longi green energy technology co., ltd. annual report 2020
TRANSCRIPT
Annual Report 2020
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Ticker Symbol: 601012 Stock Name: LONGi
LONGi Green Energy Technology Co., Ltd.
Annual Report 2020
Kindly reminder: The annual report 2020 in English is for reference
only. The Report in Chinese shall prevail in case of any discrepancy
between the two versions.
Annual Report 2020
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Important Notes
I. The Board of Directors, Board of Supervisors, directors, supervisors and senior
management of the Company hereby confirm that there are not any false representations,
misleading statements or material omissions in this Annual Report, and are jointly and
severally liable for the authenticity, accuracy and completeness of the information therein.
II. All directors of the Company are present at the Board meeting.
III. PwC Zhongtian Certified Public Accountants (Special General Partnership) has issued a
standard and unqualified audit report for the Company.
IV. Li Zhenguo, legal representative of the Company, and Liu Xuewen, person in charge of
accounting and person in charge of accounting organization (accountant in charge), hereby
declare that the Financial Reports contained in this Annual Report are true, accurate and
complete.
V. Plans for profit distribution or capital reserve into equity during the reporting period
deliberated by the Board of Directors
The Company's 2020 plan for profit distribution is as follows: the Company plans to pay a cash
dividend of RMB 2.5 (tax-inclusive) per 10 shares and transfer capital reserve into 4 shares per 10
shares to all shareholders. Before the record date for the implementation of equity distribution, if the
total share capital of the Company changes, the proportion of distribution (transfer) per share will be
kept unchanged and the total amount of distribution (transfer) will be adjusted accordingly.
The plans for profit distribution and capital reserve into equity have to be submitted to the
Shareholders' Meeting for deliberation.
VI. Risk disclosure on forward-looking statements
√ Applicable □ Not Applicable
Forward-looking statements regarding future plans and development planning involved in this Report
do not constitute the substantial commitment by the Company to investors, who are hereby reminded
to be aware of investment risks.
VII. Any non-operating utilization of funds by controlling shareholders and their related
parties
None
VIII. Any violation against prescribed decision-making procedures to provide external
guarantee
None
IX. Any failure of more than half of the directors to warrant the authenticity, accuracy and
completeness of this Annual Report disclosed by the Company
None
X. Warning of significant risks
The Company has described the possible risks in detail in this Report. Please refer to "III (IV) Possible
risks" in Section IV.
XI. Miscellaneous
□ Applicable √ Not Applicable
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Table of Contents
Section I Definitions ....................................................................................................................... 4
Section II Company Profile and Key Financial Indicators .......................................................... 8
Section III Overview of the Company's Business......................................................................... 13
Section IV Discussion and Analysis of Business Operation ........................................................ 16
Section V Important Matters ....................................................................................................... 42
Section VI Changes in Ordinary Shares and Shareholders ........................................................ 86
Section VII Preferred Shares ........................................................................................................... 93
Section VIII Directors, Supervisors, Senior Management and Employees .............................. 94
Section IX Corporate Governance .............................................................................................. 101
Section X Corporate Bonds ........................................................................................................ 105
Section XI Financial Reports ....................................................................................................... 109
Section XII List of Documents for Reference .............................................................................. 312
Annual Report 2020
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Section I Definitions
I. Definitions
For the purpose of this Report, the following terms shall have the meanings given thereto below
unless the context otherwise requires:
Definitions of frequently used terms
LONGi or the
Company refers to
LONGi Green Energy Technology Co., Ltd., renamed from Xi’an LONGi
Silicon Materials Corp. in February 2017
Wuxi LONGi refers to Wuxi LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary of
the Company
Yinchuan LONGi refers to Yinchuan LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary
of the Company
Ningxia LONGi refers to Ningxia LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary
of the Company
LONGi (H.K.) refers to LONGi (H.K.) Trading Limited, a wholly-owned subsidiary of the
Company
LONGi (Kuching) refers to LONGi (Kuching) Sdn. Bhd., a wholly-owned subsidiary of LONGi
(H.K.)
Lijiang LONGi refers to Lijiang LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary of
the Company
Baoshan LONGi refers to Baoshan LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary
of the Company
Chuxiong LONGi refers to Chuxiong LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary
of the Company
Huaping LONGi refers to Huaping LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary
of the Company
Tengchong LONGi refers to Tengchong LONGi Silicon Materials Co., Ltd., a wholly-owned
subsidiary of the Company
Qujing LONGi refers to Qujing LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary of
the Company
LONGi Solar refers to LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary of the
Company
Taizhou LONGi
Solar refers to
Taizhou LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary
of LONGi Solar
Zhejiang LONGi
Solar refers to
Zhejiang LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary
of LONGi Solar
Chuzhou LONGi
Solar refers to
Chuzhou LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary
of LONGi Solar
Ningxia LONGi
Solar refers to
Ningxia LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary
of LONGi Solar
Yinchuan LONGi
Solar refers to
Yinchuan LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary
of LONGi Solar
LONGi Technology
(Kuching) refers to
LONGi Technology (Kuching) Sdn. Bhd., a wholly-owned subsidiary of
LONGi Solar
Germany LONGi refers to LONGi Solar Technologie GmbH, a wholly-owned subsidiary of the
Company
LONGi (U.S.) refers to LONGi Solar Technology (U.S.) Inc., a wholly-owned subsidiary of the
Company
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Jiangsu LONGi Solar refers to Jiangsu LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary
of LONGi Solar
Xianyang LONGi
Solar refers to
Xianyang LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary
of LONGi Solar
Shaanxi LONGi
Solar refers to
Shaanxi LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary
of LONGi Solar
Jiaxing LONGi Solar refers to Jiaxing LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary
of LONGi Solar
Xi’an LONGi Solar refers to Xi’an LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary of
LONGi Solar
Yinchuan LONGi PV refers to Yinchuan LONGi PV Technology Co., Ltd., a wholly-owned subsidiary
of the Company
Ningbo EZ refers to Ningbo Jiangbei EZ New Energy Technology Co., Ltd., a wholly-owned
subsidiary acquired by the Company in July 2020
Vina Cell refers to Vina Cell Technology Company Limited, a wholly-owned subsidiary
acquired by the Company in July 2020
Vina Solar refers to Vina Solar Technology Company Limited, a wholly-owned subsidiary
acquired by the Company in July 2020
Datong LONGi Solar refers to Datong LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary
of LONGi Solar
Clean Energy refers to Xi’an LONGi Clean Energy Co., Ltd., a wholly-owned subsidiary of the
Company
LONGi New Energy refers to Xi’an LONGi New Energy Co., Ltd., a wholly-owned subsidiary of the
Company
Longxing New
Energy refers to
Huludao Longxing New Energy Co., Ltd., a wholly-owned subsidiary of
Clean Energy
Longle Solar refers to Guangzhou Longle Solar Technology Co., Ltd., a wholly-owned
subsidiary of LONGi New Energy
Ningde LONGi Solar refers to Ningde LONGi Solar Energy Co., Ltd., a wholly-owned subsidiary of
LONGi New Energy
Lechang Solar refers to Xiangcheng Lechang Solar Energy Co., Ltd., a wholly-owned subsidiary
of LONGi New Energy
Jinli New Energy refers to Xinyang Jinli New Energy Equipment Co., Ltd., a wholly-owned
subsidiary of LONGi New Energy
Xinwei New Energy refers to Xuzhou Xinwei New Energy Technology Co., Ltd., a wholly-owned
subsidiary of LONGi New Energy
Datong Clean Energy refers to LONGi Green & Clean Energy Co., Ltd. in Yunzhou District, Datong City,
a wholly-owned subsidiary of Clean Energy
Guangling Clean
Energy refers to
Guangling Longxing Green & Clean Energy Co., Ltd., a wholly-owned
subsidiary of Clean Energy
Xuanli Solar refers to Hami Liushuquan Xuanli Solar Power Generation Co., Ltd., a wholly-
owned subsidiary of Clean Energy
Tongxin LONGi refers to Tongxin LONGi New Energy Co., Ltd., a joint stock company of Wuxi
LONGi and Ningxia LONGi
LONGi Tianhua refers to Zhongning LONGi Tianhua New Energy Co., Ltd., a joint stock company
of Ningxia LONGi
Daqing New Energy refers to Daqing Huiqing New Energy Co., Ltd., a joint stock company of Clean
Energy
Zhongning New refers to Zhongning LONGi Solar New Energy Co., Ltd., a joint stock company of
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Energy Clean Energy
Zhaozhou New
Energy refers to
Zhaozhou Longhui New Energy Co., Ltd., a joint stock company of Clean
Energy
Pingmei LONGi refers to Pingmei LONGi New Energy Technology Co., Ltd., a joint stock
company of the Company
Sichuan Yongxiang refers to Sichuan Yongxiang New Energy Co., Ltd., a joint stock company of the
Company
Tongchuan Xiaguang refers to Tongchuan Xiaguang New Energy Power Generation Co., Ltd., a joint
stock company of the Company
Yidao New Energy refers to Yidao New Energy Technology (Quzhou) Co., Ltd., formerly a joint stock
company of the Company, and transferred its equity in September 2020
Yunnan Tongwei refers to Yunnan Tongwei High Purity Crystal Silicon Co., Ltd., a joint stock
company of the Company
Zhejiang MTCN refers to Zhejiang MTCN Technology Co., Ltd., a joint stock company of the
Company
LERRI Solar (India) refers to LERRI Solar Technology (India) Private Limited, a wholly-owned
subsidiary of the Company
Japan LONGi refers to LONGi Solar Technology K.K., a wholly-owned subsidiary of the
Company
LONGi Venture
Capital refers to
Xi’an LONGi Green Energy Venture Capital Management Co., Ltd., a
wholly-owned subsidiary of the Company
LONGi Green
Energy Architecture refers to
Xi'an LONGi Green Energy Architecture Technology Co., Ltd., a wholly-
owned subsidiary of LONGi Venture Capital
Ruicheng Lvlong refers to Ruicheng Lvlong Clean Energy Co., Ltd., a holding subsidiary of Clean
Energy
LONGi Engineering refers to LONGi Green Energy Solar Engineering Co., Ltd., a wholly-owned
subsidiary of LONGi New Energy
Intelligent
Technology refers to
Xi’an LONGi Intelligent Technology Co., Ltd., a wholly-owned
subsidiary of the Company
LONGi
(Netherlands) refers to
LONGi (Netherlands) Trading B.V., a wholly-owned subsidiary of
LONGi (H.K.)
Lufeng LONGi refers to Lufeng LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary of
the Company
Mono silicon refers to
A single crystal in which the silicon atoms in the whole silicon crystal are
arranged periodically, made of high purity polysilicon and mainly
obtained by czochralski technique and float zone process
Wafer refers to A square or octagonal slice cut from a mono ingot or poly ingot
Ingot refers to A rod-like mono silicon grown from poly silicon by czochralski (CZ) and
float zone (FZ), with a morphology of single crystal
Cell refers to
Solar cell, a device that converts the solar radiant energy into electric
energy through semiconductor materials using the principle of
photoelectric conversion, also known as a "PV cell"
Module refers to
The solar module consisting of a plurality of solar power generation units
by means of series and parallel connection. Its function is to amplify the
solar power generation units with low power into a photoelectric device
that can be used alone. With high power, it can be used alone to charge all
kinds of batteries, or used in series or parallel as the power generation unit
of off-grid or grid-connected solar power supply system
MW refers to Megawatt, a unit of power for solar cells, 1 megawatt = 1,000 kilowatts
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GW refers to Gigawatt, a unit of power for solar cells, 1 gigawatt = 1,000 megawatts
Cell conversion
efficiency refers to
The ratio of the optimum output power of a solar cell to the solar radiant
power projected onto its surface
SSE refers to Shanghai Stock Exchange
CSRC refers to China Securities Regulatory Commission
Company Law refers to The Company Law of the People's Republic of China
Articles of
Association refers to The Articles of Association of LONGi Green Energy Technology Co., Ltd.
Reporting period refers to January 1, 2020 to December 31, 2020
RMB refers to RMB Yuan, unless otherwise specified herein
Note: In this Report, any discrepancy between the sum of sub-items and the mantissa of the total is
caused by rounding.
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Section II Company Profile and Key Financial Indicators
I. Company Information
Legal name in Chinese 隆基绿能科技股份有限公司
Abbreviated name in Chinese 隆基股份
Legal name in English LONGi Green Energy Technology Co., Ltd.
Abbreviated name in English LONGi
Legal Representative Li Zhenguo
II. Contacts and Contact Details
Board Secretary Representative of Securities Affairs
Name Liu Xiaodong Wang Hao
Contact address No. 8369 Shangyuan Road, Economic and
Technological Development Zone, Xi'an
No. 8369 Shangyuan Road, Economic and
Technological Development Zone, Xi'an
Tel 029-81566863, 029-86519912 029-81566863, 029-86519912
Fax 029-86689601 029-86689601
E-mail [email protected] [email protected]
III. Basic Information
Registered address No. 388 Middle Aerospace Road, Chang'an District, Xi'an
Postal code 710100
Office address No. 8369 Shangyuan Road, Economic and Technological
Development Zone, Xi'an
Postal code 710018
Website http://www.longigroup.com
E-mail [email protected]
IV. Information Disclosure and Location for Annual Report Collection
Name of media selected by the Company for
information disclosure
China Securities Journal, Shanghai Securities News,
Securities Times, and Securities Daily
Website designated by CSRC for publishing the
Annual Report
www.sse.com.cn
Location for Annual Report collection Office of the Board of Directors
V. Company's Stock
The Company's stock
Class of stock Listing exchange Stock name Ticker symbol Abbreviated name
before change
A-share Shanghai Stock
Exchange LONGi 601012 N/A
VI. Other Related Information
Accounting firm engaged by the
Company (domestic)
Name PwC Zhongtian Certified Public Accountants (Special General
Partnership)
Office address 11/F, PwC Center, Tower 2, Link Square, No. 202 Hubin Road,
Huangpu District, Shanghai
Name of signatory Zhang Jiayan and Han Tao
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accountant
Sponsor institution
for continuous
supervision in the
reporting period
Name Guosen Securities Co., Ltd.
Office address 16-26/F, Guosen Securities Building, No. 1012 Middle Hongling
Road, Shenzhen
Name of signatory
sponsor
representative
Wang Yanxiang and Jiang Zhigang
Period for
continuous
supervision
September 8, 2020 to December 31, 2021
VII. Key Accounting Data and Financial Indicators in Recent Three Years
(I) Key accounting data
Unit: Yuan Currency: RMB
Key
accounting
data
2020 2019
Increase
or
decrease
(%) over
the same
period last
year
2018
After adjustment Before adjustment
Revenues 54,583,183,588.46 32,897,455,384.24 65.92 21,987,614,949.84 21,987,614,949.84
Net profit
attributable
to
shareholders
of the listed
company
8,552,369,160.81 5,279,552,073.55 61.99 2,557,964,089.73 2,557,964,089.73
Net profit
attributable
to
shareholders
of the listed
company
after
deducting
non-
recurring
profit or loss
8,143,088,215.37 5,093,620,143.93 59.87 2,343,546,683.13 2,343,546,683.13
Net cash
flow from
operating
activities
11,014,879,428.05 8,158,241,026.53 35.02 1,173,271,527.53 1,173,271,527.53
End of 2020 End of 2019
Increase
or
decrease
compared
with the
end of the
same
period last year (%)
End of 2018
After adjustment Before adjustment
Net assets 35,105,765,416.77 27,628,794,072.78 27.06 16,451,586,754.06 16,451,586,754.06
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attributable
to
shareholders
of the listed
company
Total assets 87,634,828,684.09 59,303,973,110.53 47.77 39,659,244,130.93 39,659,244,130.93
(II) Key financial indicators
Key financial indicators 2020 2019
Increase or
decrease (%)
over the same
period last
year
2018
After
adjustment
Before
adjustment
Basic EPS (RMB/share) 2.27 1.47 54.42 0.75 0.93
Diluted EPS (RMB/share) 2.26 1.47 53.74 0.75 0.92
Basic EPS after deducting non-
recurring profit or loss (RMB/share) 2.16 1.42 52.11 0.69 0.85
Weighted average return on equity
(%) 27.23 23.93
Up 3.30
percentage
points
16.71 16.71
Weighted average return on equity
after deducting non-recurring profit
or loss (%)
25.93 23.09
Up 2.84
percentage
points
15.31 15.31
Description of key accounting data and financial indicators for the last three years as of the end of the
reporting period
□ Applicable √ Not Applicable
VIII. Accounting Data Differences under Domestic and Foreign Accounting Standards
(I) Difference between net profit and net assets attributable to shareholders of the listed
company in Financial Reports disclosed under both international and Chinese accounting
standards
□ Applicable √ Not Applicable
(II) Difference between net profit and net assets attributable to shareholders of the listed
company in Financial Reports disclosed under both foreign and Chinese accounting standards
□ Applicable √ Not Applicable
(III) Explanation for the differences in domestic and foreign accounting standards:
□ Applicable √ Not Applicable
IX. Key Financial Data by Quarter in 2020
Unit: Yuan Currency: RMB
Q1
(January to
March)
Q2
(April to June)
Q3
(July to September)
Q4
(October to
December)
Operating revenue 8,599,410,768.64 11,541,870,660.50 13,690,586,962.50 20,751,315,196.82
Net profit attributable
to shareholders of the
listed company
1,863,912,790.42 2,252,417,876.57 2,240,497,376.42 2,195,541,117.40
Net profit attributable 1,760,885,314.71 2,133,297,979.55 2,120,316,491.11 2,128,588,430.00
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to shareholders of the
listed company after
deducting non-
recurring profit or
loss
Net cash flow from
operating activities -536,077,423.55 874,899,323.93 5,921,494,661.14 4,754,562,866.53
Any discrepancy between quarterly data and those disclosed in periodic reports
□ Applicable √ Not Applicable
X. Non-recurring Profit or Loss Items and Amounts
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Non-recurring profit or loss items Amount of 2020 Amount of 2019 Amount of 2018
Profit or loss from disposal of non-current assets -35,996,653.60 -68,878,970.62 -5,230,991.11
Government grants recorded in the current profit
or loss, excluding the government grants closely
related to the normal business of the Company
and enjoyed continuously per certain standard
quota or ration in accordance with the provisions
of national policy
302,808,294.32 228,852,546.77 173,940,878.85
Profits or losses from changes in fair value
arising from the holding of financial assets held
for trading, derivative financial assets, financial
liabilities held for trading and derivative
financial liabilities, and investment incomes
from the disposal of financial assets held for
trading, derivative financial assets, financial
liabilities held for trading, derivative financial
liabilities and other creditors investments,
excluding the effective hedging business related
to the normal operation of the Company
268,840,983.36 109,984,235.52 84,773,124.69
Carry-back of provision for impairment of
receivables and contract assets subject to
separate impairment test
5,321,141.53 500,000.00
Non-operating revenues and expenses other
than the items above -50,896,552.36 -40,467,513.83 -946,559.80
Amount of effect on minority equity -2,585,181.73 -9,826,197.60
Amount of effect on income tax -78,211,086.08 -34,232,170.62 -38,119,046.03
Total 409,280,945.44 185,931,929.62 214,417,406.60
XI. Items Measured by Fair Value
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Description Beginning balance Ending balance Change in the
current period
Amount of effect
on current profit
Receivables financing 829,052,223.55 238,952,924.42 -590,099,299.13
Investment in other
equity instruments 21,959,667.68 37,142,441.49 15,182,773.81
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Financial assets held
for trading 4,000,971.20 4,000,971.20 268,840,983.36
Total 851,011,891.23 280,096,337.11 -570,915,554.12 268,840,983.36
XII. Miscellaneous
□ Applicable √ Not Applicable
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Section III Overview of the Company's Business
I. Principal Business and Operation Mode of the Company and Industry Situation during
the Reporting Period
The Company is committed to driving the transition of low-carbon energy, long focused on providing
global customers with high-efficiency mono solar power generation solutions, and mainly specialized
in the R&D, production and sales of mono ingots, wafers, cells and modules, in an effort to provide
product and system solutions to development of centralized ground-mounting solar power systems
and distributed roof-top solar power systems. At present, the Company's production bases of mono
ingots and wafers are mainly concentrated in Shaanxi (Xi'an), Ningxia (Yinchuan, Zhongning),
Yunnan (Lijiang, Baoshan, Qujing, Chuxiong), Jiangsu (Wuxi) and Malaysia (Kuching); mono cell
production bases mainly in Shaanxi (Xi'an), Ningxia (Yinchuan), Jiangsu (Taizhou), Malaysia
(Kuching) and Vietnam (Bac Giang); and module production bases mainly in Anhui (Chuzhou),
Zhejiang (Quzhou and Jiaxing), Jiangsu (Taizhou), Shaanxi (Xi'an and Xianyang), Shanxi (Datong),
Malaysia (Kuching) and Vietnam (Bac Giang). It offers PV solar plant development and system
solutions in many places at home and abroad. During the reporting period, the principal business and
operation model did not change significantly compared with a year earlier. The position of the
principal business and products in the PV industry chain is as shown below:
Note: The red box in the figure above shows the Company's business scope in the industrial chain.
The PV industry during the reporting period has been elaborated in the "Discussion and Analysis of
Business Situation", as detailed in Section IV of this Report.
II. Notes to Material Changes in the Company's Major Assets during the Reporting Period
√ Applicable □ Not Applicable
See "II (III) Analysis of assets and liabilities" in Section IV of this Report for details.
The foreign assets are RMB 15.920 billion, accounting for 18.17% of the total assets.
III. Analysis of Core Competitiveness during the Reporting Period
√ Applicable □ Not Applicable
(I) Forward-looking strategic planning and high-efficiency strategy implementation
capabilities
LONGi's core management has long been engaged in and had an insight into the PV industry and
mono field, in possession of forward-looking strategic planning capability. In 2006, LONGi has, after
in-depth analysis on technical routes in the PV industry, chosen the most potential mono route for
minimized LCOE as its specialization, and centralized the resources, long engaged in the R&D,
production and sales of mono products, and made innovative breakthroughs in a number of mono PV
technology nodes. Led by LONGi, the market share of mono products has increased rapidly in the
Distributed PV (including BIPV)
Centralized
ground-mounting
solar plant
Poly silicon
material Mono ingot Mono wafer Mono cell Mono module
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global market, to the extent that the reversal has been realized, completing the market replacement of
mono products to poly ones. LONGi has developed into the world's largest mono PV manufacturing
enterprise integrating R&D, production, sales and services. In 2020, the shipments of both mono
wafers and modules ranked first in the world. Customer-oriented, the core management team are able
to carry out in-depth industry analysis and research, focus on the mainstay business, and implement
the organizational change effectively based upon the industry trends and changes in the competitive
landscape. Innovation-oriented, the core management has emphasized the supporting role of team
organization culture construction for enterprise development, given full play to the efficiency of
resources, focused on the financial health, adapted to a rapidly changing industry with an effective
organization and achieved the rapid growth of corporate performance. From 2013 to 2020, LONGi's
net profit attributable to the parent company has achieved a compound annual growth rate of 98%.
Effective organization and efficient execution have supported the rapid development of business.
(II) Strong technical reserves and leading R&D advantages
LONGi has always adhered to enhancing customer values, led the technological change and promoted
the industry development through technical innovation, and improved the market competitiveness of
products; a number of core technologies and products are industry leading. LONGi is the only PV
manufacturing enterprise included in the first batch of single champion demonstration enterprises by
the Ministry of Industry and Information Technology (MIIT). In terms of single crystal growth, the
mainstream RCZ technique widely used in the industry is developed and named by the Company. In
terms of wafer cutting, it has taken the lead to introduce the low-cost diamond wire slicing technology
into mass production at low cost worldwide, and opened the domestic diamond wire industry chain,
thus boosting the development of the domestic diamond wire industry chain; in terms of solar cell
modules, LONGi is the world's first company for GW scale applications of mono P-type PERC cell
technology and PERC bifacial module technology, has addressed completely the initial light decay of
mono products plaguing the industry for years, made public the LIR (Light Induced Regeneration)
technology, an industry-leading low attenuation technology, and helped solve the initial light decay
of mono products around the world, thus facilitating the industry to grow together. The conversion
efficiency of mono cells and modules keeps setting world records; in terms of BIPV, LONGi is the
world's first company for mass production and application of BIPV products to the roofs of industrial,
commercial and public buildings, thus boosting the development of green low-carbon buildings.
In terms of construction and reserve of R&D resources, LONGi has, by actively introducing and
rationally allocating talents, established a professional R&D team of more than 800 members, set up
a Silicon R&D Center, a Cell R&D Center and a Module R&D Center, and boasted a National
Technology Center and 5 provincial technology centers. It has established strategic cooperation
relationship with the University of New South Wales, State Key Laboratory of Silicon Materials,
Zhejiang University and other institutes, strengthened the industry-university-research cooperation
and technical exchanges, and built a globally competitive R&D system. Over the years, the R&D
inputs account for about 5% of the operating revenues. By the end of December 2020, LONGi has
obtained a total of 1,001 patents. In addition, thanks to open innovation, LONGi has harvested strong
techniques in terms of single crystal growth process and quality control, cutting capability of mono
wafers, high efficiency of mono cells, research on industrial applications of module technology, cost
reduction and intelligent manufacturing, featured by a sufficient reserve of iterative technologies and
new products, and constantly improved capability for independent innovation. While constantly
strengthening and improving the technological innovation and R&D system, LONGi has also attached
great importance to the industrial transformation of R&D results, and gradually introduced the leading
technological achievements into mass production, thereby continuously reducing the LCOE.
(III) World-renowned brand advantage and quality assurance
Brand is the epitome of customer perception, and quality is the most important dimension in customer
perception, which plays a vital role in improving positive customer perception and building brand
reputation. Since its establishment, LONGi has always provided customers with more quality
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products and services, which is deemed as the foundation of long-term steady development. LONGi
is committed to becoming the world's most valuable solar technology company, providing global
customers with high-efficiency mono solutions, and increasing customer values by delving into,
discovering and meeting customer requirements. Benefiting from the advantages of the whole
industrial chain from front-end silicon materials to downstream modules and solar plants, LONGi has
continuously introduced the accumulated leading R&D achievements into mass production. Thanks
to the internal reliability testing and third party certification, it has guaranteed the high efficiency,
reliability and yield of products. The wafer criteria initiated by LONGi have been included in the
SEMI Standards and released globally. The module products have passed the certification of TÜV,
UL, CQC, JET-PVm, SII and other authoritative bodies, and awarded 100% bankability by
Bloomberg New Energy Finance (BNEF), a world-renowned research institute. In the PV Module
Index Report 2020 released by the Renewable Energy Test Center (RETC), LONGi was the only
module manufacturer with excellent results in eight single tests, thanks to the excellent performance
of its module products. LONGi acquired Zhejiang LERRI Solar(Now refers to Zhejiang LONGi Solar)
at the end of 2014, and after several years of business development, its module shipments in 2020
ranked first in the world. With excellent product quality and brand influence, LONGi has established
a good visibility and reputation in the industry, and won the recognition and trust of numerous
customers at home and abroad. The influence of "LONGi" brand is rising rapidly in the global PV
sector.
(IV) Sound operation and risk control capability
LONGi believes that the best product warranty is that "An enterprise survives its products." In the
process of sustained and rapid growth, LONGi has adhered to the sound business philosophy,
managed the operating risks reasonably, and always kept the liability-to-asset ratio at a reasonable
level. In Q4’20 PV ModuleTech Bankability Ratings Report, LONGi became the only AAA-rated
module manufacturer worldwide for four consecutive quarters, and also the world's first and only
AAA-rated module supplier, which is currently the highest level in this Ratings report, evidenced by
industry-leading financial health index.
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Section IV Discussion and Analysis of Business Operation
I. Discussion and Analysis of Business Operation
Today, addressing global climate change has become the greatest consensus of human society. More
than 120 countries have set the vision of "carbon neutrality", and this coverage is still expanding,
proving the strong global desire for energy transition. At the general debate of the 75th session of the
United Nations General Assembly on September 22, 2020, Chinese President Xi Jinping made a
statement that China would scale up its Intended Nationally Determined Contributions by adopting
more vigorous policies and measures, aiming to have CO2 emissions peak before 2030 and to achieve
carbon neutrality before 2060. This vision has indicated the direction for the long-term development
of domestic clean energy.
Energy use and consumption contribute chiefly to the carbon emissions. It has become the consensus
of all countries to vigorously develop renewable energy. Since the global energy system is changing
rapidly, renewable energy has become a major driving force for changes in the global energy
landscape. With technological advances and falling costs, the growth rate of renewable energy has far
outpaced that of any other energy types. In accordance with the Outline of the 14th Five-Year Plan
and 2035 Vision for National Economic and Social Development of the People's Republic of China,
China will promote an energy revolution, build a clean, low-carbon, safe and high-efficiency energy
system, and improve its ability to ensure energy supply during the "14th Five-Year Plan" period. We
will accelerate the development of non-fossil energy, vigorously increase the scale of wind power and
PV power generation, and raise the proportion of non-fossil energy in total energy consumption to
around 20% (from 15.3% in 2019). Energy security and clean transition will be an important direction
of our future economic development, and renewable energy will usher in greater development.
As the main source of power from renewable energy, PV will play a key role in different fields and
scenarios for carbon neutrality. With the continuous technological progress of the PV industry and
the decline of the cost per kilowatt hour, LCOE has decreased by more than 90% worldwide in the
past decade, which is the largest decline compared with wind power, natural gas, coal power and
nuclear power. The world's lowest bidding price for PV power has reached 1.04 cents/kWh. The
number of GW countries has grown to 16 from three in 2010, and is expected to expand further in the
future. At present, PV power generation has become the most competitive power source in many
countries and regions around the world. According to IEA's forecast, the new installed capacity of PV
power generation will account for more than half the new installed capacity of renewable energy in
2021. The global PV power generation will gradually mark the era of "cents per kilowatt-hour".
2020 was an extraordinary year. Under the pressure tests and challenges of the global pandemic, the
global PV industry has maintained a good momentum of development, benefiting from the rapid and
effective control of COVID-19 in China and the significant growth in the domestic market. According
to the CPIA statistics, during the reporting period, the global new PV installed capacity was 130GW,
with a year-on-year increase of 13%, of which the domestic PV installed capacity was 48.2GW, up
60% year on year. China's new and cumulative PV installed capacity in 2020 remained No. 1 in the
world, and its PV industry continued to lead the world in terms of development scale. Meantime,
during the reporting period, subject to the unbalanced supply and demand and diversified sizes of
market products, the PV industry experienced the tight supply of main and auxiliary raw materials
represented by silicon material, glass, and membrane, manifested by the reconstructed pattern of
industry competition, rapidly increased concentration of the industrial chain, and more fierce market
competition.
Looking back to 2020, in the face of the pandemic and the complicated and volatile market
environment, LONGi has seized the development opportunities, and maintained prudent operation
and positive response while doing well in epidemic prevention and control. Adhering to the business
policy of "leading products, high-efficiency operation, practical cooperation, and steady
management", LONGi has driven the wider application of PV power generation around the world
with technology, and continued to output values for customers. By continuously providing reliable
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and high-efficiency products and services to the market, LONGi has accelerated the pace of
production capacity construction to ensure the market supply of mono products, pursued the increase
of market share, and realized the rapid growth of business performance. During the reporting period,
LONGi achieved an operating revenue of RMB 54.583 billion, up 65.92% year on year; the net profit
attributable to the parent company reached RMB 8.552 billion, up 61.99% year on year; basic EPS
was RMB 2.27, a year-on-year rise of 54.42%; the weighted average return on equity after deducting
non-recurring profit or loss was 25.93%, an increase of 2.84 percentage points, and the net cash flow
from operating activities was RMB 11.015 billion, up 35.02% year on year. In 2020, we have mainly
done the following:
(I) Deepened the globalization strategy and implemented global operations effectively
During the reporting period, LONGi continued to advance the globalization strategy and facilitate the
effective implementation of global operations. The annual overseas revenue was RMB 21.461 billion,
up 70% year on year. In 2020, LONGi deepened the capacity building of global sales organization,
further promoted the localization and echelon of talents, deepened the principle of localized
management, empowered to stimulate the organizational vitality, further expanded the overseas sales
areas, and significantly increased the market share in key countries and regions; in terms of overseas
production capacity construction, LONGi acquired Ningbo EZ, enhanced the technical
transformation and efficiency improvement of the bases in Malaysia and Vietnam, and effectively
guaranteed the production capacity supply in the overseas market.
(II) Adhered to the customer value-oriented product strategy and solutions, and increased
rapidly the market share of mono products
During the reporting period, with the core of enhancing customer values and relying on the quality,
cost and brand advantages, LONGi effectively met customers' market demand for mono products.
The sales of main products (i.e., mono wafers and modules) increased significantly over the same
period last year, bringing steady growth of operating revenue and profit. In 2020, LONGi achieved
the shipments of 58.15GW mono wafers, including the external sales of 31.84GW, a year-on-year
increase of 25.65%, and 26.31GW for self-use; the shipments of mono modules were 24.53GW,
including the external sales of 23.96GW, up 223.98% year on year, and 0.57GW for self-use. In
addition, LONGi- continued to improve its EPC system development capability, completed the
promotion and marketing of BIPV products, named “LONGi Roof”. In 2020, LONGi reached a
strategic cooperation agreement with-large energy groups, implemented differentiated marketing
strategies for different markets, enhanced the customer communication with product and brand
advantages, and rapidly increased the market share of module products; it strengthened the supply
capacity of raw and auxiliary materials and the guarantee of production capacity, giving priority to
ensuring the performance capacity of order delivery; besides, it kept expanding the advantages of
product performance, quality consistency and stability, so that brand advantage and product premium
ability were highlighted. In 2020, the global market share of LONGi's module products was about
19%, a significant increase of 11 percentage points from 2019. Led by LONGi, the global market
share of mono products has increased rapidly, and mono products have replaced poly ones. The
market share of mono products has risen to 90.2% in 2020, an increase of more than 20 percentage
points from 2019, according to the 2020 China PV Industry Development Roadmap released by the
China Photovoltaic Industry Association (CPIA).
(III) Continuously implemented the product leadership strategy, and achieved remarkable
results in the product and service upgrades
In 2020, LONGi continued to deepen the product leadership strategy, create value for customers, lead
the technological innovation with high targets, constantly promote the reduction of product costs as
well as the efficiency and quality improvement, maintain high R&D inputs, and introduce the high
value results into mass production, with sufficient reserves of new products and technologies. By the
end of the reporting period, LONGi had obtained a total of 1,001 issued patents and invested RMB
2.592 billion in R&D, accounting for 4.75% of its operating revenue. In terms of ingot pulling and
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slicing, the key R&D projects have been completed and put into production as planned, featured by
the continuously improved quality control level of large-size and N-type products, and constantly
optimized core key quality indicators. The non-silicon costs have been further reduced, down 9.98%
year on year for the average unit cost of ingto pulling, and 10.82% for that of slicing. The wafer
quality and cost remained industry leading. For solar cells and modules, LONGi kept an eye on
technology and application trends, and prospectively explored the limit of cell conversion efficiency
and sought a breakthrough. The technology-iterated products have experienced the beforehand
research, pilot plant test and pre-launch stages and been marketed in due time; the single line capacity,
yield and conversion efficiency were improved significantly, the mass production conversion
efficiency and non-silicon cost of the products have been industry leading. LONGi has completed the
application and marketing of new modules with high reliability for the special-shaped ribbion
connection technology. Meantime, focusing on different application scenarios and customer types,
LONGi designed and developed high-power differentiated products based on the best cost
performance. BIPV products were mass produced and continued to maintain leadership and
competitive advantage.
(IV) Accelerated production capacity projects, and guaranteed the supply of mono products
effectively
During the reporting period, in the context of the pandemic and the imbalance between supply and
demand, LONGi coordinated and guaranteed the resources in terms of project investment and
construction and supply chain to the maximum extent, accelerated the production capacity expansion
of mono products, and further consolidated the advantage of mono scale, in an effort to ensure the
effective supply of high-efficiency mono products in the market. By the end of 2020, LONGi's mono
wafer capacity reached 85GW, mono cell 30GW, and mono module 50GW. The following projects
have been put into production: 15GW Mono Ingot and Wafer Project of Yinchuan, 10GW Mono Ingot
Project of Tengchong, 10GW Mono Ingot and Wafer Project of Qujing, 7.5GW Cell Project (Phase I)
of Xi'an Aerospace, 5GW Mono Cell Project of Xi'an Jingwei New Town, 5GW Mono Module
Project (Phase II) of Taizhou, 5GW Mono Module Project of Xianyang, 5GW Mono Module Project
(Phase II) of Chuzhou, and 5GW Mono Module Project of Jiaxing. During the reporting period, the
output of mono wafers was 58.90GW, up 67.11% year on year, and the output of mono modules was
26.60GW, up 198.68% year on year.
(V) Promoted high-efficiency operations, built a value-creating organization and actively
fulfilled social responsibilities
In 2020, LONGi actively promoted the high-efficiency operation and built a value-creating
organization. During the reporting period, LONGi initially realized the in-depth coverage of the
financial core system to the base level, and led the organization performance with high targets. We
completed the management cadre empowerment and restarted the talent review, so that the level of
human resource management was further improved; we pushed actively forward the management of
functional centers, took service business as the starting point, and optimized the credit management,
contract review, business service and other management methods; we increased the intellectual
property inputs, exceeding the annual target of strategic patent layout; the Institute of Strategic
Management Center was established to delve into the industrial strategy and promote the
implementation of strategies. Moreover, we set up a Digital Transformation Office to drive the
digitization and efficiency of organizational management. After the outbreak of COVID-19, LONGi
attached great importance to epidemic prevention and control, took the lead in the PV industry and
Shaanxi Province in responding to the donations to aid medical workers in Hubei, and accumulated
RMB 15.65 million of donations and supplies during the pandemic, encouraging the society to create
a better environment for humanistic care. During the reporting period, LONGi proposed the concept
of "Zero Carbon PV" for the first time, and became the first PV enterprise to join the "three 100" (i.e.,
"RE100", "EV100" and "EP100") initiatives of the United Nations, thus facilitating the realization of
China's carbon neutrality targets. LONGi promises to use 100% renewable energy for its global
production and operation by 2028; to install adequate electric vehicle facilities, thus guiding
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employees to replace their family cars to electric vehicles within the next decade; to complete the
deployment of the energy management system by 2025 and to improve energy efficiency by 35%
from the base year of 2015.
II. Major Operations during the Reporting Period
See "I. Discussion and Analysis of Business Operation" for details.
(I) Analysis of main businesses
1. Analysis on changes of relevant items in the Income Statement and Statement of Cash
Flows
Unit: Yuan Currency: RMB
Item Amount in the
current period
Amount of the
same period last
year
Proportion of change
(%)
Operating revenue 54,583,183,588.46 32,897,455,384.24 65.92
Operating cost 41,145,628,529.00 23,389,364,451.22 75.92
Selling expenses 1,073,438,176.42 1,329,748,334.67 -19.28
Administrative expenses 1,465,812,375.27 971,025,108.82 50.96
R&D expenses 499,103,854.57 304,198,315.84 64.07
Financial expenses 378,293,373.67 249,608,430.73 51.55
Net cash flow from operating activities 11,014,879,428.05 8,158,241,026.53 35.02
Net cash flow from investing activities -5,170,806,228.97 -2,752,859,297.04 Not applicable
Net cash flow from financing activities 2,809,619,959.25 4,560,047,505.65 -38.39
2. Revenue and cost analysis
√ Applicable □ Not Applicable
During the reporting period, LONGi achieved the operating revenue of RMB 54.583 billion, up 65.92%
year on year, the operating cost of RMB 41.146 billion, up 75.92%, mainly ascribed to the significant
increase in sales of mono wafers and modules.
(1) Performance of main business by industry, product and region
Unit: Yuan Currency: RMB
Performance of main business by industry
By Industry Operating revenue Operating cost
Gross
profit
rate
(%)
Increase/decrease
of operating
revenue
compared with
previous year
(%)
Increase/decrease
of operating cost
compared with
previous year
(%)
Increase/decrease
of gross profit
rate compared
with previous
year (%)
PV industry 54,583,183,588.46 41,145,628,529.00 24.62 65.92 75.92 Down 4.28
percentage points
Performance of main business by product
By product Operating revenue Operating cost
Gross
profit
rate
(%)
Increase/decrease
of operating
revenue
compared with
previous year
(%)
Increase/decrease
of operating cost
compared with
previous year
(%)
Increase/decrease
of gross profit
rate compared
with previous
year (%)
Solar
modules
and cells
36,238,714,287.13 28,799,729,802.55 20.53 139.83 152.68 Down 4.04
percentage points
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Wafers and
ingots 15,512,518,521.35 10,802,428,070.49 30.36 12.60 14.85
Down 1.37
percentage points
Solar plant
construction
and services
1,325,186,445.95 852,576,473.38 35.66 -53.19 -59.01 Up 9.13
percentage points
Electric
power 693,673,424.19 247,841,587.04 64.27 -10.29 -8.16
Down 0.83
percentage points
Others 813,090,909.84 443,052,595.54 45.51 100.00 87.83 Up 3.53
percentage points
Performance of main business by region
By region Operating revenue Operating cost
Gross
profit
rate
(%)
Increase/decrease
of operating
revenue
compared with
previous year
(%)
Increase/decrease
of operating cost
compared with
previous year
(%)
Increase/decrease
of gross profit
rate compared
with previous
year (%)
Within
China 33,122,167,914.53 24,800,028,657.88 25.13 63.38 74.84
Down 4.90
percentage points
Asia-Pacific
region 7,522,964,942.88 5,687,017,147.52 24.40 130.37 151.88
Down 6.46
percentage points
American
region 8,841,481,125.06 6,837,055,412.63 22.67 94.08 106.70
Down 4.72
percentage points
European
region 4,986,865,048.75 3,737,365,067.78 25.06 4.42 3.27
Up 0.84
percentage points
African
region 109,704,557.24 84,162,243.19 23.28 299.05 307.80
Down 1.65
percentage points
Notes to the performance of main business by industry, product and region
N/A
(2) Analysis of production and sales
√ Applicable □ Not Applicable
Main
products Unit Production Sales Inventory
Increase/decrease
in production
over the previous
year (%)
Increase/decrease
in sales over the
previous year
(%)
Increase/decrease
in inventory over
the previous year
(%)
Mono
wafer MW 58,904.09 31,835.64 2,117.95 67.11 25.65 90.83
Mono
module MW 26,601.55 23,956.71 4,586.02 198.68 223.98 83.70
Notes for production and sales
① The production of modules in the table above included its own production and outsourced
capacity.
② The sales in the table above were external sales, excluding the plant demand. In 2020, the plant
demands of wafers and modules were 26,307.19MW and 565.39MW, respectively.
(3) Cost breakdown
Unit: RMB
By industry
By
Industry Cost structure Current amount
Proportion
of current
amount in
total costs
(%)
Amount for the
same period last
year
Proportion
of amount
for the
same
period last
Change
(%) Remarks
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year in
total costs
(%)
PV
industry Operating cost 41,145,628,529.00 100.00 23,389,364,451.22 100.00 75.92
Increased sales of
modules and wafers
By product
By
product Cost structure Current amount
Proportion
of current
amount in
total costs
(%)
Amount for the
same period last
year
Proportion
of amount
for the
same
period last
year in
total costs
(%)
Change
(%) Remarks
PV
products Raw materials 30,570,852,804.83 74.30 16,924,597,861.29 72.36 80.63
Increase in raw
material costs
arising from
business scale
expansion and
higher prices of raw
materials
PV
products Direct labor 2,196,334,044.51 5.34 1,260,062,842.17 5.39 74.30
Business scale
expansion and
increase in labor
costs
PV
products Depreciation 1,597,218,166.89 3.88 1,290,179,163.97 5.52 23.80
Increased
production capacity
and sales of
modules and wafers
PV
products Energy power 1,799,552,019.65 4.37 1,318,800,417.20 5.64 36.45
Increased
production and
sales of modules
and wafers
PV
products
Manufacturing
-overhead 3,576,563,154.51 8.69 2,595,724,166.59 11.09 37.79
Increased
production capacity
and sales of
modules and wafers
PV
products
Contract
performance
costs
1,405,108,338.61 3.42
Presentation in
accordance with the
new revenue
criteria
Total 41,145,628,529.00 100.00 23,389,364,451.22 100.00 75.92
Notes for other information about cost analysis
N/A
(4) Key sales customers and suppliers
√ Applicable □ Not Applicable
The sales revenue of the top five customers was RMB 10.124529 billion, accounting for 18.55% of
the total annual sales; the sales revenue of related parties amounted to RMB 869,100, accounting for
0.00% of the total annual sales.
