management/outsourcing

Entrusted management/contracting of the Company:

□Applicable √Inapplicable

Related entrusting/contracting

□Applicable √Inapplicable

Entrusting management/outsourcing of the Company

□Applicable √Inapplicable

Related management/outsourcing

□Applicable √Inapplicable

(3). Related lease

The Company as the lessor:

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

The Company as the leasee:

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Notes for related lease

□Applicable √Inapplicable

(4). Related party guarantee

The Company as the guarantor

□Applicable √Inapplicable

The Company as the secured party

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Notes for related party guarantee

√Applicable □Inapplicable

The long-term loan due within one year includes interest payable within one year on the long-term loan is RMB 1,333,579.14.

(5). Fund lending/borrowing of related parties

□Applicable √Inapplicable

(6). Asset transfer and debt restructuring of related parties

□Applicable √Inapplicable

(7). Remuneration of key management personnel

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(8). Other related party transactions

□Applicable √Inapplicable

6. Receivables and payables of related parties

(1). Receivable items

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(2). Payable items

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Biotech Co., Ltd., Zhuhai Haiwei Feed Co., Ltd., dispensing money provided by the shareholders in proportion to their respective shares of capital contribution), and according to the interest rate calculated with the benchmark interest rate of one-year loan regulated by the People's Bank of China, the interest amount paid by the Company (negative: show the received interest of the Company) is as follows:

7. Commitments by related parties

□Applicable √Inapplicable

8. Others

□Applicable √Inapplicable

XIII. Share-based payment

1 . Generalconditionsofshare-based payment

□Applicable √Inapplicable

2. Equity-settled share-based payment

□Applicable √Inapplicable

3. Cash-settled share-based payment

□Applicable √Inapplicable

4. Changes to and termination of shared-based payment

□Applicable √Inapplicable

5. Others

□Applicable √Inapplicable

XIV. Commitments and Contingencies

1. Significant commitments

□Applicable √Inapplicable

2. Contingencies

(1). Significant contingencies existed on the balance sheet date

√Applicable □Inapplicable

External guarantee

As of December 31, 2020, the Company's external guarantees, the repayment of guaranteed loans and the recovery of guaranteed credit sales after the statement date are as follows:

Providing guarantee to borrow money from financial institutions, which for husbandry farmers to buy Tongwei feed and for farmers to build rooftop powerplants:

compensation balance of RMB 21,886,190.75, and the Company was seeking compensation.

As of December 31, 2020, the Company has no other significant contingencies that shall be disclosed except for those mentioned above.

(2). In case of no significant contingencies to be disclosed, explanation shall be given:

□Applicable √Inapplicable

3. Others

□Applicable √Inapplicable

XV. Events after the Balance Sheet Date

1 . Significantnon-adjusting events

□Applicable √Inapplicable

2. Profit distribution

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

3. Sales return

□Applicable √Inapplicable

4. Explanation for other events after the Balance Sheet Date

√Applicable □Inapplicable

On February 25, 2021, the 2021 first extraordinary general meeting of shareholders of the Company reviewed and approved the Tongwei Co., Ltd. Employee Stock Ownership Plan 2021-2023 (Draft) and its summary and other related proposals. On February 9, 2021, the seventeenth meeting of the seventh board of directors and the sixteenth meeting of the seventh board of supervisors reviewed and approved Tongwei Co., Ltd. Employee Stock Ownership Plan 2021-2023 (Draft) and Proposal. The total amount of funds raised during the establishment of the current employee stock ownership plan does not exceed 1,350 million yuan, and the source of stocks is purchased in the secondary market (including but not limited to bidding transactions, block transactions (including but not limited to the transfer of shares from the controlling shareholder) transfer by agreement) and other methods permitted by laws and regulations.

Except for the above matters, as of April 9, 2021, the Company had no other major post-balance sheet matters that need to be disclosed.

XVI. Other Significant Events

1. Correction of accounting errors in the previous period

(1). Retrospective restatement

□Applicable √Inapplicable

(2). Prospective application

□Applicable √Inapplicable

2. Debt restructuring

□Applicable √Inapplicable

3. Replacement of assets

(1). Exchange of non-monetary assets

□Applicable √Inapplicable

(2). Replacement of other assets

□Applicable √Inapplicable

4. Annuity plan

□Applicable √Inapplicable

5. Discontinued operation

□Applicable √Inapplicable

6. Segment information

(1). Determination basis and accounting policy of reporting segments

√Applicable □Inapplicable

The Company determines the operating segments on the basis of internal organization structure, management requirements and internal reporting system. An operating segment of the Company is a component that satisfies all of the following conditions:① it is able to create revenue and incur expenses from ordinary business activities; ② its operating results can be regularly reviewed by the Management for making decision about resources to be allocated and to assess its performance;③ the accounting information on its financial position, operating results and cash flow is available through analysis. Where two or more operating segments have similar economic features and meet certain conditions, they can be combined into one operating segment.