The purchase amount from the top five suppliers was RMB 10.3711347 billion, accounting for 28.09%
of the total annual procurement; the purchase amount from related parties amounted to RMB
1.3379692 billion, accounting for 3.62% of the total annual procurement.
Other notes
N/A
3. Costs
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√ Applicable □ Not Applicable
Unit: RMB
Item Amount in the
current period
Amount of the same
period last year
Proportion
of change
(%)
Reasons for change
Selling
expenses 1,073,438,176.42 1,329,748,334.67 -19.28
The current period has
implemented new revenue
criteria, and freight is not
included in the selling expenses.
Administrative
expenses 1,465,812,375.27 971,025,108.82 50.96
Mainly ascribed to the scale
expansion and increase in the
number of staff.
R&D
expenses 499,103,854.57 304,198,315.84 64.07
Mainly ascribed to the increase
in the number of R&D
personnel.
Financial
expenses 378,293,373.67 249,608,430.73 51.55
Exchange losses increased as a
result of exchange rate
fluctuations.
4. R&D investment
(1) R&D investment breakdown
√ Applicable □ Not Applicable
Unit: RMB
R&D expenditure expensed in the
current period
2,591,142,802.21
R&D expenditure capitalized in the
current period
363,280.98
Total R&D investment 2,591,506,083.19
Percentage of total R&D investment in
the operating revenue (%)
4.75
Number of R&D personnel 823
Percentage of R&D personnel in total
employees (%)
1.76
Proportion of R&D investment capitalized
(%)
0.01
Note: There are differences between the above R&D investment and the statistical caliber of R&D
expenses in the Financial Statements. LONGi's R&D investment includes the R&D expenditure for
new technologies and products, depreciation of R&D equipment and other fixed assets, as well as the
pilot plant test costs involved in the industrial application of technologies; the R&D expenses in
Financial Statements are calculated in accordance with the provisions on the recognition and
measurement of internal R&D expenses in the Accounting Standards for Business Enterprises No. 6
- Intangible Assets, including the expenditures in the research and development stages other than the
capitalized portion.
(2) Explanatory notes
√ Applicable □ Not Applicable
During the reporting period, LONGi has, customer value oriented, tracked closely the technical trends
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and market demand in the PV industry, actively carried out R&D innovation, patent layout and
process improvement, promoted product quality optimization and sustained cost reduction, increased
the technical reserves for developing new and high-efficiency products, strengthened technical
barriers, and continued to maintain the leading technology.
5. Cash flow
√ Applicable □ Not Applicable
Unit: RMB
Item Amount in the current
period
Amount of the same
period last year
Proportion
of change
(%)
Reasons for change
Net cash flow from
operating activities 11,014,879,428.05 8,158,241,026.53 35.02
Mainly ascribed to the
sharp increase in sales -.
Net cash flow from
investing activities -5,170,806,228.97 -2,752,859,297.04
Not
applicable
Increased investment in
new production capacity
and new acquisition of
stock equity in Ningbo EZ.
Net cash flow from
financing activities 2,809,619,959.25 4,560,047,505.65 -38.39
Increase in dividend of the
current period.
(II) Explanation for significant changes in profit resulting from non-core business
□ Applicable √ Not Applicable
(III) Breakdown of assets and liabilities
√ Applicable □ Not Applicable
1. Assets and liabilities
Unit: RMB
Description Ending balance in
the current period
Percentag
e of
ending
balance in
the current
period in
total
assets (%)
Ending balance in
the previous
period
Percentag
e of
ending
balance in
the
previous
period in
total
assets (%)
Change
(%) Remarks
Monetary
fund
26,963,388,535.7
8 30.77
19,335,752,879.4
1 32.60 39.45
The sales scale
expansion, and
increase in the
net inflow
from operating
activities and
in the issuance
of convertible
bonds for
financing.
Financial
assets held for trading
4,000,971.20 0.00 N/A
The wealth
management
products held
by the newly
acquired
Ningbo EZ not
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yet due.
Accounts
receivable 7,270,501,797.93 8.30 3,825,745,270.65 6.45 90.04
Increased
sales.
Receivables
financing 238,952,924.42 0.27 829,052,223.55 1.40 -71.18
Fewer undue
discounted
bills.
Advance
payment 1,890,936,620.96 2.16 1,031,402,392.47 1.74 83.34
Increase in
advance
payment for
materials.
Other
receivables 442,833,996.57 0.51 295,997,593.37 0.50 49.61
Increased
equity transfer
funds for
power -
projects.
Inventory 11,452,416,318.7
3 13.07 6,356,144,784.78 10.72 80.18
Production
scale
expansion and
increase in
overseas
inventory in
transit.
Contract
assets 1,126,728,402.82 1.29
Not
applicabl
e
Presentation in
accordance
with the new
revenue
criteria.
Held-for-
sale assets 4,424,778.76 0.01 N/A
Increase in the
assets for
which the
disposal
agreement has
been signed.
Non-current
assets due
within one
year
1,078,392.41 0.00 31,419,922.32 0.05 -96.57
Collected part
of the EPC
funds under
the installment
payment
method.
Other
current
assets
1,441,783,869.93 1.65 1,107,607,993.67 1.87 30.17 VAT retention
increased.
Creditors
investment 115,363.30 0.00 N/A
Bank
debentures
bought by the
newly
acquired
Ningbo EZ.
Long-term
equity
investment
1,455,861,146.49 1.66 1,074,184,697.40 1.81 35.53
New
investment in
associates.
Investment
in other
equity
37,142,441.49 0.04 21,959,667.68 0.04 69.14 Increase in fair
value.
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instruments
Investment
real estate 78,774,204.57 0.09 N/A
Acquisition of
Ningbo EZ
included in the
consolidated
financial
statement in
the current
period.
Fixed assets 24,505,980,871.8
0 27.96
15,467,300,311.7
9 26.08 58.44
Increased
investment in
new
production
capacity and
acquisition of
Ningbo EZ
included in the
consolidated
financial
statement.
Intangible
assets 597,640,666.79 0.68 245,165,167.97 0.41 143.77
Acquisition of
Ningbo EZ
included in the
consolidated
financial
statement in
the current
period.
Goodwill 176,216,945.68 0.20 11,011,065.47 0.02 1,500.36
Ascribed to the
acquisition of
Ningbo EZ in
the current
period.
Long-term
unamortize
d expenses
1,486,790,492.15 1.70 970,965,434.45 1.64 53.12
Mainly
ascribed to the
increase in
finishing costs
for newly
leased plants.
Deferred tax
assets 880,202,363.02 1.00 499,935,451.98 0.84 76.06
Increased
deductible
losses and the
provision for
impairment of
fixed assets.
Short-term
borrowings 2,415,965,626.06 2.76 854,371,792.82 1.44 182.78
New short-
term bank
borrowings.
Notes
payable
10,974,916,004.4
5 12.52 8,111,877,027.54 13.68 35.29
The scale of
production
expanded.
Accounts
payable
11,169,277,619.2
8 12.75 5,602,048,097.26 9.45 99.38
The scale of production
expanded.
Advance 3,679,503,563.97 6.20 -100.00 Presentation in
Annual Report 2020
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receipts contract
liabilities
according to
the new
revenue
criteria.
Contract
liabilities 5,017,755,319.14 5.73 N/A
Presentation in
accordance
with the new
revenue
criteria.
Payroll
payable 1,020,683,800.85 1.16 558,355,222.82 0.94 82.80
Payroll
increase
arising from
the increase of
headcount.
Taxes
payable 660,845,122.96 0.75 344,089,424.95 0.58 92.06
Increase in
enterprise
income tax
payable
arising from
the increase in
earnings.
Other
payables 8,611,886,461.72 9.83 3,898,115,075.49 6.57 120.92
Mainly
ascribed to the
increase in
payables on
equipment for
new capacity.
Non-current
liabilities
due within
one year
2,786,474,497.52 3.18 1,571,481,098.00 2.65 77.32
Mainly
ascribed to the
reclassificatio
n of bonds
payable.
Other
current
liabilities
434,652,976.40 0.50 N/A
Increase in
unamortized
output tax.
Long-term
borrowings 1,125,286,240.29 1.28 2,508,594,222.97 4.23 -55.14
Repayment of
some long-
term
borrowings.
Bonds
payable 4,351,411,265.99 4.97 995,584,143.19 1.68 337.07
Mainly
ascribed to the
issuance of
convertible
corporate
bonds in the
current period.
Long-term
payables 889,053,865.52 1.01 1,528,226,692.46 2.58 -41.82
Mainly due to
the fact that the
sales of the
subsidiary were not
included in the
consolidated
financial
Annual Report 2020
27 / 312
statements.
Accrued
liabilities 907,152,946.36 1.04 516,510,834.07 0.87 75.63
More retention
money
accrued with
the increase of
module sales.
Deferred
income 673,956,660.83 0.77 516,595,134.18 0.87 30.46
Increased
government
grants
received in the
current period.
Deferred tax
liabilities 727,617,701.50 0.83 323,804,103.26 0.55 124.71
Increase in
fixed assets to
be lump-sum
deductible
before tax
according to
the tax law and
the newly
acquired
subsidiary
included into
the
consolidated
financial
statements.
Other non-
current
liabilities
269,831,581.77 0.31 N/A
The floating
consideration
for more than
one year
generated
from the
acquisition of
Ningbo EZ in
the current
period.
2. Restrictions on major assets as at the end of the reporting period
√ Applicable □ Not Applicable
As of the end of the reporting period, the balance of restricted assets was RMB 10.994 billion, which
was mainly composed of the bank security and the pledge of assets for financing, as detailed in
Section XI "VII. 81. Assets with restricted ownership or use right" of this Report.
3. Other notes
□ Applicable √ Not Applicable
(IV) Analysis of business information of the industry
√ Applicable □ Not Applicable
LONGi is mainly engaged in the PV industry, and the main business information is analyzed below:
Annual Report 2020
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Analysis of business information of the PV industry
1. PV equipment manufacturing business
□ Applicable √ Not Applicable
2. Key technical indicators of PV products
√ Applicable □ Not Applicable
Product category Technical indicators
Wafer: Non-silicon cost Proportion of electric rate in the product
cost
Mono wafer
Down 10.82% year on year in the average
non-silicon cost for the slicing process in
2020
1.24% in the average cost for the slicing
process in 2020
Solar cell module: Average power of modules in mass
production Maximum power of modules in R&D
Mono module M72 PERC module (M6): 445W-460W
M72 PERC module (M10): 540W-550W M72 PERC module (M10): 555W
Indicator implication, discussion and analysis: ① Non-silicon cost refers to the cost of wafer except silicon
materials, which is an important indicator to mirror the technological level and cost control ability of a wafer
manufacturer; ② the average power of modules in mass production means the power range of mass produced
modules; ③ maximum power of modules in R&D refers to the maximum power tested in the R&D -lines.
In terms of wafer products, LONGi has, based upon the technology accumulation in the ingot pulling
and slicing, adhered to scientific and technological innovation, conducted quality improvement
research, vigorously promoted the introduction of R&D results, ending with the positive results in the
improvement of yield per unit area of ingot pulling, process and cost optimization, and yield
improvement, thereby declining further the costs of wafer products and maintaining an industry
leading position.
In terms of module products, LONGi has, based on the design concept of optimal size, adopted
gallium-doped mono wafers, and employed half cell, MBB, intelligent welding and other techniques
to effectively improve the power and reliability of modules. The modules feature a mass production
efficiency of over 21%, with industry-leading power generation performance and product quality.
3. PV solar plant information
□ Applicable √ Not Applicable
□ Applicable √ Not Applicable
□ Applicable √ Not Applicable
Annual Report 2020
29 / 312
4. Recommended forms
(1) Production and capacity under construction of PV products
Production
Product category Existing production Capacity utilization Process route
Mono wafer 58.90GW 94.98% Mono
Mono module 25.12GW 89.70% Mono
Note: The production in the table above is the existing production, excluding outsourced capacity;
Capacity utilization = Existing production / Self-owned capacity during the period.
Analysis on causes and effects of major changes in capacity utilization: LONGi promoted the
resumption of work and production at all production bases during the pandemic in an orderly manner,
and flexibly adjusted the production and operation plans; besides, it strengthened supply chain
assurance with strategic long-term orders, and responded actively to the shortage of raw materials
such as silicon materials and PV glass, so that the capacity utilization of wafers and modules remained
at a high level in the industry throughout the year.
Capacity under construction
Unit: Hundred Million Yuan Currency: RMB
Product
category
Total
investment in
production lines
under
construction
Current
investment in
production lines
under
construction
Design
capacity Estimated SOP time
Process
route under
construction
Mono wafer 36.63 3.19 30GW
Partially put into
production, and the
remaining capacity
expected to be put into
production successively in
2021
Mono
Mono
module
/ / / / /
Note: ① LONGi's wafer capacity under construction includes 10GW Mono Ingot and Wafer Project
of Qujing and 20GW Mono Wafer Project (Phase III) of Chuxiong. Since 10GW Mono Ingot and
Wafer Project of Qujing is approved as a whole, the above investment includes that of 10GW Ingot
Project of Qujing.
② The above total investment was the budgeted amount of investment, including working capital.
(2) Key technical indicators of PV products
√ Applicable □ Not Applicable
Unit: Ten Thousand Yuan Currency: RMB
Product category Sales-output ratio (%) Sales revenue Gross profit rate (%)
Within China Overseas Within China Overseas
Wafer:
Mono wafer 98.71 1,260,049.24 149,661.65 29.85 35.61
Solar cell module:
Mono module 92.15 1,581,108.60 1,940,172.60 17.90 22.75
Any PV products sold abroad to be listed by country or region
Annual Report 2020
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√ Applicable □ Not Applicable
Unit: Ten Thousand Yuan Currency: RMB
Overseas sales of wafer products
Country or region Sales revenue Gross profit rate (%)
Asia-Pacific region 100,175.37 34.38
American region 30,838.59 37.83
European region 18,647.69 38.57
Unit: Ten Thousand Yuan Currency: RMB
Overseas sales of module products
Country or region Sales revenue Gross profit rate (%)
American region 834,719.06 21.85
Asia-Pacific region 617,497.07 22.69
European region 477,634.16 24.42
African region 10,322.31 20.58
(3) Information on EPC or development projects for PV solar plants
□ Applicable √ Not Applicable
4. Other notes
□ Applicable √ Not Applicable
Annual Report 2020
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(V) Investment analysis
1. General analysis of equity investments in external entities
√ Applicable □ Not Applicable
With the advent of grid parity, plus the positive policy for carbon neutrality in various countries, the
market demand of the PV industry will enter a new stage of rapid development. During the reporting
period, LONGi promoted steadily the implementation of high-efficiency capacity expansion projects
in each link, and increased the layout of high-efficiency mono cell capacity. In addition, to further
improve the layout of overseas capacity, LONGi acquired Vina Cell and Vina Solar in July 2020 to
consolidate its competitiveness in the global market.
(1) Significant equity investment
√ Applicable □ Not Applicable
On June 30, 2020, LONGi signed a Share Purchase Agreement with Wang Zhaofeng, Yang Yongzhi,
Zhao Xuewen and Ningbo Chaofang Industrial Investment Partnership (Limited Partnership), under
which LONGi purchased 100% of the equity of Ningbo EZ in cash, at the benchmark price of RMB
1.78 billion. Depending on their performance, the performance commitment companies (Target
Company and its subsidiaries, sub-subsidiaries, joint stock companies) should pay the floating
consideration or performance-based compensation to LONGi. The equity delivery of the underlying
assets was completed on July 31, 2020 (please refer to LONGi's Announcement No. L2020-070 on
July 1, 2020 for details). The target production base acquired is located in Vietnam, which further
improved LONGi's global capacity layout.
(2) Significant non-equity investment
√ Applicable □ Not Applicable
S/
N Description Sponsor
Estimated total
investment
approved by
competent
authorities (RMB
Hundred Million)
Project progress Source of funds
1
5GW High-
efficiency Mono
Module Project of
Chuzhou LONGi
Solar
Chuzhou
LONGi
Solar
22.62 Fully put into production
Raised funds +
self-pooled
funds
2
5GW High-
efficiency Mono Cell
Project of Ningxia
LONGi Solar
Ningxia
LONGi
Solar
30.5 Fully put into production
Raised funds +
self-pooled
funds
3
6GW Mono Ingot
Project (Phase II) of
Baoshan
Baoshan
LONGi 17.49 Fully put into production
Self-pooled
funds
4
6GW Mono Ingot
Project (Phase II) of
Lijiang
Huaping
LONGi 19.37 Fully put into production
Self-pooled
funds
5
10GW Mono Wafer
Project (Phase II) of
Chuxiong
Chuxiong
LONGi 14.86 Fully put into production
Self-pooled
funds
6 1.25GW Mono Cell
Project of Kuching
LONGi
Technology
(Kuching)
9.57 Fully put into production Self-pooled
funds
Annual Report 2020
32 / 312
7
15GW Mono Ingot
and Wafer Project of
Yinchuan
Yinchuan
LONGi PV 45.86 Fully put into production
Raised funds +
self-pooled
funds
8 5GW Mono Module
Project of Taizhou
Jiangsu
LONGi
Solar
17.9 Fully put into production Self-pooled
funds
9 5GW Mono Module
Project of Xianyang
Xianyang
LONGi
Solar
18.39 Fully put into production Self-pooled
funds
10
5GW Mono Module
Project (Phase II) of
Chuzhou
Chuzhou
LONGi
Solar
20.21 Fully put into production Self-pooled
funds
11
5GW Mono Cell
Project of Xi'an
Jingwei New Town
Shaanxi
LONGi
Solar
24.62 Fully put into production
Raised funds +
self-pooled
funds
12 5GW Mono Module
Project of Jiaxing
Jiaxing
LONGi
Solar
19.48 Fully put into production Self-pooled
funds
13 10GW Mono Ingot
Project of Tengchong
Tengchong
LONGi 18.37
Partially put into
operation
Self-pooled
funds
14
7.5GW Mono Cell
Project (Phase I) of
Xi'an Aerospace
Base
Xi’an
LONGi
Solar
32.26 Fully put into production
in the Q1 2021
Self-pooled
funds
15
10GW Mono Ingot
and Wafer Project of
Qujing
Qujing
LONGi 23.27
Partially put into
operation
Self-pooled
funds
16
3GW Mono Cell
Project of Ningxia
LONGi Solar
Ningxia
LONGi
Solar
13.97
Under construction and
expected to be put into
production in Q4 2021
Raised funds
(note) + self-
pooled funds
Note: The Proposal on the Closing of Investment Projects Raised by Rights Offering in 2018 and the
Use of the Carryover and Surplus Funds for New Projects and Permanent Replenishment of Working
Capital were passed at the 20th Meeting of the Fourth Board of Directors in 2020 and the First
Extraordinary General Meeting in 2021. It's hereby agreed to invest RMB 1.2 billion of surplus funds
from 5GW High-efficiency Mono Cell Project of Ningxia LONGi Solar in the construction of 3GW
Mono Cell Project of Ningxia LONGi Solar, and the remaining RMB 16.98882 million for the
permanent replenishment of working capital.
(3) Financial assets measured at fair value
√ Applicable □ Not Applicable
See "XI. Disclosure of Fair Value" in Section XI of this Report for details.
(VI) Sales of material assets and equities
□ Applicable √ Not Applicable
(VII) Analysis of major holding and joint-stock companies
√ Applicable □ Not Applicable
1. Major holding subsidiaries
Unit: RMB Ten Thousand
Name Principal business Registere
d capital Total assets Net assets
Operating
revenue
Operating
profit Net profit
Annual Report 2020
33 / 312
Ningxia
LONGi
Manufacturing and
sales of ingots 25,000 273,134.82 162,893.32 185,455.55 49,579.34 43,742.21
Huaping
LONGi
Manufacturing and
sales of ingots 30,000 156,617.99 89,824.21 287,578.85 70,966.10 60,486.87
Yinchuan
LONGi
Manufacturing and
sales of ingots and
wafers
100,000 774,700.65 661,170.46 794,724.08 193,270.75 170,664.31
Wuxi
LONGi
Manufacturing and
sales of wafers 20,000 114,700.04 99,558.74 45,560.20 3,153.27 1,491.41
Lijiang
LONGi
Manufacturing and
sales of ingots 80,000 200,213.43 138,963.45 307,392.75 60,878.24 51,840.17
Baoshan
LONGi
Manufacturing and
sales of ingots 100,000 414,346.59 281,332.68 597,271.34 146,429.55 124,765.13
Chuxiong
LONGi
Manufacturing and
sales of wafers 50,000 372,355.03 195,606.54 1,063,717.92 118,796.57 101,277.17
Yinchuan
LONGi
PV
Manufacturing and
sales of ingots and
wafers
5,000 609,055.25 377,659.49 271,966.79 38,471.63 34,965.34
LONGi
Solar
Manufacturing and
sales of PV cells and
modules
200,000 3,686,980.35 996,583.94 3,334,038.32 -13,401.88 -2,345.15
LONGi
New
Energy
Development and
operation of PV
distributed solar
plants
140,000 369,115.55 177,447.82 95,145.05 15,572.39 13,115.98
Clean
Energy
Development and
operation of PV
centralized solar
plants
50,000 434,326.25 202,584.83 120,098.59 66,729.08 57,021.61
LONGi
(H.K.)
Import & export of
mono silicon and
polysilicon raw
materials and
products
HKD 779
million 485,538.66 221,802.69 678,209.17 20,771.59 20,743.52
LONGi
(Kuching
)
Manufacturing and
sales of ingots,
wafers, cells and
modules
MYR
978.162
million
217,043.67 170,100.81 180,720.92 18,740.46 15,761.96
Vina Cell Manufacturing and
sales of PV cells
USD
68.4357
million
217,215.24 136,542.19 138,796.47 22,946.17 22,263.86
Vina
Solar
Manufacturing and
sales of PV modules
USD
91.0193
million
185,341.52 82,670.31 87,241.27 8,628.62 7,123.95
Notes: ① Allowing for many subsidiaries, the financial data of LONGi Solar, Clean Energy and
New Energy shall be presented in the consolidated statements, and other companies in the individual
statements.
② Vina Cell and _Vina Solar have been incorporated into the consolidated statements of the
Company since August 2020, and their operating revenue, operating profit and net profit are the totals
from August to December 2020.
2. Major joint stock companies
Unit: RMB Ten Thousand
Name Principal business Shareholding Registered
capital Total assets Net assets Net profit
Zhongning Solar energy development and 30% 30,000 148,349.84 38,955.73 19.32
Annual Report 2020
34 / 312
New Energy investment
Tongxin
LONGi
Investment & development of
energy projects, and operation
management of power projects
49% 15,952 74,412.67 34,524.89 2,297.82
Sichuan
Yongxiang
Manufacturing and sales of non-
metallic mineral products and PV
equipment components
15% 280,000 486,615.74 191,618.14 52,239.95
Pingmei
LONGi
Production and sales of cells and
modules 19.8% 90,000 259,485.21 122,772.33 12,694.90
Tongchuan
Xiaguang
Development and operation of PV
power - projects 51% 43,000 176,193.71 54,060.14 8,842.92
Daqing New
Energy
Development, investment,
construction and operation of PV
power -projects
30% 13,246 76,705.28 24,840.68 3,158.38
Zhaozhou
New Energy
Development, investment and
construction of PV power -
projects
30% 11,841 64,048.04 17,229.59 2,396.88
Note: The Company holds 51% of shares in Tongchuan Xiaguang, but has no control over Tongchuan
Xiaguang according to the Articles of Association, and thus not included in the consolidated range.
(VIII) Structured entities controlled by the Company
□ Applicable √ Not Applicable
III. Discussion and Analysis on the Company's Future Development
(I) Industry structure and trend
√ Applicable □ Not Applicable
1. Competitive landscape
In 2020, the market competition among PV enterprises was increasingly fierce, subject to the
pandemic and the prominent contradiction between supply and demand in the industrial chain. Major
vendors have basically listed, with market share concentrated quickly to leading quality enterprises.
PV enterprises have presented complementary coexistence of vertical integration and specialization
in local fields, evidenced by constantly emerging new techniques and accelerated product upgrading.
In the context of the certainty of PV industry demand and energy transition, a number of enterprises
have successively launched huge capacity expansion plans, and more and more enterprises outside
the industry have poured into the PV industry, thus keeping the future market competition
increasingly fierce. The major competitive landscape is as follows:
(1) With the rapid improvement of industry concentration and the obvious differentiation of
market profitability, the comprehensive competitiveness of enterprises will become the focus of
attention
With the rapid technological progress and intensified market competition in the industry, the
"Matthew Effect" is obvious in the PV industry, giving rise to the market polarization. Relying on
talents, capital, technology, scale, brand, supply chain management and other advantages, leading
enterprises are always able to maintain a high rate of capacity utilization and profitability, so that they
may have the capability of continuous R&D investment and equipment upgrading, improve
constantly their competitive edges and market shares, and present a significant siphonic effect of
talents, thus forming a virtuous cycle. In contrast, enterprises with weak competitiveness cannot keep
up with the pace of technological progress in the industry, and meantime are lack of funds for
technological upgrading or equipment renewal, thus gradually losing competitiveness and falling into
business difficulties, and finally phasing out of the market. In this way, the concentration ratio has
been constantly increased. In recent years, the improved concentration of industrial chains has proved
the formation of the above competitive pattern, as shown in the figure below:
Annual Report 2020
35 / 312
Source: CPIA
(2) Mono products have substituted the poly ones, and become the market-driven technology
route
Crystalline silicon solar cells are a mainstream product in the market, where mono silicon and
polysilicon technology routes have long been competing. Poly products had, taking advantage of low
cost, gained the main market share for a long time, while the value of mono products has not been
fully reflected. With the same crystal orientation and non-grain boundary, the mono crystal features
excellent quality and high conversion efficiency in terms of crystal quality, electrical and mechanical
properties. Led and pushed by the Company, with the large-scale application of a series of new
technologies such as continuous feeding and diamond wire cutting, the cost gap between mono and
poly-products has narrowed rapidly. Meantime, the high-efficiency cell technology represented by
PERC has a more significant effect on the improvement of the conversion efficiency of mono products,
which has further improved the advantage of mono efficiency. Both the cost reduction and conversion
efficiency advantages contribute to higher cost performance of mono products in terms of LCOE.
Since 2015, with the increased downstream demand, mono products have seen a rapid rise in market
share, and been an alternative to the poly technology route. According to the 2020 China PV Industry
Development Roadmap presented by the China Photovoltaic Industry Association (CPIA), mono
wafers (P-type + N-type) had a market share of about 90.2% in 2020, of which the P-type mono
wafers increased its market share from 60% in 2019 to 86.9%, and N-type ones occupied about 3.3%.
With the increased downstream demand for mono products, the market share of mono wafers will
further increase, and the share of N-type mono wafers will keep rising. The market share of poly-
wafers decreased from 32.5% in 2019 to 9.3% in 2020. Mono products have substituted the poly ones
and become the market-driven technology route.
(3) The layout of industrial chain presented complementary coexistence of vertical integration
and specialization in local fields
In 2020, with the changes in the market environment and increased competition, the layout of
industrial chain in the PV industry presented the coexistence of integration and specialization.
Enterprises chose and adjusted self-suited development patterns according to their own advantages.
The integrated manufacturers differed somewhat in their directions of extension. For example,
traditional module manufacturers extended to the cell, wafer and silicon materials based on the
module link, while the traditional wafer manufacturers extended to the cell and module based on the
wafer link. Partnership is established among specialized manufacturers as well as between specialized
manufacturers and integrated manufacturers to seek complementary advantages. The above
Changes in polysilicon CR5
Changes in wafer CR5
2018 2019 2020
Changes in cell CR5
Changes in module CR5
2018 2019 2020
2018 2019 2020
2018 2019 2020
Top 5 accounting for 55.1%
6 enterprises with more
than 5GW yield in 2020
Top 5 accounting for 87.5%
4 enterprises with more
than 50KTA yield in 2020
Top 5 accounting for
88.1%
Top 5 enterprises having
a yield of more than 10GW
Top 5 accounting for
53.2%
9 enterprises with more
than 5GW yield in 2020
Poly
silicon
Wafer
Cell
Wafer
Rapidly
increased
concentration
ratio
Annual Report 2020
36 / 312
coexistence will show new changes with the market environment and the core competitiveness of
companies, and the market competition will be increasingly fierce in the future.
2. Development trend
(1) Addressing global climate change has become the greatest consensus of human society, and
the trend towards "carbon neutrality" is expected to accelerate
The global climate change caused by greenhouse gas emissions including carbon dioxide has become
one of the significant challenges for all mankind. More than 120 countries or regions have set the
vision of "carbon neutrality", and this coverage is still expanding. UK's newly revised Climate
Change Act came into force in June 2019, making it the first developed country to achieve net zero
greenhouse gas emissions by 2050 by legislation. The United States re-joined the Paris Agreement
on Climate Change in January 2021.
National and regional
commitments to carbon
neutrality
Country and region (year of commitment)
Fulfilled Bhutan and Suriname
Legislated Sweden (2045), United Kingdom (2050), France (2050), Denmark (2050), New
Zealand (2050), and Hungary (2050)
Legislating South Korea (2050), EU (2050), Spain (2050), Chile (2050), Fiji (2050), and
Canada (2050)
Policy announcement
Uruguay (2030), Finland (2035), Austria (2040), Iceland (2040), California, USA
(2045), Germany (2050), Switzerland (2050), Norway (2050), Ireland (2050),
Portugal (2050), Costa Rica (2050), Marshall Islands (2050), Slovenia (2050),
Marshall Islands (2050), South Africa (2050), Japan (2050), China (2060),
Singapore (early in the second half of this century), and Hong Kong (2050)
Source: ECIU, Belt and Road Portal, Institute of Finance and Sustainability (IFS) & Hillhouse
Industrial and Innovation Research Institute
(2) The trend of electric energy consumption and clean electricity production is growing
Carbon emissions from energy use and consumption are the largest source of greenhouse gas
emissions, accounting for 73% of total global greenhouse gas emissions in 2017, according to the
World Resources Institute (WRI). Therefore, under the global trend of carbon neutrality, zero-carbon
fuel substitution in the energy activities is the core content; the gradual decarbonization of energy
system will inevitably lead to a fundamental shift in the global energy system, and with the
continuously improved electrification of final energy consumption, the trend of electric energy
consumption and clean electricity production will be accelerated. According to the BP Energy
Outlook 2020, with increasingly booming development of developing economies and emerging
market economies, and the constantly improving standards of living, the rapid transition of global
energy, the proportion of electric power in final energy consumption will rise from the slightly more
than 20% in 2018 to 45%, and over 50% in the net zero scenario.
Proportion of electricity in the total terminal consumption
Annual Report 2020
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Source: BP Energy Outlook 2020
In recent years, with the continuously expanded scale of PV industry, the acceleration of technological
iteration and industrial upgrading, and the continuous decline of LCOE, the PV power generation has
become one of the most economical ways to access to electric energy in the world, and diversified
applications will be conducive to realization of the goal of carbon neutrality.
At present, the LCOE in many countries/regions around the world is lower than that of conventional
energy, and some countries have realized the "grid parity". In the past decade, the LCOE has dropped
by more than 90%, and economy has become the main driving force of industry development.
According to the International Energy Agency (IEA), renewable energy will become the world's
largest source of electric power around 2030, and nearly 60% of the global power investment from
2015 to 2040 will flow into the renewable energy sector. Represented by solar, wind and hydropower,
the renewable energy will be the main force of the incremental power installed capacity in the future.
According to the Bloomberg New Energy Outlook 2020, solar and wind will account for 56% of the
global electricity generation mix by 2050 (see the figure below).
Source: Bloomberg New Energy Outlook 2020
(3) Diversified application scenarios will contribute to the multimodal development of PV
power generation as the main power supply
Under the global tide of carbon neutrality, the carbon emission produced by energy use is the largest
source of greenhouse gas emission. Industrial energy use contributes to half of the energy carbon
emission. The remaining carbon emissions are almost equally divided by the traffic industry and the
building industry (including the agricultural industry). The PV industry, as the representative of zero-
carbon energy, can achieve diversified applications through technological drive and convergence of
industries. In the future, PV products suitable for various requirements and application scenarios will
be released. Diversified, convenient, and innovative products will be supplied, creating a large
imaginary space for the PV industry and its diversified applications. In addition to the large grid-
Rapid transition
Net Zero
Business-as-usual
Annual Report 2020
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connected PV solar plant and distributed applications, numerous application scenarios will spring up,
e.g. use of secondary energy, such as PV-to-hydrogen, to the heavy industry and air/sea transportation,
use of BIPV products to green buildings, and convergence of PV, electric vehicle, and energy storage
industries. Reliability and efficiency are the basic standards for evaluating PV products. Besides, with
the product attributes matching different scenarios, new standards will also come into being.
Diversified PV applications will be conducive to realization of the goal of carbon neutrality.
Carbon emissions from energy use (2018)
Source: BP Energy Outlook 2020
(II) Corporate development strategy
√ Applicable □ Not Applicable
1. Strategic positioning
Customer-oriented, the pursuit of customer value creation; stay ahead and drive global energy
transition.
2. Main measures
LONGi has kept an eye on the market demand and product trends, constantly improved the customer
value and satisfaction, enhanced the customer value-oriented product strategy and management skills,
developed differentiated marketing strategies and organizations based on application scenarios,
improved operational efficiency and created new opportunities through digital transformation, and
focused on the collaborative innovation to enhance the competitiveness of the industry chain.
(III) Business plans
√ Applicable □ Not Applicable
1. Production capacity target in 2021
By the end of 2021, the annual production capacity of mono wafers will reach 105GW, mono cells of
38GW, and mono modules of 65GW.
2. Business target in 2021
In 2021, the shipment target of mono wafers is 80GW (including self consumption), and modules of
40GW (including self consumption).
3. Revenue target in 2021
LONGi is planned to achieve an operating revenue of RMB 85 billion in 2021.
Cement, 4%
Other residential
and commercial
buildings, 21%
Construction
Transportation
Agriculture
Industry
Seasonal space
heating and cooling,
5%
Other
transportation,
14%
Light industry, 24%
Other heavy
industries,
13%
Steel,
6%
Agriculture, 2%
Medium and heavy load
roads, 5%
Air transport,
3% Shipping,
2%
Annual Report 2020
39 / 312
(IV) Possible risks
√ Applicable □ Not Applicable
1. International risks of trade friction
Solar PV power generation is one of the most promising renewable energy sources. Countries all over
the world had paid high attention to its development. For the sake of protection to their domestic PV
industry, Europe, USA, India and other countries have launched multiple "anti-dumping and anti-
subsidy" probes into Chinese PV enterprises in recent years. Such international escalating trade
frictions have exerted a certain impact on the development of PV industry in China. In the future,
other countries may follow suit, thus leading to more trade frictions. During the reporting period, with
the acceleration of internationalization strategy and the rapid increase in overseas earnings, LONGi
has faced severe international trade barriers and uncertain risks brought about by changes in trade
policies regardless of its measures (e.g., the implementation of overseas production layout) to avoid
trade barriers.
2. Risks from market competition
After full market competition and elimination, backward excess capacity in the PV industry has
gradually been eliminated, to the extent that the market and resources are gradually concentrated in
superior enterprises, and the market competition pattern has been reshaped. Meantime, it has
intensified the competition among backbone enterprises in the industry, and the focus has also shifted
from the original scale and cost to the comprehensive competitiveness of enterprises, including
innovation of business models, technology R&D, financing capacity, operation management, and
marketing, with more fierce market competition. As a leading enterprise in the field of solar mono
silicon, LONGi boasts strong scale, technology, cost and brand advantages. However, if the industry
competition pattern changes significantly in the future, LONGi cannot use its competitive advantages
to further consolidate and enhance its existing market position, it will face the risks of losing its
competitive advantages and declining market share.
3. Management risks from global operations
With the continuous expansion of its global asset scale, business scale and production and sales areas,
LONGi will face greater risks and challenges in global management, newer and higher requirements
are put forward to the management team in terms of the local operation and management, scientific
decision-making, resources integration, internal control, market development, and human resources
etc. In the face of complex and changing business environment and increasingly fierce global market
competition, LONGi will be subject to great adverse impact on its comprehensive competitiveness
and global operation in case of failure to effectively conduct risk control and internal control
management. LONGi will extensively mobilize the work enthusiasm of all employees, and ensure
the effective promotion of businesses and the achievement of work objectives by implementing
effective incentive measures.
4. Risks of macroeconomic fluctuations caused by COVID-19
The solar PV power generation is characterized by large scale of investment, long payback period
and high cost of power generation, which defined its high vulnerability to the macroeconomic
environment. At present, subject to large scale of investment and long payback period, the PV
terminal solar plant depends highly on bank loans; changes in the macroeconomic environment will
affect the financing arrangements and costs of system operators, thus affecting the return on
investment in the end market, and ultimately affecting the end demand of the PV industry chain. Since
2020, the COVID-19 has spread around the world, casting a shadow over the global economic
recovery. Since overseas markets account for more than 60% of global PV installed demand, the
demand for electricity will decline if the pandemic is not effectively controlled in 2021, plus a
deteriorating financial environment, this could lead to a slowdown in global PV terminal demand in
the short term.
Annual Report 2020
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Therefore, the risks of macroeconomic fluctuations caused by COVID-19 will have an important
impact on the industry development. LONGi will respond actively to and use this pressure test, adjust
its business strategy, give full play to its core competitiveness, and accelerate the industrial
consolidation and concentration.
5. Risks of supply chain stability
In recent years, the PV product specifications, technology application, upstream and downstream
supply and demand relationship, and other factors have undergone rapid changes, which may greatly
test the supply chain management ability of any enterprise. Failure to guarantee the supply safety and
logistics efficiency of raw materials will not be conducive to the delivery of business orders, plus the
further increased product costs, thus bringing great challenges to the survival of enterprises. In 2020,
subject to the COVID-19, limited silicon supply, glass industrial policy restrictions, and long
production expansion cycle of related links, solar poly silicon, glass, membrane and other raw
materials were in short supply and soaring prices. In addition, suffering from the COVID-19 and the
imbalance in international trade, the global flow of goods has been greatly restricted, and logistics
costs risen sharply.
LONGi will focus on supply chain connectivity, adhere to the high-efficiency operation and fast and
agile supply chain management, to achieve the end-to-end process of the whole value chain and high
coordination of supply chain, thereby maximizing the supply chain security and improving the
logistics efficiency.
6. Risks of patent litigation
In March and April 2019, Hanwha Q Cells & Advanced Materials Corp. and its related parties
(hereinafter collectively referred to as the "Hanwha") has filed patent infringement lawsuits to the
United States International Trade Commission (ITC), the United States District Court for the District
of Delaware, Federal Court of Australia, and District Court of Dusseldorf, Germany, claiming that
some of the products sold by LONGi and its subsidiaries in the above-mentioned areas had infringed
Hanwha's patent rights. LONGi disclosed the relevant progress announcement regarding the Hanwha
litigation (for details, please refer to the Company's disclosures on March 7, 2019, March 12, 2019,
April 9, 2020, April 14, 2020, May 20, 2020, June 5, 2020, June 20, 2020, and July 9, 2020,
respectively) as follows:
(1) In June 2020, ITC issued the final ruling that the accused enterprises (including LONGi) did not
infringe Hanwha's patent (patent number: US9893215), nor violate Article 337, and terminated the
investigation.
In July 2020, Hanwha filed an appeal with the US Court of Appeals for the Federal Circuit (CAFC),
and the case is still pending as of the disclosure date of this Report.
(2) The United States District Court for the District of Delaware ordered in April 2019 that the Case
be halted pending a final ruling of the ITC proceedings (including the appeal procedure) or the
dismissal of investigation. As of the disclosure date of this Report, the case remains suspended in the
United States District Court for the District of Delaware.
(3) In June 2020, Germany LONGi, a subsidiary of LONGi, received the written judgment of first
instance from District Court of Dusseldorf, which ruled that Germany LONGi infringed Hanwha's
patent right and its alleged products were forbidden from being sold in the German market; besides,
Germany LONGi must recall its products sold to commercial customers since 30 January 2019, and
destroy the alleged products directly or indirectly possessed or owned by Germany LONGi. The
Plaintiff bore 25% of the litigation costs, and three Defendants (Germany LONGi, JinkoSolar GmbH
and REC Solar EMEA GmbH) bore the remaining 75%; provisional enforcement was allowed after
the Plaintiff paid a security bond of EUR 750,000 to the Court.
In July 2020, Germany LONGi received a letter of service for the Provisional Enforcement Order
from the District Court of Dusseldorf.
Annual Report 2020
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In July 2020, LONGi appealed to the High District Court of Dusseldorf, and was accepted. The case
is still in the trial stage as of the disclosure date of this Report.
(4) As of the disclosure date of this Report, the case in the Federal Court of Australia is still at the
pleadings and evidence investigation stage.
The Company has also filed invalidation or opposition procedures with the US Patent and Trademark
Office and the European Patent Office. In December 2020, the US Patent and Trademark Office made
a ruling on the IPR (inter parties review) procedure filed by the Company against the patent in
question (US9893215) that all the above-mentioned patent rights were invalid. In February 2021,
Hanwha filed an appeal against the invalidated ruling with the CAFC, which is pending as of the
disclosure date of this Report; in October 2020, the European Patent Office (EPO) issued a
preliminary opinion on the opposition procedure to the patent in question (EP2220689) filed by the
Company and other interested parties that the claims of the patent lacked novelty. As of the disclosure
date of this Report, the EPO had not made a ruling yet.
To sum up, as the lawsuits are still pending, there will be uncertainties about the final verdict. The
Company will pay close attention to the trial of the above cases and issue the progress announcement
timely. In particular, we are drawing investors' attention to the above litigation matters and any
potential risks.
(V) Miscellaneous
□ Applicable √ Not Applicable
IV. Circumstances and reasons not disclosed in accordance with the Standards due to special
causes such as inapplicable rules or national secrets and trade secrets
□ Applicable √ Not Applicable
Annual Report 2020
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Section V Important Matters
I. Plan for Profit Distribution of Ordinary Shares or Capital Reserve into Equity
(I) Formulation, implementation and adjustments of cash dividend policy
√ Applicable □ Not Applicable
Article 155 of the Articles of Association stipulates the profit distribution policy, the standard and
proportion of cash dividends, establishes the supervision and restraint mechanism of the independent
directors and the Board of Supervisors on the profit distribution of the Company, and formulates the
standardized and transparent conditions and procedures for the adjustment or alteration of the profit
distribution policy. The profit distribution policy is formulated and implemented in accordance with
the Guidelines for the Supervision of Listed Companies No. 3 - Cash Dividends of Listed Companies,
Notice on Further Implementing the Matters Related to Cash Dividends of Listed Companies and
other laws and regulations, to ensure the continuity and stability of the profit distribution policy, and
fully protect the legitimate rights and interests of small and medium-sized investors. During the
reporting period, LONGi has not made any adjustment to its profit distribution policy.