The Company determines the reporting segments based on the business segments. The major business income and cost, assets and liabilities are divided according to similar business operating entities.

(2). Financial information of reporting segments

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(3). Where the Company has no reporting segment or cannot disclose total assets and total liabilities of reporting segments, explain the reasons

□Applicable √Inapplicable

(4). Other notes

□Applicable √Inapplicable

7. Other significant transactions and matters affecting investors’ decisions

□Applicable √Inapplicable

8. Others

√Applicable □Inapplicable

(1) The pledge of shares held by the controlling shareholder

As of December 31, 2020, Tongwei Group Co., Ltd. held 1,998,422,515 shares of the Company, of which: 738,900,000 shares were pledged for financing.

(2) Property certificate processing progress for phase-III and phase-IV project land of Tongwei Solar (Chengdu) Co., Ltd.

The property certificate processing progress of the phase-III and phase-IV project: the phase-III and phase-IV projects are located in Groups 5 and 6 of Bajiao Community, Huangjia Street, Shuangliu District, Chengdu, and Group 5 of Wangjiachang Community. The total land area is 340 mu, of which: 180 acres have been completed; the real estate property registration certificate of the plot was obtained in June 2019, No. C (2019) Shuangliu District Real Estate Property No. 0048667, 120543.26㎡; the remaining land is160 mu, of which 60 mu involve litigation disputes; after the land litigation dispute is resolved, the relevant housing construction and ownership certificate acquisition procedures can be processed.

Land litigation disputes are disputes over exclusion and nuisance caused by land replacement matters approved by the government. The plaintiff, Chengdu Guigu Environmental Technology Co., Ltd., was identified as idle land by the Shuangliu District Planning and Natural Resources Bureau of Chengdu because it had not started development for two years after the agreed start and development date. At the same time, the government approved the replacement of the land as the land for construction of the phase-III and phase-IV projects. The plaintiff filed a lawsuit with the Shuangliu District People's Court in February 2019, requesting the Company to eliminate the nuisance and compensate for the loss. According to the certification documents issued by the Southwest Airport Economic Development Zone Management Committee, Chengdu Shuangliu District New Economy and Technology Bureau, Chengdu Shuangliu District Planning and Natural Resources Bureau, and Chengdu Shuangliu District Housing Construction and Transportation Bureau, the competent government department recognizes and agrees to the construction activities of the Company, and makes every effort to promote the processing of the property rights of related land/real estate. Therefore, the lawsuit will not have a material adverse effect on the company's production, operation and financial status.

(3) Impairment of PV powerplant assets

By the end of 2020, among the completed grid-connected PV power generation projects of the Company, 138.79MW has not yet obtained the subsidy indicator in full, and the possibility of obtaining additional subsidy indicators in the future is small, and there are signs of impairment. The situation is as follows:

1) Two PV power generation projects (Phase-I and Phase-II) in Maanshan, Anhui

According to the regulations of WNYXN [2016] No.13 “Notice on Improving Construction and Management of "First Building and First Getting" Distributed PV Powerplants” issued by Anhui Energy Administration, National Energy Administration East China Regulatory Bureau, Anhui Price Bureau, and State Grid Anhui Electric Power Company issued on February 17, 2016, the ground distributed PV powerplants are built firstly and got firstly. After the project is completed, it will be included in the annual construction scale of our province in accordance with the order of grid connection. The Company has built the first and second phases of Fishery & PV Integration PV powerplants, with a grid-connected scale of 64.59MW, which were connected to the grid for power generation at the end of July 2017 and January 2018 respectively, and received a subsidy indicator of 3.9MW in March 2020. It is expected that the possibility of subsidizing the target is small by the end of 2020.

2) PV Power Project in Fengnan, Tangshan of Hebei

Fishery & PV Integration PV Powerplant in Fengnan Tangshan Hebei obtained record with the JFGNYBZ No. [2017] No. 107 of Hebei Provincial Development and Reform Commission on May 31, 2017, and was connected to the grid in December 2018, with a grid size of 74.2MW. The subsidy indicator of 24MW has been obtained. By the end of 2020, it is expected that the possibility of obtaining the subsidy indicator in the future is small.

The above PV power generation projects are expected to have future cash inflows lower than the investment and construction expectations, and there are signs of impairment. For this reason, in accordance with the principle of prudence, impairment tests are conducted based on the existing subsidy indicators, and impairment reserves of RMB 221,877,000 are accrued.