During the reporting period, after the review and approval of the 2019 Annual Meeting of the 4th
Board of Directors and the 2019 Annual General Meeting, the Company implemented the 2019 annual
profit distribution plan: Taking the total share capital on the record date of equity distribution as the
base, deducting 189,406 restricted shares to be repurchased that do not participate in the equity
distribution, a cash dividend of RMB 2.00 (tax inclusive) would be paid to all shareholders per 10
shares, totaling RMB 754,365,470.20 (tax inclusive). The cash dividend payment date was June 4,
2020 (see the Company's Announcement No. L2020-054 disclosed on May 28, 2020); after the review
and approval of the 2020 Thirteenth Meeting of the 4th Board of Directors and the 2020 Second
Extraordinary General Meeting, the Company implemented the 2020 semi-annual profit distribution
plan: Taking the total share capital on the record date of equity distribution as the base, deducting
247,856 restricted shares to be repurchased that do not participate in the equity distribution, a cash
dividend of RMB 1.8 (tax inclusive) would be paid to all shareholders per 10 shares, totaling RMB
678,918,402.18 (tax inclusive). The cash dividend payment date was October 26, 2020 (see the
Company's Announcement No. L2020-131 disclosed on October 19, 2020).
All the above profit distribution plans have been approved and expressed by independent directors in
advance. Allowing for the industry characteristics, development phase, profitability, shareholders'
demand for return and other factors, the plans comply with the Articles of Association and the actual
situation of the Company, and effectively protect the legitimate rights and interests of all shareholders.
(II) Plan or proposal for dividend distribution of ordinary shares or capital reserve into equity
in recent three years (including the reporting period) of the Company
Unit: Yuan Currency: RMB
Year of dividend
distribution
Number of
bonus
shares
issued per
10 shares
(shares)
Number of
dividends
per 10
shares
(RMB)
(tax
inclusive)
Number
of capital
reserve
into
equity
per 10
shares
(shares)
Amount of cash
dividends
(tax inclusive)
Net profit attributable
to common
shareholders of listed
company in the annual
consolidated statements
of dividends
Percentage in
the net profit
attributable to
common
shareholders
of listed
company in
the
consolidated
statements
(%)
2020 0 2.5 4 966,598,698.00 8,552,369,160.81 11.30
Half year in 2020 0 1.8 0 678,918,402.18 8,552,369,160.81 7.94
2019 0 2 0 754,365,470.20 5,279,552,073.55 14.29
2018 0 1 0 362,383,548.60 2,557,964,089.73 14.17
Annual Report 2020
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(III) Information on inclusion of shares repurchased by cash offer into cash dividends
□ Applicable √ Not Applicable
(IV) Where no plan or proposal for distribution of cash profits on ordinary shares is presented
in the existence of profits and positive profits available for distribution by common shareholders
of parent company during the reporting period, the Company shall give detailed reasons and
provide the purpose and plan for use of undistributed profits
□ Applicable √ Not Applicable
II. Performance of Commitments
(I) Commitments of interested parties including the actual controllers, shareholders, related
parties, acquirers and the Company during or up to the reporting period
√ Applicable □ Not Applicable
Commitment
background
Type of
commitment
Commitment
party
Commitment
content
Time and
period of
commitm
ent
Any period
of
performance
or not
Performed
in a timely
and strict
manner or
not
Please
specify if
not
performed
in time
Further plan for
commitments
if not
performed in
time
Commitments
concerning
Initial Public
Offering
Addressing horizontal
competition
Li Zhenguo and
Li Xiyan as
controlling
shareholders & actual
controllers, and
Li Chunan as the
person acting in
concert
Note ①
Not applicabl
e
None Yes Not
applicable Not applicable
Resolving related party
transactions
Li Zhenguo and
Li Xiyan as
controlling
shareholders & actual
controllers, and
Li Chunan as the
person acting in
concert
Note ②
Not applicabl
e
None Yes Not
applicable Not applicable
Others
Li Zhenguo and
Li Xiyan as
controlling shareholders &
actual controllers
Note ③
Effective
as of July
7, 2011,
within the sharehold
ing period
None Yes Not
applicable Not applicable
Others
Li Chunan as the
person acting in
concert Note ④
July 27,
2011,
from the
date of
commitm
ent
None Yes Not
applicable Not applicable
Other commitments
Restricted shares
Shaanxi Coal
Industry Company
Limited
Note ⑤
July 16,
2020, for 12
months
Yes Yes Not
applicable Not applicable
Notes: ① They will take legal and effective measures to keep other companies, enterprises and
economic organizations under control and their associated enterprises, not engaged directly or
indirectly in the same or similar business with the Company, any business which competes or may
compete with the business of the Company in any way, and undertake not to carry out any other
activities that harm the legitimate rights and interests of the Company and other shareholders.
② They will strictly abide by the Company Law, Articles of Association, System of Related Party
Transactions, Rules of Procedure of the Shareholders’ Meeting, the Rules of Procedure of Board of
Directors and other provisions, avoid and reduce the related party transactions, consciously safeguard
the interests of the Company and all shareholders, and not take advantage of their position as
shareholders to seek improper benefits in related party transactions. If the Company must conduct
Annual Report 2020
44 / 312
related party transactions with enterprises under their control, they promise to comply strictly with
the relevant legal procedures, follow the principle of fair trade in the market, promote the fair and
reasonable price, terms of the agreements and trade terms, and not require the Company to offer more
favorable terms than those of the third party.
③ Committed to act in concert.
④ Committed to be the person acting in concert of Mr. Li Zhenguo and Ms. Li Xiyan as controlling
shareholders & actual controllers.
⑤ Allowing for its long-term optimistic view on the Company's value, Shaanxi Coal Industry
Company Limited committed to lock up 146,385,162 shares directly held in the Company for 24
months starting from July 17, 2020. (See the Company's Announcement No. L2020-077 disclosed on
July 17, 2020)
(II) Where it has estimated profits on its assets or projects and the reporting period still falls
within the profit forecast period, the Company shall indicate whether such assets or projects
have met the original profit estimates and explain the reasons
√ Yes □ No □ Not Applicable
See "II. (III) Completion of the performance commitments and its impact on the goodwill impairment
test" for details.
(III) Completion of the performance commitments and its impact on the goodwill impairment
test
√ Applicable □ Not Applicable
On June 30, 2020, LONGi signed the Share Purchase Agreement with Wang Zhaofeng, Yang Yongzhi,
Zhao Xuewen and Ningbo Chaofang Industrial Investment Partnership (Limited Partnership), in
which LONGi acquired 100% of their equity in Ningbo EZ in cash, at a benchmark price of RMB
1.78 billion. As the performance commitment parties, Wang Zhaofeng, Yang Yongzhi and Zhao
Xuewen undertook to achieve adjusted net profits of no less than RMB 220 million (inclusive), RMB
241 million (inclusive) and RMB 251 million (inclusive) in 2019, 2020 and 2021, respectively.
During the performance commitment period, if the adjusted net profit realized in any accounting year
is higher than the promised net profit of the current year, the Company will pay the counterparty a
floating consideration as agreed; otherwise, the performance commitment parties shall pay
performance compensation to the Company as agreed (see the Company's Announcement No. L2020-
070 disclosed on July 1, 2020 for details).
According to the confirmation issued by the Company and the performance commitment parties
involving the adjusted net profit and floating consideration in 2020 in this acquisition, the adjusted
net profit of RMB 762,513,332.99 was realized for the performance commitment assets in 2020,
indicating that the 2020 annual performance commitment has been fulfilled. According to the Share
Purchase Agreement, the parties confirmed that the floating consideration realized in 2020 was RMB
365,059,333.10, i.e. (adjusted net profit of RMB 762,513,332.99 in 2020 - promised net profit of
RMB 241,000,000 in 2020) ×70%. The Company shall pay 50% of the annual floating consideration
for 2020 to the performance commitment parties in 2021, and the remaining 50% to be paid according
to the adjusted net profit realized on the performance commitment assets in 2021.
After testing, there was no impairment in the current period of goodwill formed by this acquisition.
III. Funds Use and Debt Recovery Progress during the Reporting Period
□ Applicable √ Not Applicable
IV. Explanations of the Company on the “Non-standard Audit Report” Issued by Certified
Public Accountants
Annual Report 2020
45 / 312
□ Applicable √ Not Applicable
V. Analysis and Explanation of the Company on Significant Changes in Accounting Policies,
Accounting Estimates or Reasons and Impacts of Corrections of Major Accounting Errors
(I) Analysis and explanation of the Company on reasons and impacts of changes in accounting
policies and accounting estimates
√ Applicable □ Not Applicable
See "V. 44. Changes in significant accounting policies and accounting estimates" in Section XI for
details.
(II) Analysis and explanation of the Company on reasons and impacts of correcting major
accounting errors
□ Applicable √ Not Applicable
(III) Communication with former accounting firm
□ Applicable √ Not Applicable
(IV) Other notes
□ Applicable √ Not Applicable
VI. Appointment and Dismissal of Accounting Firms
Unit: Ten Thousand Yuan Currency: RMB
Current CPAs
Name PwC Zhongtian Certified Public Accountants (Special General
Partnership)
Remuneration 190.80
Audit term 2
Name Remuneration
Accounting firm for internal control
and audit
PwC Zhongtian Certified Public
Accountants (Special General
Partnership)
84.80
Explanation for appointment and dismissal of accounting firms
√ Applicable □ Not Applicable
Approved by the 2019 Annual Board of Directors and 2019 Annual General Meeting, the Company
has renewed the appointment of PwC Zhongtian Certified Public Accountants (Special General
Partnership) as its 2020 Financial Reports and internal control audit institution (see Announcements
No. L2020-039 and No. L2020-050 disclosed by the Company on April 23, 2020 and May 14, 2020).
Explanation of changing accounting firms during the audit
□ Applicable √ Not Applicable
VII. Risks of Listing Suspension
(I) Reasons for listing suspension
□ Applicable √ Not Applicable
(II) Countermeasures to be taken by the Company
□ Applicable √ Not Applicable
Annual Report 2020
46 / 312
VIII. Facts and Causes of Listing Termination
□ Applicable √ Not Applicable
IX. Matters concerning Bankruptcy and Restructuring
□ Applicable √ Not Applicable
X. Material Lawsuits and Arbitrations
□ The Company has material litigation and arbitration in the current year. √ The Company doesn’t
have any material litigation and arbitration in the current year.
XI. Penalties and Rectifications of Listed Company and its Directors, Supervisors, Senior
Management, Controlling Shareholders, Actual Controllers and Acquirers
□ Applicable √ Not Applicable
XII. Credit Conditions of the Company and its Controlling Shareholders and Actual
Controllers during the Reporting Period
√ Applicable □ Not Applicable
During the reporting period, the Company and its controlling shareholders and actual controllers did
not fail to carry out the valid court decision, nor have any large amount of outstanding overdue debts.
XIII. Equity Incentive Plan, Employee Share Option Plan or Other Employee Incentives
and Effects thereof
(I) Incentives disclosed in the temporary announcements and without progresses or changes
in the follow-up implementation process
√ Applicable □ Not Applicable
Overview of matters Query index
Deliberated and passed at the 2019 Annual Board of Directors, 2019
Annual Board of Supervisors, and 2019 Annual General Meeting,
LONGi repurchased and cancelled a total of 189,406 restricted shares
granted but not yet unlocked by 30 incentive objects dismissed or with
underperformance in the second series of the restricted share incentive
plan. The repurchase and cancellation procedures have been completed.
The repurchase cancellation date is September 18, 2020.
See the Company's Announcements
No. L2020-041, L2020-050, and
L2020-112 disclosed on April 23,
2020, May 14, 2020, and September
16, 2020 for details
Deliberated and passed at the 2020 Annual Meeting of the 4th Board of
Directors, the First Meeting of the 4th Board of Supervisors in 2020, and
the Second Extraordinary General Meeting, LONGi repurchased and
cancelled a total of 58,450 restricted shares granted but not yet unlocked
by 8 incentive objects dismissed or with underperformance in the second
series of the restricted share incentive plan. The repurchase and
cancellation procedures have been completed. The repurchase
cancellation date is November 17, 2020.
See the Company's Announcements
No. L2020-104, L2020-113, and
L2020-137 as disclosed on August 28,
2020, September 16, 2020, and
November 13, 2020 for details
Deliberated and passed at the 18th Meeting of the 4th Board of Directors
in 2020 and the 3rd Meeting of the 4th Board of Supervisors in 2020,
LONGi has completed the fourth unlocking and listing of the restricted
share incentive plan (series 2), with a total of 1,002 objects and
4,133,514 shares unlocked. The unlocking and listing date is November
27, 2020.
See the Company's Announcement
No. L2020-142 disclosed on
November 24, 2020 for details
(II) Incentives not disclosed in any temporary announcements or with follow-up
Equity-based incentives
□ Applicable √ Not Applicable
Other notes
Annual Report 2020
47 / 312
√ Applicable □ Not Applicable
By the end of this reporting period, all the four series of the Restricted Share Incentive Plan (Series
2) have been unlocked, and 85,610 restricted shares do not meet the unlocked conditions and will be
repurchased and cancelled by the Company. The repurchase procedures will be handled after the
incentive objects provide complete materials.
Status of employee share option plan
□ Applicable √ Not Applicable
Other incentive measures
□ Applicable √ Not Applicable
XIV. Material Related Party Transactions
(I) Related party transactions concerning the day-to-day operations
1. Matters disclosed in the interim announcement and without progresses or changes in the
follow-up implementation process
□ Applicable √ Not Applicable
2. Matters disclosed in the temporary announcement, but with progresses or changes during
the follow-up implementation process
√ Applicable □ Not Applicable
During the reporting period, in order to standardize the daily related party transactions, the 20th
Meeting of the 4th Board of Directors in 2019 and the First Extraordinary General Meeting in 2020
adopted the Resolution on the Expected Daily Related Party Transactions in 2020 (see Announcement
No. L2019-180 disclosed by the Company on December 20, 2019). A reasonable prediction is made
to the signing of daily associated procurement contracts in 2020. During the reporting period, the
actual amount of the daily associated procurement contracts signed is within the expected range, and
the details are as follows:
Unit: RMB Ten Thousand
Type of related party
transaction Related parties
Contents of
related party
transaction
Estimated
amount of
related party
transaction
contracts in
2020 (tax
inclusive)
Actual amount
of related
party
transaction
contracts in
2020 (tax
inclusive)
Purchasing of goods
Dalian Linton NC Machine Co.,
Ltd. and its subsidiaries
Equipment 276,814 142,841.07
Spare parts 1,824 408.94
Shenyang LONGi
Electromagnetic Technology Co.,
Ltd.
Equipment 3,200 155.84
Spare parts 200 182.54
Yingkou Jinchen Machinery Co.,
Ltd. and its subsidiaries
Equipment 28,342 145.10
Spare parts 405 5.09
Ningxia LONGi Meter Co., Ltd. Spare parts 100 0
Receiving of labor services Dalian Linton NC Machine Co., Ltd. and its subsidiaries
Technical
renovation
and
maintenance
services
200 0.25
Annual Report 2020
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Yingkou Jinchen Machinery Co.,
Ltd. and its subsidiaries
Technical
renovation
and
maintenance
services
450 8.34
United Nations Quality Detection
Group Co., Ltd. Services 0 36.49
Sales of goods Dalian Linton NC Machine Co.,
Ltd. Spare parts 0 16.90
Rendering of labor services Dalian Linton NC Machine Co.,
Ltd. and its subsidiaries
EPC of PV
solar plant 0 494.83
Total 311,535 144,295.39
Notes: ① After Mr. Zou Zonghai, the former director of the Company, resigned from Yingkou
Jinchen Machinery Co., Ltd. on April 10, 2020, this company and its subsidiaries are no longer related
parties of LONGi. The statistical period of the actual signing of the related procurement contract
between LONGi and the related parties is from January 1, 2020 to April 10, 2020.
② The actual amount of the equipment procurement contract signed between LONGi and Dalian
Liancheng CNC Machinery Co., Ltd. (as the related party) and its subsidiaries differed greatly from
the expected, mainly because LONGi adopted the bidding method for equipment procurement, and
the related party failed to win the bid in some equipment.
Annual Report 2020
49 / 312
3. Matters not disclosed in the interim announcement
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Counterparty Affiliated
relation Type
Contents of
related party
transaction
Pricing
principle Price Amount
Proportion
in the
similar
transaction
amount
(%)
Settlement
way
Market
price
Reasons
for great
differences
between
transaction
price and
market
reference
price
Dalian Linton NC Machine Co., Ltd. Others Purchasing
of goods
Production
equipment
Reference
market
price
/ 1,368,036,459.23 13.51 Cash
transaction /
Not
applicable
Sichuan Yongxiang New Energy Co., Ltd. Others Purchasing
of goods
Poly silicon
material
Reference
market
price
/ 1,307,765,734.50 11.35 Cash
transaction /
Not
applicable
Pingmei LONGi New Energy Technology Co., Ltd. Others Purchasing
of goods
Outsourced
processing of
cells
Reference
market
price
/ 1,106,844,550.38 35.50 Cash
transaction /
Not
applicable
Linton Kayex Technology Co., Ltd. Others Purchasing
of goods
Production
equipment
Reference
market
price
/ 766,584,070.18 7.57 Cash
transaction /
Not
applicable
Yingkou Jinchen Machinery Co., Ltd. Others Purchasing
of goods
Production
equipment
Reference
market
price
/ 104,561,940.24 1.03 Cash
transaction /
Not
applicable
Shenyang LONGi Electromagnetic Technology Co., Ltd. Others Purchasing
of goods
Production
equipment
Reference
market
price
/ 44,402,592.80 0.44 Cash
transaction /
Not
applicable
Shanghai Fuchuan Intelligent Technology Co., Ltd. Others Purchasing
of goods
Production
equipment
Reference
market
price
/ 41,301,942.83 0.41 Cash
transaction /
Not
applicable
Dalian Weikaite Technology Co., Ltd. Others Purchasing
of goods
Production
equipment
Reference
market
price
/ 30,361,238.95 0.30 Cash
transaction /
Not
applicable
Sichuan Yongxiang New Energy Co., Ltd. Others Purchasing
of goods
Spare parts Reference
market / 30,203,469.02 3.44
Cash
transaction /
Not
applicable
Annual Report 2020
50 / 312
price
Yidao New Energy Technology (Quzhou) Co., Ltd. Others Purchasing
of goods
Cell Reference
market
price
/ 14,539,470.18 0.47 Cash
transaction /
Not
applicable
Dalian Linton NC Machine Co., Ltd. Others Purchasing
of goods
Spare parts Reference
market
price
/ 2,638,520.27 0.30 Cash
transaction /
Not
applicable
Ningxia Zhongjing Semiconductor Materials Co., Ltd. Others Purchasing
of goods
Poly silicon
material
Reference
market
price
/ 2,547,590.45 0.02 Cash
transaction /
Not
applicable
Shenyang LONGi Electromagnetic Technology Co., Ltd. Others Purchasing
of goods
Spare parts Reference
market
price
/ 2,075,740.46 0.24 Cash
transaction /
Not
applicable
Bao Grid Shanghai Energy Technology Co., Ltd. Others Purchasing
of goods
Others Reference
market
price
/ 918,875.13 0.18 Cash
transaction /
Not
applicable
Ningxia Zhongjing Semiconductor Materials Co., Ltd. Others Purchasing
of goods
Spare parts Reference
market
price
/ 736,968.68 0.08 Cash
transaction /
Not
applicable
United Nations Quality Detection Group Co., Ltd. Others
Receiving
of labor
services
Testing services Reference
market
price
/ 343,962.26 0.07 Cash
transaction /
Not
applicable
Shanghai Fuchuan Intelligent Technology Co., Ltd. Others Purchasing
of goods
Spare parts Reference
market
price
/ 146,643.54 0.02 Cash
transaction /
Not
applicable
Suzhou Yingzhen Intelligent Technology Co., Ltd. Others Purchasing
of goods
Spare parts Reference
market
price
/ 31,465.49 0.00 Cash
transaction /
Not
applicable
Yingkou Jinchen Machinery Co., Ltd. Others Purchasing
of goods
Spare parts Reference
market
price
/ 13,800.39 0.00 Cash
transaction /
Not
applicable
Tongchuan Xiaguang New Energy Power Generation Co.,
Ltd. Others
Sales of
goods
Solar plant
construction and
services
Reference
market
price
/ 152,440,125.26 11.50 Cash
transaction /
Not
applicable
Datong Xinrong Oulong Clean Energy Co., Ltd. Others Sales of
goods
Solar plant
construction and
services
Reference
market
price
/ 135,383,317.76 10.22 Cash
transaction /
Not
applicable
Hunyuan Chenglong Clean Energy Co., Ltd. Others Sales of
goods
Solar plant
construction and Reference
market / 121,215,174.60 9.15
Cash
transaction /
Not
applicable
Annual Report 2020
51 / 312
services price
Pingmei LONGi New Energy Technology Co., Ltd. Others Sales of
goods
Wafer Reference
market
price
/ 107,709,341.06 0.76 Cash
transaction /
Not
applicable
Yidao New Energy Technology (Quzhou) Co., Ltd. Others Sales of
goods
Wafer Reference
market
price
/ 59,069,925.77 0.42 Cash
transaction /
Not
applicable
Pingmei LONGi New Energy Technology Co., Ltd. Others Sales of
goods
Module Reference
market
price
/ 38,041,096.53 0.11 Cash
transaction /
Not
applicable
Ningxia Zhongjing Semiconductor Materials Co., Ltd. Others Sales of
goods
Utilities Reference
market
price
/ 11,625,763.72 1.43 Cash
transaction /
Not
applicable
Trina Solar (Vietnam) Science&Technology Co., Ltd. Others Sales of
goods Others
Reference
market
price
/ 4,708,934.91 0.58 Cash
transaction /
Not
applicable
Linton Kayex Technology Co., Ltd. Others Sales of
goods
Module Reference
market
price
/ 2,509,503.12 0.01 Cash
transaction /
Not
applicable
Linton Kayex Technology Co., Ltd. Others Sales of
goods
Solar plant
construction and
services
Reference
market
price
/ 1,817,592.30 0.14 Cash
transaction /
Not
applicable
Xi'an Zhongjing Semiconductor Materials Co., Ltd. Others Sales of
goods
Utilities Reference
market
price
/ 1,284,878.95 0.16 Cash
transaction /
Not
applicable
Pingmei LONGi New Energy Technology Co., Ltd. Others Sales of
goods
Technical
services
Reference
market
price
/ 1,082,379.51 0.13 Cash
transaction /
Not
applicable
Sichuan Yongxiang New Energy Co., Ltd. Others Sales of
goods
Square silicon
core
Reference
market
price
/ 619,469.03 0.08 Cash
transaction /
Not
applicable
Ningxia Zhongjing Semiconductor Materials Co., Ltd. Others Sales of
goods
Others Reference
market
price
/ 473,373.26 0.06 Cash
transaction /
Not
applicable
Sichuan Yongxiang New Energy Co., Ltd. Others Sales of
goods
Others Reference
market
price
/ 249,666.62 0.03 Cash
transaction /
Not
applicable
Xi'an Zhongjing Semiconductor Materials Co., Ltd. Others Sales of
goods
Others Reference
market / 198,514.22 0.02
Cash
transaction /
Not
applicable
Annual Report 2020
52 / 312
price
Zhaozhou Longhui New Energy Co., Ltd. Others Sales of
goods
Module Reference
market
price
/ 126,159.29 0.00 Cash
transaction /
Not
applicable
Dalian Linton NC Machine Co., Ltd. Others Sales of
goods
Auxiliary
materials
Reference
market
price
/ 88,495.58 0.01 Cash
transaction /
Not
applicable
Dalian Linton NC Machine Co., Ltd. Others Sales of
goods
Others Reference
market
price
/ 67,141.94 0.01 Cash
transaction /
Not
applicable
Xinyi Zhongda Energy Saving Technology Co., Ltd. Others Sales of
goods
Solar plant
construction and
services
Reference
market
price
/ 20,047.17 0.00 Cash
transaction /
Not
applicable
Shenyang LONGi Electromagnetic Technology Co., Ltd. Others Sales of
goods
Others Reference
market
price
/ 1,800.00 0.00 Cash
transaction /
Not
applicable
Linton Kayex Technology Co., Ltd. Others Sales of
goods
Others Reference
market
price
/ 1,760.00 0.00 Cash
transaction /
Not
applicable
Shanghai Fuchuan Intelligent Technology Co., Ltd. Others Sales of
goods
Others Reference
market
price
/ 1,480.00 0.00 Cash
transaction /
Not
applicable
Ningxia Zhongjing Semiconductor Materials Co., Ltd. Others Rendering
of services
Housing Reference
market
price
/ 1,768,217.36 0.22 Cash
transaction /
Not
applicable
Ningxia Zhongjing Semiconductor Materials Co., Ltd. Others Rendering
of services
Equipment Reference
market
price
/ 56,952.00 0.01 Cash
transaction /
Not
applicable
Total / / 5,464,616,144.94 / / / /
Details of large sales returns N/A
Description of related party transactions
The aforesaid related party transactions facilitate the development and
execution of the Company's daily business and meet the objective needs of
normal production & operation and capacity expansion, without any damage
to the interests of the Company and other shareholders, especially minority
stockholders, nor impacts on the independence of the Company and
dependence on related parties.
Annual Report 2020
53 / 312
(II) Related party transactions during sales and acquisition of assets
1. Matters disclosed in the interim announcement and without progresses or changes in the
follow-up implementation process
□ Applicable √ Not Applicable
2. Matters disclosed in the temporary announcement, but with progresses or changes during
the follow-up implementation process
□ Applicable √ Not Applicable
3. Matters not disclosed in the interim announcement
□ Applicable √ Not Applicable
4. Matters concerning performance achievement during the reporting period should be
disclosed if performance agreement is involved
□ Applicable √ Not Applicable
(III) Significant related party transactions for joint external investments
1. Matters disclosed in the interim announcement and without progresses or changes in the
follow-up implementation process
□ Applicable √ Not Applicable
2. Matters disclosed in the temporary announcement, but with progresses or changes during
the follow-up implementation process
□ Applicable √ Not Applicable
3. Matters not disclosed in the interim announcement
□ Applicable √ Not Applicable
(IV) Transactions of related creditor's rights and debts
1. Matters disclosed in the interim announcement and without progresses or changes in the
follow-up implementation process
□ Applicable √ Not Applicable
2. Matters disclosed in the temporary announcement, but with progresses or changes during
the follow-up implementation process
□ Applicable √ Not Applicable
3. Matters not disclosed in the interim announcement
□ Applicable √ Not Applicable
(V) Miscellaneous
□ Applicable √ Not Applicable
XV. Material Contracts and Performance
(I) Trusteeship, contracting and leasing
1. Trusteeship
□ Applicable √ Not Applicable
2. Contracting
□ Applicable √ Not Applicable
3. Leasing
Annual Report 2020
54 / 312
□ Applicable √ Not Applicable
Annual Report 2020
55 / 312
(II) Guarantee
√ Applicable □ Not Applicable
Unit: RMB Ten Thousand Currency: RMB
External guarantees of the Company (excluding guarantees to its subsidiaries)
Guarantor
Relationship
between the guarantor
and listed
company
Guaranteed
party
Guarantee
amount
Date of guarantee
(date of
agreement)
Starting date Maturity
date Type
Whether the guarantee
has been
fulfilled
Guarantee
overdue or not
Overdue
amount
Any counter
bond or
not
Guarantee
provided to related
parties or
not
Affiliated
relation
LONGi Head Office Tongxin
LONGi 12,201 2015-8-28 2015-8-28 2030-8-27
Joint and
several
liability
guarantee
None None 0 Yes None Associates
LONGi Head Office Tongxin
LONGi 11,221 2015-8-28 2015-9-15 2030-9-14
Joint and
several
liability guarantee
None None 0 Yes None Associates
LONGi Head Office Tongxin
LONGi 3,724 2015-8-28 2015-9-15 2030-9-14
Joint and
several
liability
guarantee
None None 0 Yes None Associates
LONGi Head Office LONGi
Tianhua 7,448 2015-8-28 2015-9-15 2030-9-14
Joint and
several
liability
guarantee
None None 0 Yes None Associates
Total amount of guarantees during the reporting period (excluding guarantees
provided to subsidiaries) 0
Total balance of guarantees at the end of reporting period (A) (excluding
guarantees provided to subsidiaries) 34,594.00
Guarantees of the Company and its subsidiaries for the subsidiaries
Total amount of guarantees provided to subsidiaries during the reporting
period 1,010,568.93
Total balance of guarantees provided to subsidiaries at the end of reporting
period (B) 1,296,799.44
Total amount of guarantees of the Company (including guarantees provided to its subsidiaries)
Total amount of guarantees (A+B) 1,331,393.44
Annual Report 2020
56 / 312
Proportion of total amount of guarantees to the net assets of the Company (%) 37.93
Including:
Amount of guarantees provided to shareholders, actual controllers and other
related parties (C)
0
Amount of debt guarantees directly or indirectly provided to the guaranteed
party with liability-to-asset ratio of over 70% (D) 470,248.23
Amount with the total amount of guarantee exceeding 50% of net assets (E) 0
Total (C+D+E) 470,248.23
Explanation on the case that undue guarantee before maturity may bear joint
and several liability for liquidation Not applicable
Description of guarantees
The above guarantees have been deliberated and passed at the Board of Directors or the
Shareholders’ Meeting in accordance with applicable laws, regulations and other normative
requirements and the Articles of Association, and the decision-making procedures were of
legitimacy and compliance. During the reporting period, the Company did not provide
guarantee for the controlling shareholders, actual controllers and their related parties, nor
provide overdue and litigation-involved guarantees.
Notes: ① The net assets in the above table refer to the last audited net assets attributable to the shareholders of the listed company.
② The foreign currency guarantee amount was converted into RMB amount according to the central parity rate on December 31, 2020.
The Company's decision procedures for the performance of warranties as of the end of the reporting period are as follows:
(1) Decision-making procedures of the Company's external guarantees (excluding subsidiaries):
S/N Guaranteed party Guarantee amount (RMB Ten Thousand) Description Disclosure date Approval procedure
1 Tongxin LONGi 12,201
Provide guarantee for the project loans applied by
Tongxin LONGi to Ningxia Branch of China
Development Bank
2015-7-7
The 8th Meeting of the 3rd
Board of Directors in
2015; the Second
Extraordinary General
Meeting in 2015
2 Tongxin LONGi 11,221
Provide guarantee for the project loans applied by
Tongxin LONGi to Ningxia Branch of China
Development Bank
3 Tongxin LONGi 3,724
Provide guarantee for the project loans applied by
Tongxin LONGi to Ningxia Branch of China
Development Bank
Annual Report 2020
57 / 312
4 LONGi Tianhua 7,448
Provide guarantee for the project loans applied by
LONGi Tianhua to Ningxia Branch of China
Development Bank
(2) Decision-making procedures for financing guarantees provided by the Company to subsidiaries:
S/N Guaranteed party
Guarantee
amount (RMB
Ten Thousand)
Description Disclosure date Approval procedure
1 Yinchuan LONGi 20,000.00
Provide guarantee for the project loans applied
by Yinchuan LONGi to Zhongning Sub-branch
of Agricultural Bank of China Limited
2017-1-14
The 2nd Meeting of the 3rd Board of Directors
in 2017; the Second Extraordinary General
Meeting in 2017
2 Yinchuan LONGi 10,000.00
Provide guarantee for the credit extension
business applied by Yinchuan LONGi in
Yinchuan Branch of China Everbright Bank Co.,
Ltd.
2017-3-11 2016 Annual Board Meeting
3 Longxing New Energy 15,607.58
Provide guarantee for the financial leasing
business applied by Longxing New Energy to
CITIC Financial Leasing Co., Ltd.
2017-6-9
The 7th Meeting of the 3rd Board of Directors
in 2017; authorized at the 4th Extraordinary
General Meeting in 2017
4 Longle Solar 4,218.32
Provide guarantee for the financial leasing
business applied by Longle Solar to CITIC
Financial Leasing Co., Ltd.
2018-6-16
The 10th Meeting of the 3rd Board of
Directors in 2018; Authorized at the First
Extraordinary General Meeting in 2018
5 Ningde LONGi Solar 7,147.70
Provide guarantee for the financial leasing
business applied by Ningde LONGi Solar to
CITIC Financial Leasing Co., Ltd.
2018-6-16
The 10th Meeting of the 3rd Board of
Directors in 2018; Authorized at the First
Extraordinary General Meeting in 2018
6 Lechang Solar 6,679.00
Provide guarantee for the financial leasing
business applied by Lechang Solar to CITIC
Financial Leasing Co., Ltd.
2018-6-16
The 10th Meeting of the 3rd Board of
Directors in 2018; Authorized at the First
Extraordinary General Meeting in 2018
7 Jinli New Energy 3,398.09
Provide guarantee for the financial leasing
business applied by Jinli New Energy to CITIC
Financial Leasing Co., Ltd.
2018-6-16
The 10th Meeting of the 3rd Board of
Directors in 2018; Authorized at the First
Extraordinary General Meeting in 2018
8 Lijiang LONGi 49,656.06
Provide guarantee for the financial leasing
business applied by Lijiang LONGi to China
National Foreign Trade Financial & Leasing
Company Limited
2018-5-9 The 7th Meeting of the 3rd Board of Directors in 2018; Authorized at the First Extraordinary
General Meeting in 2018
Annual Report 2020
58 / 312
9 Xinwei New Energy 10,100.59
Provide guarantee for the financial leasing
business applied by Xinwei New Energy to
CITIC Financial Leasing Co., Ltd.
2018-8-31
The 5th Meeting of the 3rd Board of Directors
in 2018; Authorized at the First Extraordinary
General Meeting in 2018
10 Datong Clean Energy 13,367.18
Provide guarantee for the financial leasing
business applied by Datong Clean Energy to
CITIC Financial Leasing Co., Ltd.
2019-3-27
The 4th Meeting of the 4th Board of Directors
in 2019; Authorized at the 4th Extraordinary
General Meeting in 2018
11 Guangling Clean Energy 13,337.20
Provide guarantee for the financial leasing
business applied by Guangling Clean Energy to
CITIC Financial Leasing Co., Ltd.
2019-3-27
The 4th Meeting of the 4th Board of Directors
in 2019; Authorized at the 4th Extraordinary
General Meeting in 2018
12 Yinchuan LONGi 10,000.00
Provide guarantee for the fixed assets loans
applied by Yinchuan LONGi to Zhongning
County Sub-Branch of Agricultural Bank of
China Limited
2019-2-23
The 2nd Meeting of the 4th Board of Directors
in 2019; Authorized at the 4th Extraordinary
General Meeting in 2018
13 Xuanli Solar 11,064.38
Provide guarantee for the financial leasing
business applied by Xuanli Solar to CITIC
Financial Leasing Co., Ltd.
2019-6-5
The 8th Meeting of the 4th Board of Directors
in 2019; Authorized at the 4th Extraordinary
General Meeting in 2018
14 LONGi Solar 10,000.00
Provide guarantee for the credit extension
business applied by LONGi Solar in Xi'an High-
tech Industries Development Zone Sub-Branch
of China Construction Bank Corporation
2019-5-23
The 7th Meeting of the 4th Board of Directors
in 2019; Authorized at the 4th Extraordinary
General Meeting in 2018
15 Ningxia LONGi Solar 50,000.00
Provide guarantee for loan application by
Ningxia LONGi Solar in Shaanxi Branch of
Bank of Communications Co., Ltd.
2019-3-13
The 3rd Meeting of the 4th Board of Directors
in 2019; Authorized at the 4th Extraordinary
General Meeting in 2018
16 LONGi Solar 20,000.00
Provide guarantee for the credit extension
business applied by LONGi Solar in Xi'an
Branch of China Zheshang Bank Co., Ltd.
2020-4-21
2019 Annual Board Meeting of the 4th Board
of Directors; authorized at the First
Extraordinary General Meeting in 2020
17 LONGi Solar 110,000.00
Provide guarantee for the general credit limit
applied by LONGi Solar to Xi'an Branch of
Bank of Chengdu Co., Ltd.
2020-5-29
The 16th Meeting of the 4th Board of
Directors in 2020; authorized at the First
Extraordinary General Meeting in 2020
18 LONGi Solar 60,000.00
Provide guarantee for the line of credit to be
used by LONGi Solar applied by the Company
to Xi'an Branch of China Minsheng Bank Co.,
Ltd.
2020-6-6
The 7th Meeting of the 4th Board of Directors
in 2020; authorized at the First Extraordinary
General Meeting in 2020
19 LONGi Solar 40,000.00 Provide guarantee for the credit extension
business applied by LONGi Solar in Xi'an 2020-6-23
The 8th Meeting of the 4th Board of Directors
in 2020; authorized at the First Extraordinary
Annual Report 2020
59 / 312
Branch of Shanghai Pudong Development Bank
Co., Ltd.
General Meeting in 2020
20 Taizhou LONGi Solar 30,000.00
Provide guarantee for the application of Taizhou
Solar for working capital loans from Jiangsu
Branch of Export-Import Bank of China
2020-6-23
The 8th Meeting of the 4th Board of Directors
in 2020; authorized at the First Extraordinary
General Meeting in 2020
21 LONGi Solar 50,000.00
Provide guarantee for the line of credit to be
used by LONGi Solar applied by the Company
to Shaanxi Branch of Bank of Communications
Co., Ltd.
2020-7-14
The 9th Meeting of the 4th Board of Directors
in 2020; authorized at the First Extraordinary
General Meeting in 2020
22 LONGi Solar 50,000.00
Provide guarantee for the general credit limit to
be used by LONGi Solar applied by the
Company to Xi'an Branch of China CITIC Bank
Co., Ltd.
2020-8-8
The 11th Meeting of the 4th Board of
Directors in 2020; authorized at the First
Extraordinary General Meeting in 2020
23 LONGi Solar 30,000.00
Provide guarantee for the credit extension
business applied by LONGi Solar in Bank of
Communications Co., Ltd.
2020-10-14
The 16th Meeting of the 4th Board of
Directors in 2020; authorized at the First
Extraordinary General Meeting in 2020
24 LONGi Solar 10,000.00
Provide guarantee for the credit extension
business applied by LONGi Solar, a wholly-
owned subsidiary, in Export-Import Bank of
China
2020-10-14
The 16th Meeting of the 4th Board of
Directors in 2020; authorized at the First
Extraordinary General Meeting in 2020
25 LONGi Solar 50,000.00
Provide guarantee for the credit extension
business applied by LONGi Solar in Xi'an
Branch of China CITIC Bank Co., Ltd.
2020-12-15
The 19th Meeting of the 4th Board of
Directors in 2020; authorized at the First
Extraordinary General Meeting in 2020
26 LONGi Solar USD 15 million
Provide guarantee for the credit extension
business applied by LONGi Solar in Xi'an
Branch of HSBC Bank (China) Company
Limited
2018-3-10
The 4th Meeting of the 3rd Board of Directors
in 2018; Authorized at the First Extraordinary
General Meeting in 2018
27 LONGi (H.K.) and
LONGi (Kuching) USD 40 million
Provide guarantee for the credit extension
business applied by LONGi (H.K.) and LONGi
(Kuching) in Hang Seng Bank Limited
2019-1-12
The 1st Meeting of the 4th Board of Directors
in 2019; Authorized at the 4th Extraordinary
General Meeting in 2018
28 LONGi (H.K.) USD 15 million
Provide guarantee for the credit extension
business applied by LONGi (H.K.) in Industrial
and Commercial Bank of China (Asia) Limited
2019-7-17
The 9th Meeting of the 4th Board of Directors
in 2019; Authorized at the 4th Extraordinary
General Meeting in 2018
29 LONGi Solar USD 50 million Provide guarantee for the line of credit applied
by LONGi Solar shared companies to the 2019-11-23
The 18th Meeting of the 4th Board of
Directors in 2019; the First Extraordinary
Annual Report 2020
60 / 312
Shanghai Branch of ING Bank N. V. General Meeting in 2020
30 LONGi Solar USD 10 million
Provide guarantee for the line of credit to be
shared by LONGi Solar applied by the Company
in Citibank (China) Co., Ltd.
2020-8-28
The 13th Meeting of the 4th Board of
Directors in 2020; authorized at the First
Extraordinary General Meeting in 2020
(3) Decision-making procedures for performance guarantees provided by the Company to subsidiaries:
Deliberated and passed at the 10th Meeting of the 4th Board of Directors in 2018 and the 4th Extraordinary General Meeting in 2018, the Shareholders’
Meeting and the Board of Directors authorized Chairman or General Manager to decide to provide additional performance guarantees of no more than
USD 1 billion for subsidiaries in 2019 (see the Company's Announcement No. L2018-143 disclosed on December 11, 2018 for details); Deliberated and
passed at the Annual Meeting and the Annual General Meeting in 2019, the Shareholders’ Meeting and the Board of Directors authorized Chairman or
General Manager to decide to provide additional performance guarantees of no more than USD 600 million for subsidiaries, and the authorization period
started from the date on which the matter was adopted at the Shareholders’ Meeting until December 31, 2020 (see the Company's Announcement No.
L2020-043 disclosed on April 23, 2020 for details); by the end of this reporting period, the Company had provided a cumulative guarantee balance of
USD 671.6021 million for the performance obligations of its wholly-owned subsidiaries, i.e., LONGi (U.S.), LONGi (H.K.) and LONGi Solar.
(4) Decision-making procedures for the supply chain finance business guarantees provided by the Company to its subsidiaries
Deliberated and passed at the 10th Meeting of the Fourth Board of Directors and the Second Extraordinary General Meeting in 2019, the Shareholders’
Meeting and the Board of Directors authorized Chairman or his Authorized Agent to carry out supply chain finance services with banks within the
guarantee limit of not more than RMB 2 billion and a single guarantee period of not more than one year, and to undertake an unconditional payment
liability guarantee for the accounts payable committed by the subsidiaries to carry out the above supply chain finance services (as detailed in the
Company's Announcement No. L2019-107 disclosed on July 30, 2019). By the end of the reporting period, the Company has provided a total balance of
RMB 304,618,700 guarantees of supply chain finance business to its subsidiaries.
Annual Report 2020
61 / 312
(III) Cash asset management entrusted to others
1. Entrusted asset management
(1) Overall situation
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Type Source of
funds Amount
Unmatured
balance
Amount overdue but not
recovered
Bank financial
products
Funds raised 4,000,000,000.00 0 0
Bank financial
products
Own funds 26,504,000,000.00 4,000,000.00 0
Others
√ Applicable □ Not Applicable
During the reporting period, LONGi has, on the premise of ensuring the daily operations and capital
security, carried out entrusted asset and cash management within the scope authorized by the Board
of Directors and the management, effectively improving the capital usage efficiency. The decision-
making procedures are as follows:
(1) The 21st Meeting of the 4th Board of Directors in 2019 was held on December 31, 2019, and
the Proposal on Entrusted Asset Management with Owned Funds in 2020 was deliberated and passed.
It was agreed that the Company (including holding subsidiaries) might, without affecting the normal
operation and capital security, use temporarily idle self-owned funds for entrusted asset management,
and purchase financial products of commercial banks with a maximum daily balance of RMB 8 billion.
Within the above limit, the funds could be recycled for investment and rolling use, and the financial
officer was authorized to handle relevant matters. The expected and authorized period should be from
the date of approval by the Board of Directors to December 31, 2020, and the maximum term of a
single financial product should be no more than 12 months (see the Company's Announcement No.
L2020-002 disclosed on January 2, 2020 for details).
(2) The 2019 Annual Meeting of the 4th Board of Directors was held on April 21, 2020, where the
Proposal on Opening a Special Settlement Account for Cash Management of Raised Funds and Using
Part of the Raised Funds for Cash Management was deliberated and adopted. It was agreed that the
Company might use up to RMB 1 billion of temporarily idle shares-rationing raised funds for cash
management, and buy cash management products with high safety, good liquidity and break-even
agreement. Meantime, General Manager of the Financial Management Center was authorized to
exercise the decision-making power and sign related documents within the above quota, which was
valid for 12 months from the date adopted by the Board of Directors (please refer to the Company's
Announcement No. L2020-044 disclosed on April 23, 2020 for details).