(4) Loss from scrapping of fixed assets

In 2020, there was a loss of 399,711,800 yuan from scrapped fixed assets, mainly including:

1) Sichuan Yongxiang Polysilicon Co., Ltd. dismantled assets and lost 288.4797 million yuan

The Company upgraded the distillation and reduction sections of the original 20,000MT high-purity polysilicon project, and dismantled part of the equipment. In the fourth quarter of 2020, after on-site survey and appraisal by engineering technology and equipment management personnel, the corresponding assets are no longer used, and it was scrapped. The original book value of the scrapped assets was 573,125,100 yuan, the book value was 293,318,500 yuan, and the net loss after deducting the estimated residual value was 288,479,700 yuan.

2) Tongwei Solar (Hefei) Co., Ltd. lost RMB 60,521,800 from dismantling assets

According to data from PVInfolink, the market share of multicrystalline cells in 2020 was about 10%, and it was expected that the market share of multicrystalline cells would further reduce to 2% in 2022. However, due to the price advantage of multicrystalline modules, there is still a certain market demand in the market of Southeast Asia, India, etc.; in order to reduce production costs, the Company optimized and upgraded the polycrystalline production line in the fourth quarter of 2020 to extend the life cycle of polycrystalline products and scrap the dismounted equipment; the original book value of the scrapped assets was 201,261,800 yuan, the book value was 68,568,500 yuan, and the net loss after deducting the estimated residual value was 60,521,800 yuan.

3) Tongwei Solar (Chengdu) Co., Ltd. lost 27,562,600 yuan from dismantling assets

With the development trend of large-size products in the market, after full demonstration, the original small-size R&D equipment has no further R&D value, and the Company dismantled and scrapped the equipment. At the same time, in order to extend the life cycle of the 156-size production line as much as possible, the Company carried out technical innovation to the 156-size production line in the fourth quarter of 2020, and part of the equipment was dismantled in the process. The original book value of the above assets was RMB 46,827,300, the book value was RMB 29,382,600, and the net loss after deducting the estimated residual value was RMB 27,562,600.

(5) Flood damage

On August 17, 2020, Leshan City was hit by serious flood, which caused the loss of RMB 428,187,300 of Sichuan Yongxiang Co., Ltd., Sichuan Yongxiang Polysilicon Co., Ltd., Sichuan Yongxiang New Materials Co., Ltd., and Sichuan Yongxiang Silicon in Wutongqiao District, Leshan City. After deducting insurance compensation of RMB 363,800,000, and net loss of RMB 64,387,300; insurance compensation RMB 60 million and RMB 303.80 million was received on December 29, 2020 and February 7, 2021 respectively.

(6) The impact of the "bill pool" business on the Company's assets and liabilities

The Company's PV industry generally uses bill settlement. With the growth of business scale and the development of the "bill pool" business, the Company uses unexpired bills as pledge to issue bills payable for payment to suppliers, etc., so the bills receivable and payable increase significantly. At the end of 2020, the balance of bills receivable (listed as financing receivables) and bills payable reached 9.712 billion yuan and 9.364 billion yuan, accounting for 15.12% and 28.63% of total assets and total liabilities respectively, and it has an impact of 8.38 percent points on the debt-to-asset ratio, see the following table for details (amount unit: RMB 10,000):

In addition to the above matters, as of December 31, 2020, the Company does not need to explain other important matters.

XVII. Notes to Major Items in Financial Statements of the Parent Company

1. Accounts receivable

(1). Disclosure by account receivable age

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

(2). Classified disclosure by bad debt provision

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Provision for bad debt reserves is made individually:

□Applicable √Inapplicable

Provision for bad debt reserves is made by portfolio:

□Applicable √Inapplicable

If the provision for bad debt reserves is made according to the general model of expected credit loss, please refer to the disclosure of other accounts receivable: □Applicable √Inapplicable

(3). About provision for bad debt

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Note: other changes are caused by the transfer of Tongwei Co., Ltd. Maoming Branch to

Maoming Tongwei Biological Technology Co., Ltd.

Among them, the amount of bad debt provision recovery or reversal of the current period is

important:

□Applicable √Inapplicable

(4). Accounts receivable actually written off in the current period

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

About important accounts receivable written off among above accounts receivable

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Explanation for accounts receivable written off:

□Applicable √Inapplicable

(5). About accounts receivable with top five ending balance collected as per the borrowers

√Applicable □Inapplicable

In the current period, accounts receivable with top five ending balance collected of the Company as per the borrowers is RMB 2,202,706.42, accounting for 54.17% of the total ending balance of accounts receivable, and the sum total of ending balance of provision for bad debt reserves made accordingly is RMB 755,576.96.