(3) The 13th Meeting of the 4th Board of Directors in 2020 was held on August 26, 2020, where the
Proposal on Opening a Special Settlement Account for Cash Management of Raised Funds and Using
Part of the Raised Funds for Cash Management was deliberated and adopted. It was agreed that the
Company might use up to RMB 1 billion of temporarily idle shares-rationing raised funds for public
offering of convertible bonds for cash management, and buy cash management products with high
safety, good liquidity and break-even agreement. Meantime, General Manager of the Financial
Management Center was authorized to exercise the decision-making power and sign related
documents within the above quota, which was valid for 12 months from the date adopted by the Board
of Directors (please refer to the Company's Announcement No. L2020-102 disclosed on August 28,
2020 for details).
Annual Report 2020
62 / 312
(2) Individual entrusted asset management
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Trustee Type Amount Starting date Ending date
Source
of
funds
Investment
orientation
Method of determination
of
remuneration
Annualized
return
Expected
return
(if any)
Actual gain or
loss
Actual
redemption
Whether it has gone
through
legal
procedures
Any
entrusted financial
plan in
the
future
Amount of provision
for
impairment
(if any)
ICBC
Bank
financial
products
800,000,000.00 2020-1-2 2020-3-30 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of asset
management
3.74% / 7,211,081.64 Full
redemption Yes Yes 0.00
CMBH
Bank
financial
products
800,000,000.00 2020-1-2 2020-3-30 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
asset
management
4.22% / 8,139,397.26 Full
redemption Yes Yes 0.00
Bank of Communications
Bank financial
products
1,000,000,000.00 2020-1-3 2020-3-30 Own funds
Structured deposits
Interest
accrued
according to actual days of
asset
management
4.10% / 9,772,602.74 Full
redemption Yes Yes 0.00
Ping An Bank
Bank
financial
products
2,000,000,000.00 2020-1-2 2020-3-30 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
asset management
4.10% / 19,769,863.01 Full
redemption Yes Yes 0.00
China CITIC
Bank
Bank
financial
products
1,000,000,000.00 2020-1-2 2020-3-31 Own
funds
Structured
deposits
Interest accrued
according to
actual days of
asset
management
4.00% / 9,753,424.66 Full
redemption Yes Yes 0.00
China
Everbright Bank
Bank
financial products
100,000,000.00 2019-1-15 2020-1-15 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of asset
management
4.10% / 4,100,000.00 Full
redemption Yes Yes 0.00
China Minsheng
Bank Bank
financial 1,000,000,000.00 2020-1-2 2020-3-30
Own
funds
Structured
deposits Interest
accrued 4.15% / 10,005,479.45
Full
redemption Yes Yes 0.00
Annual Report 2020
63 / 312
products according to
actual days of asset
management
Bank of
Chengdu
Bank
financial
products
400,000,000.00 2020-1-2 2020-3-29 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
asset
management
4.26% / 4,064,277.78 Full
redemption Yes Yes 0.00
China Bohai
Bank
Bank
financial
products
1,000,000,000.00 2020-4-1 2020-6-29 Own
funds
Structured
deposits
Interest
accrued according to
actual days of
asset
management
4.25% / 10,363,013.97 Full
redemption Yes Yes 0.00
Bank of
Chengdu
Bank
financial
products
1,500,000,000.00 2020-4-1 2020-6-29 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
asset management
4.20% / 15,574,999.99 Full
redemption Yes Yes 0.00
Huaxia Bank
Bank
financial
products
1,000,000,000.00 2020-4-1 2020-6-29 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
asset
management
4.16% / 10,143,561.64 Full
redemption Yes Yes 0.00
China Minsheng Bank
Bank financial
products
1,000,000,000.00 2020-4-1 2020-6-29 Own funds
Structured deposits
Interest
accrued
according to actual days of
asset
management
4.05% / 9,875,342.47 Full
redemption Yes Yes 0.00
CMBH
Bank
financial
products
500,000,000.00 2020-4-1 2020-6-29 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
asset
management
4.20% / 5,120,547.95 Full
redemption Yes Yes 0.00
ICBC
Bank
financial
products
1,000,000,000.00 2020-4-1 2020-6-29 Own
funds
Structured
deposits
Interest accrued
according to
actual days of
asset
management
3.98% / 9,704,657.53 Full
redemption Yes Yes 0.00
China CITIC
Bank
Bank
financial
products
1,500,000,000.00 2020-4-1 2020-6-29 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
4.05% / 14,813,013.70 Full
redemption Yes Yes 0.00
Annual Report 2020
64 / 312
asset
management
Bank of
Chengdu
Bank
financial
products
1,000,000,000.00 2020-7-1 2020-9-29 Own
funds
Structured
deposits
Interest accrued
according to
actual days of
asset
management
3.85% / 9,625,000.00 Full
redemption Yes Yes 0.00
China Guangfa
Bank
Bank
financial products
1,000,000,000.00 2020-7-1 2020-9-29 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of asset
management
0.50% / 1,232,876.71 Full
redemption Yes Yes 0.00
China CITIC
Bank
Bank
financial
products
500,000,000.00 2020-7-1 2020-9-29 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
asset
management
3.80% / 4,684,931.51 Full
redemption Yes Yes 0.00
ABC - Xi'an Bank
financial
products
1,500,000,000.00 2020-7-1 2020-9-29 Own
funds
Structured
deposits
Interest
accrued according to
actual days of
asset
management
3.80% / 14,054,794.52 Full
redemption Yes Yes 0.00
ABC - Ningxia
Bank
financial
products
1,500,000,000.00 2020-7-1 2020-9-29 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
asset management
3.80% / 14,054,794.52 Full
redemption Yes Yes 0.00
ICBC
Bank
financial
products
1,500,000,000.00 2020-7-1 2020-9-29 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
asset
management
3.75% / 13,869,863.01 Full
redemption Yes Yes 0.00
Bank of Chengdu
Bank
financial products
1,000,000,000.00 2020-10-9 2020-12-29 Own funds
Structured deposits
Interest
accrued
according to actual days of
asset
management
3.84% / 8,521,643.84 Full
redemption Yes Yes 0.00
ABC - Xi'an
Bank
financial
products
2,000,000,000.00 2020-10-13 2020-12-29 Own
funds
Structured
deposits
Interest
accrued
according to
actual days of
asset
management
3.59% / 15,146,849.32 Full
redemption Yes Yes 0.00
Annual Report 2020
65 / 312
ABC - Ningxia
Bank
financial
products
2,000,000,000.00 2020-10-13 2020-12-29 Own
funds
Structured
deposits
Interest
accrued according to
actual days of
asset
management
3.59% / 15,146,849.32 Full
redemption Yes Yes 0.00
Bank of
Communications
Bank
financial
products
1,000,000,000.00 2020-5-6 2020-6-29 Funds
raised
Structured
deposits
Interest
accrued
according to
actual days of
asset management
3.40% / 4,936,986.30 Full
redemption Yes Yes 0.00
Bank of
Communications
Bank
financial
products
1,000,000,000.00 2020-7-3 2020-9-29 Funds
raised
Structured
deposits
Interest
accrued
according to
actual days of
asset
management
3.02% / 7,281,095.89 Full
redemption Yes Yes 0.00
Bank of Communications
Bank financial
products
1,000,000,000.00 2020-10-12 2020-12-29 Funds raised
Structured deposits
Interest
accrued
according to actual days of
asset
management
3.02% / 6,453,698.63 Full
redemption Yes Yes 0.00
ICBC
Bank
financial
products
1,000,000,000.00 2020-10-19 2020-12-29 Funds
raised
Structured
deposits
Interest
accrued
according to
actual days of
asset
management
3.20% / 6,224,657.53 Full
redemption Yes Yes 0.00
China
Merchants Bank
Bank
financial
products
20,000,000.00 2020-2-6 2020-8-6 Own
funds
Structured
deposits
Interest accrued
according to
the days of
asset
management
2.77% / 276,241.10 Full
redemption Yes Yes 0.00
Bank of
Communications
Bank
financial products
27,800,000.00 2020-3-23 2020-9-21 Own
funds
Structured
deposits
Interest
accrued
according to
the days of asset
management
3.55% / 492,098.08 Full
redemption Yes Yes 0.00
Bank of
Communications
Bank
financial
products
33,400,000.00 2020-3-27 2020-8-28 Own
funds
Structured
deposits
Interest
accrued
according to
the days of
asset
management
3.55% / 500,267.95 Full
redemption Yes Yes 0.00
Bank of
Communications Bank
financial 22,300,000.00 2020-4-3 2020-9-4
Own
funds
Structured
deposits Interest
accrued 3.45% / 324,602.47
Full
redemption Yes Yes 0.00
Annual Report 2020
66 / 312
products according to
the days of asset
management
Bank of Ningbo
Bank
financial
products
5,000,000.00 2020-5-20 2020-9-16 Own
funds
Structured
deposits
Interest
accrued
according to
the days of
asset
management
2.95% / 48,089.04 Full
redemption Yes Yes 0.00
Bank of Ningbo
Bank
financial
products
4,400,000.00 2020-5-26 2020-9-22 Own
funds
Structured
deposits
Interest
accrued according to
the days of
asset
management
2.97% / 42,605.26 Full
redemption Yes Yes 0.00
Bank of Ningbo
Bank
financial
products
11,000,000.00 2020-6-4 2020-12-1 Own
funds
Structured
deposits
Interest
accrued
according to
the days of
asset management
3.07% / 166,536.99 Full
redemption Yes Yes 0.00
Bank of Ningbo
Bank
financial
products
11,000,000.00 2020-6-11 2020-12-8 Own
funds
Structured
deposits
Interest
accrued
according to
the days of
asset
management
3.07% / 166,536.99 Full
redemption Yes Yes 0.00
Bank of Ningbo Bank
financial
products
3,500,000.00 2020-6-11 2020-12-8 Own funds
Structured deposits
Interest
accrued
according to the days of
asset
management
3.07% / 52,989.04 Full
redemption Yes Yes 0.00
Bank of Ningbo
Bank
financial
products
19,010,000.00 2020-6-16 2020-12-14 Own
funds
Structured
deposits
Interest
accrued
according to
the days of
asset
management
3.10% / 292,233.18 Full
redemption Yes Yes 0.00
Bank of Ningbo
Bank
financial
products
7,410,000.00 2020-6-19 2020-10-16 Own
funds
Structured
deposits
Interest accrued
according to
the days of
asset
management
3.02% / 72,959.06 Full
redemption Yes Yes 0.00
Bank of Ningbo
Bank
financial
products
9,800,000.00 2020-6-24 2020-10-21 Own
funds
Structured
deposits
Interest
accrued
according to
the days of
3.02% / 96,491.07 Full
redemption Yes Yes 0.00
Annual Report 2020
67 / 312
asset
management
Bank of Ningbo
Bank
financial
products
3,710,000.00 2020-6-28 2020-10-25 Own
funds
Structured
deposits
Interest accrued
according to
the days of
asset
management
3.02% / 36,528.76 Full
redemption Yes Yes 0.00
Bank of Ningbo
Bank
financial products
10,800,000.00 2020-6-30 2020-10-27 Own
funds
Structured
deposits
Interest
accrued
according to
the days of asset
management
3.02% / 106,337.10 Full
redemption Yes Yes 0.00
ICBC
Bank
financial
products
4,000,000.00 2020-12-30 2021-1-4 Own
funds
Structured
deposits
Interest
accrued
according to
the days of
asset
management
2.85% / / Not yet
due Yes Yes 0.00
Others
√ Applicable □ Not Applicable
The outstanding principal of RMB 4 million of ICBC's financial products in the above table was redeemed on January 4, 2021, with an actual yield of
RMB 1,581.21.
Annual Report 2020
68 / 312
(3) Provision for impairment of entrusted asset management
□ Applicable √ Not Applicable
2. Entrusted loans
(1) Overall situation
□ Applicable √ Not Applicable
Others
□ Applicable √ Not Applicable
(2) Individual situation
□ Applicable √ Not Applicable
Others
□ Applicable √ Not Applicable
(3) Provision for impairment
□ Applicable √ Not Applicable
3. Others
□ Applicable √ Not Applicable
(IV) Other material contracts
√ Applicable □ Not Applicable
(1) Progress of material contracts for daily operations disclosed by the Company as of the end of
the reporting period
S/N Contract type Contents Name of contracting
parties
Contract
performance
period
Number of
contracts
Date of
signing Progress
1
Long-term
purchase
contract
Silicon
material
procurement
The Company, Yinchuan
LONGi, Lijiang LONGi,
and Ningxia LONGi etc.;
OCI Company Ltd. and
its subsidiary OCIM Sdn.
Bhd.
March 2018
to February
2021
64,638t 2018-2-5
Executed as
of the
disclosure
date of this
Report
2
Long-term
purchase
contract
Silicon
material
procurement
Yinchuan LONGi,
Ningxia LONGi, Lijiang
LONGi, and Huaping
LONGi etc.; Xinjiang
Daqo New Energy Co.,
Ltd.
January 1,
2020 to
December
31, 2022
112,800t 2019-8-6 In progress
3
Long-term
purchase
contract
Silicon
material
procurement
Yinchuan LONGi,
Ningxia LONGi, and
Lijiang LONGi etc.;
Sichuan Yongxiang Co.,
Ltd., Sichuan Yongxiang
Poly-Silicon Co., Ltd.
and Inner Mongolia
Tongwei Silicon Co., Ltd.
May 2018 to
December
2020
55,000t 2018-5-22 Executed
4
Long-term
purchase
contract
Silicon
material
procurement
Yinchuan LONGi,
Ningxia LONGi, and
Lijiang LONGi etc.;
Xinte Energy Co., Ltd.,
Xinjiang Xinte Crystal
Silicon Technology Co.,
Ltd.
January
2019 to
December
2021
91,080t 2018-7-27
The
procurement
amount for
2019-2020
has been
completed,
and the
procurement
amount for
Annual Report 2020
69 / 312
2021 shall be
implemented
in
accordance
with the
long-term
order
framework
contract in
Item 5 of this
table
5
Long-term
purchase
contract
Silicon
material
procurement
Yinchuan LONGi,
Ningxia LONGi, Lijiang
LONGi, Huaping
LONGi, Yinchuan
LONGi, Qujing LONGi,
and Tengchong LONGi
etc.; Xinte Energy Co.,
Ltd.
January
2021 to
December
2025
Not less than
270,000t 2020-12-14
Executed in
2021
6
Long-term
purchase
contract
Glass
procurement
LONGi Solar, Zhejiang
LONGi Solar, Taizhou
LONGi Solar, Yinchuan
LONGi Solar, Chuzhou
LONGi Solar, Datong
LONGi Solar, LONGi
(H.K.), and LONGi
(Kuching); Flat Glass
Group Co., Ltd., Anhui
Flat Solar Glass Co., Ltd.,
Zhejiang Jiafu Glass Co.,
Ltd., and Flat Glass
(Vietnam) Co., Ltd.
July 1, 2019
to
December
31, 2021
161,600,000m2 2019-5-15
The
procurement
amount for
2019-2020
has been
completed,
and the
procurement
amount for
2021 shall be
implemented
in
accordance
with Item 7
of this table
7
Long-term
purchase
contract
Glass
procurement
LONGi Solar, Zhejiang
LONGi Solar, Taizhou
LONGi Solar, Jiangsu
LONGi Solar, Chuzhou
LONGi Solar, Xianyang
LONGi Solar, Jiaxing
LONGi Solar, Yinchuan
LONGi Solar, Datong
LONGi Solar, LONGi
Green Energy
Architecture, LONGi
(H.K.), LONGi
(Kuching), and Vina
Solar; Flat Glass Group
Co., Ltd., Anhui Flat
Solar Glass Co., Ltd.,
Zhejiang Jiafu Glass Co.,
Ltd., Flat Glass (Vietnam)
Co., Ltd. and Flat Glass
(Hong Kong) Co., Ltd.
February 8,
2021
123,780,000m2
to be
purchased in
2021, and
46GW
modules to be
purchased
from 2022 to
2023
February 8,
2021
Executed in
2021
8
Long-term
purchase
contract
Glass
procurement
LONGi Solar, Zhejiang
LONGi Solar, Taizhou
LONGi Solar, Yinchuan
LONGi Solar, Chuzhou
LONGi Solar, Datong
LONGi Solar, LONGi
(H.K.), and LONGi
(Kuching); IRICO Group
New Energy Company
Limited and IRICO
(Hefei) Photovoltaic Co.,
Ltd.
July 3, 2019
to
December
31, 2021
68,500,000m2 2019-7-3 In progress
9 Long-term PV LONGi Solar, Zhejiang Q3 2019 to 47.1 million 2019-7-22 Due to
Annual Report 2020
70 / 312
purchase
contract
aluminum
frame
LONGi Solar, Taizhou
LONGi Solar, Yinchuan
LONGi Solar, Chuzhou
LONGi Solar, Datong
LONGi Solar, LONGi
(H.K.), and LONGi
(Kuching); Jiangsu
Akcome Science &
Technology Co., Ltd.
Q4 2021 sets business
changes of
the other
party, the
two parties
negotiated to
terminate
this contract
in April
2020. The
actual
quantity was
8.33 million
sets
10
Long-term
purchase
contract
PV
aluminum
frame
LONGi Solar, Zhejiang
LONGi Solar, Taizhou
LONGi Solar, Yinchuan
LONGi Solar, Chuzhou
LONGi Solar, Datong
LONGi Solar, LONGi
(H.K.), and LONGi
(Kuching); Yingkou
Changtai Aluminum Co.,
Ltd.
Q3 2019 to
Q4 2021
49,700,000
sets 2019-7-22 In progress
11
Long-term
purchase
contract
Glass
procurement
LONGi Solar, Zhejiang
LONGi Solar, Taizhou
LONGi Solar, Yinchuan
LONGi Solar, Chuzhou
LONGi Solar, Datong
LONGi Solar, LONGi
(H.K.), LONGi
(Kuching), Xianyang
LONGi Solar, Jiangsu
LONGi Solar, Jiaxing
LONGi Solar, and
LONGi Green Energy
Architecture; Wujiang
CSG Glass Co., Ltd. and
Dongguan CSG Solar
Glass Co., Ltd.
July 31,
2020 to July
31, 2025
Estimated to
be about RMB
5.7 billion at
the market
price when the
contract is
signed
2020-7-31 In progress
12
Long-term
purchase
contract
Silicon
material
procurement
Yinchuan LONGi,
Ningxia LONGi, and
Yinchuan LONGi PV
etc.; Asia Silicon
(Qinghai) Co., Ltd.
September
1, 2020 to
August 31,
2025
124,800t 2020-8-18 In progress
13 Long-term
sales contract Wafer sales
LONGi; Vina Cell
Technology Company
Limited, Shanghai EZ
New Energy Technology
Co., Ltd.
January
2019 to
December
2021
1.31 billion 2019-7-15
In July 2020,
the
Company
acquired
100% of the
equity of the
counterparty,
and the
related
transactions
were
transformed
into those
between
subsidiaries
14 Long-term
sales contract Wafer sales
LONGi and Shanxi Lu’an
Solar Technology Co.,
Ltd.
January
2020 to
December
2022
2.1 billion 2019-8-9 In progress
15 Long-term
sales contract Wafer sales
LONGi; Chint New
Energy Technology
(Haining) Co., Ltd.,
January
2020 to
December
660 million 2019-9-9 In progress
Annual Report 2020
71 / 312
Zhejiang CHINT Solar
Technology Co., Ltd. and
Hangzhou Mintai Import
and Export Trading Co.,
Ltd.
2022
16 Long-term
sales contract Wafer sales
LONGi and Jolywood
(Taizhou) Solar
Technology Co., Ltd.
January
2020 to
December
2022
800 million 2019-9-16 In progress
17 Long-term
sales contract Wafer sales
LONGi and Jiangsu
Runergy New Energy
Technology Co., Ltd.
January 1,
2020 to
December
31, 2022
3.82 billion 2020-1-10 In progress
18
Long-term
sales contract
and
supplementary
contract
Wafer sales LONGi and Tongwei
Solar (Chengdu) Co., Ltd.
January 1,
2020 to
December
31, 2022
5.8 billion 2020-1-22
2020-9-10 In progress
19 Long-term
sales contract
Sales of
modules
LONGi Solar and a U.S.
ground-mounting solar
power system developer
2019-2022
Estimated to
be about RMB
600 million at
the market
price when the
contract is
signed
2018-7-17 In progress
(2) Progress of investment agreements disclosed by the Company as of the end of the reporting
period
S/
N Investment target Parties
Date of
signing
Investment
scale
Project
progress
1 5GW Mono Module Project of Chuzhou
LONGi Solar
and
Management
Committee of
Chuzhou
Economic and
Technological
Development
Zone
2018-1-4 5GW mono
modules
Fully put
into
production
2 6GW Mono Ingot Project (Phase II) of Baoshan
LONGi,
Baoshan
Municipal
People's
Government
and People's
Government
of Longling
County
2018-3-28 6GW mono
ingots
Fully put
into
production
3 6GW Mono Ingot Construction Project (Phase II)
of Lijiang
LONGi and
Lijiang
Municipal
People's
Government
2018-4-3 6GW mono
ingots
Fully put
into
production
4 10GW Mono Wafer Project (Phase II) of Chuxiong
LONGi,
People's
Government of Chuxiong
Yi
Autonomous
2018-4-15 10GW mono
wafers
Fully put into
production
Annual Report 2020
72 / 312
Prefecture and
People's
Government
of Lufeng
County
5 5GW High-efficiency Mono Cell Project of
Yinchuan
Ningxia
LONGi Solar
and
Management
Committee of
Yinchuan
Economic and
Technological
Development
Zone
2018-9-13 5GW mono
cells
Fully put
into
production
6 15GW Mono Ingot and Wafer Project of Yinchuan
LONGi and
Management
Committee of
Yinchuan
Economic and
Technological
Development
Zone
2019-4-16
15GW
mono
ingots and
wafers
Fully put
into
production
7 3GW Mono Cell Project of Yinchuan
Ningxia
LONGi Solar
and
Management
Committee of
Yinchuan
Economic and
Technological
Development
Zone
2019-4-16 3GW mono
cells
Under
construction
and
expected to
be put into
production
in Q4 2021
8 5GW Mono Module Project of Taizhou
LONGi Solar
and Hailing
District
People’s
Government
2019-6-14 5GW mono
modules
Fully put
into
production
9 5GW Mono Module Project of Xianyang
LONGi Solar,
Management
Committee of
Xianyang
High-tech
Industrial
Development
Zone and
People's
Government
of Qindu
District
2019-6-28 5GW mono
modules
Fully put
into
production
10 5GW Mono Module Project of Jiaxing
LONGi Solar,
Management
Committee of
Xiuzhou
High-tech
Industrial
Development
2019-10-30
5GW mono modules
Fully put
into
production
Annual Report 2020
73 / 312
Zone and
People’s
Government
of Xiuzhou
District
11 10GW Mono Ingot Project of Tengchong
LONGi,
Baoshan
Municipal
People's
Government
and People's
Government
of Tengchong
City
2019-11-
23
10GW
mono
ingots
Partially put
into
operation
12 10GW Mono Ingot and Wafer Project of Qujing
LONGi,
People's
Government
of Qujing and
Management
Committee of
Qujing
Economic and
Technological
Development
Zone
2019-12-6
10GW
mono
ingots and
wafers
Partially put
into
operation
13 20GW Mono Wafer Construction Project (Phase
III) of Chuxiong
LONGi,
People's
Government
of Chuxiong
Yi
Autonomous
Prefecture and
People's
Government
of Lufeng
County
2019-12-
31
20GW
mono
wafers
Partially put
into
operation
14 10GW Mono Cell and Supporting Pilot Project of
Xi'an
Xi’an LONGi
Solar and
Xi'an National
Civil
Aerospace
Industrial
Base
2020-2-11
10GW
mono cells
and
matched
pilot lines
7.5GW Cell
Project
(Phase I)
fully put
into
production
in the Q1
2021;
2.5GW Cell
and
Matched
Pilot Project
(Phase II)
under
construction
and
expected to
be put into
production
gradually in
the second
half of 2021
Annual Report 2020
74 / 312
15 10GW Mono Ingot Construction Project (Phase
III) of Lijiang
LONGi and
Lijiang
Municipal
People's
Government
2020-9-21
10GW
mono
ingots
In
preparation
16 20GW Mono Ingot and Wafer Construction Project
(Phase II) of Qujing
LONGi,
People's
Government
of Qujing and
Management
Committee of
Qujing
Economic and
Technological
Development
Zone
2020-9-22
20GW
mono
ingots and
wafers
In
preparation
17 10GW Mono Cell Construction Project (Phase I)
of Qujing
LONGi Solar,
People's
Government
of Qujing and
Management
Committee of
Qujing
Economic and
Technological
Development
Zone
2020-11-
18
10GW
mono cells
In
preparation
18 15GW Mono Cell Construction Project of Xixian
New Area
LONGi and
Development
and
Construction
Management
Committee of
Xixian New
Area & Jinghe
New City
Management
Committee of
Xixian New
Area in
Shaanxi
2021-1-18 15GW
mono cells
In
preparation
19 5GW Mono Cell Construction Project of Yinchuan
LONGi Solar
and
Management
Committee of
Yinchuan
Economic and
Technological
Development
Zone
2021-3-11 5GW mono
cells
In
preparation
(3) Progress in strategic cooperation agreements
On September 25, 2020, the Company and Tongwei Co., Ltd. (hereinafter referred to as "Tongwei")
signed the Cooperation Agreement, Agreement on the Capital Increase and Share Expansion in
Sichuan Yongxiang New Energy Co., Ltd. and Agreement on Investment in Yunnan Tongwei High
Purity Crystal Silicon Co., Ltd. The parties agreed to ① increase capital in Sichuan Yongxiang, the
Annual Report 2020
75 / 312
joint venture, in the same proportion; ② the Company invested in Yunnan Tongwei (the subject of
implementation of Tongwei Baoshan 40,000t High-purity polysilicon Project) with shareholding of
49%; ③ the basic target is the annual trading volume of 101,800 tons of poly silicon (expected to
be 2022 after the joint venture is put into production). The Company's demand for silicon material is
preferably purchased from Tongwei Co., Ltd., and the silicon of Tongwei Co., Ltd. is preferably
supplied to LONGi.
As of the disclosure date of this Report, the Company has paid the initial capital increase in Sichuan
Yongxiang, and the shareholding remains 15% after the capital increase; the Company has completed
its equity participation in Yunnan Tongwei, with shareholding of 49%.
XVI. Other Major Matters
√ Applicable □ Not Applicable
1. On October 14, 2020, the Company disclosed the Announcement on the Shareholders'
Shareholding Reduction Plan by Centralized Price Bidding. Mr. Li Chun'an, the person acting in
concert of the controlling shareholders, intended to reduce his holding of unrestricted outstanding
shares (up to 37,717,600 shares) by means of centralized price bidding within six months from 15
business days after the date of the announcement of the Shareholding Reduction Plan. The proposed
reduction shares shall not exceed 1% of the Company's total share capital. Mr. Li Chun'an reduced
his holding of the Company's shares by a total of 37,717,515 shares through centralized price bidding
from December 7, 2020 to December 31, 2020, and the above shareholding reduction plan has been
completed (see the Company's Announcement No. L2021-003 disclosed on January 4, 2021).
2. On December 19, 2020, Mr. Li Chun'an and Hillhouse Capital Management Pte. Ltd. (hereinafter
referred to as "Hillhouse Capital") signed the Share Transfer Agreement for LONGi Green Energy
Technology Co., Ltd., under which Mr. Li Chun'an intended to transfer to Hillhouse Capital
226,306,134 unrestricted outstanding shares by way of transfer agreement. The transfer registration
of shares transferred by agreement has been completed on February 4, 2021 (see the Company's
Announcement No. L2020-149 and L2021-015 disclosed on December 21, 2020 and February 6,
2021). After the transfer, Hillhouse Capital holds 226,306,134 unrestricted outstanding shares,
accounting for 5.85% of the total share capital of the Company on the disclosure date of this Report;
Mr. Li Chunan holds 81,706,050 shares, accounting for 2.11%.
3. The progress and impact of Hanwha vs. LONGi patent infringement cases are detailed in "III.
(II). 6. Risks of patent litigation" in Section IV of this Report.
XVII. Positive Performance of Social Responsibilities
(I) Poverty alleviation of the listed company
√ Applicable □ Not Applicable
1. Targeted poverty alleviation plans
√ Applicable □ Not Applicable
LONGi has resolutely implemented the national policy on poverty alleviation, promoted "sustainable
development" as the concept of poverty alleviation, adhered to the synergy of "blood-transfusion-
style" and "blood-making-style" poverty alleviation, given full play to the advantages of PV
enterprises, actively contracted the construction of PV plants for poverty alleviation in various regions,
and continued to supply high-efficiency PV products for poverty alleviation. Furthermore, we have
supported the development of education in poverty-stricken areas by donating money for education
and other means, made public donations to help improve infrastructure conditions in poor
communities, and promoted clean energy transition and coordinated and sustainable development in
poor areas.
2. Summary of annual targeted poverty alleviation
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76 / 312
√ Applicable □ Not Applicable
2020 marks the final year of national poverty alleviation efforts. LONGi and its affiliated enterprises
continued to increase inputs in poverty alleviation, gave full play to the advantages of PV industry,
practiced the corporate social responsibility, and focused on PV, education, and fight against COVID-
19 for targeted poverty alleviation actions:
(1) In terms of PV poverty alleviation, LONGi has invested and built PV solar plants for poverty
alleviation in Baisha, Hainan, Datong and Guangling, Shanxi, and Shenrao, Hebei, enabling more
than 3,000 registered impoverished families to benefit from PV power generation of RMB 3,000
every year, contributing to poverty alleviation continuously and steadily. In 2020, LONGi donated
high-efficiency PV modules worth RMB 200,000 to Bayinkuluti Village, Wuqia County, Xinjiang,
for the construction of the grazing point lighting project in such a border village, thus solving the
power supply problem for more than 100 registered poor households. LONGi donated RMB 400,000
to build a distributed PV solar plant in the Central Primary School of Kecai Town, Xiahe County,
Gannan Prefecture, and the proceeds from the solar plant are used for school education and PV
science popularization.
(2) In terms of poverty alleviation through education, the Company paid close attention to the
touching story of "Role Model of the Times" Zhang Guimei, who founded free girls' high school and
lit up the life destiny of rural girls, and donated RMB 150,000 to support the education undertaking
at Huaping High School for Girls. In response to the "Lighting the China Dream and Hand in Hand
at Schools" public welfare activity sponsored by Ningxia Hui Autonomous Region Foundation for
Poverty Alleviation, LONGi donated RMB 300,000 to buy love schoolbags and distributed them to
poor students in Shenzha Primary School of Qingtongxia City and Yinchuan Manxin Hui Hope
Primary School; Baoshan LONGi donated teaching materials worth RMB 50,000 to Longling County
Vocational High School, and donated RMB 50,000 for teaching activities in Baoshan "Basic
Education and Beautiful China Public Welfare Activities for a Charity Night". Huaping LONGi
donated RMB 77,800 to the Vocational High School of Huaping County and the People's Government
of Tongda Township to support the education in poor areas.
(3) In terms of anti-epidemic poverty alleviation, after the outbreak of COVID-19, the Company
responded actively to the call and donated more than RMB 15 million to fighting against the pandemic.
In order to alleviate the shortage of epidemic prevention supplies and funds in poverty-stricken areas,
LONGi donated masks and protective clothing worth more than RMB 3 million to Yunnan Province,
Yinchuan, Zhongning, Anhui and other regions. LONGi Clean Energy donated RMB 100,000 to
Raoyang Town, Raoyang County, Hebei Province, and RMB 10,000 to Peijiawa Village, Douquan
Township, Guangling County, Shanxi Province to help fight the epidemic in poverty-stricken areas.
(4) In other aspects, the Company has responded actively to the call of local governments to fight
against poverty, and supported the poverty alleviation and community development in the business
location. In Tongxin County, Ningxia, LONGi continued to provide targeted assistance to 27
households in the village to participate in beekeeping cooperatives, promote the standardized
production and sales of honey products, and increase villagers' income. LONGi donated RMB
275,000 to Jinshan Town in Lufeng County, Chuxiong Prefecture, Xingquan Town in Huaping County,
and Charity Federation of Hailing District, Taizhou City, to help the registered impoverished families.
3. Achievements in targeted poverty alleviation
√ Applicable □ Not Applicable
Unit: Ten Thousand Yuan Currency: RMB
Indicator Quantity and implementation
I. General situation
Including: 1. Capital 141.28
Annual Report 2020
77 / 312
2. Amount equivalent to supplies 325.04
II. Investment by item
1. Poverty alleviation through industrial development
Including: 1.1 Type of projects for poverty alleviation by
developing industries
□ Poverty alleviation through agriculture and
forestry
□ Poverty alleviation through tourism
□ Poverty alleviation through e-commerce
√ Poverty alleviation by assets income
□ Poverty alleviation through technology
√ Others
1.2 Number of projects for poverty alleviation by
developing industries 1
1.3 Investment in projects for poverty alleviation by
developing industries 5
4. Poverty alleviation through education
Including: 4.1 Amount of funding needy students /
4.2 Number of needy students funded /
4.3 Investment in improving the educational resources in
the poverty-stricken area 62.78
9. Other projects
Including: 9.1 Number of projects 10
9.2 Investment amount 398.54
III. Awards (contents and levels)
In the 2020 China Energy High-quality Development Summit and Seminar on Poverty Alleviation Results in
Energy Industry sponsored by China Energy News, Clean Energy, a subsidiary of LONGi, won the "Energy
Poverty Alleviation Contributor Award".
4. Subsequent targeted poverty alleviation programs
√ Applicable □ Not Applicable
In 2021, LONGi will continue to actively fulfill the social responsibility for targeted poverty
alleviation, focus on Yunnan, Ningxia and other provinces and autonomous regions, link up rural
revitalization, and continuously deepen and innovate the contents of poverty alleviation projects.
LONGi will continue to give full play to industrial advantages, provide leading and high-efficiency
PV products for PV poverty alleviation projects, and help the poor areas steadily increase their
incomes; it will intensify poverty alleviation through education, actively carry out public welfare
programs for students and teaching assistance in poverty-stricken areas, and promote the development
of education in poverty-stricken areas in Yunnan, Ningxia and other provinces and autonomous
regions. Besides, LONGi has responded actively to the rural revitalization initiatives of the state and
local governments, carried out poverty-relief projects to address the problems and needs in
communities, explored PV power for clean rural heating, and promoted sustainable development of
communities.
(II) Performance of social responsibilities
√ Applicable □ Not Applicable
Please refer to the 2020 Sustainability Report disclosed by the Company on the same day as this
Report.
(III) Environmental information
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78 / 312
1. Explanation on environmental protection of the companies and their major subsidiaries
belonging to key pollutant discharge units as published by the environmental protection
departments
√ Applicable □ Not Applicable
(1) Pollution drainage information
√ Applicable □ Not Applicable
As the first Chinese PV enterprise to join the RE100, EV100 and EP100 initiatives (on clean energy,
clean transport and energy efficiency) of the Climate Group and the Science Based Targets initiative
(SBTi), LONGi has adhered to the green development concept of "Solar for Solar", continued to
provide more clean energy for all sectors as well as high-efficiency and environmentally friendly PV
products. For a long time, LONGi has fully practiced the concept of cleaner production and green
production, continued to promote energy conservation and emission reduction through technological
innovation, actively increased the proportion of electricity used by renewable energy, pushed the
production of clean energy from clean energy, vigorously recycled packaging materials, promoted
water-saving management measures and other carbon reduction actions, and taken practical actions
to advance the corporate carbon management and green development.
During the reporting period, the parent company, Ningxia LONGi, Wuxi LONGi, Chuxiong LONGi
and Taizhou LONGi Solar were included in the key pollutant discharging units by the Environmental
Protection Department due to their large scale of production and process characteristics. LONGi has
strictly implemented energy conservation and emission reduction, and the pollutants of relevant units
are discharged up to the standard, specifically as follows:
Annual Report 2020
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Key pollutant discharging units
Key pollutants Discharge method
Number and
distribution of discharge
outlets
Discharge concentration
Pollutant discharge standards in execution Total discharges (t) Approved
discharges (tpa)
Parent company - state-
controlled key monitoring
unit (waste water)
COD, ammonia
nitrogen, PH, SS,
petroleum
Continuous blow-down
A total of 2,
each in the
north and
south area
North-South region
average:
COD:177.87mg/L
Ammonia nitrogen:
1.12mg/L
Ph:7.5 SS:24.3mg/L
Petroleum: 0.62mg/L
Integrated Wastewater Discharge Standard (GB8978-1996)
Grade III standard and Wastewater Quality Standards for
Discharge to Municipal Sewers (GB/T31962-2015) Grade B
standard: COD≤500mg/L
Ammonia nitrogen ≤ 45mg/L
6≤Ph≤9
SS≤400mg/L
Petroleum≤15mg/L
COD:160.81
Ammonia nitrogen:
1.02
SS:21.97
Petroleum: 0.705
Annual discharges
(in the north and
the south area):
COD≤163.58
Ammonia
nitrogen: 1.7
SS≤196.1
Petroleum≤4.5
Ningxia LONGi, a key
supervision unit of
Ecological &
Environmental Protection
Bureaus of Autonomous
Region and Zhongning
County (hazardous wastes)
Waste oil sludge
Qualified units are
entrusted for centralized
disposal
/ / Standard for Pollution Control on Hazardous Waste Storage
(GB18957-2001)
Waste oil sludge:
31.91
Waste oil sludge:
58
Wuxi LONGi - 2020 key pollutant discharge unit in
Wuxi (wastewater)
COD, suspended solids,
animal and vegetable oils, total phosphorus,
ammonia nitrogen, total
nitrogen, and LAS
Continuous blow-down 1
COD: 311.4g/L
Suspended solids:
50.7mg/L
Animal and vegetable
oils: 3.17mg/L
Total phosphorus: 0.371mg/L
Ammonia nitrogen:
2.46mg/L
Total nitrogen:
2.88mg/L
LAS: 5.91mg/L
Integrated Wastewater Discharge Standard (GB8978-1996)
Grade III:
COD≤500mg/L
Suspended solids ≤ 400mg/L
Animal and vegetable oils ≤ 100mg/L
Total phosphorus ≤ 8.0mg/L
Ammonia nitrogen ≤ 45mg/L
Total phosphorus ≤ 70mg/L
LAS≤20mg/L
Wastewater: 807400
COD: 251.45
Suspended solids:
40.91
Animal and
vegetable oils: 2.56 Total phosphorus:
0.3
Ammonia nitrogen:
1.99
Total nitrogen: 2.33
LAS: 4.77
Total wastewater
discharge:
867496.9
COD: 409.378
Suspended solids:
227.019
Animal and
vegetable oils: 2.688
Total phosphorus:
0.302
Ammonia
nitrogen: 2.016
Total nitrogen:
2.352 LAS: 16.006
Chuxiong LONGi - 2020
key pollutant discharge
unit in Yi Autonomous
Prefecture (wastewater)
COD, ammonia
nitrogen, PH, suspended
solids, and petroleum
Continuous blow-down 1
PH: 7.44
COD: 90.03mg/L
Ammonia nitrogen:
0.65mg/L
Suspended solids:
5mg/L Petroleum: 0.42mg/L
Integrated Wastewater Discharge Standard (GB8978-1996)
Grade I:
6≤Ph≤9
COD≤100mg/L
Suspended solids ≤ 70mg/L
Petroleum ≤ 10mg/L
Ammonia nitrogen ≤ 15mg/L
Wastewater:
3,281,320.71
COD: 284.565
Ammonia nitrogen:
1.869
Wastewater discharged:
The determined
pollution load was
2,147,400 tons for
Project Phases I
and II,
respectively
COD: The
determined
pollution load was
174.9 tons for
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80 / 312
Project Phases I &
II, respectively
Ammonia
nitrogen: totaling
26.6t for Phases I
& II
Taizhou Solar - 2020 key pollutant discharge unit in
Taizhou (wastewater)
PH, COD, suspended solids, total phosphorus,
total nitrogen, ammonia
nitrogen, and fluoride
Continuous blow-down 1
PH: 7.1
COD: 26mg/L
Ammonia nitrogen:
0.384mg/L
Suspended solids: 28mg/L
Total nitrogen:
2.96mg/L
Total phosphorus: 1.98
mg/L
Fluoride: 1.6mg/L
Emission Standard of Pollutants for Battery Industry
(GB30484-2013): 6≤Ph≤9
COD≤150mg/L
Suspended solids ≤ 140mg/L
Total phosphorus ≤ 2mg/L
Ammonia nitrogen ≤ 30mg/L
Total nitrogen ≤ 40mg/L
Fluoride ≤ 8mg/L
COD:47.5
Ammonia nitrogen:
0.7
COD: determined
pollution load of
235.98t
Ammonia
nitrogen:
determined
pollution load of
23.48t.
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81 / 312
(2) Construction and operation of pollution prevention and control facilities
√ Applicable □ Not Applicable
During the reporting period, the pollution prevention and control facilities of the Company's key
pollutant discharging units operated properly, and all pollutants were treated for up-to-standard
discharge, specifically as follows:
(1) The parent company boasts 3,800 t/d designed capacity of the physicochemical sewage treatment
system in the north area, and about 800t daily capacity in the south area. The two systems are in
normal operation to ensure the up-to-standard discharge of wastewater.
(2) Ningxia LONGi has a hazardous waste storeroom, a silicate sludge storage pool, a waste quartz
storage pool and a waste graphite storage pool, all of which are in normal operation and can meet the
requirements of hazardous waste treatment.
(3) Wuxi LONGi has built a set of degumming process and slicer accessory cleaning waste water
treatment system, with a designed capacity of 1,560 m3/d, and a set of cleaning waste water treatment
system, with a designed capacity of 1,920 t/d. They are all in normal operation, ensuring the up-to-
standard discharge of waste water.
(4) Chuxiong LONGi has two sets of biochemical sewage treatment systems, with a daily capacity
of about 12,300t, which are currently operating normally.
(5) Taizhou LONGi Solar has built a set of sewage treatment system, with physicochemical
treatment + A2/O biochemical process, and the designed treatment capacity of 5000 t/d, and of normal
operation.
(3) Environmental impact assessment and other environmental protection administrative
permits for construction projects
√ Applicable □ Not Applicable
The environmental impact assessment of the construction project of the LONGi's key pollutant
discharging units and other administrative permits for environmental protection are as follows:
Parent Company: Diamond Wire Cutting Technological Transformation Project had completed the
environmental impact assessment on August 19, 2016, and the environmental protection acceptance
on completion on April 12, 2017, and obtained the EIA approval from National Civil Aerospace
Industrial Base Branch of Xi'an Environmental Protection Bureau, with approval documents of
XHTHPF (2016) No. 33 and (2017) No. 09, respectively; for the 1.15GW Mono Wafer Expansion
Project, the environmental impact assessment was completed on August 19, 2016, and the completion
acceptance of environmental protection on September 9, 2017, with approval numbers of XHTHPF
(2016) No. 34 and (2017) No. 15; the discharge of waste water, exhaust gas, noise, and solid wastes
(including hazardous wastes) has been approved by Xi'an Environmental Protection Bureau, with
pollutant discharge permit (No.: 916101167101813521001W).
Ningxia LONGi: Ningxia LONGi 1,000t/a Mono Project, 1,800t/a Mono Project, and Machining and
Cleaning Project had completed EIA on January 4, 2007, February 23, 2010 and November 4, 2010,
respectively, and obtained the EIA approval from the local competent administrative authorities of
environmental protection, with approval documents of ZNJHF [2007] No. 2, NHB [2010] No. 11,
and ZNHF [2010] No. 105; the three projects passed the completion acceptance of environmental
protection on December 28, 2007, January 22, 2013, and June 21, 2011, respectively. The competent
administrative authorities of environmental protection gave the approval of completion acceptance of
ZNJHY (2007) No. 08, NHY [2013] No. 6, and HY [2011] No. 003. Ningxia LONGi 1,000MW Mono
Silicon Construction Project was arranged for acceptance in December 2017 (acceptance document
No.: NLHYJZ (2017) No. 444), and passed the completion acceptance of Zhongning County
Environmental Protection Bureau in April 2018, and the acceptance approval was ZNH (Y) H [2017]
Annual Report 2020
82 / 312
No. 19; Ningxia LONGi applies to the Environmental Protection Bureau for waste water discharge
permit and exhaust emission permit every year, and completed the handling of pollutant discharge
permit (No.: 91640521788235488D001V) in June 2020.
Wuxi LONGi: 4GW Mono Wafer Intelligent Transformation Project of Wuxi LONGi was EIA
approved on April 24, 2017 (XHBXF [2017] No. 91), water and gas were independently accepted
and put on records on July 6, 2018, solid wastes and noise were accepted by the Environmental
Protection Bureau on November 9, 2018 (XHGXY (2018) No. 81); On April 24, 2019, Wuxi LONGi
prepared the Environmental Impact Analysis Report of Solid Waste Change and submitted it to
Environmental Protection Bureau for filing. The hazardous wastes were changed from 3 to 11
categories. Wuxi LONGi obtained the pollutant discharge permit (No.: 91320214562951238H001V)
in May 2020.
Chuxiong LONGi: 10GW Mono Wafer Project (Phase I) of Chuxiong LONGi had obtained EIA
approval (LHS [2017] No. 36) from the Environmental Protection Bureau of Lufeng County on
December 29, 2017, and completed the completion acceptance and filing of EIA on April 4, 2019
(LHYB [2019] No. 003); the 10GW Mono Wafer Construction Project (Phase II) has obtained the
EIA approval (LHS [2019] No. 32) from Lufeng Branch of Ecology and Environment Bureau of
Chuxiong Prefecture on August 12, 2019, and completed the independent completion acceptance of
EIA in January 2021; Chuxiong LONGi obtained the pollutant discharge permit (No.:
91532331MA6KA7HT5T001Z) in December 2020.
Taizhou LONGi Solar: 2GW High-efficiency Mono Cell Production Base Project of Taizhou LONGi
Solar obtained the EIA approval (THHS [2016] No. 6) in February 2016, and completed the EIA
acceptance of Project (Phase I) (THHY (2016) No. 25) in October 2016 and the EIA acceptance of
Project (Phase II) (THHY (2017) No. 17) in May 2017. Taizhou LONGi Solar obtained the pollutant
discharge permit (No.: 91321200354580348L001Q) in July 2019.
(4) Emergency response plans for environmental emergencies
√ Applicable □ Not Applicable
According to the requirements of environmental protection departments, LONGi's key pollutant
discharging units have, based upon the production process and the characteristics of environmental
risks, formulated emergency response plans for environmental emergencies and put on records at the
local environmental protection departments. Emergency Response Plans for Environmental
Emergencies of the Parent Company (2019 Edition), record No.: 610164-2019-006-L, Emergency
Response Plans for Environmental Emergencies of Ningxia LONGi (2019 Revision), record No.:
640521201926-L, Emergency Response Plans for Environmental Emergencies of Wuxi LONGi (2019
Revision), record No.: 320-214-2019-095-L, Emergency Response Plans for Environmental
Emergencies of Chuxiong LONGi, record No.: 532331-2019-09-L, and Emergency Response Plans
for Environmental Emergencies of Taizhou LONGi Solar, record No.: 321202-2018-12-H.
(5) Environmental self-monitoring programs
√ Applicable □ Not Applicable
LONGi's key pollutant discharging units have formulated their environmental self-monitoring
programs depending on their production and operation conditions, specifically as follows:
Waste water monitoring in the parent company: real-time online monitoring, data uploaded every
hour; petroleum and SS pollutants tested by an external organization once a month.
Hazardous waste monitoring in Ningxia LONGi: monthly internal supervision, inspection and
compliance disposal of the quintuplicate of hazardous waste treatment.
Waste water monitoring in Wuxi LONGi: internal waste water monitoring twice a day, COD,
ammonia nitrogen and pH real-time online monitoring, and data uploaded every 2 hours; outsourced
testing 3 times a year.
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Waste water monitoring in Chuxiong LONGi: real-time online monitoring, and data uploaded every
hour; internal monitoring twice a day, and outsourced testing 12 times a year.
Taizhou LONGi Solar: real-time online monitoring of waste water COD and ammonia nitrogen, data
uploaded every 2 hours, pH and fluoride monitored online using sensors; all pollution factors
monitored once a month.
(6) Other environmental information to be disclosed
□ Applicable √ Not Applicable
2. Environmental protection of companies other than key pollutant discharging units
√ Applicable □ Not Applicable
Subsidiaries other than key pollutant discharging units have, as per the national laws and regulations
on environmental protection, established a sound environmental management system, strictly carried
out environmental monitoring, supervision and inspection, implemented EIA on new, renovation and
technological transformation projects in a timely manner, organized staff to carry out the emergency
exercise for environmental risks, and kept improving the prevention and control measures against
environmental risks and emergency management system of all risk sources. During the reporting
period, the environmental protection facilities of relevant units operated normally and effectively,
ensuring the stable and up-to-standard discharge of pollutants.
3. Reasons for companies other than key pollutant discharging units not to disclose the
environmental information
□ Applicable √ Not Applicable
4. Subsequent progress or changes of environmental information disclosed during the
reporting period
□ Applicable √ Not Applicable
(IV) Other notes
□ Applicable √ Not Applicable
XVIII. Convertible Corporate Bonds
√ Applicable □ Not Applicable
(I) Issuance of convertible corporate bonds
√ Applicable □ Not Applicable
Approved by the China Securities Regulatory Commission in the Document "ZJXK [2020] No. 1092",
LONGi publicly issued 50 million convertible corporate bonds on July 31, 2020, each with a par
value of RMB 100, and a total issue amount of RMB 5 billion. With the consent of Shanghai Stock
Exchange Self-regulatory Decision No. 2020 [295], the convertible corporate bonds issued this time
would be listed and traded in SSE on September 8, 2020. The bonds are referred to as "L20
Convertible Bonds", with the bond symbol of "113038".
(II) Holders and guarantors of convertible corporate bonds during the reporting period
√ Applicable □ Not Applicable
Name of convertible corporate bonds L20 Convertible Bonds
Number of convertible bond holders at the end of the
period
41,199
Guarantor of the Company's convertible bonds N/A
The top 10 convertible bond holders are as follows:
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Name Number of bond holding at
the end of the period (RMB) Bond holding (%)
Special Account for Bond Repurchase and Pledge of
Registration and Settlement System (ICBC) 313,700,000 6.27
Industrial and Commercial Bank of China Limited - E
Fund Return Bond Securities Investment Fund 301,843,000 6.04
Li Xiyan 253,772,000 5.08
Li Zhenguo 219,819,000 4.40
Industrial and Commercial Bank of China Limited -
China Universal Asset Management (CUAM)
Convertible Bond Securities Investment Fund
140,616,000 2.81
Special Account for Bond Repurchase and Pledge of
Registration and Settlement System (ABC) 135,846,000 2.72
Shenwan Hongyuan Securities Co., Ltd. 114,899,000 2.30
Chen Fashu 111,263,000 2.23
Special Account for Bond Repurchase and Pledge of
Registration and Settlement System (BOC) 82,737,000 1.65
Special Account for Bond Repurchase and Pledge of
Registration and Settlement System (China Merchants
Bank Company Limited)
80,202,000 1.60
(III) Changes in convertible corporate bonds during the reporting period
□ Applicable √ Not Applicable
Accumulated convertible bonds into equity during the reporting period
□ Applicable √ Not Applicable
(IV) Previous adjustments of prices of convertible corporate bonds into equity
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Name of convertible corporate bonds L20 Convertible Bonds
Price adjustment date Adjusted
price Disclosure date Media of disclosure Remarks
October 26, 2020 52.59 October 19, 2020
China Securities
Journal
Shanghai Securities
News
Securities Times
Securities Daily
Due to LONGi's
implementation of the
semi-annual profit
distribution plan in
2020, the "L20
Convertible Bonds"
were adjusted from
RMB 52.77 to RMB
52.59 per share
The latest price of convertible bonds
into equity as of the end of this
reporting period
52.59
(V) The Company’s liabilities, changes in credit standing and cash arrangements for
repayment in the coming years
□ Applicable √ Not Applicable
(VI) Other notes
Annual Report 2020
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√ Applicable □ Not Applicable
According to the conditional redemption provision in the Prospectus for the Public Offering of
Convertible Corporate Bonds, from February 8, 2021 to March 5, 2021, the closing price of the
Company's stock should not be lower than 130% of the current transfer price (i.e., RMB 68.37/share)
for 15 consecutive trading days, triggering the early redemption of "L20 Convertible Bonds".
According to the Proposal on Early Redemption of "L20 Convertible Bonds" deliberated and passed
at the 4th Meeting of the 4th Board of Directors in 2021, LONGi had exercised the early redemption
rights to redeem all the "L20 Convertible Bonds" registered on the redemption record date (March
30, 2021), totaling 234,820 convertible bonds. The total amount of redemption payment was RMB
23,528,964.00, which was made on March 31, 2021. After this redemption, the "L20 Convertible
Bonds" and "L20 Convertible Stock" have been delisted in the Shanghai Stock Exchange on March
31, 2021. Please refer to LONGi's Announcements No. L2021-024, L2021-025, and L2021-039
disclosed on March 6, 2021, March 12, 2021, and April 1, 2021, respectively.
Annual Report 2020
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Section VI Changes in Ordinary Shares and Shareholders
I. Changes in Ordinary Share Capital
(I) Schedule of changes in ordinary shares
1. Schedule of changes in ordinary shares
Unit: shares
Before Increase or decrease ( +, -) After
Qty. Proportion
(%)
New
issue of
shares
Issuance
of
additional shares as
dividends
Shares
transferred
from provident
fund
Others Subtotal Qty. Proportion
(%)
I. Restricted
shares 4,466,980 0.12 0 0 0
-
4,381,370 -4,381,370 85,610 0.002
1. State-owned
shares 0 0 0 0 0 0 0 0 -
2. State-owned
shares held by legal
person
0 0 0 0 0 0 0 0 -
3. Shares held
by other domestic
investors
4,466,980 0.12 0 0 0 -
4,381,370 -4,381,370 85,610 0.002
Including: Shares
held by domestic non-state-owned
legal persons
0 0 0 0 0 0 0 0 -
Shares held by
domestic natural
persons
4,466,980 0.12 0 0 0 -
4,381,370 -4,381,370 85,610 0.002
4. Shares held
by foreign investors 0 0 0 0 0 0 0 0 0
Including: Shares
held by foreign legal
persons
0 0 0 0 0 0 0 0 0
Shares held by
foreign natural persons
0 0 0 0 0 0 0 0 0
II. Unrestricted outstanding shares
3,767,549,777 99.88 0 0 0 4,133,514 4,133,514 3,771,683,291 99.998
1. RMB
ordinary shares 3,767,549,777 99.88 0 0 0 4,133,514 4,133,514 3,771,683,291 99.998
2.
Domesticall
y listed foreign
shares
0 0 0 0 0 0 0 0 0
3. Foreign
shares listed
overseas
0 0 0 0 0 0 0 0 0
4.
Miscellaneous
0 0 0 0 0 0 0 0 0
III. Total of ordinary shares
3,772,016,757 100 0 0 0 -247,856 -247,856 3,771,768,901 100
2. Changes in ordinary shares
√ Applicable □ Not Applicable
(1) The Company repurchased and cancelled 189,406 and 58,450 restricted shares that did not meet
the unlocking conditions of the restricted share incentive plan (series 2) on September 18, 2020 and
November 17, 2020 respectively, decreasing the total share capital from 3,772,016,757 shares to
3,771,768,901 shares, as detailed in the Company's Announcement No. L2020-112, L2020-137 on
September 16, 2020 and November 13, 2020.
Annual Report 2020
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(2) During the reporting period, the Company implemented the fourth unlocking of the restricted
share incentive plan (series 2) to unlock a total of 4,133,514 restricted shares. The unlocking and
listing date was November 27, 2020, as detailed in the Company's Announcement No. L2020-142
disclosed on November 24, 2020.
(3) During the period from the start date of conversion into shares to the redemption record date
(February 8, 2021 to March 30, 2021), the transfer of "L20 Convertible Bonds" totaled 94,625,891
shares. After this transfer, the total share capital would increase from 3,771,768,901 to 3,866,394,792
shares (as detailed in the Company's Announcement No. L2021-039 disclosed on April 1, 2021).
3. Effects of ordinary share changes on financial indicators including EPS and book value
per share (BVPS) in the recent year and period (if any)
√ Applicable □ Not Applicable
During the reporting period, the total share capital decreased from 3,772,016,757 shares to
3,771,768,901 shares. Changes in shares had little effects on financial indicators such as EPS and
BVPS in the recent year and period.
4. Other contents to be disclosed as the Company deems it necessary or at the request of the
securities regulatory authority
□ Applicable √ Not Applicable
(II) Changes in restricted shares
√ Applicable □ Not Applicable
Unit: share
Name of
shareholders
Number of
restricted
shares at the
beginning of
the year
Number of
restricted
shares
relieved in
the current
year
Number of
restricted
shares
increased in
the current
year
Number
of
restricted
shares at
the end
of the
year
Reason for
restriction
Release
date of
restriction
Objects of the
restricted share
incentive plan
(series 2) 4,466,980 4,133,514 0 85,610
Those not meeting
the unlocking
conditions of the
Equity Incentive
Plan would be
repurchased and
cancelled by the
Company
/
Total 4,466,980 4,133,514 0 85,610 / /
Note: The Company repurchased and cancelled 189,406 and 58,450 restricted shares that did not meet
the unlocking conditions of the restricted share incentive plan (series 2) on September 18, 2020 and
November 17, 2020 respectively, resulting in a decrease of 247,856 restricted shares. See the
Company's Announcement No. L2020-112 and L2020-137 disclosed on September 16, 2020 and
November 13, 2020 for details.
II. Securities Issuance and Listing
(I) Securities issuance as of the reporting period
√ Applicable □ Not Applicable
Unit: share Currency: RMB
Classes of Issue date Issue Number of Listing date Approved Transaction
Annual Report 2020
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stock and
derivative
securities
price
(or
interest
rate)
issued
shares
number of
tradable
shares
expiry date
Convertible corporate bonds, separate bargaining convertible bonds and corporate bonds
L20
Convertible
Bonds
July 31, 2020 100 50,000,000 September 8, 2020 50,000,000 March 31, 2021
Note: The unit of quantity is Nr. in the above table.
Securities issuance as of the reporting period (please specify separately for those with different
interest rates in duration):
√ Applicable □ Not Applicable
Approved by the China Securities Regulatory Commission in the Document "ZJXK [2020] No. 1092",
LONGi publicly issued 50 million convertible corporate bonds on July 31, 2020, each with a par
value of RMB 100, and a total issue amount of RMB 5 billion. With the consent of Shanghai Stock
Exchange Self-regulatory Decision No. 2020 [295], the convertible corporate bonds issued this time
would be listed and traded in SSE on September 8, 2020. The bonds are referred to as "L20
Convertible Bonds", with the bond symbol of "113038".
From February 8, 2021 to March 5, 2021, the closing price of the Company's stock should not be
lower than 130% of the current transfer price (i.e., RMB 68.37/share) for 15 consecutive trading days,
triggering the early redemption of "L20 Convertible Bonds". According to the Proposal on Early
Redemption of "L20 Convertible Bonds" deliberated and passed at the 4th Meeting of the 4th Board
of Directors in 2021, LONGi had exercised the early redemption rights to redeem all the "L20
Convertible Bonds" not transferred (RMB 23,482,000) on the redemption record date (March 30,
2021). After this redemption, the "L20 Convertible Bonds" and "L20 Convertible Stocks" have been
delisted in the Shanghai Stock Exchange on March 31, 2021. Please refer to LONGi's Announcements
No. L2021-024, L2021-025, and L2021-039 disclosed on March 6, 2021, March 12, 2021, and April
1, 2021.
(II) Changes in the Company’s total ordinary shares, shareholder structure, and in the
structure of assets and liabilities
√ Applicable □ Not Applicable
During the reporting period, the changes of the Company's total share capital and shareholder
structure were detailed in this Section "I. Changes in Ordinary Share Capital", and the changes in the
structure of assets and liabilities are detailed in "II, (III) Analysis of assets and liabilities" in Section
IV.
(III) Existing internal employee stocks
□ Applicable √ Not Applicable
III. Status of Shareholders and Actual Controllers
(I) Total number of shareholders
Total number of common shareholders as of the end of reporting
period 280,425
Total number of common shareholders as of the end of previous
month prior to the disclosure date of Annual Report 497,429
Note: The above total number of shareholders has been included into the general account and
securities margin trading credit account.
(II) Shareholding of top ten shareholders and top ten floating stockholders (or unrestricted
Annual Report 2020
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shareholders) at the end of the reporting period
Unit: share
Shares held by top ten shareholders
Name of shareholders
(Full name)
Increase or
decrease
during the
reporting
period
Shares held
at the end of
the period
Proportion
(%)
Number
of
restricted
share
held
Pledged or frozen
Nature of
shareholders Status
of
shares
Qty.
Li Zhenguo
0 544,499,068 14.44 0 Pledged 112,000,000
Domestic
natural
person
Hong Kong Securities
Clearing Co., Ltd. 181,068,023 324,555,037 8.60 0 N/A 0
Foreign
legal person
Li Chun'an
-90,021,015 308,012,184 8.17 0 Pledged 33,000,000
Domestic
natural
person
Li Xiyan
0 194,167,786 5.15 0 Pledged 16,452,000
Domestic
natural
person
Shaanxi Coal Industry
Company Limited 0 146,385,162 3.88 0 N/A 0
State-owned
legal person
Chen Fashu
-49,680,561 80,000,040 2.12 0 N/A 0
Domestic
natural
person
Zhong Baoshen
0 64,182,850 1.70 0 N/A 0
Domestic
natural
person
Central Huijin
Investment Ltd. 0 57,329,865 1.52 0 N/A 0
State-owned
legal person
China Construction Bank
Corporation - Guangfa
Technology Pioneer
Hybrid Securities
Investment Fund
25,313,303 25,313,303 0.67 0 N/A 0 Others
National Social Security
Fund Portfolio 601 19,130 21,757,128 0.58 0 N/A 0 Others
Shareholding of top ten unrestricted shareholders
Name of shareholders Number of unrestricted
outstanding shares held
Class and quantity of shares
Class Qty.
Li Zhenguo 544,499,068 RMB ordinary shares 544,499,068
Hong Kong Securities Clearing
Co., Ltd. 324,555,037 RMB ordinary shares 324,555,037
Li Chun'an 308,012,184 RMB ordinary shares 308,012,184
Li Xiyan 194,167,786 RMB ordinary shares 194,167,786
Shaanxi Coal Industry Company
Limited 146,385,162 RMB ordinary shares 146,385,162
Chen Fashu 80,000,040 RMB ordinary shares 80,000,040
Zhong Baoshen 64,182,850 RMB ordinary shares 64,182,850
Central Huijin Investment Ltd. 57,329,865 RMB ordinary shares 57,329,865
China Construction Bank
Corporation - Guangfa
Technology Pioneer Hybrid
Securities Investment Fund
25,313,303 RMB ordinary shares 25,313,303
National Social Security Fund
Portfolio 601 21,757,128 RMB ordinary shares 21,757,128
Annual Report 2020
90 / 312
The above shareholder association
or concerted action
Mr. Li Zhenguo, Ms. Li Xiyan and Mr. Li Chun'an are the persons acting in concert. The
Company is not aware of any association or concerted action among the other shareholders
above.
Number of shares held by top ten shareholders with restricted conditions and the restricted conditions
√ Applicable □ Not Applicable
Unit: shares
S/N
Name of
shareholders
with
restricted
conditions
Number of
shares held with
restricted
conditions
Tradable conditions for shares
with restricted conditions Restricted conditions
Tradable time
Number of new
shares for
listing and
trading
1 Shen Jiabing 21,000 / 0
Locked up as required by the
Company's Restricted Share
Incentive Plan (Series 2)
2 Luo
Xiaoyun 15,400 / 0
Locked up as required by the
Company's Restricted Share
Incentive Plan (Series 2)
3 Zhou Heng 8,400 / 0
Locked up as required by the
Company's Restricted Share
Incentive Plan (Series 2)
4 Yin Yulin 7,700 / 0
Locked up as required by the
Company's Restricted Share
Incentive Plan (Series 2)
5 Sun
Guofeng 4,200 / 0
Locked up as required by the
Company's Restricted Share
Incentive Plan (Series 2)
6 An Yanzhou 4,200 / 0
Locked up as required by the
Company's Restricted Share
Incentive Plan (Series 2)
7 Liu Yahui 4,200 / 0
Locked up as required by the
Company's Restricted Share
Incentive Plan (Series 2)
8 Tian Hao 3,850 / 0
Locked up as required by the
Company's Restricted Share
Incentive Plan (Series 2)
9 Tuo Boxu 3,850 / 0
Locked up as required by the
Company's Restricted Share
Incentive Plan (Series 2)
10 Zhang
Xuehua 3,850 / 0
Locked up as required by the
Company's Restricted Share
Incentive Plan (Series 2)
The above
shareholder
association or
concerted action
The above mentioned shareholders are the incentive objects granted by the Restricted
Share Incentive Plan (Series 2). The Company is not aware of any association or
concerted action among the above mentioned shareholders.
Note: The Company has completed the four series of unlocking of the Restricted Share Incentive Plan
(Series 2). As the above restricted shares do not meet the unlocking conditions of the corresponding
lockup period, the Company will repurchase and cancel them after the incentive objects provide
complete repurchase materials.
Annual Report 2020
91 / 312
(III) Strategic investors or general legal persons being the top ten shareholders due to rights
issue
□ Applicable √ Not Applicable
IV. Controlling Shareholders and Actual Controllers
(I) Controlling shareholders
1 Legal person
□ Applicable √ Not Applicable
2 Natural person
√ Applicable □ Not Applicable
Name Li Zhenguo and Li Xiyan
Nationality China
Any right of abode in other countries
or regions
None
Main occupation and duties Li Zhenguo is the current director and General Manager of the
Company, while Li Xiyan is not taking office
3 Special explanations to the absence of controlling shareholders
□ Applicable √ Not Applicable
4 Index and date of change in controlling shareholders in the reporting period
□ Applicable √ Not Applicable
5 Block diagram for the property rights and control relations between the Company and the
controlling controllers
□ Applicable □ Not Applicable
(II) Actual controllers
1 Legal person
□ Applicable √ Not Applicable
2 Natural person
√ Applicable □ Not Applicable
Name Li Zhenguo and Li Xiyan
Nationality China
LONGi Green Energy Technology Co., Ltd.
Controlling shareholders and actual controllers
Li Chun'an Li Zhenguo Li Xiyan Other
shareholders
Annual Report 2020
92 / 312
Any right of abode in other countries or
regions
None
Main occupation and duties Li Zhenguo is the current director and General Manager of the
Company, while Li Xiyan is not taking office
Other domestic and overseas listed
companies holding equity in past 10
years
N/A
3 Special explanations to the absence of actual controllers
□ Applicable √ Not Applicable
4 Index and date of change of actual controllers during the reporting period
□ Applicable √ Not Applicable
5 Block diagram of the ownership and control relationship between the Company and the
actual controllers
√ Applicable □ Not Applicable
6 The actual controllers control the Company through trust or other asset management
methods
□ Applicable √ Not Applicable
(III) Other information on controlling shareholders and actual controllers
□ Applicable √ Not Applicable
V. Other Corporate Shareholders with More than 10% Shares
□ Applicable √ Not Applicable
VI. Explanation of Restriction and Reduction of Shares
□ Applicable √ Not Applicable
LONGi Green Energy Technology Co., Ltd.
Controlling shareholders and actual controllers
Li Chun'an Li Zhenguo Li Xiyan Other
shareholders
Annual Report 2020
93 / 312
Section VII Preferred Shares
□ Applicable √ Not Applicable
Annual Report 2020
94 / 312
Section VIII Directors, Supervisors, Senior Management and Employees
I. Changes in shareholding and remuneration
(I) Shareholding changes and remuneration of current and dismissed directors, supervisors and senior management during the reporting
period
√ Applicable □ Not Applicable
Unit: shares
Name Title (note) Gender Age Start date of tenure End date of tenure
Shares held at
the beginning
of the year
Number of
shares held at
the end of the
year
Increase or
decrease in
shares
during the
year
Reasons for
increase or
decrease
Total
remuneration
from the
Company
during the
reporting
period (in
RMB Ten
Thousand)
Get paid
from
related
parties of
the
Company
or not
Zhong
Baoshen Chairman Male 54 July 2, 2018 July 1, 2021 64,182,850 64,182,850 0
Not
applicable 284.05 None
Li Zhenguo
Director &
General
Manager
Male 53 July 2, 2018 July 1, 2021 544,499,068 544,499,068 0 Not
applicable 277.63 None
Liu
Xuewen
Director and
person in
charge of
Financial
Management
Center
Female 54 July 2, 2018 July 1, 2021 1,111,327 861,327 -250,000
Reduction
of shares in
secondary
market
201.23 None
Xu Dapeng Director Male 47 July 2, 2018 July 1, 2021 1,924,650 1,924,650 0 Not
applicable 191.70 None
Zhang
Rumin Director Female 57 July 2, 2018 July 1, 2021 0 0 0
Not
applicable 0 Yes
Bai
Zhongxue
Director and
Vice President
of Wafer
Business Unit
Male 34 November 11, 2019 July 1, 2021 80,000 80,000 0 Not
applicable 164.22 None
Tian
Gaoliang
Independent
Director Male 57 July 2, 2018 July 1, 2021 0 0 0
Not
applicable 13 None
Annual Report 2020
95 / 312
Li
Shoushuang
Independent
Director Male 43 July 2, 2018 July 1, 2021 0 0 0
Not
applicable 13 None
Guo Ju'e Independent
Director Female 60 July 2, 2018 July 1, 2021 0 0 0
Not
applicable 13 None
Qi
Chengjun
Chairman of
the Board of
Supervisors
Male 51 July 2, 2018 July 1, 2021 0 0 0 Not
applicable 84.13 None
He Jing Supervisor Female 41 28 June 2018 July 1, 2021 0 0 0 Not
applicable 40.72 None
Li Xiangju Supervisor Female 59 July 2, 2018 July 1, 2021 0 0 0 Not
applicable 11 None
Liu
Xiaodong
Board
Secretary Male 49 July 2, 2018 July 1, 2021 273,000 273,000 0
Not
applicable 194.94 None
Total / / / / 612,070,895 611,820,895 -250,000 / 1,488.62 /
Name Main work experience
Zhong
Baoshen
He served as Director and General Manager of the Company and Director of Dalian Linton NC Machine Co., Ltd. He is currently Chairman of the Board
of the Company, President of CNECC, Chairman of Ningxia LONGi Meter Co., Ltd., Chairman and General Manager of Huizhi Investment Co., Ltd.,
Director of LONGi Magnet Co. Ltd., Director of Audiowell Electronics (Guangdong) Co., Ltd., Chairman of the Board of E-Fly Optoelectronic Materials
Co., Ltd., and working in some subsidiaries of the Company.
Li Zhenguo He used to be Chairman of the Board of Directors, and now is Director and General Manager of the Company. He also works in some subsidiaries of the
Company.
Liu Xuewen In the past five years, she has been Director of the Company and person in charge of Financial Management Center.
Xu Dapeng He used to be Executive Deputy General Manager of Wuxi LONGi and President of the Wafer Business Unit, and now Director of the Company and the
person in charge of the Digital Transformation Office.
Zhang Rumin He used to be Manager of the Operation and Management Department of Shaanxi Coal Industry Company Limited, and the Supervisor of Shaanxi Beiyuan
Chemical Industry Group Co., Ltd., and serves now as Director of the Company, Director and Board Secretary of Shaanxi Coal Industry Company Limited.
Bai Zhongxue
He used to be Manager of Ningxia LONGi Technology and Process Department, Executive Deputy General Manager of Ningxia LONGi, President
Assistant of the Wafer Business Unit, and General Manager of Yinchuan LONGi. Now he is Director of the Company and Vice President of Wafer Business
Unit.
Tian Gaoliang
He served as Independent Director of AVIC Aircraft Co., Ltd., Shaanxi Provincial Natural Gas Co., Ltd., Zhonghang Electronic Measuring Instruments
Co., Ltd., Xi'an Catering Co., Ltd., CCOOP Group Co., Ltd. and Focuslight Technologies Inc. Now he is Professor and Doctoral Tutor of the Department
of Accounting & Finance at School of Management, Xi'an Jiaotong University. He also serves as Independent Director of Chang'an Funds Management
Co., Ltd., Western Trust Co., Ltd., United Nations Quality Detection Group Co., Ltd., and Jinduicheng Molybdenum Co., Ltd. (tenure expired), and
Annual Report 2020
96 / 312
Supervisor of Chang'an Bank Co., Ltd.
Li
Shoushuang
He served as Independent Director of Kunming Sinobright (Group) Co., Ltd., Independent Director of Shijiazhuang KE Electric Co., Ltd., Director of
Jiangsu Qinghan Environmental Technology Co., Ltd., and Supervisor of Quan Lian Industry Investment Fund Management Co., Ltd. He is currently
Senior Partner and Independent Director of Beijing Dentons Law Offices, LLP. He is also Vice Chairman of All-China Federation of Industry & Commerce
Chamber of Urban Infrastructure, Independent Director of Huanghe Property Insurance Co., Ltd., Director of Jinshi Yifu (Beijing) Technology Co., Ltd.,
and Independent Director of Beijing Biocytogen Co., Ltd.
Guo Ju'e She has been serving as Professor of Xi’an Jiaotong University for the past five years and is currently Independent Director of the Company.
Qi Chengjun He used to be the HR Director of the Company and is currently Chairman of the Board of Supervisors.
He Jing
She used to be Planning Supervisor of the Company's Module Business Unit, Purchasing Supervisor of the Supply Chain Management Center, and Deputy
Material Control Manager in Planning Management Department of LONGi New Energy. Now she is Senior Planning Manager and Supervisor of
Employees of LONGi New Energy.
Li Xiangju She has been Professor and Doctoral Tutor of School of Economics and Finance of Xi'an Jiaotong University for the past five years, and now is Supervisor
of the Company.
Liu Xiaodong He used to be General Manager of Xi'an Business Department of Xiangcai Securities Co., Ltd., and now is Board Secretary of the Company and Director
of Xi'an Xichi Electric Co., Ltd.
Other notes
√ Applicable □ Not Applicable
1. The above total compensation includes the 2020 annual performance bonus for directors, supervisors and senior management paid in 2021.
2. On June 11, 2020, Ms. Liu Xuewen reduced her 250,000 unrestricted outstanding shares held in the Company by centralized bidding. Please refer
to Announcements No. L2020-049 and L2020-062 disclosed by the Company on May 12, 2020 and June 13, 2020 for the Shareholding Reduction Plan
and results announcement.
(II) Stock ownership incentives granted to the directors and senior management during the reporting period
□ Applicable √ Not Applicable
II. Current and Outgoing Directors, Supervisors and Senior Management during the Reporting Period
(I) Service in shareholders’ unit
√ Applicable □ Not Applicable
Name of personnel Name of shareholders’ unit Job title Start date of tenure End date of tenure
Zhang Rumin Shaanxi Coal Industry Company Limited Director and Board Secretary September 26, 2018 ~ present
Remarks At the end of the reporting period, Shaanxi Coal Industry Company Limited held 3.88% of shares in the Company
Annual Report 2020
97 / 312
(II) Service in other companies
√ Applicable □ Not Applicable
Name of personnel Name of other companies Job title Start date of tenure End date of tenure
Zhong Baoshen China New Energy Chamber of Commerce
(CNECC)
President December 2017 ~ present
Zhong Baoshen Shenyang Huizhi Investment Co., Ltd. Chairman and General Manager March 2007 ~ present
Zhong Baoshen Shenyang LONGi Electromagnetic Technology
Co., Ltd.
Director March 2005 ~ present
Zhong Baoshen Ningxia LONGi Meter Co., Ltd. Chairman June 2009 ~ present
Zhong Baoshen Audiowell Electronics (Guangdong) Co., Ltd. Director December 2018 ~ present
Zhong Baoshen Huizhou E-Fly Optoelectronic Materials Co.,
Ltd.
Chairman November 2018 ~ present
Tian Gaoliang The School of Management, Xi'an Jiaotong
University
Professor and doctorial tutor 2000 ~ present
Tian Gaoliang Chang'an Funds Management Co., Ltd. Independent Director February 2018 ~ present
Tian Gaoliang Chang'an Bank Co., Ltd. Supervisor April 2019 ~ present
Tian Gaoliang Western Trust Co., Ltd. Independent Director November 2019 ~ present
Tian Gaoliang United Nations Quality Detection Group Co.,
Ltd.
Independent Director June 2020 ~ present
Tian Gaoliang Jinduicheng Molybdenum Co., Ltd. Independent Director May 2017 To date (tenure
expired)
Li Shoushuang Beijing Dentons Law Offices, LLP Senior Partner 2005 ~ present
Li Shoushuang Jinshi Yifu (Beijing) Technology Co., Ltd. Director December 2016 ~ present
Li Shoushuang Huanghe Property Insurance Co., Ltd. Independent Director January 2018 ~ present
Li Shoushuang Beijing Biocytogen Co., Ltd. Independent Director December 2020 ~ present
Guo Ju'e The School of Management, Xi'an Jiaotong
University
Professor December 1999 ~ present
Li Xiangju School of Economics and Finance of Xi'an
Jiaotong University
Professor and doctorial tutor April 2000 ~ present
Annual Report 2020
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Liu Xiaodong Xi'an Xichi Electric Co., Ltd. Director May 2017 ~ present
Remarks N/A
III. Remuneration of Directors, Supervisors and Senior Management
√ Applicable □ Not Applicable
Procedures for decision-making on the
remuneration of directors, supervisors and senior
management
According to the Articles of Association, the remuneration of the directors and supervisors shall be determined by the
Shareholders’ Meeting; the remuneration of senior management shall be determined by the Board of Directors.
Basis for determining the remuneration of directors,
supervisors and senior management
① The remuneration standards for the directors, supervisors and senior management shall be formulated according
to their job responsibilities and in combination with the actual operation of the Company; ② the actual amount of
annual remuneration and bonus for non-independent directors, senior management and non-external supervisors shall
be determined after performance appraisal; ③ the independent directors and external supervisors shall receive
allowances from the Company in accordance with the allowance standards approved by the Shareholders’ Meeting,
and the necessary and reasonable expenses incurred in the performance of their duties shall be borne by the Company.
Actual payment of remunerations to directors,
supervisors and senior management See "I. Changes in Shareholding and Remuneration" in this Section.
Total remunerations actually paid to all directors,
supervisors and senior management at the end of
the reporting period
See "I. Changes in Shareholding and Remuneration" in this Section.
IV. Changes in Directors, Supervisors and Senior Management
□ Applicable √ Not Applicable
V. Penalties by Securities Regulatory Authority in Recent Three Years
□ Applicable √ Not Applicable
Annual Report 2020
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VI. Employees of the Parent Company and Major Subsidiaries
(I) Employee information
Number of current employees in the parent company 1,777
Number of current employees in major subsidiaries 44,854
Total 46,631
Number of retired employees subsidized by the parent
company and major subsidiaries 0
Specialties
Type Number of employees
Production staff 34,732
Sales personnel 512
Technicians 6,263
Financial staff 333
Administrative staff 4,791
Total 46,631
Educational attainment
Category Number of employees
PhD 40
Master 789
Bachelor and junior college 17,012
Below college degree 28,790
Total 46,631
(II) Remuneration policy
√ Applicable □ Not Applicable
The Company's remuneration policy is based on the employees' post values, and pays attention to
both short-term and medium- and long-term incentives. During the reporting period, the Company
introduced high performance culture and high target traction, focused on improving the employee
capability and value creation, set the incentive mechanism according to the organizational and
individual value contributions, strengthened the correlation between incentive bonus and core
operation and management achievements, enhanced incentive perception, and made incentives more
targeted, so as to effectively stimulate the vitality of the organization and the enthusiasm of core staff.
(III) Training plan
√ Applicable □ Not Applicable
During the reporting period, the Company has constantly optimized and improved the construction
of the existing training system based on the strategic development goals and business needs. Under
the guidance of the work policy of "Enabling, Empowering and Energizing", a number of targeted
empowerment projects were launched in a systematic and planned way. By establishing an
autonomous mobile learning platform, we addressed the time and space limitations of empowering
training, and built a basic system for the construction of a learning organization. We organized
managerial staff to learn from global excellent enterprises, and promoted the improvement of
organizational strategic management capability; besides, the school enrollment and training program,
shift leader training program, strategic organizational capability enhancement training program for
managerial staff were implemented to satisfy the training and reserve needs of different types of
talents.
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In 2021, the Company will continue to improve the construction of the three systems for talent
development, cadre management and talent training, so as to "multiply" internal talents and output
outstanding talents to meet the needs of business development. The employee training system is
constantly optimized to effectively support the improvement of the Company's strategic
organizational capability and employees' personal abilities, thereby providing a solid talent guarantee
for the Company's sustainable development.
(IV) Labor outsourcing
√ Applicable □ Not Applicable
Total working hours 16.43 million hours
Total remuneration paid RMB 389.23 million
VII. Miscellaneous
□ Applicable √ Not Applicable
Annual Report 2020
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Section IX Corporate Governance
I. Relevant Information on Corporate Governance
√ Applicable □ Not Applicable
The Company has carried out the Company Law, Securities Law, Code on the Governance of Listed
Companies and other laws and regulations, business rules and the Articles of Association, established
the standardized modern corporate governance system, promoted the healthy, stable and sustainable
development, and constantly striven to achieve better corporate governance practices by establishing
scientific and efficient decision-making mechanism, effective and balanced supervision mechanism,
and stable and long-term incentive mechanism.
1. Controlling shareholders and listed company
The controlling shareholders have always been strictly regulating the behavior of shareholders,
exercised shareholders' rights in good faith, fulfilled commitments in good faith, and vigorously
supported the corporate business development by providing guarantees for the listed company's
business and other ways; the Company is independent from the controlling shareholders in terms of
business, personnel, assets, institutions and finance, the controlling shareholders are not beyond the
Shareholders’ Meeting to intervene the decision-making and business activities.
2. Shareholders and Shareholders’ Meeting
The Company has long insisted on transparent, full and effective information disclosure, maintained
long-term and stable close communication with all kinds of investors around the world, proactively
conveyed the business philosophy, operating results and future strategic direction to investors through
corporate research, teleconferencing, performance briefings, strategy meetings of securities traders,
exchange platform for investors, and Shareholders’ Meetings, won the trust of investors with sincerity
and pragmatism, attracted the attention of long-term value investors with forward-looking business
philosophy and steady growth in performance, actively introduced excellent value investors with an
open and growing mindset, and actively listened to the investors' suggestions on corporate governance
and sustainable development, in an effort to build good ecosystem of corporate governance with
investors. During the reporting period, the convening and voting procedures of the Shareholders’
Meeting complied with the Company Law, the Articles of Association and the Rules of Procedure of
the Shareholders’ Meeting, so that all shareholders, especially minority shareholders, could enjoy
equal status and legitimate rights and interests.
3. Directors and the Board of Directors
At present, the Board of Directors has 9 directors, including 4 outside directors (including 3
independent directors). Outside directors account for 1/5, 2/3, 2/3 and 2/3 respectively in the Strategy,
Remuneration, Nomination and Audit Committees under the Board of Directors. The Board members
complement each other in their knowledge structures and areas of expertise, which is in line with the
requirements of strategic development. The Board of Directors has the abilities of forward-looking
strategic planning and efficient strategy implementation. The Company has established a close and
unimpeded communication mechanism with outside directors. We continue to strengthen the role of
outside directors in supervision and decision-making, strive to be an ad hoc committee of the Board
of Directors, and actively advocate the management and outside directors to carry out practical
exploration in strategic direction, risk control, and construction of compensation system etc. We fully
listened to the beneficial suggestions of outside directors on the industry development and risk control,
which effectively improved the scientific decision-making of the Board.
4. Supervisors and the Board of Supervisors
The Board of Supervisors has three supervisors, including an external supervisor and an employee
supervisor. The supervisor members are of scientific and reasonable structure. During the reporting
period, the Board of Supervisors was responsible to shareholders, earnestly performed its duties of
Annual Report 2020
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supervision, and conducted compliance supervision over the Company's operation and development,
related party transaction, management and use of raised funds, and unlocking of equity incentives,
thus promoting the healthy, stable and sustainable development.
5. Implementation of insider registration system
During the reporting period, the Company earnestly implemented the requirements of insider
registration management system, strengthened the special training of personnel for the key positions
to guard against insider trading, enhanced the risk awareness of insider trading, and strengthened the
confidentiality tips of major information generation, transmission and review. Thanks to standardized
management of insider information and strict confidentiality, no insider information leakage and
insider trading was found.
Any material difference between the corporate governance and the relevant provisions of CSRC; if
any, please specify reasons
□ Applicable √ Not Applicable
II. Summary of the Shareholders’ Meeting
Session of meeting Date
Inquiry index of the
website designated for the
publication of resolutions
Disclosure date of the
publication of
resolutions
the First Extraordinary
General Meeting in 2020 January 8, 2020
SSE website
(www.sse.com.cn) January 9, 2020
2019 Annual General
Meeting May 13, 2020
SSE website
(www.sse.com.cn) May 14, 2020
The Second Extraordinary
General Meeting in 2020 September 15, 2020
SSE website
(www.sse.com.cn) September 16, 2020
Information on the Shareholders’ Meeting
□ Applicable √ Not Applicable
III. Performance of Duties by Directors
(I) Attendance of directors at the Board meetings and Shareholders’ Meeting
Name of
directors
Independent directors or
not
Attendance at the Board meeting
Attendance at the
Shareholders’
Meeting
Required
attendances at the Board
meetings in
the current
year
Attendances
in person
Attendances by
means of
communication
Attendances
by proxy
Number
of
absences
Any presence by
proxy for two
consecutive times
Attendances at
the Shareholders’
Meeting
Zhong
Baoshen None 21 21 19 0 0 None 3
Li Zhenguo None 21 21 19 0 0 None 3
Liu Xuewen None 21 21 19 0 0 None 3
Xu Dapeng None 21 21 20 0 0 None 3
Bai
Zhongxue None 21 21 20 0 0 None 3
Zhang
Rumin None 21 21 20 0 0 None 3
Tian
Gaoliang Yes 21 21 20 0 0 None 3
Li
Shoushuang Yes 21 21 21 0 0 None 3
Guo Ju'e Yes 21 21 21 0 0 None 3
Reasons for failure to attend in person the Board meetings for two consecutive times
Annual Report 2020
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□ Applicable √ Not Applicable
Number of Board meetings held within the year 21
Including: On-site meetings 0
Frequency of meetings held by means of
communication
19
Frequency of on-site meetings held in conjunction with
the communication tools
2
(II) Objections raised by independent directors to relevant matters of the Company
□ Applicable √ Not Applicable
(III) Miscellaneous
□ Applicable √ Not Applicable
IV. Important Opinions and Suggestions Proposed by ad hoc Committees under the Board of
Directors during the Performance of Duties in the Reporting Period (Specific Information to
be Disclosed in case of Objection Matters)
√ Applicable □ Not Applicable
The Board has set up the Strategy Committee, Audit Committee, Nomination Committee, and
Remuneration and Appraisal Committee. During the reporting period, members performed their
duties diligently in accordance with the Rules of Procedure of the Special Committees, discussed and
deliberated the Company's future strategic planning, financial reports and related party transactions,
remuneration for directors, supervisors, and senior management, incentive mechanisms and other
major issues, put forward suggestions for revision and perfection, which played a positive role in
promoting the optimization of corporate governance and improving the scientific decision-making of
the board of directors; there were no objections.