(6). Accounts receivable derecognized due to transfer of financial assets

□Applicable √Inapplicable

(7). Assets and liabilities formed by the transfer of accounts receivable and continuous

involvement

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

2. Other payables

Item presentation

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Other notes:

□Applicable √Inapplicable

Interest receivable

(1). Classification of interest receivable

□Applicable √Inapplicable

(2). Important overdue interest

□Applicable √Inapplicable

(3). About provision for bad debt

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

Dividend receivable

(4). Dividend receivable

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(5). Significant dividends receivable with account receivable age over one year

□Applicable √Inapplicable

(6). About provision for bad debt

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

Other payables

(1). Disclosure by account receivable age

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(2). About classification by payment nature

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(3). About provision for bad debt

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Explanation of significant changes in the book balance of other accounts receivable changed due to loss reserves in the current period:

□Applicable √Inapplicable

The provision amount of bad debt reserves in the current period and the basis for assessing

whether the credit risk of financial instruments has increased significantly:

□Applicable √Inapplicable

(4). About provision for bad debt

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Significant bad debt reserves recovered or reversed among above accounts receivable:

□Applicable √Inapplicable

(5). About other accounts receivable actually written off in the current period

□Applicable √Inapplicable

(6). About other accounts receivable with top five ending balance collected as per the borrowers

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(7). Account receivable involving government subsidies

□Applicable √Inapplicable

(8). Other accounts receivable derecognized due to transfer of financial assets

□Applicable √Inapplicable

(9). Assets and liabilities formed by other receivables transfer and continuous involvement

□Applicable √Inapplicable

Other notes:

□Applicable √Inapplicable

3. Long-term equity investments

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(1). Investment in subsidiaries

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

1) Due to the business development, the Company increased capital to Sichuan Yongxiang Co., Ltd., Tongwei New Energy Co., Ltd., Tongwei Aquatic Products Co., Ltd., Chengdu Tongwei

Automation Equipment Co., Ltd., Nanjing Tongwei Biotechnology Co., Ltd. and Sichuan Tongwei

Food Co., Ltd. in 2020.

2) In September 2020, the Company acquired 1.36% of its equity held by minority shareholders of Sichuan Willtest Technology Co., Ltd. with RMB 343,861.76 After the acquisition, the

Company's equity ratio in Sichuan Willtest Technology Co., Ltd. was increased from 81.68% to

83.04%.

3) In 2020, the Company invested in the establishment of Maoming Tongwei Biotechnology Co., Ltd.

4) In 2020, the held shares of the Company from Chengdu Tongwei Fish Co., Ltd., Tongwei (Chengdu) Aquatic Food Co., Ltd., Chengdu Xintaifeng Agricultural Development Co., Ltd.,

Tongwei Aquatic Products Co., Ltd., Tongwei (Chengdu) Salmon Co., Ltd., Sichuan Tongwei

Sanlian Aquatic Products Co., Ltd., Chengdu Tongwei Quannonghui E-commerce Co., Ltd. and

Chengdu Chunyuan Food Co., Ltd. were transferred the Sichuan Tongwei Food Co., Ltd., becoming

the second-level subsidiaries of the Company.

5) Tongwei (Chengdu) Agricultural Investment Holding Co., Ltd., Suzhou Tongwei Special Feed Co., Ltd., Hainan Haiyi Biotechnology Co., Ltd., Gong'an County Tongwei Aquatic Products

Technology Co., Ltd. and Chengdu Xintaifeng Livestock and Poultry Farming Co., Ltd. were

cancelled in 2020.

(2). Investment in joint ventures and associates

√Applicable □Inapplicable

Unit:Yuan Currency: RMB

Other notes:

There are no significant restrictions on the realization of the Company's investment and the remittance of investment income.

4. Operating revenue and operating cost

(1). Operating revenue and operating cost

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

(2). About income generated by the contract

□Applicable √Inapplicable

(3). Explanation of performance obligations

□Applicable √Inapplicable

(4). Explanation of allocation to remaining performance obligations

□Applicable √Inapplicable

5. Investment income

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

6. Others

√Applicable □Inapplicable

The Company transfers the funds of subsidiaries in a unified way. The fund transactions between the parent and the subsidiaries are reported as fund-raising activities under the "cash received from other fund-raising activities" or "cash paid from other fund-raising activities" of the "cash flow statement of the parent company" based on the net quarterly income and expenditure.

XVIII. Supplementary information

1 . Listofnon-recurring profitorlossofthecurrentperiod

√Applicable □Inapplicable

Unit:Yuan Currency:RMB

Explain the reasons if the Company defines an item as a non-recurring profit and loss according to the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to the Public—Non-Recurring Profit or Loss, or defines a non-recurring profit or loss listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to the Public—Non-Recurring Profit or Loss as a recurring one.

□Applicable √Inapplicable

2. Return on equity and earnings per share

√Applicable □Inapplicable

3. Differences of accounting data under domestic and foreign accounting standards

□Applicable √Inapplicable

4. Others

□Applicable √Inapplicable

Section XII List of Documents Available for Inspection

Chairman: Xie Yi

Submission date Approved by the Board of Directors: April 9, 2021

Amendment Information

□Applicable √Inapplicable