V. Description on Risks Discovered by the Board of Supervisors in the Company
□ Applicable √ Not Applicable
VI. Explanation Made by the Company concerning its Failure to Maintain Independence and
Self-management Ability from the Controlling Shareholders in Terms of Businesses, Personnel,
Assets, Institutions and Finance
□ Applicable √ Not Applicable
Corresponding solutions, job schedules and follow-up work plans in case of horizontal competition
□ Applicable √ Not Applicable
VII. Establishment and Implementation of Appraisal System and Incentive System for Senior
Management during the Reporting Period
√ Applicable □ Not Applicable
The Company has implemented the annual salary system for senior management, and established a
performance reward and evaluation system of short-term and long-term incentives, fully embodying
the principle of unity of responsibilities, power and interests. The annual remuneration standard for
senior management shall be determined by the Board of Directors, and the Company shall determine
the remuneration according to the results of annual performance appraisal.
VIII. Whether to Disclose the Internal Control Self-assessment Report
√ Applicable □ Not Applicable
Please refer to the Company's Internal Control Evaluation Report 2020 disclosed on the SSE website
(www.sse.com.cn) on the same day as this Report.
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Explanation of material defects in internal control during the reporting period
□ Applicable √ Not Applicable
IX. Explanation on the Internal Control Audit Report
√ Applicable □ Not Applicable
PwC Zhongtian Certified Public Accountants (Special General Partnership) conducted an
independent audit on the effectiveness of the Company's internal control in 2020 and issued a standard
and unqualified internal control audit report. Please refer to the SSE website (www.sse.com.cn) for
the full text of the report.
Whether to disclose the internal control audit report: Yes
Type of audit report opinion: standard and unqualified
X. Miscellaneous
□ Applicable √ Not Applicable
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Section X Corporate Bonds
√ Applicable □ Not Applicable
I. Basic Information
Unit: RMB Ten Thousand Currency: RMB
Name Abbreviation Symbol Issue date Maturity
date Balance
Interest
rate
(%)
Principal and
interest
repayment
Trading
venue
Public Issuance
of 2016
Corporate
Bonds (Series 1)
by Xi’an
LONGi Silicon
Materials Corp.
16 LONGi
01 136264 2016-3-7 2021-3-8 104,591.33 5.85
Simple
interest is
accrued on an
annual basis.
The interest is
paid once a
year, and the
principal
repaid once
due. The last
installment of
interest is
paid together
with the
principal
Shanghai
Stock
Exchange
Interest payment of corporate bonds
√ Applicable □ Not Applicable
The value date of the Company's public offering of the 2016 Corporate Bonds (Series 1) is March 7,
2016. On March 7, 2017, March 7, 2018, March 7, 2019, March 9, 2020 and March 8, 2021, the
Company duly paid the interests of the current bonds payable for the period from March 7, 2016 to
March 6, 2021, and completed the payment of the current bonds due on March 8, 2021 (See the
interest payment announcements disclosed by the Company on March 1, 2017, March 1, 2018, March
1, 2019, and March 3, 2020, as well as the redemption and delisting announcement of current bonds
disclosed on http://bond.sse.com.cn on February 27, 2021).
Other notes
√ Applicable □ Not Applicable
Deliberated at the Fifth Extraordinary General Meeting in 2015 and approved by CSRC on Approval
of Xi’an LONGi Silicon Materials Corp. for Public Offering of Corporate Bonds to Qualified
Investors (ZJXK [2016] No. 296), the Company completed the public offering of the 2016 corporate
bonds (series 1) on March 24, 2016, with an issuing scale of RMB 1 billion and a term of 5 years,
plus the issuer option to increase the coupon rate at the end of the third year and the investor option
to put back (please refer to the Prospectus for Public Offering of 2016 Corporate Bonds (Series 1)
disclosed by the Company on March 3, 2016).
The coupon rate of serial bonds was 5.63% for the first 3 years and was adjusted by the Company to
5.85% for the last 2 interest-bearing years (March 7, 2019 to March 6, 2021) depending on market
circumstances (as detailed in the Company's Announcement No. L2019-007 disclosed on January 31,
2019). On March 7, 2019, the Company completed the put-back of current bonds, with a cumulative
put-back amount of RMB 2,435,000 (excluding interest). After the put-back, the total par value of
current bonds was RMB 997,565,000 (see Announcement No. L2019-023 disclosed by the Company
on March 5, 2019).
The Company has completed the redemption and delisting of the current issue of bonds on March 8,
2021 (please see the Company's Announcement on the redemption and delisting of the current issue
of bonds disclosed on http://bond.sse.com.cn on February 27, 2021).
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II. Corporate Bonds Trustee Contact, Contact Details as well as Contact Details of Credit
Rating Agency
Bonds trustee
Name Guosen Securities Co., Ltd.
Office address 16-26/F, Guosen Securities Building, No. 1012 Middle
Hongling Road, Shenzhen
Contact Wang Yanxiang
Tel 021-60893210
Credit rating agency
Name United Credit Ratings Co., Ltd.
Office address 12/F, PICC Building, No. 2, Jianguomen Waidajie, Chaoyang
District, Beijing
Other notes:
□ Applicable √ Not Applicable
III. Use of Funds Raised through Corporate Bonds
√ Applicable □ Not Applicable
The Company publicly issued the 2016 corporate bonds (series 1), with an actual offering size of
RMB 1 billion, including the basic offering of RMB 500 million and the over-allotment of RMB 500
million; with a net amount of RMB 992 million, the raised funds were used to supplement the working
capital, and the above raised funds had been used up according to the purpose agreed in the prospectus.
IV. Corporate Bond Rating
√ Applicable □ Not Applicable
During the reporting period, United Credit Ratings Co., Ltd. issued the 2020 Tracking Rating Report
on Corporate Bonds of LONGi Green Energy Technology Co., Ltd. on June 16, 2020 based upon
comprehensive analysis and evaluation of the Company's operating conditions and industry situation,
and upgraded the long-term credit rating from "AA+" to "AAA". The rating outlook remains "stable".
The credit rating of "16 LONGi 01" bonds was upgraded from "AA+" to "AAA" (please refer to the
report disclosed by the Company on http://bond.sse.com.cn on June 23, 2020).
V. Credit Enhancement Mechanism, Redemption Plan and Other Circumstances in respect
of Corporate Bonds during the Reporting Period
√ Applicable □ Not Applicable
During the reporting period, the Company strictly implemented the credit enhancement mechanism,
redemption plans and other redemption assurance measures of corporate bonds in accordance with
the stipulations in the prospectus.
VI. Convening of Meetings of Corporate Bond Holders
□ Applicable √ Not Applicable
VII. Performance of Duties by Corporate Bonds Trustee
√ Applicable □ Not Applicable
As a trustee for corporate bonds, Guosen Securities Co., Ltd. has, within the duration of corporate
bonds, continuously tracked the Company's credit status, significant matters, interest payments,
interest rate adjustment, put-back and other circumstances in strict accordance with the relevant laws
and regulations and the Trusteeship Management Agreement, performed the duties of bond trustee,
and safeguarded the legitimate rights and interests of bond holders.
During the reporting period, Guosen Securities Co., Ltd. issued the Report on Corporate Bond
Trusteeship of LONGi Green Energy Technology Co., Ltd. (2019) and the Interim Report on
Annual Report 2020
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Corporate Bond Trusteeship of LONGi Green Energy Technology Co., Ltd. on the significant matters
during the reporting period, including the credit rating upgrading of corporate entities and current
corporate bonds and the progress in patent infringement of Hanwha vs. the Company (See the reports
of the current bonds disclosed on http://bond.sse.com.cn on June 23, 2020 and July 14, 2020).
VIII. Accounting Data and Financial Indicators for Recent 2 Years Prior to the End of the
Reporting Period
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Key indicators 2020 2019
Increase or
decrease
(%) over
the same
period last
year
Reasons for change
EBITDA 12,519,233,523.21 8,192,892,062.17 52.81
Sales grown rapidly, gross profit
contribution increased, the total
profit increased substantially.
Liquidity ratio 1.28 1.52 -15.79
Ascribed to the fact that the
growth rate of current liabilities
is slightly higher than that of
current assets.
Quick ratio 1.01 1.26 -19.84
The growth rate of current
liabilities is slightly higher than
that of quick assets.
Liability-to-asset
ratio (%) 59.38 52.29 7.09
Ascribed to the issuance of
convertible bonds this year.
EBITDA / Total
liabilities 0.24 0.26 -7.69
The issuance of convertible
bonds this year, and total
liabilities increased.
Interest coverage
ratio 26.67 14.63 82.30
The total profit increased by a
large margin.
Cash interest
coverage ratio 35.85 25.12 42.71
Sales outstanding accelerated,
and the net cash flow from
operating activities increased
significantly.
EBITDA interest
coverage ratio 32.43 17.87 81.48
The total profit increased by a
large margin.
Loan repayment
rate (%) 100.00 100.00
Interest coverage
(%) 100.00 100.00
IX. Interest Payment and Redemption about Other Bonds and Debt Financing Instruments
□ Applicable √ Not Applicable
X. Bank Lines of Credit to the Company in the Reporting Period
√ Applicable □ Not Applicable
By the end of the reporting period, the Company had obtained a total line of credit of RMB 22.695
billion, of which RMB 12.155 billion had been used and RMB 10.540 billion not used. The
Company's bank loans had no principal and interest overdue.
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XI. Execution of Agreements or Commitments in the Corporate Bond Prospectus during the
Reporting Period
√ Applicable □ Not Applicable
During the reporting period, the Company strictly fulfilled the agreements and commitments in the
corporate bond prospectus to protect the interests of bond investors.
XIII. Effect of Significant Matters in the Company on the Operation and Solvency
□ Applicable √ Not Applicable
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Section XI Financial Reports
I. Audit Report
√ Applicable □ Not Applicable
Audit Report
PHYDZTSZ (2021) No. 10103
All the shareholders of LONGi Green Energy Technology Co., Ltd.,
I. Audit Opinion
(I) Audit Contents
We have audited the Financial Statements of LONGi Green Energy Technology Co., Ltd. (hereinafter
referred to as "LONGi"), including the Consolidated and the Company's Balance Sheet as at
December 31, 2020, and the Consolidated and the Company's Income Statement, the Consolidated
and the Company's Statement of Cash Flows, the Consolidated and the Company's Statement of
Changes in Shareholders’ Equity, and the Notes to Financial Statements for Year 2020.
(II) Our opinions
In our opinion, the accompanying financial statements present fairly the merger and the Company's
financial position of LONGi as of December 31, 2020 as well as the merger, business performance
and cash flows in 2020 in all material respects according to the requirements of Accounting Standards
for Business Enterprises.
II. Basis for forming the audit opinions
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants
of China. The part “responsibilities of certified public accountants for audit of financial statements”
in the Audit Report further explains our responsibilities under the standards. We believe that the audit
evidences obtained by us are sufficient and appropriate to provide a basis for our audit opinion.
According to the Code of Ethics for Certified Public Accountants of China, we are independent of
LONGi and have fulfilled other responsibilities in terms of professional ethics.
III. Key audit items
Key audit items are those which we consider to be the most important items for the audit of the current
financial statements based on our professional judgment. These items are handled in the context that
we audit the financial statements as a whole and form an audit opinion, and we do not express a
separate opinion on these items.
The key audit items we recognized during the audit are summarized as follows:
(I) Recognition of product sales revenue
(II) Provision for impairment of accounts receivable
Key audit items How the key audit items were addressed in our audit
(I) Recognition of product sales revenue
Refer to Notes to Financial Statements II (24)
and IV (48) Operating revenue and Operating
cost.
The annual operating revenue of LONGi in 2020
was RMB 54,583,183,588.46, including RMB
51,751,232,808.48 from product sales,
accounting for 95% of the operating revenue.
LONGi recognized the income according to the
amount of consideration expected to be received
The audit procedures we have performed for recognition of
product sales revenue include:
• Understand, evaluate and test the internal control
related to recognition of sales revenue;
• Understand the accounting policies of product sales
revenue of LONGi, and evaluate the accounting policies for
the recognition of product sales revenue of LONGi through
sampling inspection of product sales contracts, reading and
analyzing the relevant clauses in the contracts;
• Carry out sampling inspection of supporting documents
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when the customer acquired control over relevant
goods or services.
Due to the large number of customers and
significant sales amount of LONGi, we invested
a lot of resources during the audit. Hence, we
took the recognition of product sales revenue as
a key audit item.
related to the recognition of product sales revenue, including
sales contract, delivery note or shipping note, and receipt
form for domestic sales; customs electronic port information,
bill of lading or receipt form of foreign sales, etc.; the
delivery bill, shipping document, bill of lading or receipt
form of the overseas subsidiary, etc.;
• Confirm the transaction amount and accounts
receivable balance to specific customers based on the
transaction amount and customer characteristic;
• Confirm the product sales revenue before and after the
balance sheet date, and check the receipt form of domestic
sales; customs electronic port information or receipt form of
foreign sales; supporting documents such as the bill of lading
or receipt form of an overseas subsidiary to assess whether
product sales revenue is recorded in the appropriate
accounting period.
In accordance with the audit procedures performed, we found
that the product sales revenue was in accordance with the
accounting policies for income recognition.
(II) Provision for impairment of accounts
receivable
Refer to Notes to Financial Statements II (30)
and IV (4) Accounts receivable.
As of December 31, 2020, the original value of
accounts receivable in the Consolidated Balance
Sheet of LONGi was RMB 7,511,769,137.39,
and the balance of bad debt reserve was RMB
241,267,339.46.
For the accounts receivable for which credit
impairment has occurred and other accounts
receivable that are applicable to single
evaluation, LONGi shall confirm the expected
credit loss and make provision for single bad debt
reserve. For the accounts receivable without
credit impairment, the Company adjusted
historical data, prepared the comparison model
between the aging of accounts receivable and the
expected credit loss rate of the whole duration,
and calculated the expected credit loss based on
the historical credit loss rate of accounts
receivable portfolio in the previous years with
similar credit risk characteristics and combined
with the current situation and the forward-
looking forecast of future economic conditions.
The major management judgments and
assumptions included in the assessment of the
impairment of accounts receivable are mainly the
assessment of recoverability and the judgment of
economic indicators, economic scenarios and
weights used for forward-looking measurement.
Because the balance of accounts receivable is
significant and the calculation of expected credit
loss involves a material judgment of the
management, we deemed it a key audit item.
Our audit procedures for the implementation of provision for
impairment of accounts receivable mainly include:
• Understand, evaluate and test the internal control
related to the provision for impairment of accounts receivable
and implemented by the management;
• Check relevant supporting evidences, including the
record of payment received after due date and customer credit
history, to assess the management's judgment of
recoverability for accounts receivable and whether the
division of individual provision and portfolio provision is
reasonable;
• For the accounts receivable with individual provision
for impairment, through the interview with the management,
check the materials related to the customer's business
situation and the reasons for not timely collection of accounts
receivable, and evaluate the rationality of the management’s
judgment for the provision for impairment of accounts
receivable with individual provision;
• For the models, data and parameters for the
Management to calculate credit loss according to the
portfolio, we performed the following procedures:
- Evaluate the rationality of the measurement method of the
expected credit loss model;
- Test the accuracy of relevant historical credit loss data in the
model by sampling and evaluate the percentage of historical
default loss;
- Internal valuation experts assessed the rationality of the
Management's adjustments to forward-looking information
based on their understanding of the customer's industry and
external data sources;
- Test the accuracy of the aging of accounts receivable by
sampling;
- According to the percentage of default loss after the
judgment of forward looking information, assess whether the
management's method of dividing accounts receivable into
several groups for impairment assessment and the proportion
of provision are appropriate, and recalculate the amount of
provision for bad debts.
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- Based on the audit procedures performed, the evidence
obtained could support the Management's judgment during
evaluating the provision for impairment of accounts
receivable.
IV. Other information
The Management of LONGi is responsible for other information. Other information includes the
information covered in the 2020 Annual Report of LONGi, but does not include financial statements
and the Audit Report.
Our audit opinion on financial statements does not include other information, and no authentication
conclusion on other information has been made by us in any form.
Based on our audit of financial statements, our responsibility is to read other information and, in the
process, consider whether other information is materially inconsistent with the financial statements
or what we have learned during the audit process or if there appears to be a material misstatement. If
we ensure that there is a material misstatement of other information based on our work, we shall
report it truthfully. In this regard, we have nothing to report.
V. Responsibilities of the Management and Those Charged with Governance for Financial
Statements
The Management of LONGi shall be responsible for compiling financial statements in accordance
with the Accounting Standards for Business Enterprises for the true and fair presentation as well as
designing, executing and protecting the internal control related to the compilation of financial
statements so as to make the financial statements be free from any material misstatement caused by
frauds and errors.
When preparing the financial statements, the Management is responsible for evaluating the
continuous operation capability of LONGi, disclosing matters related to continuous operation (if
applicable), and applying the continuous operation assumption unless the management plans to
liquidate LONGi, terminate the operation or have no other realistic choice.
Those charged with governance is responsible for supervising the financial report process of LONGi.
VI. CPA's Responsibilities for Auditing Financial Statements
Our goal is to obtain reasonable assurance as to whether the entire financial statements are free from
any material misstatement due to frauds or errors, and to issue an audit report containing audit
opinions. The reasonable assurance is a high level of assurance, but there is no guarantee that during
the audit conducted in accordance with the auditing standards, a major misstatement will always be
found. Misstatement may be caused by frauds or errors. And it is generally considered that the
misstatement is significant if it is reasonably expected that the misstatement alone or aggregated may
affect the economic decision made by the financial statement user based on the financial statements.
In the course of carrying out audit work in accordance with the audit standards, we use professional
judgment and maintain professional suspicion. Meanwhile, we also perform the following tasks:
(I) Identify and evaluate the risks of material misstatement of the financial statements due to frauds
or errors; design and implement audit procedures to address these risks, and obtain adequate and
appropriate audit evidence as a basis for expressing audit opinions. Since frauds may involve
collusion, falsification, intentional omission, misrepresentation or override of internal controls, the
risk of failing to identify a material misstatement due to frauds is higher than that of failing to identify
a material misstatement due to errors.
(II) Understand the internal control related to the audit in order to design the appropriate audit
procedures.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
Annual Report 2020
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estimates and related disclosures made by the Management.
(IV) Draw a conclusion on the appropriateness of going-concern assumption used by the
Management. Meanwhile, based on the obtained audit evidence, draw a conclusion on whether there
is a material uncertainty in the matters or conditions that probably result in any significant doubt
toward the going-concern operating ability of LONGi. If our conclusion shows there is significant
uncertainty, the auditing standards require us to, in the audit report, draw the attention of report users
to relevant disclosures in the financial statements. If relevant information is not fully disclosed, we
should give unqualified opinions. Our conclusions are based on the information available as of the
date of the audit report. However, future events or conditions may cause LONGi to cease to continue
as a going concern.
(V) Evaluate the overall presentation (including disclosures), structures and contents of the financial
statements, and whether the financial statements fairly reflect relevant transactions and matters.
(VI) Obtain the sufficient and appropriate audit evidence for the financial information of entity or
business activities in LONGi to express our audit opinions on the consolidated financial statements.
We are responsible for guiding, supervising and implementing group audit, and will bear all the
responsibilities and/or liabilities arising from our audit opinions.
We have communicated with those charged with governance on the planned audit scope, time
arrangement, and major audit findings, including communication on the noteworthy internal control
deficiencies that we identified during the audit.
We also have provided a statement to those charged with governance on compliance with the
requirements of professional ethics associated with independence. We also have communicated with
those charged with governance on all relations and other matters which may reasonably be thought
to affect our independence, as well as related precautionary measures (if applicable).
From the matters on which we communicated with those charged with governance, we have
determined which matters are the most important for the audit of the financial statements in the current
period, thus constituting the key audit matters. We describe these matters in the Audit Report, and
unless laws and regulations prohibit the public disclosure of these matters or in rare cases, if it is
reasonably expected that the negative consequence of communicating certain matters in the Audit
Report will outweigh the benefits in the public interest, we determine that such matters shall not be
communicated in the Audit Report.
PwC Zhongtian
Accountant Firm (Special General
Partnership)
Certified Public
Accountant
——————————
Zheng Jiayan (Project Partner)
Shanghai, China
April 19, 2021
Certified Public
Accountant
——————————
Han Tao
Annual Report 2020
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II. Financial Statements
Consolidated Balance Sheet
December 31, 2020
Prepared by: LONGi Green Energy Technology Co., Ltd.
Unit: Yuan Currency: RMB
Item Note December 31, 2020 December 31, 2019
Current assets:
Monetary fund VII. 1 26,963,388,535.78 19,335,752,879.41
Settlement provision
Loans to banks and other financial
institutions
Financial assets held for trading VII. 2 4,000,971.20
Derivative financial assets
Notes receivable VII. 4 4,264,164,372.63 4,553,400,751.13
Accounts receivable VII. 5 7,270,501,797.93 3,825,745,270.65
Receivables financing VII. 6 238,952,924.42 829,052,223.55
Advance payment VII. 7 1,890,936,620.96 1,031,402,392.47
Premiums receivable
Receivables from reinsurers
Reinsurance contract reserves
receivable
Other receivables VII. 8 442,833,996.57 295,997,593.37
Including: Interest receivable
Dividends receivable 119,709,414.72 41,421,502.96
Financial assets purchased under
resale
Inventory VII. 9 11,452,416,318.73 6,356,144,784.78
Contract assets VII. 10 1,126,728,402.82
Held-for-sale assets 4,424,778.76
Non-current assets due within one
year
VII. 12 1,078,392.41 31,419,922.32
Other current assets VII. 13 1,441,783,869.93 1,107,607,993.67
Total current assets 55,101,210,982.14 37,366,523,811.35
Non-current assets:
Loans and advances:
Creditors investment VII. 14 115,363.30
Other creditors investment
Long-term receivables VII. 16 21,779,058.41 25,585,349.25
Long-term equity investment VII. 17 1,455,861,146.49 1,074,184,697.40
Investment in other equity
instruments
VII. 18 37,142,441.49 21,959,667.68
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Other non-current financial assets
Investment real estate VII. 20 78,774,204.57
Fixed assets VII. 21 24,505,980,871.80 15,467,300,311.79
Construction in progress VII. 22 2,399,770,456.89 2,882,035,169.79
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets VII. 26 597,640,666.79 245,165,167.97
Expenditure on development VII. 27 363,280.98 45,849.02
Goodwill VII. 28 176,216,945.68 11,011,065.47
Long-term unamortized expenses VII. 29 1,486,790,492.15 970,965,434.45
Deferred tax assets VII. 30 880,202,363.02 499,935,451.98
Other non-current assets VII. 31 892,980,410.38 739,261,134.38
Total non-current assets 32,533,617,701.95 21,937,449,299.18
Total assets 87,634,828,684.09 59,303,973,110.53
Current liabilities:
Short-term borrowings VII. 32 2,415,965,626.06 854,371,792.82
Loans from the Central Bank
Loans from other banks
Financial liabilities held for
trading
VII. 33
Derivative financial liabilities
Notes payable VII. 35 10,974,916,004.45 8,111,877,027.54
Accounts payable VII. 36 11,169,277,619.28 5,602,048,097.26
Advance receipts VII. 37 3,679,503,563.97
Contract liabilities VII. 38 5,017,755,319.14
Financial assets sold for
repurchase
Deposits from customers and
interbank
Receivings from vicariously traded
securities
Receivings from vicariously sold
securities
Payroll payable VII. 39 1,020,683,800.85 558,355,222.82
Taxes payable VII. 40 660,845,122.96 344,089,424.95
Other payables VII. 41 8,611,886,461.72 3,898,115,075.49
Including: Interest payable 53,289,437.89
Dividends payable 3,946.32
Service charge and commission
payable
Dividend payable for reinsurance
Held-for-sale liabilities
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Non-current liabilities due within
one year
VII. 43 2,786,474,497.52 1,571,481,098.00
Other current liabilities VII. 44 434,652,976.40
Total current liabilities 43,092,457,428.38 24,619,841,302.85
Non-current liabilities:
Insurance contract reserve fund
Long-term borrowings VII. 45 1,125,286,240.29 2,508,594,222.97
Bonds payable VII. 46 4,351,411,265.99 995,584,143.19
Including: Preferred shares
Perpetual bond
Leasing liabilities
Long-term payables VII. 48 889,053,865.52 1,528,226,692.46
Long-term payroll payable
Accrued liabilities VII. 50 907,152,946.36 516,510,834.07
Deferred income VII. 51 673,956,660.83 516,595,134.18
Deferred tax liabilities VII. 30 727,617,701.50 323,804,103.26
Other non-current liabilities VII. 52 269,831,581.77
Total non-current liabilities 8,944,310,262.26 6,389,315,130.13
Total liabilities 52,036,767,690.64 31,009,156,432.98
Owner's equity (or shareholders'
equity):
Paid-in capital (or share capital) VII. 53 3,771,768,901.00 3,772,016,757.00
Other equity instruments VII. 54 674,563,439.36
Including: Preferred shares
Perpetual bond
Capital reserve VII. 55 10,461,137,337.58 10,462,015,674.83
Less: Treasury share VII. 56 431,719.00 22,526,342.00
Other comprehensive income VII. 57 -304,862,248.67 32,830,730.30
Special reserve
Surplus reserve VII. 59 1,150,220,840.44 683,195,269.55
General risk reserve
Undistributed profit VII. 60 19,353,368,866.06 12,701,261,983.10
Total owner's equity (or
shareholder's equity) attributable
to the parent company
35,105,765,416.77 27,628,794,072.78
Minority equity 492,295,576.68 666,022,604.77
Total owner's (or shareholder's
equity)
35,598,060,993.45 28,294,816,677.55
Total liabilities and owner' equity
(or shareholder's equity)
87,634,828,684.09 59,303,973,110.53
Legal representative: Li
Zhenguo
Person in charge of accounting:
Liu Xuewen
Person in charge of accounting
organization: Liu Xuewen
Annual Report 2020
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Balance Sheet of the Parent Company
December 31, 2020
Prepared by: LONGi Green Energy Technology Co., Ltd.
Unit: Yuan Currency: RMB
Item Note December 31, 2020 December 31, 2019
Current assets:
Monetary fund 9,617,735,586.52 11,730,982,685.57
Financial assets held for trading
Derivative financial assets
Notes receivable 3,715,873,002.62 3,747,134,851.57
Accounts receivable XVII. 1 5,015,448,325.58 1,265,937,534.85
Receivables financing
Advance payment 75,698,811.03 6,516,042.05
Other receivables XVII. 2 2,192,229,655.28 1,381,531,710.34
Including: Interest receivable
Dividends receivable
Inventory 327,814,007.47 292,181,201.03
Contract assets 19,699,442.85
Held-for-sale assets
Non-current assets due within one
year
Other current assets 18,736,759.53 103,398,223.80
Total current assets 20,983,235,590.88 18,527,682,249.21
Non-current assets:
Creditors investment
Other creditors investment
Long-term receivables
Long-term equity investment XVII. 3 25,993,402,524.24 16,894,919,327.92
Investment in other equity
instruments
Other non-current financial assets
Investment real estate
Fixed assets 246,786,989.81 345,361,895.62
Construction in progress 10,833,341.92 8,012,360.58
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets 70,687,946.18 60,825,191.67
Expenditure on development
Goodwill
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Long-term unamortized expenses 8,018,750.63 9,841,389.16
Deferred tax assets 7,810,708.45
Other non-current assets 359,200.00 534,480.00
Total non-current assets 26,337,899,461.23 17,319,494,644.95
Total assets 47,321,135,052.11 35,847,176,894.16
Current liabilities:
Short-term borrowings 1,001,055,555.55
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 5,087,011,287.28 3,131,897,342.73
Accounts payable 7,417,294,209.16 9,482,420,773.06
Advance receipts 747,429,660.07
Contract liabilities 1,151,180,791.41
Payroll payable 119,733,444.65 84,223,903.13
Taxes payable 60,141,403.41 72,289,573.04
Other payables 1,231,551,139.02 1,019,528,101.84
Including: Interest payable 49,210,245.17
Dividends payable 3,946.32
Held-for-sale liabilities
Non-current liabilities due within
one year
1,912,337,303.50 200,000,000.00
Other current liabilities 127,124,040.32
Total current liabilities 18,107,429,174.30 14,737,789,353.87
Non-current liabilities:
Long-term borrowings 998,500,000.00 450,000,000.00
Bonds payable 4,351,411,265.99 995,584,143.19
Including: Preferred shares
Perpetual bond
Leasing liabilities
Long-term payables
Long-term payroll payable
Accrued liabilities 47,665,875.66 47,673,475.66
Deferred income 31,001,642.97 35,786,292.41
Deferred tax liabilities 159,267.98
Other non-current liabilities 269,831,581.77
Total non-current liabilities 5,698,410,366.39 1,529,203,179.24
Total liabilities 23,805,839,540.69 16,266,992,533.11
Owner's equity (or shareholders'
equity):
Paid-in capital (or share capital) 3,771,768,901.00 3,772,016,757.00
Other equity instruments 674,563,439.36
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Including: Preferred shares
Perpetual bond
Capital reserve 10,453,843,533.29 10,452,161,591.18
Less: Treasury share 431,719.00 22,526,342.00
Other comprehensive income
Special reserve
Surplus reserve 1,150,220,840.44 683,195,269.55
Undistributed profit 7,465,330,516.33 4,695,337,085.32
Total owner's (or shareholder's
equity)
23,515,295,511.42 19,580,184,361.05
Total liabilities and owner' equity
(or shareholder's equity)
47,321,135,052.11 35,847,176,894.16
Legal representative: Li
Zhenguo
Person in charge of accounting:
Liu Xuewen
Person in charge of accounting
organization: Liu Xuewen
Consolidated Income Statement
January - December, 2020
Unit: Yuan Currency: RMB
Item Note Year 2020 Year 2019
I. Total operating revenue 54,583,183,588.46 32,897,455,384.24
Including: Operating revenue VII. 61 54,583,183,588.46 32,897,455,384.24
Interest income
Earned premium
Service charge and commission income
II. Total operating cost 44,844,138,322.97 26,422,362,742.66
Including: Operating cost VII. 61 41,145,628,529.00 23,389,364,451.22
Interest expense
Service charge and commission expenses
Surrender value
Net amount of reimbursement
Net amount of withdrawn provision for
insurance liability
Insurance policy insurance expense
Reinsurance expenses
Taxes and surcharges VII. 62 281,862,014.04 178,418,101.38
Selling expenses VII. 63 1,073,438,176.42 1,329,748,334.67
Administrative expenses VII. 64 1,465,812,375.27 971,025,108.82
R&D expenses VII. 65 499,103,854.57 304,198,315.84
Financial expenses VII. 66 378,293,373.67 249,608,430.73
Including: Interest expenses 386,097,557.25 458,432,621.25
Interest income 306,586,205.87 232,879,970.03
Add: Other incomes VII. 67 282,996,117.88 203,896,364.11
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Investment income (loss expressed with "-
")
VII. 68 1,077,503,873.52 239,983,779.35
Including: Investment income from
associates and joint ventures
146,216,366.05 117,194,275.31
Derecognized gains on financial assets
measured at amortized costs
△Exchange gains (loss represented by "-
")
Net exposure hedging gains (loss
expressed with "-")
Income from changes in fair value (loss
expressed with "-")
VII. 70 971.20
Credit impairment loss (loss expressed
with "-")
VII. 71 -166,819,338.07 -61,211,538.74
Assets impairment loss (loss expressed
with "-")
VII. 72 -949,718,629.80 -501,289,980.99
Asset disposal income (loss expressed
with "-")
VII. 73 -11,845,241.91 -58,643,251.81
III. Operating profits (loss expressed
with "-")
9,971,163,018.31 6,297,828,013.50
Add: Non-operating revenue VII. 74 14,127,661.26 8,184,691.35
Less: Non-operating expenses VII. 75 73,385,153.41 59,080,430.99
IV. Total profits (total losses expressed
with "-")
9,911,905,526.16 6,246,932,273.86
Less: Income tax expense VII. 76 1,212,209,603.71 689,768,510.71
V. Net profits (net losses expressed
with "-")
8,699,695,922.45 5,557,163,763.15
(I) Classification based on operation continuity
1. Net profit from continuing
operations (net loss expressed with "-")
8,699,695,922.45 5,557,163,763.15
2. Net profit from discontinued
operations (net loss expressed with "-")
(II) Classification based on ownership attribution
1. Net profit attributable to
shareholders of the parent company (net
loss expressed with "-")
8,552,369,160.81 5,279,552,073.55
2. Minority interest income (net loss
expressed with "-")
147,326,761.64 277,611,689.60
VI. After-tax net amount of other
comprehensive income
VII. 77 -337,692,978.97 24,344,265.70
(I) After-tax net amount of other
comprehensive income attributable to the
owner of the parent company
-337,692,978.97 24,344,265.70
1. Other comprehensive income
unable to be reclassified into profits or
losses
12,905,357.75 -5,413,524.04
(1) Changes from re-measurement of
defined benefit plans
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(2) Other comprehensive income
unable to be reclassified into profits or
losses under the equity method
(3) Changes in fair value of other equity
instrument investments
12,905,357.75 -5,413,524.04
(4) Changes in fair value of the credit
risk of the Company
2. Other comprehensive income to be
reclassified into profits or losses
-350,598,336.72 29,757,789.74
(1) Other comprehensive incomes able
to be transferred into profits or losses
under the equity method
(2) Changes in fair value of other
creditors investments
(3) Amount of financial assets
reclassified into other comprehensive
income
(4) Provision for credit impairment of
other creditors investment
(5) Cash flow hedge reserve
(6) Translation difference of foreign
currency financial statements
-350,598,336.72 29,757,789.74
(7) Others
(II) After-tax net amount of other
comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 8,362,002,943.48 5,581,508,028.85
(I) Total comprehensive income
attributable to owners of the parent
company
8,214,676,181.84 5,303,896,339.25
(II) Total comprehensive income
attributable to minority shareholders
147,326,761.64 277,611,689.60
VII. EPS:
(I) Basic EPS (RMB per share) XVIII. 2 2.27 1.47
(II) Diluted EPS (RMB per share) XVIII. 2 2.26 1.47
As for business combinations under common control in the current period, the net profit realized by
the combined party before the combination was RMB 0.00, while the net profit realized by the
combined party in the previous period was RMB 0.00.
Legal representative: Li
Zhenguo
Person in charge of accounting:
Liu Xuewen
Person in charge of accounting
organization: Liu Xuewen
Income Statement of the Parent Company
January - December, 2020
Unit: Yuan Currency: RMB
Item Note Year 2020 Year 2019
I. Operating revenue XVII. 4 27,114,964,554.90 18,847,294,185.26
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Less: Operating costs XVII. 4 24,805,093,133.60 17,110,557,405.67
Taxes and surcharges 34,660,562.62 61,320,967.93
Selling expenses 23,306,263.76 52,611,984.04
Administrative expenses 379,254,369.64 244,224,442.90
R&D expenses 72,437,909.28 66,240,578.40
Financial expenses 40,987,611.91 49,008,142.47
Including: Interest expenses 173,267,090.18 196,117,644.86
Interest income 148,716,478.98 166,212,055.29
Add: Other incomes 88,992,218.32 44,918,662.71
Investment income (loss expressed with "-
")
XVII. 5 3,251,474,289.84 1,128,764,789.08
Including: Investment income from
associates and joint ventures
93,051,183.87 28,946,649.45
Derecognized gains on financial assets
measured at amortized costs
Net exposure hedging gains (loss
expressed with "-")
Income from changes in fair value (loss
expressed with "-")
Credit impairment loss (loss expressed
with "-")
-9,308,021.25 5,815,728.08
Assets impairment loss (loss expressed
with "-")
-135,793,448.50 -78,798,734.60
Asset disposal income (loss expressed
with "-")
-412,734.22 -2,986,620.81
II. Operating profit (loss expressed
with “-”)
4,954,177,008.28 2,361,044,488.31
Add: Non-operating revenue 1,190,467.02 432,512.38
Less: Non-operating expenses 20,591,490.89 2,811,463.71
III. Total profits (total loss expressed
with "-")
4,934,775,984.41 2,358,665,536.98
Less: Income tax expense 264,520,275.55 191,242,782.65
IV. Net profit (net loss expressed with
“-”)
4,670,255,708.86 2,167,422,754.33
(I) Net profit from continuing
operations (net loss expressed with “-”)
4,670,255,708.86 2,167,422,754.33
(II) Net profit from discontinued
operations (net loss expressed with "-")
V. After-tax Net Amount of Other
Comprehensive Income
-6,169,340.04
(I) Other comprehensive income
unable to be reclassified into profits or
losses
-6,169,340.04
1. Changes in re-measurement of defined benefit plans
2. Other comprehensive income
unable to be transferred to profits or losses
Annual Report 2020
122 / 312
under the equity method
3. Changes in fair value of the
investment in other equity instruments
-6,169,340.04
4. Changes in fair value of the credit
risk of the Company
(II) Other comprehensive income to be
reclassified to profits or losses
1. Other comprehensive income able
to be reclassified into profits or losses
under the equity method
2. Changes in fair value of other
creditors investment
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment of
other creditors investment
5. Cash flow hedge reserve
6. Translation difference of foreign
currency financial statements
7. Others
VI. Total comprehensive income 4,670,255,708.86 2,161,253,414.29
VII. EPS
(I) Basic EPS (RMB per share)
(II) Diluted EPS (RMB per share)
Legal representative: Li
Zhenguo
Person in charge of accounting:
Liu Xuewen
Person in charge of accounting
organization: Liu Xuewen
Consolidated Statement of Cash Flows
January - December, 2020
Unit: Yuan Currency: RMB
Item Note Year 2020 Year 2019
I. Cash flow from operating
activities:
Cash received from sales of goods or
rendering of services
39,258,929,433.43 26,505,050,556.68
Net increase in customer deposits and
deposits from other banks
Net increase in loans from the central
bank
Net increase in borrowings from
other financial institutions
Cash received from insurance
premium of original insurance
contracts
Net amount received from
reinsurance business
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Net increase in deposits from
policyholders and investments
Cash received for interests, service
charges and commissions
Net increase of loans from other
banks
Net increase in repurchasing business
Net amount of cash received from
securities trading agency
Refunds of taxes and levies 1,905,064,629.44 1,230,169,544.12
Cash received from other operating
activities
VII. 78 1,990,129,866.46 2,123,387,929.33
Subtotal of cash inflows from
operating activities
43,154,123,929.33 29,858,608,030.13
Cash paid for goods purchased and
services received
23,716,894,338.37 15,534,005,322.90
Net increase of customers' loans and
advances in cash
Net increase in deposits with the
central bank and other banks
Cash paid for claims for original
insurance contracts
Net increase in lending funds
Cash paid for interests, service
charges and commissions
Cash paid for insurance policy
dividends
Cash paid to and for employees 4,355,742,265.40 2,722,713,954.65
Payments of all types of taxes 2,269,115,178.50 1,270,661,795.10
Cash paid for other operating
activities
VII. 78 1,797,492,719.01 2,172,985,930.95
Subtotal of cash outflows from
operating activities
32,139,244,501.28 21,700,367,003.60
Net cash flow from operating
activities
11,014,879,428.05 8,158,241,026.53
II. Cash flow from investing
activities:
Cash received from return of
investment
30,888,432,806.77 14,089,035,529.09
Cash received from investment
income
273,394,497.69 160,813,382.90
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets
26,479,704.52 5,997,334.46
Net cash received from disposal of
subsidiaries and other business units
286,950,700.57 258,904,594.30
Other cash received from investing
activities
VII. 78 91,352,788.18 47,925,895.64
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Subtotal of cash inflows from
investing activities
31,566,610,497.73 14,562,676,736.39
Cash paid for purchase and
construction of fixed assets,
intangible assets and other long-term
assets
4,826,593,637.90 2,689,602,345.75
Cash paid for investment 30,726,917,653.60 14,165,079,100.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries
and other business units
873,426,285.96
Other cash paid for investment
activities
VII. 78 310,479,149.24 460,854,587.68
Subtotal of cash outflows from
investing activities
36,737,416,726.70 17,315,536,033.43
Net cash flow from investing
activities
-5,170,806,228.97 -2,752,859,297.04
III. Cash flow from financing
activities:
Cash received from absorption of
investments
135,670,000.00 4,593,700,498.30
Including: Cash received from
minority shareholder investment by
subsidiaries
135,670,000.00 763,300,000.00
Cash received from borrowings 9,350,918,330.56 2,708,837,177.64
Cash received from other financing
activities
VII. 78 112,077,280.10 3,895,881,158.85
Subtotal of cash inflows from
financing activities
9,598,665,610.66 11,198,418,834.79
Cash paid for debt repayments 4,427,503,988.96 2,906,966,522.04
Cash paid for distribution of
dividends and profits or payment of
interests
2,050,914,191.22 720,668,355.43
Including: Dividend and profit paid
to minority shareholders by
subsidiary
270,672,096.97
Cash paid for other financing
activities
VII. 78 310,627,471.23 3,010,736,451.67
Subtotal of cash outflows from
financing activities
6,789,045,651.41 6,638,371,329.14
Net cash flow from financing
activities
2,809,619,959.25 4,560,047,505.65
IV. Effect of exchange rate
fluctuation on cash and cash
equivalents
-308,777,375.96 -70,193,931.37
V. Net increase in cash and cash
equivalents
VII. 79 8,344,915,782.37 9,895,235,303.77
Add: Balance of cash and cash equivalents at the beginning of the
period
VII. 79 15,560,275,471.85 5,665,040,168.08
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VI. Ending balance of cash and
cash equivalents
VII. 79 23,905,191,254.22 15,560,275,471.85
Legal representative: Li
Zhenguo
Person in charge of accounting:
Liu Xuewen
Person in charge of accounting
organization: Liu Xuewen
Annual Report 2020
126 / 312
Statement of Cash Flows of the Parent Company
January - December, 2020
Unit: Yuan Currency: RMB
Item Note Year 2020 Year 2019
I. Cash flow from operating
activities:
Cash received from sales of goods or
rendering of services
17,739,016,765.03 12,760,649,772.57
Refunds of taxes and levies 224,928,952.17 327,288,464.87
Cash received from other operating
activities
23,831,847,670.04 14,763,495,331.34
Subtotal of cash inflows from
operating activities
41,795,793,387.24 27,851,433,568.78
Cash paid for goods purchased and
services received
14,232,968,984.78 7,451,274,992.66
Cash paid to and for employees 381,667,491.76 319,788,930.75
Payments of all types of taxes 343,715,451.54 174,561,913.92
Cash paid for other operating
activities
27,727,557,211.28 15,222,697,819.94
Subtotal of cash outflows from
operating activities
42,685,909,139.36 23,168,323,657.27
Net cash flow from operating
activities
-890,115,752.12 4,683,109,911.51
II. Cash flow from investing
activities:
Cash received from return of
investment
19,200,000,000.00 13,489,035,529.09
Cash received from investment
income
3,158,423,105.97 1,115,816,906.75
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets
12,493,518.99 9,440,084.85
Net cash received from disposal of
subsidiaries and other business units
Other cash received from investing
activities
10,465,689.82 1,442,953.41
Subtotal of cash inflows from
investing activities
22,381,382,314.78 14,615,735,474.10
Cash paid for purchase and
construction of fixed assets,
intangible assets and other long-term
assets
42,226,616.17 71,950,087.39
Cash paid for investment 26,755,654,005.79 17,410,000,000.00
Net cash paid to acquire subsidiaries
and other business units
Other cash paid for investment 178,459,530.23 44,853,965.33
Annual Report 2020
127 / 312
activities
Subtotal of cash outflows from
investing activities
26,976,340,152.19 17,526,804,052.72
Net cash flow from investing
activities
-4,594,957,837.41 -2,911,068,578.62
III. Cash flow from financing
activities:
Cash received from absorption of
investments
- 3,830,400,498.30
Cash received from borrowings 7,505,482,500.00 1,260,000,000.00
Cash received from other financing
activities
2,505,984,446.22
Subtotal of cash inflows from
financing activities
7,505,482,500.00 7,596,384,944.52
Cash paid for debt repayments 701,500,000.00 1,235,932,857.00
Cash paid for distribution of
dividends and profits or payment of
interests
1,543,641,289.63 457,344,048.79
Cash paid for other financing
activities
467,737.27 2,447,124,994.14
Subtotal of cash outflows from
financing activities
2,245,609,026.90 4,140,401,899.93
Net cash flow from financing
activities
5,259,873,473.10 3,455,983,044.59
IV. Effect of exchange rate
fluctuation on cash and cash
equivalents
-19,886,844.91 -10,398,438.05
V. Net increase in cash and cash
equivalents
-245,086,961.34 5,217,625,939.43
Add: Balance of cash and cash
equivalents at the beginning of the
period
8,298,483,650.37 3,080,857,710.94
VI. Ending balance of cash and
cash equivalents
8,053,396,689.03 8,298,483,650.37
Legal representative: Li
Zhenguo
Person in charge of accounting:
Liu Xuewen
Person in charge of accounting
organization: Liu Xuewen
Annual Report 2020
128 / 312
Consolidated Statement of Changes in Owner's Equity
January - December, 2020
Unit: Yuan Currency: RMB
Item
Year 2020
Owner's equity attributable to the parent company
Minority
equity
Total owner's
equity Paid-in
capital (or
share capital)
Other equity instruments Capital
reserve
Less:
Treasury
share
Other
comprehensi
ve income
Special
reserve
Surplus
reserve
General
risk
reserve
Undistribute
d profit Others Subtotal Preferre
d share
Perpetual
bond Others
I. Ending
balance of the previous year
3,772,016,757.00 10,462,015,674.83 22,526,342.00 32,830,730.30 683,195,269.55 12,701,261,983.10 27,628,794,072.78 666,022,604.77 28,294,816,677.55
Add: Changes in
accounting
policies
Correction of
prior period
errors
Business
combinations
under common
control
Others
II. Beginnin
g balance of the
year
3,772,016,757.00 10,462,015,674.83 22,526,342.00 32,830,730.30 683,195,269.55 12,701,261,983.10 27,628,794,072.78 666,022,604.77 28,294,816,677.55
III.
Increase/
decrease in the
current period
(decrease
expressed with "-")
-247,856.00 674,563,439.36 -878,337.25 -22,094,623.00 -337,692,978.97 467,025,570.89 6,652,106,882.96 7,476,971,343.99 -173,727,028.09 7,303,244,315.90
(I) Total comprehensive
income
-337,692,978.97 8,552,369,160.81 8,214,676,181.84 147,326,761.64 8,362,002,943.48
(II) Capital
contributed and
reduced by the
owner
674,563,439.36 123,709.15 -20,844,720.60 695,531,869.11 135,270,000.00 830,801,869.11
1. Ordinary
share invested by
the owner
135,270,000.00 135,270,000.00
Annual Report 2020
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2. Capital
contributed by holders of other
equity
instruments
674,563,439.36 674,563,439.36 674,563,439.36
3. Amount
of share-based
payments
recognized in
owner's equity
123,709.15 -20,844,720.60 20,968,429.75 20,968,429.75
4. Others
(III) Profit
distribution 467,025,570.89 -1,900,262,277.85 -1,433,236,706.96 -270,672,096.97 -1,703,908,803.93
1. Withdra
wal of surplus
reserve
467,025,570.89 -467,025,570.89
2.
Withdra
wal of general
risk reserve
3.
Distributi
on to owners (or
shareholders)
-1,433,236,706.96 -1,433,236,706.96 -270,672,096.97 -1,703,908,803.93
4. Others
(IV) Internal carry-over of
owner's equity
1. Capital
reserve converted
to capital (or
share capital)
2. Surplus
reserve converted
to capital (or
share capital)
3. Surplus reserve for
making up loss
4. Retained
earnings carried
over by changes
of defined benefit
plan
5. Retained
earnings carried
Annual Report 2020
130 / 312
over by other
comprehensive income
6. Others
(V) Special
reserve
1.
Withdra
wal in current
period
2. Use in
current period
(VI) Others -247,856.00 -1,002,046.40 -1,249,902.40 -185,651,692.76 -185,651,692.76
IV. Ending
balance of the
current period
3,771,768,901.00 674,563,439.36 10,461,137,337.58 431,719.00 -304,862,248.67 1,150,220,840.44 19,353,368,866.06 35,105,765,416.77 492,295,576.68 35,598,060,993.45
Item
Year 2019
Owner's equity attributable to the parent company
Minority
equity
Total owner's
equity Paid-in
capital (or
share capital)
Other equity instruments
Capital
reserve
Less:
Treasury
share
Other
comprehen
sive
income
Special
reserve
Surplus
reserve
General
risk
reserve
Undistribut
ed profit Others Subtotal Preferred
share
Perpetual
bond Others
I. Ending balance of the
previous year
2,790,788,363.00 628,807,241.85 4,634,794,115.25 45,475,983.30 4,409,197.42 463,568,796.04 7,974,695,023.80 16,451,586,754.06 373,173,475.84 16,824,760,229.90
Add: Changes in
accounting
policies
4,077,267.18 4,077,267.18 4,077,267.18
Correction of
prior period
errors
Business
combinations
under common
control
Others
II. Beginnin
g balance of the
year
2,790,788,363.00 628,807,241.85 4,634,794,115.25 45,475,983.30 8,486,464.60 463,568,796.04 7,974,695,023.80 16,455,664,021.24 373,173,475.84 16,828,837,497.08
III.
Increase/981,228,394.00 -628,807,241.85 5,827,221,559.58 -22,949,641.30 24,344,265.70 219,626,473.51 4,726,566,959.30 11,173,130,051.54 292,849,128.93 11,465,979,180.47
Annual Report 2020
131 / 312
decrease in the
current period (decrease
expressed with "-
")
(I) Total
comprehensive
income
24,344,265.70 5,279,552,073.55 5,303,896,339.25 277,611,689.60 5,581,508,028.85
(II) Capital
contributed and
reduced by the
owner
982,302,551.00 -628,807,241.85 5,831,360,558.88 -22,949,641.30 6,207,805,509.33 763,300,000.00 6,971,105,509.33
1. Ordinary share invested by
the owner
833,419,462.00 2,997,279,770.30 3,830,699,232.30 763,300,000.00 4,593,999,232.30
2. Capital
contributed by
holders of other
equity
instruments
148,883,089.00 -628,807,241.85 2,817,679,716.91 2,337,755,564.06 2,337,755,564.06
3. Amount
of share-based
payments recognized in
owner's equity
10,401,071.67 -22,949,641.30 33,350,712.97 33,350,712.97
4. Others 6,000,000.00 6,000,000.00 6,000,000.00
(III) Profit
distribution 216,742,275.43 -578,942,896.87 -362,200,621.44 -362,200,621.44
1.
Withdra
wal of surplus
reserve
216,742,275.43 -216,742,275.43
2.
Withdra
wal of general
risk reserve
3. Distributi
on to owners (or
shareholders)
-362,200,621.44 -362,200,621.44 -362,200,621.44
4. Others
(IV) Internal
carry-over of
owner's equity
1. Capital
reserve converted
to capital (or
Annual Report 2020
132 / 312
share capital)
2. Surplus
reserve converted to capital (or
share capital)
3. Surplus
reserve for
making up loss
4. Retained
earnings carried
over by changes
of defined benefit
plan
5. Retained earnings carried
over by other
comprehensive
income
6. Others
(V) Special
reserve
1.
Withdra
wal in current
period
2. Use in
current period
(VI) Others -1,074,157.00 -4,138,999.30 2,884,198.08 25,957,782.62 23,628,824.40 -748,062,560.67 -724,433,736.27
IV. Ending
balance of the current period
3,772,016,757.00 10,462,015,674.83 22,526,342.00 32,830,730.30 683,195,269.55 12,701,261,983.10 27,628,794,072.78 666,022,604.77 28,294,816,677.55
Legal representative: Li Zhenguo Person in charge of accounting: Liu Xuewen Person in charge of accounting organization:
Liu Xuewen
Annual Report 2020
133 / 312
Statement of Changes in Owner's Equity of the Parent Company
January - December, 2020
Unit: Yuan Currency: RMB
Item
Year 2020
Paid-in capital (or
share capital)
Other equity instruments
Capital reserve Less: Treasury
share
Other
comprehensive income
Special
reserve Surplus reserve
Undistributed
profit Total owner's equity Preferred
share
Perpetual
bond Others
I. Ending balance of the
previous year
3,772,016,757.00 10,452,161,591.18 22,526,342.00 683,195,269.55 4,695,337,085.32 19,580,184,361.05
Add: Changes in
accounting policies
Correction of prior
period errors
Others
II. Beginning
balance of the year 3,772,016,757.00 10,452,161,591.18 22,526,342.00 683,195,269.55 4,695,337,085.32 19,580,184,361.05
III.
Increase/decre
ase in the current
period (decrease
expressed with "-")
-247,856.00 674,563,439.36 1,681,942.11 -22,094,623.00 467,025,570.89 2,769,993,431.01 3,935,111,150.37
(I) Total comprehensive
income 4,670,255,708.86 4,670,255,708.86
(II) Capital
contributed and
reduced by the owner
674,563,439.36 2,683,988.51 -20,844,720.60 698,092,148.47
1. Ordinary
share invested by the
owner
2. Capital
contributed by holders
of other equity
instruments
674,563,439.36 674,563,439.36
3. Amount of share-based payments
recognized in owner's
equity
2,683,988.51 -20,844,720.60 23,528,709.11
4. Others
(III) Profit
distribution 467,025,570.89 -1,900,262,277.85 -1,433,236,706.96
Annual Report 2020
134 / 312
1. Withdrawal of
surplus reserve 467,025,570.89 -467,025,570.89
2. Distribution to the owner (or
shareholders)
-1,433,236,706.96 -1,433,236,706.96
3. Others
(IV) Internal carry-
over of owner's equity
1. Capital
reserve converted to
capital (or share
capital)
2. Surplus
reserve converted to
capital (or share
capital)
3. Surplus reserve for making up
loss
4. Retained
earnings carried over
by changes of defined
benefit plan
5. Retained
earnings carried over
by other
comprehensive income
6. Others
(V) Special reserve
1. Withdrawal in
current period
2. Use in current
period
(VI) Others -247,856.00 -1,002,046.40 -1,249,902.40
IV. Ending
balance of the current
period
3,771,768,901.00 674,563,439.36 10,453,843,533.29 431,719.00 1,150,220,840.44 7,465,330,516.33 23,515,295,511.42
Item Year 2019
Paid-in capital (or Other equity instruments Capital reserve Less: Treasury Other Special Surplus reserve Undistributed profit Total owner's equity
Annual Report 2020
135 / 312
share capital) Preferred
share
Perpetual
bond Others
share comprehensive
income
reserve
I. Ending
balance of the previous year
2,790,788,363.00 628,807,241.85 4,633,062,603.32 45,475,983.30 463,568,796.04 3,080,899,445.24 11,551,650,466.15
Add: Changes in accounting policies
6,169,340.04 6,169,340.04
Correction of prior period errors
Others
II. Beginning
balance of the year 2,790,788,363.00 628,807,241.85 4,633,062,603.32 45,475,983.30 6,169,340.04 463,568,796.04 3,080,899,445.24 11,557,819,806.19
III.
Increase/decrease in the current
period (decrease
expressed with "-")
981,228,394.00 -628,807,241.85 5,819,098,987.86 -22,949,641.30 -6,169,340.04 219,626,473.51 1,614,437,640.08 8,022,364,554.86
(I) Total
comprehensive
income
-6,169,340.04 2,167,422,754.33 2,161,253,414.29
(II) Capital
contributed and
reduced by the owner
982,302,551.00 -628,807,241.85 5,823,237,987.16 -22,949,641.30 6,199,682,937.61
1. Ordinary
share invested by the
owner
833,419,462.00 2,997,279,770.30 3,830,699,232.30
2. Capital
contributed by holders
of other equity instruments
148,883,089.00 -628,807,241.85 2,817,679,716.91 2,337,755,564.06
3. Amount of share-based payments
recognized in owner's
equity
8,278,499.95 -22,949,641.30 31,228,141.25
4. Others
(III) Profit
distribution 216,742,275.43 -578,942,896.87 -362,200,621.44
1. Withdrawal of
surplus reserve 216,742,275.43 -216,742,275.43
2. Distribution to
the owner (or
shareholders)
-362,200,621.44 -362,200,621.44
3. Others
(IV) Internal carry-
Annual Report 2020
136 / 312
over of owner's equity
1. Capital
reserve converted to
capital (or share capital)
2. Surplus reserve converted to
capital (or share
capital)
3. Surplus
reserve for making up
loss
4. Retained
earnings carried over
by changes of defined
benefit plan
5. Retained
earnings carried over
by other
comprehensive income
6. Others
(V) Special reserve
1. Withdrawal in current period
2. Use in current period
(VI) Others -1,074,157.00 -4,138,999.30 2,884,198.08 25,957,782.62 23,628,824.40
IV. Ending balance of
current period 3,772,016,757.00 10,452,161,591.18 22,526,342.00 683,195,269.55 4,695,337,085.32 19,580,184,361.05
Legal representative: Li Zhenguo Person in charge of accounting: Liu Xuewen Person in charge of accounting organization:
Liu Xuewen
Annual Report 2020
137 / 312
III. Corporate Profile
1. Company profile
√ Applicable □ Not Applicable
LONGi Green Energy Technology Co., Ltd. (hereinafter referred to as "the Company") was founded
in February 14, 2000, with the registered address at No. 388, Hangtian Middle Road, Xi'an City,
Shaanxi Province. The Company was listed on Shanghai Securities Exchange on April 11, 2012. As
of December 31, 2020, the total share capital of the Company was RMB 3,771,768,901.00, and the
par value per share was RMB 1.
The Company and its subsidiaries (hereinafter collectively referred to as "the Group") belong PV
industry, mainly engaged in the R&D, production and sales of mono ingots, silicon wafers, batteries
and modules, as well as the development and operation of PV solar plants, etc.
The financial statements were approved and issued by the Board of Directors of the Company on
April 19, 2021.
2. Scope of consolidated financial statements
√ Applicable □ Not Applicable
The main subsidiaries included in the scope of consolidation this year are detailed in IX. "Equities in
other entities". The subsidiaries newly included in the scope of consolidation this year and those no
longer included in the scope of consolidation this year are detailed in VIII. "Change in scope of
consolidation".
IV. Basis for preparation of financial statements
1. Basis of preparation
The financial statements of the Company are prepared on a going concern basis.
2. Going concern
√ Applicable □ Not Applicable
The financial statements were prepared in accordance with the Accounting Standards for Business
Enterprises-Basic Standards, various specific accounting standards, and relevant provisions
(hereinafter collectively referred to as "Accounting Standards for Business Enterprises") issued by
the Ministry of Finance on February 15, 2006 and in the subsequent period as well as the disclosure
provisions of Reporting Rule No.15 for Information Disclosure of Companies Offering Securities to
the Public - General Provisions for Financial Reports issued by the China Securities Regulatory
Commission.
The financial statements were prepared on a going concern basis.
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates instructions:
√ Applicable □ Not Applicable
The Group determines specific accounting policies and accounting estimates according to the
characteristics of production and operation, which are mainly reflected in the measurement of
expected credit losses of receivables and contract assets (V. 10. Financial instruments), valuation
method of inventory (V. 15. Inventory), measurement model of investment real estate (V. 22.
Investment real estate), criteria for the fair value of financial instruments (V. 10. Financial
instruments), depreciation of fixed assets and amortization of intangible assets (V. 23. Fixed assets
and V. 29. Intangible assets), impairment of long-term assets (V. 30. Impairment of long-term assets)
and recognition time-point of revenue (V. 38. Revenue), etc.
The key judgments, significant accounting estimates and key assumptions used by the Group in
Annual Report 2020
138 / 312
determining significant accounting policies are detailed in V. 42. Other "significant accounting
estimates and judgments".
1. Statement on compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company in 2020 comply with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the consolidation of the Company
and the Company's financial position as of December 31, 2020, as well as the consolidation, operating
performance and cash flow in 2020, etc.
2. Accounting period
The accounting year of the Company starts from January 1 to December 31 of the Gregorian calendar.
3. Operating cycle
√ Applicable □ Not Applicable
Normal operating cycle is from the date when the Company purchases assets for processing to the
date of realization of cash or cash equivalents. One operating cycle of the Company is 12 months and
is regarded as the standard of liquidity division of assets and liabilities.
4. Recording currency
The recording currency of the Company and domestic subsidiaries is RMB. The subsidiaries of the
Company determine their recording currency according to the main economic environment in which
they operate. The recording currencies of overseas subsidiaries (EZ International Co., Ltd., LONGi
(KUCHING) SDN.BHD., LONGi TECHNOLOGY (KUCHING) SDN.BHD., LONGi Solar
Technology (U.S.) INC., VINA SOLAR TECHNOLOGY CO., LTD., VINA CELL TECHNOLOGY
CO., LTD., LONGi Solar Technology K.K., LERRI SOLAR TECHNOLOGY (INDIA) PRIVATE
LIMITED, LONGi New Energy (Uganda) Limited, LONGi Solar Technologie GmbH, LONGi
(Netherlands) Trading B.V., LONGi NEW ENERGY (THAILAND) CO., LTD., and LONGi Solar
Australia Pty Ltd.) are USD, JPY, INR, UGS, EUR, THB and AUD. The financial statements are
presented in RMB.
5. Accounting treatment methods for business combinations under common control and
those not under common control
√ Applicable □ Not Applicable
(a) Business combinations under common control
The combination consideration paid by the Group and the net assets acquired are measured at book
value. If the combined party is acquired by the final controlling party from third parties in previous
years, the book value of the combined party's assets and liabilities (including goodwill formed by the
acquisition of the combined party by the ultimate controlling party) in the consolidated financial
statements of ultimate controlling party shall be taken as the basis. The difference between the book
value of net assets obtained by the Group and the book value of the consolidated consideration paid
is adjusted against the capital reserve (share premium); if the capital reserve (share premium) is not
sufficient to be offset, the retained earnings shall be adjusted. Costs incurred directly attributable to
business combinations are recorded in current profits or losses when incurred. Transaction fees of
equity securities or debt securities issued due to business combination are recorded in initial
recognition amounts of these equity securities or debt securities.
(b) Business combination not under common control
The combination costs incurred and the identifiable net assets acquired by the Group are measured at
their fair value on the purchase date. Where the combination cost is higher than the share of fair value
of identifiable net assets of the acquiree on the purchase date, the difference is recognized as goodwill.
Where the combination cost is higher than the share of fair value of identifiable net assets of the
acquiree, the difference is recognized in current profits or losses. Costs incurred directly attributable
Annual Report 2020
139 / 312
to business combinations are recorded in current profits or losses when incurred. Transaction fees of
equity securities or debt securities issued due to business combination are recorded in initial
recognition amounts of these equity securities or debt securities.
6. Preparation method for consolidated financial statements
√ Applicable □ Not Applicable
During preparing consolidated financial statements, the scope of combination includes the Company
and all of its subsidiaries.
From the date of acquiring the de facto control over the subsidiaries, the Group begins to incorporate
them into its scope of combination, and stops such incorporation as from the date of losing the de
facto control. For a subsidiary that is acquired in business combinations under common control, it
shall be included in the scope of combination from the date when it, together with the Company,
comes under common control of the ultimate controlling party. The portion of the net profits achieved
before the date of combination shall be presented separately in the consolidated income statement.
During preparing the consolidated financial statements, where the accounting policies used by
subsidiaries and the Company are inconsistent, the financial statements of subsidiaries will be
adjusted in accordance with the accounting policies and accounting period of the Company. For any
subsidiary acquired through business combinations not under common control, its financial
statements shall be adjusted based on the fair value of the identifiable net assets on the purchase date.
All significant inter-group balances, transactions, and unrealized profits are offset in the preparation
of consolidated financial statements. The shareholders' equity of subsidiaries, current net profits or
losses and the portion not owned by the Company in the comprehensive income shall be
independently presented in the shareholders' equity, net profit and total comprehensive income in the
consolidated financial statements as the minority equity, minority interest income and total
comprehensive income attributable to minority shareholders. If the current loss shared by minority
shareholders of a subsidiary exceeds the proportion enjoyed by minority shareholders in the initial
owner's equity of the subsidiary, the balance writes down minority equity. The unrealized internal
transaction profit or loss arising from the sales of the company to subsidiary company shall totally
offset the net profit attributable to shareholders of the parent company. The unrealized internal trading
profits or losses incurred when a subsidiary sells its assets to the Company shall be distributed and
offset between net profit attributable to shareholders of the parent company and minority interest
income based on distribution proportion of the Company for the subsidiary. Unrealized internal
trading profits or losses incurred when subsidiaries sell their assets to each other shall be distributed
and offset between net profit attributable to shareholders of the parent company and minority interest
income based on distribution proportion of the sold subsidiary to the parent company.
Where there is any dissidence when judging a transaction from the perspectives of different
accounting entities (the Group, the Company and the subsidiaries), such transaction shall be adjusted
on the perspective of the Group.
7. Joint arrangement classification and joint operation accounting
□ Applicable √ Not Applicable
8. Standards for confirmation of cash and cash equivalents
Cash and cash equivalents refer to cash on hand, deposits ready for payment, and short-term and
highly liquid investments readily convertible to cash of known amount with minimal risk of changes
in value.
9. Foreign currency business and conversion of foreign currency statement
√ Applicable □ Not Applicable
(a) Foreign currency transaction
Annual Report 2020
140 / 312
The foreign currency transactions are translated into the recording currency for bookkeeping at the
spot rate on the transaction date.
On the balance sheet date, foreign currency monetary items are translated into the recording currency
at the spot rate on the balance sheet date. The currency translation differences arising from special
foreign currency borrowings borrowed for the acquisition and construction of assets eligible for
capitalization of borrowing costs are capitalized during the capitalization period. Other currency
translation differences are directly included in the current profits or losses. Non-monetary items of
foreign currency measured at historical cost are translated at the spot rate of the transaction date on
the balance sheet date. The effect of changes in exchange rate on cash is separately presented in the
statement of cash flows.
(b) Translation of foreign currency financial statements
Assets and liabilities items on the balance sheets of foreign operations are translated into RMB at the
spot rate on the balance sheet date, while the shareholders' equity items, except for the undistributed
profit items, are translated into RMB at the spot rate on the date of transactions. The income and
expense items in the income statements of overseas operations are translated at the spot rate or
approximate exchange rate on the date of transaction. The foreign currency translation difference as
a result of the above currency translation is included in the other comprehensive income. Cash flow
items of overseas operation are translated at the spot rate on the date when the cash flows occurs. The
effect of changes in exchange rate on cash is separately presented in the statement of cash flows.
10. Financial instruments
√ Applicable □ Not Applicable
Financial instruments refer to the contract which forms the financial assets of a party, and financial
liabilities or equity instruments of other parties. Financial assets or financial liabilities are recognized
when the Group becomes a party to the financial instrument contract.
(a) Financial assets
(i) Classification and measurement
Depending on the business model for managing financial assets and the contractual cash flow
characteristics of financial assets, the Group classifies financial assets into: (1) financial assets
measured at the amortized cost; (2) financial assets at fair value through other comprehensive income;
(3) financial assets at fair value through profit or loss.
Financial assets are measured at fair value upon initial recognition. For financial assets at fair value
through profit or loss are included in the current profit or loss, the related transaction costs are directly
recorded into the current profit or loss. For financial assets of other categories, transaction costs are
included in the amount of initial recognition. Accounts receivable or notes receivable arising from
the selling of products or the provision of labor services that do not include or take into account
significant financing components are initially recognized by the Group as per the amount of
consideration to be charged as expected.
Debt instruments
Debt instruments held by the Group refer to those meeting the definition of financial liabilities from
the perspective of the issuer, and are measured by the following three methods:
Measurement at amortized cost:
The Group's business model for managing such financial assets is targeted to collect the contractual
cash flow, and the contractual cash flow characteristics of such financial assets are consistent with
the basic lending facilities, i.e. the cash flow generated on a specific date is only the payment of
principal and interests based on the outstanding principal amount. The Group recognized the interest
income for such financial assets using the effective interest method. Such financial assets mainly
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include the monetary funds, notes receivable, accounts receivable, other receivables, creditors
investment and long-term receivables, etc. The Group lists the creditors investment and long-term
receivables due within one year (including one year) from the balance sheet date as the non-current
assets due within one year. The creditors investment with a time limit of one year or less when
acquired as other current assets.
Fair value through other comprehensive income:
The Group's business model for managing such financial assets is targeted to collect contractual cash
flows and sell, and the contractual cash flow characteristics of such financial assets are consistent
with the basic loan arrangements. Such financial assets are measured at fair value and their changes
are included in other comprehensive income, but impairment losses or gains, exchange gains or losses
and interest income calculated according to the effective interest method are included in current
profits or losses. Such financial assets mainly include receivables financing and other creditors
investment, etc. The Group lists other creditors investment due within one year (including one year)
from the balance sheet date as the non-current assets due within one year. Other creditors investment
with a time limit of one year or less when acquired as other current assets.
At fair value through current profit or loss:
The debt instruments which are held by the Group and are not divided into those measured at
amortized cost and those measured at fair value through other comprehensive income are measured
at fair value and their changes are included in current profits or losses. At initial recognition, in order
to eliminate or significantly reduce accounting mismatch, the Group designates part of financial assets
to the financial assets at fair value through profit or loss. The financial assets due in more than one
year from the balance sheet date and are expected to be held for more than one year are listed as other
non-current financial assets, and others are listed as financial assets held for trading.
Equity instruments
The Group measures the equity instrument investment with no control, common control and
significant influence according to the fair value, and the changes are recorded into the current profit
or loss. And the assets are listed as financial assets held for trading. The financial assets are expected
to be held for more than one year from the balance sheet date are listed as other non-current financial
assets.
In addition, the Group designates some non-marketable equity instrument investment as financial
assets at fair value through other comprehensive income, and the financial assets are listed as
investments of other equity instruments. The dividend income related to such financial assets is
included in the current profits or losses.
(ii) Impairment
For financial assets measured at amortized cost, and the debt instrument investment measured at fair
value through other comprehensive income, contract assets and financial guarantee contracts, the
Group recognizes loss reserves on the basis of expected credit loss.
The Group takes into account of such reasonable and reliable information as past events, current
situations and future economic position forecasts, uses the risk of default as the weight to calculate
the probability weighted amount of the present value of the difference between the cash flows
receivable from the contract and those expected to be received, and recognizes the expected credit
loss.
On each balance sheet date, the Group separately measures the expected credit losses of financial
instruments at different stages. If the credit risk has not increased significantly since the initial
recognition, the financial instruments are in the first stage, and the Group measures the loss reserves
according to the expected credit loss in the next 12 months. If the credit risk has increased
significantly (but without any credit impairment) since the initial recognition, the financial
instruments are in Stage II, and the Group measures the loss reserves according to the expected credit
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loss of the instruments throughout its life. If the credit impairment has occurred since the initial
recognition, the financial instruments are in Stage III, and the Group measures the loss reserves
according to the expected credit loss of the instruments throughout its life.
For financial instruments with low credit risks on the balance sheet date, the Group assumes that their
credit risks have not increased significantly since the initial recognition, and measures the loss
reserves according to the expected credit loss in the next 12 months.
For financial instruments in Stage I and Stage II and with low credit risks, the Group calculates
interest income based on the book balance before deducting the provision for impairment and the
effective interest rate. For financial instruments in Stage III, the Group measures the interest income
by the amortized cost (that is, book balance less the provision for impairment) and the effective
interest rate.
For notes receivable, accounts receivable, receivables financing and contract assets arising from daily
business activities such as selling commodities and providing services, whether there are significant
financing components or not, the Group measures the loss reserves according to the expected credit
loss throughout its life.
For the accounts receivable and contract assets for which credit impairment has occurred and other
accounts receivable that are applicable to individual evaluation, the Company shall confirm the
expected credit loss and make provision for impairment of single bad debt. For the accounts
receivable and contract assets without credit impairment, the Group will adjust historical data, prepare
the comparison model between the days of accounts receivable due and the expected credit loss rate
of the whole duration, and calculate the expected credit loss based on the historical credit loss rate of
accounts receivable and contract asset portfolio in the previous years with similar credit risk
characteristics and combined with the current situation and the forward-looking forecast of future
economic conditions. The Group divides the accounts receivable into several portfolios subject to the
credit risk characteristics, and calculates the expected credit loss on a portfolio basis. The basis for
determining the portfolio is as follows:
1. Notes receivable
Portfolio 1 Portfolio of banker's acceptance bill
Portfolio 2 Portfolio of commercial acceptance bill
2. Receivables financing
Portfolio 1 Portfolio of banker's acceptance bill
Portfolio 2 Portfolio of commercial acceptance bill
3. Accounts receivable
Portfolio 1 Portfolio of related parties receivable within the Group
Portfolio 2 Portfolio of electric charges receivable
Portfolio 3 Portfolio of enterprise customers receivable
4. Other receivables
Portfolio 1 Portfolio of related parties petty cash receivable within
the Group
Portfolio 2 Portfolio of other receivables
5. Contract assets
Portfolio 1 Portfolio of electric charges receivable
Portfolio 2 Portfolio of enterprise customers receivable
6. Long-term receivables
Portfolio Portfolio of long-term receivables
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7. Creditors investment
Portfolio Portfolio of creditors investment
For the accounts receivable divided into the portfolios as well as notes receivable and receivables
financing arising from daily operating activities such as selling commodities and providing services,
the Group will refer to the historical credit loss experience, combine the current situations and the
forecasts of future economic position to prepare the comparison table between the days of accounts
receivable due and the expected credit loss rate of the whole duration and calculate the expected credit
loss. For other notes receivable, receivables financing and other receivables classified into the
portfolio, the Group will calculate the expected credit losses by using the exposure at default and the
future 12-month or lifetime expected credit losses rate with reference to historical loss experience, in
combination with the current situation and forecasts of future economic position.
The Group will record the provision for loss accrued or transferred back into the current profit or loss.
For debt instruments that are held at fair value through other comprehensive income, the Group will
adjust other comprehensive income while including impairment loss or gain in current profits or
losses.
(iii) Derecognition
A financial asset is derecognized when any of the following is met: (1) The contractual rights to
receive the cash flows from the financial asset terminate; (2) the financial asset has been transferred,
and the Group has transferred substantially all risks and rewards in the ownership of the financial
asset to the transferee; (3) the financial asset has been transferred, and the Group has given up its
control over such financial asset, although it has neither transferred nor retained substantially all risks
and rewards in the ownership of the financial asset.
When investments of other equity instruments are derecognized, the differences between its book
value and the sum of the received consideration as well as the accumulated amount of changes in fair
value originally directly included in other comprehensive incomes are included in retained earnings.
When other financial assets are derecognized, the differences between its book value and the sum of
the received consideration as well as the accumulated amount of changes in fair value originally
directly included in other comprehensive incomes are included in the current profits or losses.
(b) Financial liabilities
Financial liabilities are classified into those measured at amortized cost and financial liabilities at fair
value through profit or loss upon initial recognition.
The Group's financial liabilities are mainly those measured at amortized cost, including notes payable,
accounts payable, other payables, loans, and bonds payable, etc. Such financial liabilities are
recognized initially at fair value after deducting transaction costs, and subsequently measured by the
effective interest method. Those with a time limit of one year (inclusive) or less are listed as current
liabilities; those with maturities over one year but due within one year from the balance sheet date
are listed as the non-current liabilities due within one year; others are listed as non-current liabilities.
If current obligations under the financial liabilities have been terminated in part or in whole, the Group
will derecognize such financial liabilities or released part of the obligations. The difference between
the book value of the derecognized part and the consideration paid is recorded in the current profits
or losses.
(c) Equity instruments
The equity instrument refers to the contract capable of certifying the ownership of the residual equity
in the assets after a party deducts all liabilities.
Perpetual bonds issued by the Group do not include delivery of cash or other financial assets to other
parties, or the contractual obligation to exchange financial assets or financial liabilities with other
parties under potentially adverse conditions, and there is no settlement arrangement under which the
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Group's own equity instruments are required or available. The Group classifies them into an equity
instrument.
(d) Determination of fair value of financial instruments
For the financial instrument with active markets, the fair value shall be determined by prices in active
markets. In case of financial instruments without an active market, valuation techniques shall be used
to determine the fair value. In valuation, the Group adopts valuation techniques that are applicable
under current circumstances and are supported by sufficient available data and other information,
selects input values consistent with the characteristics of relevant assets or liabilities considered by
market participants in the transactions related to assets or liabilities, and uses relevant observable
input values as preferentially as possible. Unobservable input value may be used in the even that
observable input value is unavailable or not feasible.
11. Notes receivable
Recognition and accounting methods for expected credit loss of notes receivables
√ Applicable □ Not Applicable
See V. 10. (a). (ii) Impairment.
12. Accounts receivable
Recognition and accounting methods for expected credit loss of accounts receivable
√ Applicable □ Not Applicable
See V. 10. (a). (ii) Impairment.
13. Receivables financing
√ Applicable □ Not Applicable
See V. 10. (a). (ii) Impairment.
14. Other receivables
Recognition and accounting methods for expected credit loss of other receivables
√ Applicable □ Not Applicable
See V. 10. (a). (ii) Impairment.
15. Inventory
√ Applicable □ Not Applicable
(a) Classification
Inventories include raw materials, goods in process, commodity stocks, work in process - outsourced
and commodities delivered, and they are measured at the cost or net realizable value (whichever is
lower).
(b) Valuation method of inventories upon delivery
Costs of inventories upon delivery are accounted by weighted average method. Costs of commodity
stocks and goods in process include raw material cost, direct labor expenses and manufacturing
overhead allocated by systematic method under normal production capacity.
(c) Basis for determining net realizable value and provision method for inventory depreciation
reserve
The inventory depreciation reserve is accrued at the excess amount of the inventory cost over its net
realizable value. Net realizable value is recognized at the difference of estimated sale price in the
ordinary course of business less the estimated cost to completion, estimated selling expenses and
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related taxes.
(d) The Group adopts the perpetual inventory system.
(e) Amortization method for low-value consumables and packaging materials
Revolving materials include low-value consumables and packaging materials, etc., among which the
low-value consumables and packaging materials are amortized by one-off amortization method.
16. Contract assets
(1) Recognition standards and methods for contract assets
√ Applicable □ Not Applicable
When the Group recognizes the income according to the progress of the completed labor services, the
part for which the Group has obtained the unconditional right to receive payment will be recognized
as accounts receivable, and the rest will be recognized as contract assets. The Group presents the
contract assets and contract liabilities under the same contract on the basis of net amount.
(2). Recognition and accounting methods for expected credit loss of contract assets
√ Applicable □ Not Applicable
The Company recognizes loss reserves for contract assets on the basis of expected credit losses (V.
10. (a). (ii) Impairment).
17. Held-for-sale assets
√ Applicable □ Not Applicable
Non-current assets or disposal groups that meet all of the following conditions are divided into held-
for-sale assets: (1) In accordance with the practice of selling such assets or disposal groups in similar
transactions, they can be sold immediately under the current situation; (II) the Group has entered into
a legally binding sale agreement with other parties and the relevant approvals have been obtained.
The sale is expected to be completed within one year.
Non-current assets eligible for held-for-sale conditions (excluding financial assets, investment real
estate measured at fair value and deferred income tax assets) are measured at the book value and the
net amount of fair value less selling costs (whichever is lower). The difference between the fair value
less selling costs and the original book value is recognized as the assets impairment loss.
Non-current assets divided into the held-for-sale assets as well as assets and liabilities in the disposal
group are divided into current assets and current liabilities, and presented separately on the balance
sheet.
Discontinued operations refer to the constituent parts satisfying any of the following conditions which
have been separately distinguishable ones and disposed or classified as held-for-sale ones by the
group: (I) such part represents an independent principal business or a separate major area of business.
(II) This component is one part of an associated plan proposed to dispose of one separate principal
business or a single main place of business. (III) The component is a subsidiary obtained specially
for resale.
The net profit from discontinued operations listed in the income statement includes the operating
profits or profits and disposal profits or losses.
18. Creditors investment
(1). Recognition and accounting methods for expected credit loss of creditors investment
√ Applicable □ Not Applicable
See V. 10. (a). (ii) Impairment.
19. Other creditors investment
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(1). Recognition and accounting methods for expected credit loss of other creditors investment
□ Applicable √ Not Applicable
20. Long-term receivables
(1). Recognition and accounting methods for expected credit loss of long-term receivables
√ Applicable □ Not Applicable
See V. 10. (a). (ii) Impairment.
21. Long-term equity investment
√ Applicable □ Not Applicable
Long-term equity investment includes the Company's long-term equity investment in subsidiaries;
long-term equity investment of the Group in associates and joint ventures.
Subsidiaries are the investees over which the Company is able to exercise control. Joint ventures are
joint arrangements of which the net asset is attribute to the Group based on the legal forms, conditions
of contract and other facts and the investees over which the Group is able to exercise common control
together with other ventures. Associates are the investees of which the Group has significant influence
on their financial and operating policies.
Investments in subsidiaries are listed in the Company's financial statements in accordance with the
amount determined by the cost method, and consolidated after adjustment by the equity method when
preparing consolidated financial statements. Investments in joint ventures and associates are
accounted by the equity method.
(a) Recognition of investment costs
For the long-term equity investment acquired through business combinations under common control,
on the date of combination, the share of the owner's equity of the combined party in the book value
of the consolidated financial statements of the ultimate controlling party is taken as the investment
cost. The long-term equity investments acquired through business combinations not under common
control are recognized as the investment cost of long-term equity investments according to the
combination cost.
For long-term equity investments obtained by the means other than business combination: the long-
term equity investments obtained by cash are recognized as the initial investment cost according to
the purchase price actually paid. The long-term equity investment obtained from the issuance of
equity securities are recognized as the initial investment cost according to the fair value of the issued
equity securities.
(b) Subsequent measurement and profit or loss recognition methods
The long-term equity investments accounted by the cost method are measured at the initial investment
cost. Cash dividends or profits declared by the investees to be distributed are recognized as investment
incomes and recorded into current profits or losses.
For the long-term equity investments calculated by the equity method, when the initial investment
cost is more than the share of the fair value of the identifiable net assets of the investees, the initial
investment cost is taken as the long-term equity investment cost. Where the initial investment cost is
less than the fair value share of the investee's identifiable net assets, the difference is included in
current profits or losses, and the cost of the long-term equity investment is increased accordingly.
For the long-term equity investment calculated by the equity method, the Group recognizes the
investment income according to the share of net profit or loss of the investee. The net loss incurred
by the investee shall be recognized only when the book value of the long-term equity investment and
other long-term equities that substantially constitute the net investment to the investee are written
down to zero. However, if the Group has the obligation to bear additional losses and meets the
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conditions for recognition of accrued liabilities, the amount of losses expected to be borne shall
continue to be recognized. For other changes in owner's equity other than net profit or loss, other
comprehensive incomes and profit distribution of the investees, the book value of long-term equity
investments shall be adjusted and recognized into capital reserve. The book value of the long-term
equity investment is reduced by the Group’s share of the profit distribution or cash dividends declared
by an investee. The unrealized profits or losses arising from the internal transactions between the
Group and its investees are offset by the portion attributable to the Group based on the shareholding
ratio, and then based on which the investment gains or losses are recognized. The part of assets
impairment loss among the losses on the internal transaction between the Group and its investees will
not be offset by the corresponding unrealized losses.
Where the control over the investee turns to significant influence or common control with other
investors due to the disposal of investments, the cost of long-term equity investment required to be
derecognized shall be firstly carried over as per the disposal proportion. Then, the cost of the residual
equity investment is compared with the share of the fair value of the identifiable net asset of the
investee enjoyed when the original investment is calculated based on the residual shareholding ratio.
If the former is larger than the latter, no adjustment to the book value of long-term equity investment
will be made for the goodwill part in the investment. If the former is less than the latter, the retained
earnings will be adjusted while the cost of long-term equity investment is adjusted.
For the share that the investor should enjoy in the net profit or loss realized by the investee between
the time of the original acquisition of the investment and the time of disposal of the investment
(converted to equity method accounting), on the one hand, the book value of long-term equity
investment is adjusted. Meanwhile, for the share of the net profit or loss (deduction of declared cash
dividends and profits) realized by the investee from the original acquisition of the investment to the
beginning of the disposal of the investment, the retained earnings are adjusted. For the share of the
net profit or loss realized by the investee from the beginning of the disposal of the investment to the
date of the disposal of the investment, the current profit or loss is adjusted. The share enjoyed in the
changes of the investee's other comprehensive income is included in other comprehensive income
while the book value of long-term equity investment is adjusted. The share enjoyed in the changes of
the investee's other owner's equity due to other reasons except for the net profit or loss, other
comprehensive income and profit distribution is included in the capital reserves (other capital
reserves), while the book value of long-term equity investment is adjusted. Upon the transformation
of cost method into equity method, the share of net profit or loss, other comprehensive income and
owner’s equity realized by the investee and other changes in owner’s equity is calculated and
recognized in the future period according to the provisions of the long-term equity investment
standards.
(c) Basis of determining the control over, common control and significant impact on the investee
Control refers to the power over the investees to share variable returns by participating in relevant
activities of the investees and exert such power on the investees to affect their amount of return.
Joint control is the contractually agreed common control over an arrangement, which exists only
when decisions about the relevant activities require the unanimous consent of the Group and other
participants sharing the control.
Significant impact means having the power to participate in decision-making on the financial and
operating policies of the investee, but not being able to control or commonly control the formulation
of these policies with other parties.
(d) Impairment of long-term equity investment
The book value of long-term equity investments in subsidiaries, joint ventures and associates shall be
reduced to the recoverable amount if the recoverable amount is lower than the book value (V. 30.
Impairment of long-term assets).
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22. Investment real estate
(1). Cost measurement mode:
Depreciation or amortization method
Investment real estates, including land use rights that have already been leased out, buildings that are
held for leasing and buildings that are being constructed or developed for leasing in the future, are
measured initially at cost. Subsequent expenditures incurred in relation to an investment real estate
are included in the cost of the investment real estate when the associated economic benefits are likely
to flow into the Group and their cost can be reliably measured. Otherwise, it is included to current
profit or loss as it occurs.
The Group uses the cost model for subsequent measurement of all investment real estates, and
depreciation or amortization is conducted by the straight-line method within the service life.
Item Estimated service life Estimated net residual
value ratio Annual depreciation rate
House buildings 20 to 60 years 5% 1.58% to 4.75%
Land use rights Determined according to validity period of the certificate
In case that the investment real estate is changed for self-use, the investment real estate shall be
transferred into fixed assets or intangible assets upon the change. Where the self-use real estate is
changed to be used for rentals or capital gain, the fixed asset or intangible asset shall be transformed
into investment real estate. In case of conversion, the book value before conversion shall be taken as
the entry value thereafter.
The estimated service life, net residual value and the depreciation (amortization) method of the
investment real estate will be reviewed, and adjusted as appropriate at the end of each fiscal year.
When the investment real estate is disposed of or is required to drop out of use permanently, and no
economic benefits are expected to get from the disposal, stop affirming the investment real estate
shall be derecognized. The amount of proceeds on sale, transfer retirement or damage of any
investment real estate net of the book value of the investment real estate and the relevant taxes shall
be accounted into the current profit or loss.
When the recoverable amount of an investment real estate is lower than its book value, the book value
shall be written down to the recoverable amount (V. 30. Impairment of long-term assets).
23. Fixed assets
(1). Recognition conditions
√ Applicable □ Not Applicable
Fixed assets include houses, buildings, PV solar plants, machinery and equipment, transport tools,
and electronic equipment, etc.
Fixed assets will be recognized only when related economic benefits are very likely to flow into the
Group and their costs can be measured reliably. Fixed assets purchased or newly constructed are
initially measured at cost when acquired.
Subsequent expenditures related to fixed assets are included in the costs of fixed assets when the
economic benefits related thereto are likely to flow into the Group and their costs can be measured
reliably; For the part to be replaced, its book value is derecognized; All other subsequent expenditures
are recorded in the current profits or losses upon the occurrence.
When the recoverable amount of a fixed asset is lower than its book value, the book value shall be
written down to the recoverable amount (V. 30. Impairment of long-term assets).
A fixed asset will be derecognized when it is disposed of or no economic benefit is expected from the
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use or disposal of the asset. The amount of proceeds on sale and transfer of a fixed asset as well as
disposal of a scrapped or damaged fixed asset less its book value and related taxes, are recognized in
current profits or losses.
(2). Depreciation methods
√ Applicable □ Not Applicable
Category Depreciation
method
Depreciable life
(years)
Residual
value rate
Annual depreciation
rate
Houses and buildings Straight-line method 20 to 60 years 5% 1.58% to 4.75%
PV solar plant Straight-line method 20 to 25 years 5% 3.80% to 4.75%
Machinery and
equipment Straight-line method 5 to 10 years 5% 9.50% to 19.00%
Transportation vehicles Straight-line method 5 to 10 years 5% 9.50% to 19.00%
Electronic equipment
and others Straight-line method 3 to 5 years 5% 19.00% to 31.67%
Fixed assets are depreciated with the straight-line method based on their entry value less estimated
residual values over their estimated service lives. For the fixed assets with impairment provision, the
related depreciation is determined based on the book value less provision for impairment and their
remaining service lives.
The estimated service life, the estimated net residual value, and the depreciation method of fixed
assets are reviewed and adjusted as appropriate at the end of each year.
(3). Recognition basis, valuation and depreciation methods of fixed assets under financing lease
√ Applicable □ Not Applicable
The lease that substantially transfers all the risks and rewards associated with the ownership of an
asset is financial leasing. The entry value of fixed assets under financial leasing is recognized as the
fair value of the leased asset and the present value of the minimum lease payment (whichever is
lower). The difference between the entry value of the leased assets and the minimum lease payment
is regarded as the unrecognized financing costs (V. 42. Lease).
The depreciation policy for fixed assets under financial leasing is consistent with that for the Group's
own fixed assets. Where it can be reasonably assured that the ownership of the leased assets will be
acquired at the end of the lease term, the leased fixed assets shall be depreciated within their expected
service life. Otherwise, the leased fixed assets are depreciated within the lease term or the service life
of the assets (whichever is shorter).
24. Construction in progress
√ Applicable □ Not Applicable
Construction in progress is measured at actual costs. The actual costs include construction costs,
installation costs, borrowing costs meeting capitalization conditions and other costs necessary to bring
the construction in progress into the intended serviceable condition. Construction in progress will be
transferred to fixed assets when they are in the intended serviceable condition, and depreciation
thereof will be accrued from the following month. When the recoverable amount of construction in
progress is lower than its book value, the book value will be written down to the recoverable amount
(for details, see V. 30. Impairment of long-term assets).
The construction in progress of the Company will be carried over as fixed assets when it is completed
and reaches the intended serviceable condition. The judgment standards and time point of the intended
serviceable condition shall meet any one of the following conditions:
• The physical construction (including installation) of the fixed assets has been completed or has
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been substantially completed;
• The fixed assets acquired or constructed are in line with or are basically in line with the design
or contract requirements, and any tiny individual non-compliance will not affect the normal use of
the fixed assets;
• The amount of expenditures incurred continually in connection with such fixed assets is very
small or almost no expenditure will be incurred.
Where a fixed asset acquired or constructed needs trial production or trial operation, the asset will be
deemed to have reached the intended serviceable condition when the results of trial production
indicate that the asset can produce qualified products normally or the results of trial operation indicate
that the asset can operate normally.
25. Borrowing costs
√ Applicable □ Not Applicable
The borrowing costs incurred by the Group that are directly attributable to the acquisition of assets
requiring a substantially long period of time to reach the intended serviceable condition will start to
be capitalized and included in the costs of the assets when the expenditures for the assets and the
borrowing costs have been incurred and the acquisition activities necessary to make the assets reach
the intended serviceable condition have commenced. The capitalization of borrowing costs ceases
when the assets reach the intended serviceable condition, and the borrowing costs incurred thereafter
are included in the current profits or losses. Capitalization of borrowing costs is suspended during
periods in which the acquisition of assets is interrupted abnormally for more than 3 consecutive
months, until the acquisition is resumed.
For the specific borrowings obtained for the acquisition of assets eligible for capitalization, the
capitalization amount of specific borrowing costs is determined by the amount of the interest expense
actually incurred in the current period of the special loan less any interest income earned from
depositing the unused specific borrowings in the banks or any investment income arising from the
temporary investment.
For the general borrowings obtained for the acquisition of assets eligible for capitalization, the
capitalization amount of general borrowing costs is determined according to the weighted average of
capital expenditures exceeding the portion of special borrowings multiplied by the weighted average
effective interest rate of general borrowings occupied. The effective interest rate is the rate applied
when the future cash flows of borrowings in the estimated duration or any applicable shorter period
are discounted to initial recognition amount of such borrowings.
26. Biological assets
□ Applicable √ Not Applicable
27. Oil & gas assets
□ Applicable √ Not Applicable
28. Right-of-use assets
□ Applicable √ Not Applicable
29. Intangible assets
(1) Valuation method, service life and impairment test
√ Applicable □ Not Applicable
(a) Intangible assets include land use right, patent right, non-patented technology, trademark right,
software and customer relations, etc., and measured at cost.
Estimated service life of each intangible asset is as follows:
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Service life
Land use rights Determined according to validity period of the
certificate
ERP /software 10 years
Others 3 to 10 years
Intangible assets with limited service life shall be amortized within its service life by the straight-line
method.
(b) Periodical review of service life and amortization method
The estimated service lives and amortization methods of the intangible assets with limited service
lives are reviewed and adjusted appropriately at the end of each fiscal year.
(c) Impairment of intangible assets
When the recoverable amount of an intangible asset is lower than its book value, the book value shall
be written down to the recoverable amount (V. 30. Impairment of long-term assets).
(2). Accounting policies for internal R&D expenditure
√ Applicable □ Not Applicable
Internal R&D expenditures can be divided into the expenditures at research stage and expenditures at
development stage in line with its nature and the existence of great uncertainty in the intangible assets
finally formed by R&D activities.
To initiate basic theoretical research projects, the Company provides theoretical guidance or technical
reserve for applied research, which is usually divided into research stages and recorded into current
profit or loss when it occurs. Applied research projects shall be deemed to have entered the
development stage when the project approval review is passed. Capitalization is allowed if all of the
following conditions are met:
• The project has passed the corresponding feasibility review and demonstration of the Company;
• The Management has approved the plan and budget of the development project;
• Previous market research shows that the products produced by the development project can be
promoted to the market;
• There is sufficient technical and financial support to carry out the development activities of the
development project and the subsequent production; and
• The expenditure on the development project can be reliably collected.
Expenditures which do not meet the above conditions in the development stage are included in the
current profits or losses at the time of occurrence. Development expenditures included in the previous
profit or loss are not re-recognized as assets in the subsequent period. Expenditures incurred and
capitalized in the development stage are listed as development expenditures on the balance sheet and
will be carried over as intangible assets on the date when the project is ready for the intended use.
30. Impairment of long-term assets
√ Applicable □ Not Applicable
Fixed assets, construction in progress, intangible assets with a limited service life, and long-term
equity investments in subsidiaries and associates are tested for impairment if there is any indication
that the assets may be impaired on the balance sheet date. The intangible assets that have not reached
the serviceable condition shall be tested for impairment at least annually, regardless of whether there
are signs of impairment. Where impairment test results show that the recoverable amount of an asset
is lower than the book value, the provision for impairment shall be made based on the difference, and
be included in the assets impairment loss. The recoverable amount is the net amount of the fair value
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of an asset less the disposal expenses or the present value of the estimated future cash flow of the
asset (whichever is higher). Provision for asset impairment should be calculated and recognized based
on single asset. If it is not possible to estimate the recoverable amount of a single asset, the recoverable
amount of the asset portfolio to which the asset belongs is recognized. Asset portfolio is the smallest
asset combination that is able to generate independent cash flow.
Goodwill separately listed in financial statements shall be tested at least annually for impairment,
irrespective of any indication that the asset may be impaired. During the impairment test, the book
value of goodwill is allocated to the benefited asset group or asset group portfolio which is expected
to benefit from the synergies of the business combination. If the test result indicates that the
recoverable amount of an asset group or asset group portfolio including the goodwill allocated is
lower than its book value, the corresponding impairment losses shall be recognized. The amount of
impairment loss is first deducted from the book value of goodwill allocated to the asset group or asset
group portfolio, and then deducted from the book value of the remaining assets of the asset group or
asset group portfolio pro rata with goodwill.
Once the assets impairment loss is confirmed, it is not allowed to be reversed even if the value can
be recovered in a subsequent period.
31. Long-term unamortized expenses
√ Applicable □ Not Applicable
Long-term unamortized expenses include improvement of leased fixed assets for operation and other
expenses that should be borne by current and subsequent periods, with the amortization period of
more than one year. They shall be amortized by the straight-line method during the expected
beneficial period and be presented at the net amount of actual expenditure less accumulated
amortization.
32. Contract liabilities
(1). Recognition methods for contract liabilities
√ Applicable □ Not Applicable
If the contract price received or receivable by the Group exceeds the labor service completed, the
excess will be recognized as contract liabilities. The Group presents the contract assets and contract
liabilities under the same contract on the basis of net amount.
33. Employee remuneration
(1). Accounting method for short-term remuneration
√ Applicable □ Not Applicable
The short-term remuneration includes wages or salaries, bonuses, allowances and subsidies,
employee benefits, medical insurance premium, work-related injury insurance premium, maternity
insurance premium, housing provident fund, labor union funds and employee education funds, etc.
The actual short-term remuneration in the accounting period when employees offer services to the
Group will be recognized as liabilities and included in the current profits or losses or relevant asset
costs. Non-monetary benefits shall be measured at fair value.
(2). Accounting method for post-employment benefits
√ Applicable □ Not Applicable
The Group classifies the post-employment benefit plans into the defined contribution plan and defined
benefit plan. Defined contribution plan is a post-employment benefit plan for which the Group
assumes no further payment obligation after it deposits a fixed amount to an independent fund.
Defined benefit plan refers to other plans for post-employment benefits except for the defined
contribution plan. During the reporting period, post-employment benefits of the Group mainly refer
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to basic endowment insurance and unemployment insurance for employees, and all belong to the
defined contribution plan.
Basic endowment insurance and unemployment insurance
All employees of the Group have participated in the social basic endowment insurance and
unemployment insurance organized by local labor and social security authorities. The Group pays the
endowment insurance premium and unemployment insurance premium to the local social basic
endowment insurance authorities on a monthly basis according to the base and proportion of payment
of social basic endowment insurance and unemployment insurance stipulated by the local government.
The local labor and social security authorities are entitled to the payment of basic social pension to
retired employees after retirement. The local labor and social security authorities are entitled to the
payment of unemployment compensation to the unemployed employees after unemployment. During
the accounting period when employees render services to the Group, the amount payable calculated
according to the above social security provisions is recognized as a liability and included in the current
profit or loss or related asset costs.
(3). Accounting method of dismissal benefits
√ Applicable □ Not Applicable
The Group terminates its labor relations with employees before the expiration of their labor contracts,
or offers compensation to encourage employees to voluntarily accept the reduction. When the Group
cannot unilaterally withdraw the plan for terminating the labor relations or the reduction proposal, or
when it recognizes the costs and expenses related to the reorganization involving the payment of
dismissal benefits (whichever is earlier), the Group recognizes the liabilities arising from the
compensation for terminating the labor relations with employees, and includes such liabilities in the
current profits or losses. However, dismissal benefits which are not expected to be fully paid within
twelve months after the annual reporting period shall be accounted as other long-term employee
remuneration.
(4). Accounting method for other long-term employee benefits
□ Applicable √ Not Applicable
34. Lease liabilities
□ Applicable √ Not Applicable
35. Accrued liabilities
√ Applicable □ Not Applicable
Current obligations arising from product quality assurance and loss contract etc. are recognized as
accrued liabilities when the performance of such obligations is likely to result in the outflow of
economic benefits and the amount can be measured reliably.
The accrued liabilities shall be initially measured in accordance with the best estimate of the necessary
expenses for the performance of the current obligation and factors pertinent to contingencies such as
the risks, uncertainties and the time value of money shall be taken into account as a whole. In case of
significant impact of the time value of money, the best estimate shall be ascertained after making
discount on the future relevant cash outflow. The increase in the book value of the accrued liabilities
due to discount reduction over time is recognized as an interest expense.
The book value of accrued liabilities shall be reviewed on each balance sheet date and adjusted to
reflect the current best estimate.
The accrued liabilities expected to be paid within one year from the balance sheet date are listed as
the current liabilities.
36. Share-based payment
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√ Applicable □ Not Applicable
(a) Accounting method of share-based payment
Share-based payment refers to the transaction of granting the equity instrument or undertaking the
liabilities determined based on the equity instrument in order to obtain the service provided by the
employees or other parties. Share-based payment is divided into the equity-settled share-based
payment and cash-settled share-based payment.
(i) Equity-settled share-based payment
The equity-settled share-based payment in return for employee services shall be measured at the fair
value of the equity instrument granted to the employees on the grant date. Where the right may not
be exercised until completing the service within the waiting period or meeting the specified
performance conditions, such fair value shall be included in relevant costs or expenses with straight-
line method on the basis of the best estimate of the number of vested equity instruments within the
waiting period. When the vesting right is granted immediately after the grant, the relevant costs or
expenses are included on the grant date, and the capital reserve is increased accordingly.
On each balance sheet date within the waiting period, the Company makes the best estimation and
corrects the number of vested equity instruments on the basis of the newly acquired changes of vesting
employee number and other subsequent information. The impact of the above estimates is included
in the current related costs or expenses, and the capital reserve is adjusted accordingly.
Equity-settled share-based payments in return for services provided by any other party shall be
disposed according to the following circumstances: If the fair value of services provided by any other
party can be measured in a reliable way, payments shall be measured at the fair value of the service
on the acquisition date. If the fair value of services provided by any other party is not measurable in
a reliable way, payments shall be included in the relevant costs or expenses and the shareholders’
equity shall be increased accordingly based on the fair value acquired by equity instruments on the
service day.
(ii) Cash-settled share-based payment
Cash-settled share-based payment shall be measured at the fair value of liabilities calculated and
recognized on the basis of share options or other equity instruments and assumed by the Company. If
the vesting right is granted immediately after the grant, the relevant costs or expenses are included on
the grant date, and the liabilities are increased accordingly. If it is necessary to complete the services
in the waiting period or achieve the specified performance conditions before the right is exercised,
on each balance sheet date of the waiting period, the services acquired in the current period shall be
included in the cost or expense based on the best estimation of the vesting right, and the liabilities
shall be increased accordingly according to the fair values of the liabilities assumed by the Company.
The fair value of liabilities shall be re-measured on each balance sheet date and settlement date before
the settlement of related liabilities, with changes recognized in the current profit or loss.
(b) Relevant accounting treatment for revision and suspension of share-based payment plan
Where the Company modifies the share-based payment plan, if the modifications increase the fair
value of the granted equity instrument, the increase of the service acquired will be recognized
accordingly based on the increase in the fair value of the equity instrument; Increase in the fair value
of equity instrument refers to the difference between the fair values of the equity instrument before
and after the modification on the date of modification. If the modification reduces the total fair value
of the share-based payment or other ways not conducive to employees are adopted, the Company
carries on the accounting treatment for services acquired as if such modification has never happened,
unless the Company cancels some or all of equity instruments granted.
If the granted equity instrument is canceled during the waiting period, the Company will treat the
cancellation of the granted equity instrument as accelerated exercise, and will immediately include
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the remaining amount to be recognized in the waiting period into current profit or loss. Meanwhile,
the capital reserve will be recognized. Where the employees or other parties have rights to choose to
meet non-vesting conditions but fail within the waiting period, the Company may treat it as the
cancellation of the equity instrument granted.
(c) Accounting treatment involving share-based payment transactions of the Company and the
shareholders or actual controllers of the Company
In respect of the share-based payment transaction between the Company and the shareholders or
actual controllers of the Company, if one of the settlement companies and the service enterprises is
in the Company, and the other is outside the Company, the accounting is carried out in the
consolidated financial statements of the Company according to the following regulations:
(i) If the settlement enterprise settles by its own equity instrument, the share-based payment
transaction shall be treated as equity-settled share-based payment. In addition, share payments are
processed as cash settlement.
If the settlement enterprise is an investor of a service enterprise, it shall be recognized as the long-
term equity investment of the service receiving enterprise according to the fair value of the equity
instrument on the grant date or the fair value of the liability to be assumed, and the capital reserve
(other capital reserves) or liabilities shall be recognized.
(ii) Where the service receiving enterprise has no settlement obligation or grants the equity
instrument to its employees, the share-based payment transaction is treated as equity-settled share-
based payment. Where the service receiving enterprise has the settlement obligation and grants the
non-equity instrument to its employees, the share-based payment transaction is treated as cash-settled
share-based payment.
For the share-based payment transaction between the enterprises of the Group, where the service
receiving enterprise and the settlement enterprise are not the same enterprise, the confirmation and
measurement of the share-based payment transaction in the individual financial statements of the
service receiving enterprise and the settlement enterprise are treated according to the above principles.
37. Other financial instruments such as preferred shares and perpetual bonds
□ Applicable √ Not Applicable
38. Income
(1). Accounting policies used for income recognition and measurement
√ Applicable □ Not Applicable
The Group recognizes the income according to the amount of consideration expected to be received
when the customer acquires control over relevant goods or services.
(a) Sale of goods
Specific recognition method of domestic sales revenue: If the products have been delivered and the
delivery note or the shipping note and the receipt form signed by the buyer have been received, the
revenue shall be confirmed according to the relevant documents. Specific recognition method of
overseas sales revenue: After the customs declaration and commodity inspection procedures are
completed, and the bill of lading is handed to the customer of the other party, the revenue shall be
recognized according to the date of export listed in the customs declaration or the date of receipt form.
According to the trade methods agreed in the contract, the sales revenue of overseas subsidiaries shall
be confirmed respectively in accordance with the delivery bill, transport document, bill of lading or
receipt form. The credit period granted by the Group to customers is determined according to
customers' credit risk and is consistent with trade practices, without any significant financing
component.
(b) Income from power generation
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Income from power generation of PV solar plants is recognized under the following conditions: PV
solar plants have been connected to the grid; the economic benefits related to power generation are
likely to flow into the enterprise; the amount of income can be reliably calculated.
(c) Income from solar plant construction and services
The Group recognizes the income within a certain period of time according to the progress of the
completed labor services provided by the Group. The progress of completed labor services shall be
determined according to the proportion of the cost incurred to the total estimated cost. On the balance
sheet date, the Group re-estimates the progress of completed labor services to reflect any changes in
the performance.
When the Group recognizes the income according to the progress of the completed labor services, the
part for which the Group has obtained the unconditional right to receive payment will be recognized
as accounts receivable, and the rest will be recognized as contract assets. The loss provisions for
accounts receivable and contract assets are recognized on the basis of expected credit loss (V. 10. (a).
(ii) Impairment). If the contract price received or receivable by the Group exceeds the labor service
completed, the excess will be recognized as contract liabilities. The Group presents the contract assets
and contract liabilities under the same contract on the basis of net amount.
(2). The application of different operation models for the same business results in the
differences in accounting policies for income recognition.
□ Applicable √ Not Applicable
39. Contract cost
√ Applicable □ Not Applicable
The contract costs include contract performance cost and contract acquisition cost. The cost incurred
by the Group for providing construction services is recognized as contract performance cost, and is
carried over into the main business cost according to the progress of completed labor services when
recognizing the income. The Group will recognize the incremental cost incurred during obtaining the
construction labor contract as the contract acquisition cost. For the contract acquisition cost with the
amortization period of less than one year, it will be recorded into the current profit or loss when
incurred. For the contract acquisition cost with the amortization period of more than one year, the
Group will amortize it into the profits or losses based on the recognition of construction labor service
revenue under the relevant contracts. If the book value of the contract cost is higher than the remaining
consideration expected to be obtained due to the provision of the service minus the estimated cost to
be incurred, the Group will make provision for impairment of the excess portion and recognize it as
the assets impairment loss. On the balance sheet date, the Group presents the contract performance
cost as inventory and other non-current assets respectively through the net amount of the provision
for impairment of relevant asset based according to whether the amortization period exceeds one year
at the time of initial recognition. For the contract acquisition cost with the amortization period of
more than one year at the time of initial recognition, the net amount after deducting the provision for
impairment of relevant assets is listed as other non-current assets.
40. Government grants
√ Applicable □ Not Applicable
Government grants are the monetary or non-monetary assets obtained for free by the Group from the
government, including tax refunds and financial subsidies.
Government grants shall be recognized when the Group can satisfy the attached requirements and can
receive the grants. If the government grants are monetary assets, they shall be measured according to
the amount received or receivable. If the government grants are non-monetary assets, they shall be
measured at the fair value. Where the fair value cannot be reliably obtained, it should be measured at
the nominal amount.
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The government grants related to assets refer to those obtained by the Group and used for acquisition
and construction of long-term assets or other forms of government grants. Government grants related
to income refer to government grants other than those related to assets.
The Group recognizes government grants as deferred income and apportions them in the profit or loss
on a reasonable and systematic basis within the service life of relevant assets.
If income-related government grants are used for compensation for relevant costs or losses in
subsequent periods, they are recognized as deferred income, and apportioned in the current profits or
losses or offset against relevant costs in the period of recognition of relevant costs or losses.
Government grants for compensation for incurred relevant costs or losses are directly included in the
current profit or loss or offset against relevant costs.
The Group adopts the same presentation method for similar government grants.
The government grants related to daily activities are recorded into operating profit, and those irrelated
to daily activities are recorded into the non-operating revenue and expenditure.
The financial discount directly collected by the Group offsets the relevant borrowing costs.
41. Deferred tax assets/deferred tax liabilities
√ Applicable □ Not Applicable
Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences
(temporary differences) between the tax bases of assets and liabilities and their book value. For the
deductible losses that can be deducted from taxable income in the following years according to the
provisions of the tax law, the corresponding deferred tax assets are recognized. For the temporary
difference arising from the initial recognition of goodwill, the corresponding deferred tax liabilities
are not recognized. No deferred tax asset or deferred tax liability is recognized for the temporary
differences resulting from the initial recognition of assets or liabilities due to a transaction other than
a business combination, which affects neither accounting profit nor taxable income (or deductible
loss). On the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the
tax rates applicable to the period when the asset is recovered or the liability is settled according to
estimation.
Deferred tax assets are only recognized for deductible temporary differences, deductible losses and
tax credits to the extent that it is probable that taxable income will be available in the future against
which the deductible temporary differences, deductible losses and tax credits can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences related to investments in
subsidiaries, associates and joint ventures, except where the Group is able to control the time of
reversal of the temporary differences, and the temporary differences are unlikely to reverse in the
foreseeable future. Deferred tax assets are recognized for deductible temporary differences related to
investments in subsidiaries, joint ventures and associates when the temporary differences are likely
to be reversed in the foreseeable future and taxable income to offset the deductible temporary
differences is likely to be obtained in the future.
Deferred tax assets and deferred tax liabilities are presented by the net amount after offsetting if all
of the following conditions are satisfied:
• A deferred tax asset and a deferred tax liability are associated with the income tax imposed by
the same taxation authority on the same tax entity within the Group;
• The taxpayer in the Group has the legal rights to settle the current tax assets and current tax
liabilities on the basis of net amount.
42. Lease
(1). Accounting methods of operating lease
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√ Applicable □ Not Applicable
Payments for operating leases are included into the cost of relevant assets or current profit or loss by
the straight-line method within the lease term.
Rental income from the operating lease is recognized within the lease term by the straight-line method.
The Group has not adopted a simplified approach for rental relief directly caused by the COVID-19
and only for rental relief before June 30, 2021.
(2). Accounting methods of financial leasing
√ Applicable □ Not Applicable
Financial leasing is recognized according to the fair value of the leased asset or the present value of
minimum lease payments (whichever is lower). The difference between the entry value of the leased
asset and the minimum lease payments are accounted for as unrealized financing costs and amortized
by the effective interest method during the lease term. The minimum lease payment shall be presented
as long-term payables after deducting the unrealized financing costs.
(3). Recognition and accounting methods for lease under new lease criteria
□ Applicable √ Not Applicable
43. Other significant accounting policies and accounting estimates
√ Applicable □ Not Applicable
(1) Convertible corporate bonds
With regard to the convertible corporate bonds, the liability and equity parts shall be split and
respectively treated during initial recognition. The fair value of liability part shall be firstly recognized
and recognized as the initial recognition amount. Then, the initial recognition amount of the equity
part shall be determined according to the overall issue price of the financial instrument less the initial
recognition amount of the liability part. The fair value of the liability part is the present value of the
future cash flows discounted at a certain interest rate as specified in the contract. The interest rate is
determined according to the interest rate applicable to the instruments in the market that have
comparable credit rating and provide nearly the same cash flows under the same conditions, but do
not have conversion rights.
The transaction costs incurred in the issuance of convertible corporate bonds shall be apportioned
between the liability part and the equity part according to their respective relative fair values.
During the conversion of the convertible instrument, the liability part is derecognized and recognized
as equity. The original equity part is still reserved as the equity (carry-over from one item of equity
to another, such as transfer to “capital reserve - capital premium or share premium” from “other equity
instruments”). No profit or loss will be generated during the conversion of convertible instruments.
When a convertible instrument which still has the conversion right is terminated by redemption or
repurchase prior to the maturity date, the price paid for the redemption or repurchase and the
transaction cost incurred are allocated to the equity part and liability part of the instrument on the
transaction date. The price and transaction cost are allocated in the same way that they are allocated
when the instrument is launched. After the price and transaction cost are allocated, the gains or losses
incurred shall be treated according to the accounting principles applicable to the equity part and
liability part respectively. The fund allocated to the equity part is recorded in the equity, and gains or
losses related to the liability part are recorded in the profit or loss.
(2) Dividend distribution
Cash dividends shall be recognized as liabilities in the period when they are approved by the
Shareholders' Meeting. If the non-cash dividends are converted into an increase in the paid-in capital,
the paid-in capital shall increase in the period when the Shareholders’ Meeting approves, and the
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capital reserves or retained earnings shall decrease accordingly.
(3) Branch information
The Group establishes its operating branches based on the internal organizational structure,
management requirements and internal reporting system, and reports and discloses the branch
information based on the operating branches.
An operation branch is a part of the Group that also meets the following conditions: (1) The
component can generate income and incur expenses in daily activities; (2) The Group's management
can regularly evaluate the operating results of such components, so as to decide to allocate resources
to them and evaluate their performance; (3) The Group has the access to accounting information of
the component, such as its financial position, operation result and cash flows. Two or more operating
branches can be consolidated into an operating branch if they have similar economic characteristics
and satisfy certain conditions.
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
√ Applicable □ Not Applicable
Contents and reasons for changes in accounting policies Approval procedure
Remarks (name of
report items and
amounts
significantly
affected)
The Ministry of Finance issued the Notification on Revising and Issuing Accounting Standards for Business Enterprises No. 14 -
Income (CK [2017] No. 22) on July 5, 2017, requiring the
enterprises listed at home and abroad at the same time and the
enterprises listed abroad and preparing financial statements
according to the international financial reporting standards or
accounting standards to implement the Standards as of January 1,
2018. Other enterprises listed at home shall implement the
Standards as of January 1, 2020.
The fourth Board of
Directors, 2019
annual meeting and
the fourth Board of
Supervisors, 2019
annual meeting
See the following
description for
details
Other notes
The Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 14 -
Income (revised in 2017) (hereinafter referred to as the “New Income Standards”) in 2017. The Group
has adopted the above Standards to prepare its financial statements for the year 2020. The impacts of
the New Income Standards on the financial statements of the Group and the Company are set out
below:
According to the relevant provisions of the New Income Standards, the Group and the Company shall
adjust the retained earnings at the beginning of 2020 and the amounts of other related items in the
financial statements for the cumulative impacts involved in the first implementation of the Standards.
The comparative financial statements for the year 2019 were not restated.
Contents and reasons for
changes in accounting
policies
Report items affected
Amount affected
January 1, 2020
Consolidation Company
Due to the implementation
of the New Income
Standards, the Group and
the Company reclassified
the accounts receivable
related to the provision of
Contract assets - original
value 1,559,370,817.38 60,175,715.98
Contract assets -
provision for impairment 75,810,772.30 9,205,615.92
Accounts receivable - -1,559,370,817.38 -60,175,715.98
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engineering construction
services that do not meet
the unconditional right to
receive payments to
contract assets, and
reclassified the advance
receipts related to the
provision of labor services
and sales of goods to
contract liabilities.
original value
Accounts receivable -
provision for impairment -75,810,772.30 -9,205,615.92
Contract liabilities 3,679,503,563.97 747,429,660.07
Advance receipts -3,679,503,563.97 -747,429,660.07
Compared with the original income standards, the impacts of implementing the New Income
Standards on relevant items in the 2020 financial statements are as follows:
Balance sheet items affected
Amount affected
December 31, 2020
Consolidation Company
Contract assets - original value 1,173,892,311.91 23,004,789.10
Contract assets - provision for
impairment 47,163,909.09 3,305,346.25
Accounts receivable - original value -1,173,892,311.91 -23,004,789.10
Accounts receivable - provision for
impairment -47,163,909.09 -3,305,346.25
Contract liabilities 5,017,755,319.14 1,151,180,791.41
Advance receipts -5,452,408,295.54 -1,278,304,831.73
Other current liabilities 434,652,976.40 127,124,040.32
Contents and reasons for changes
in accounting policies
Income statement items
affected
Amount affected
Year 2020
Consolidation Company
Due to the implementation of the
New Income Standards, the Group
and the Company reclassified the
transportation expenses of contract
performance costs to costs.
Operating cost 1,405,108,338.61 49,392,098.91
Selling expenses -1,405,108,338.61 -49,392,098.91
(2). Changes of significant accounting estimates
□ Applicable √ Not Applicable
(3). From 2020, first implementation of New Income Standards, adjustment of new lease
standards, and first implementation of financial statements at the beginning of the year
√ Applicable □ Not Applicable
Consolidated Balance Sheet
Unit: Yuan Currency: RMB
Item December 31, 2019 January 1, 2020 Amount adjusted
Current assets:
Monetary fund 19,335,752,879.41 19,335,752,879.41
Settlement provision
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Loans to banks and other financial
institutions
Financial assets held for trading
Derivative financial assets
Notes receivable 4,553,400,751.13 4,553,400,751.13
Accounts receivable 3,825,745,270.65 2,342,185,225.57 -1,483,560,045.08
Receivables financing 829,052,223.55 829,052,223.55
Advance payment 1,031,402,392.47 1,031,402,392.47
Premiums receivable
Receivables from reinsurers
Reinsurance contract reserves
receivable
Other receivables 295,997,593.37 295,997,593.37
Including: Interest receivable
Dividends receivable 41,421,502.96 41,421,502.96
Financial assets purchased under
resale
Inventory 6,356,144,784.78 6,356,144,784.78
Contract assets 1,483,560,045.08 1,483,560,045.08
Held-for-sale assets
Non-current assets due within one
year 31,419,922.32 31,419,922.32
Other current assets 1,107,607,993.67 1,107,607,993.67
Total current assets 37,366,523,811.35 37,366,523,811.35
Non-current assets:
Loans and advances:
Creditors investment
Other creditors investment
Long-term receivables 25,585,349.25 25,585,349.25
Long-term equity investment 1,074,184,697.40 1,074,184,697.40
Investment in other equity
instruments 21,959,667.68 21,959,667.68
Other non-current financial assets
Investment real estate
Fixed assets 15,467,300,311.79 15,467,300,311.79
Construction in progress 2,882,035,169.79 2,882,035,169.79
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets 245,165,167.97 245,165,167.97
Expenditure on development 45,849.02 45,849.02
Goodwill 11,011,065.47 11,011,065.47
Long-term unamortized expenses 970,965,434.45 970,965,434.45
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Deferred tax assets 499,935,451.98 499,935,451.98
Other non-current assets 739,261,134.38 739,261,134.38
Total non-current assets 21,937,449,299.18 21,937,449,299.18
Total assets 59,303,973,110.53 59,303,973,110.53
Current liabilities:
Short-term borrowings 854,371,792.82 854,371,792.82
Loans from the Central Bank
Loans from other banks
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 8,111,877,027.54 8,111,877,027.54
Accounts payable 5,602,048,097.26 5,602,048,097.26
Advance receipts 3,679,503,563.97 -3,679,503,563.97
Contract liabilities 3,679,503,563.97 3,679,503,563.97
Financial assets sold for
repurchase
Deposits from customers and
interbank
Receivings from vicariously
traded securities
Receivings from vicariously sold
securities
Payroll payable 558,355,222.82 558,355,222.82
Taxes payable 344,089,424.95 344,089,424.95
Other payables 3,898,115,075.49 3,898,115,075.49
Including: Interest payable 53,289,437.89 53,289,437.89
Dividends payable
Service charge and commission
payable
Dividend payable for reinsurance
Held-for-sale liabilities
Non-current liabilities due within
one year 1,571,481,098.00 1,571,481,098.00
Other current liabilities
Total current liabilities 24,619,841,302.85 24,619,841,302.85
Non-current liabilities:
Insurance contract reserve fund
Long-term borrowings 2,508,594,222.97 2,508,594,222.97
Bonds payable 995,584,143.19 995,584,143.19
Including: Preferred shares
Perpetual bond
Leasing liabilities
Long-term payables 1,528,226,692.46 1,528,226,692.46
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Long-term payroll payable
Accrued liabilities 516,510,834.07 516,510,834.07
Deferred income 516,595,134.18 516,595,134.18
Deferred tax liabilities 323,804,103.26 323,804,103.26
Other non-current liabilities
Total non-current liabilities 6,389,315,130.13 6,389,315,130.13
Total liabilities 31,009,156,432.98 31,009,156,432.98
Owner's equity (or shareholders' equity):
Paid-in capital (or share capital) 3,772,016,757.00 3,772,016,757.00
Other equity instruments
Including: Preferred shares
Perpetual bond
Capital reserve 10,462,015,674.83 10,462,015,674.83
Less: Treasury share 22,526,342.00 22,526,342.00
Other comprehensive income 32,830,730.30 32,830,730.30
Special reserve
Surplus reserve 683,195,269.55 683,195,269.55
General risk reserve
Undistributed profit 12,701,261,983.10 12,701,261,983.10
Total owner's equity (or
shareholder's equity) attributable
to the parent company
27,628,794,072.78 27,628,794,072.78
Minority equity 666,022,604.77 666,022,604.77
Total owner's (or shareholder's
equity) 28,294,816,677.55 28,294,816,677.55
Total liabilities and owner' equity
(or shareholder's equity) 59,303,973,110.53 59,303,973,110.53
Notes on adjustments:
√ Applicable □ Not Applicable
See V. 44. (1). Changes in significant accounting policies for details.
Balance Sheet of the Parent Company
Unit: Yuan Currency: RMB
Item December 31, 2019 January 1, 2020 Amount adjusted
Current assets:
Monetary fund 11,730,982,685.57 11,730,982,685.57
Financial assets held for trading
Derivative financial assets
Notes receivable 3,747,134,851.57 3,747,134,851.57
Accounts receivable 1,265,937,534.85 1,214,967,434.79 -50,970,100.06
Receivables financing
Advance payment 6,516,042.05 6,516,042.05
Other receivables 1,381,531,710.34 1,381,531,710.34
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Including: Interest receivable
Dividends receivable
Inventory 292,181,201.03 292,181,201.03
Contract assets 50,970,100.06 50,970,100.06
Held-for-sale assets
Non-current assets due within one
year
Other current assets 103,398,223.80 103,398,223.80
Total current assets 18,527,682,249.21 18,527,682,249.21
Non-current assets:
Creditors investment
Other creditors investment
Long-term receivables
Long-term equity investment 16,894,919,327.92 16,894,919,327.92
Investment in other equity
instruments
Other non-current financial assets
Investment real estate
Fixed assets 345,361,895.62 345,361,895.62
Construction in progress 8,012,360.58 8,012,360.58
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets 60,825,191.67 60,825,191.67
Expenditure on development
Goodwill
Long-term unamortized expenses 9,841,389.16 9,841,389.16
Deferred tax assets
Other non-current assets 534,480.00 534,480.00
Total non-current assets 17,319,494,644.95 17,319,494,644.95
Total assets 35,847,176,894.16 35,847,176,894.16
Current liabilities:
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 3,131,897,342.73 3,131,897,342.73
Accounts payable 9,482,420,773.06 9,482,420,773.06
Advance receipts 747,429,660.07 -747,429,660.07
Contract liabilities 747,429,660.07 747,429,660.07
Payroll payable 84,223,903.13 84,223,903.13
Taxes payable 72,289,573.04 72,289,573.04
Other payables 1,019,528,101.84 1,019,528,101.84
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Including: Interest payable 49,210,245.17 49,210,245.17
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within
one year
200,000,000.00 200,000,000.00
Other current liabilities
Total current liabilities 14,737,789,353.87 14,737,789,353.87
Non-current liabilities:
Long-term borrowings 450,000,000.00 450,000,000.00
Bonds payable 995,584,143.19 995,584,143.19
Including: Preferred shares
Perpetual bond
Leasing liabilities
Long-term payables
Long-term payroll payable
Accrued liabilities 47,673,475.66 47,673,475.66
Deferred income 35,786,292.41 35,786,292.41
Deferred tax liabilities 159,267.98 159,267.98
Other non-current liabilities
Total non-current liabilities 1,529,203,179.24 1,529,203,179.24
Total liabilities 16,266,992,533.11 16,266,992,533.11
Owner's equity (or shareholders' equity):
Paid-in capital (or share capital) 3,772,016,757.00 3,772,016,757.00
Other equity instruments
Including: Preferred shares
Perpetual bond
Capital reserve 10,452,161,591.18 10,452,161,591.18
Less: Treasury share 22,526,342.00 22,526,342.00
Other comprehensive income
Special reserve
Surplus reserve 683,195,269.55 683,195,269.55
Undistributed profit 4,695,337,085.32 4,695,337,085.32
Total owner's (or shareholder's
equity) 19,580,184,361.05 19,580,184,361.05
Total liabilities and owner' equity
(or shareholder's equity) 35,847,176,894.16 35,847,176,894.16
Notes on adjustments:
√ Applicable □ Not Applicable
See V. 44. (1). Changes in significant accounting policies for details.
(4) From 2020, initial implementation of New Income Standards and new lease standards, and
notes to comparative data at the early stage of retroactive adjustment
√ Applicable □ Not Applicable
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See V. 44. (1). Changes in significant accounting policies for details.
45. Others
√ Applicable □ Not Applicable
Significant accounting estimates and judgments
The Group continually evaluates the significant accounting estimates and critical judgments based on
historical experience and other factors, including reasonable expectations of future events.
(a) Critical judgments in applying accounting policies
(i) Classification of financial assets
The Group's major judgments in determining the classification of financial assets include the analysis
of business models and contractual cash flow characteristics.
The Group determines the business model for managing financial assets at the level of financial asset
portfolio, taking into of account factors such as the way in which financial asset performance is
evaluated and reported to key management personnel, risks affecting financial asset performance and
their management methods, as well as the way in which relevant business management personnel are
paid.
When assessing whether the contractual cash flow of financial assets is consistent with the basic
lending arrangements, the Group has the following judgments: whether time distribution or amount
of the principal during the duration may change due to prepayment and other reasons; whether interest
only includes the time value of money, credit risk, other basic borrowing risks and consideration
between costs and profits. For example, whether the amount paid in advance only reflects the unpaid
principal and interest based on the unpaid principal, and the reasonable compensation paid due to the
early termination of the contract.
(b) Major accounting estimates and key assumptions
The following significant accounting estimates and key assumptions may lead to critical risks which
may cause significant adjustments to the book value of assets and liabilities in the next accounting
year:
(i) Measurement of expected credit loss
The Group calculates the expected credit loss of accounts receivable through the default risk exposure
of accounts receivable and the expected credit loss rate, and determines the expected credit loss rate
based on the default probability and default loss rate. In determining the expected credit loss rate, the
Group uses the internal historical credit loss experience and other data, and combines the current
situation and forward-looking information to adjust the historical data.
In considering forward-looking information, the Group considered different macroeconomic
scenarios. In 2020, the weights of the "benchmark", "adverse" and "favorable" economic scenarios
were 60.00%, 30.00% and 10.00%, respectively. The Group regularly monitors and reviews important
macroeconomic assumptions and parameters related to the calculation of expected credit loss,
including the risk of economic downturn, external market environment, technological environment,
changes in customer conditions, GDP and industrial added value. In 2020, the Group considered the
uncertainty caused by the COVID-19 outbreak and updated the relevant assumptions and parameters
accordingly. The key macroeconomic parameters used in each scenario are listed below:
Economic scenarios
Benchmark Adverse Favorable
GDP 5.69% 5.01% 5.94%
Industrial added value 8.70% 6.57% 10.42%
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(ii) Inventory depreciation reserve
Based on accounting policies concerning inventories, the Group measures the inventories at the lower
of costs and net realizable value. For inventories with costs higher than the net realizable value, old
and slow-moving inventories, the inventory depreciation reserve shall be accrued. The impairment of
inventories to the net realizable value depends on the assessment on their marketability and net
realizable value. Impairment of the inventories is recognized based on concrete evidences acquired
by the Management and consideration of such factors as objectives of holding inventories and
influence of events after the balance sheet date. The difference between actual results and original
estimate will affect the book value of inventories and provision or reversal of inventory depreciation
reserves in the estimate changing period.
(iii) Depreciation and amortization
Upon the consideration of residual value, the Group adopts the straight-line method to depreciate and
amortize the investment real estate, fixed assets and intangible assets within their service lives.
Through regular review of the service lives, the Company determines the depreciation and
amortization included in each reporting period. The service life is determined by the Company based
on past experience of similar assets and combined with expected technical update. Where there are
significant changes in the previous estimates, an adjustment would be made to the depreciation and
amortization expenses in the future period.
(iv) Accounting estimates of provision for impairment of fixed assets
When the Group conducts impairment tests for fixed assets with signs of impairment, where
impairment test results show that the recoverable amount of assets is lower than the book value, the
provision for impairment shall be made based on the difference, and be included in the assets
impairment loss. The recoverable amount is the net amount after the fair value of an asset is less the
disposal expenses or the present value of the estimated future cash flow of the asset (whichever is
higher), and its calculation shall be conducted by accounting estimates (V. 30. Impairment of long-
term assets).
(v) Accrued liabilities
According to the contract terms, existing knowledge and historical experience, the Group estimates
and make corresponding provisions for product quality assurance, estimated contract losses, and
liquidated damages for delayed delivery, etc. Where such contingencies have formed a present
obligation and the performance of such present obligation is likely to result in the outflow of economic
benefits from the Group, the Group recognizes the contingencies as accrued liabilities based on the
best estimate of the expenditure required to fulfill the relevant present obligations. The recognition
and measurement of accrued liabilities are largely dependent on the Management’s judgment. In the
process of making a judgment, the Group shall evaluate the risks, uncertainties, time value of money
and other factors related to such contingencies.
The Group estimates liabilities for after-sale quality maintenance commitments provided to customers
for the sale, repair and transformation of the goods sold. The Group's recent maintenance experience
data have been taken into account when estimating liabilities, but the recent maintenance experience
may not reflect future maintenance conditions. Any increase or decrease in this provision may affect
profits or losses for future years.
(vi) Income tax and deferred income tax
The Group is subject to enterprise income taxes in numerous regions. In normal business activities,
there are uncertainties in the final tax treatment of some transactions and events. Significant judgment
is required from the Group in determining the provision for income tax expenses in each of these
jurisdictions. Where the final outcome of these tax matters is different from the initially recorded
amounts, such differences will impact the income tax expense and deferred income tax in the period
in which such determination is made.
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As stated in VI. 2. Tax preferences, some subsidiaries of the Group are high-tech enterprises. The
qualification validity period of high-tech enterprises is three years. After the validity period expires,
the application for recognition of high-tech enterprises shall be resubmitted to the relevant
government departments. Based on the historical experience in re-recognition of high-tech enterprises
after the expiration and the actual situation of such subsidiaries, the Group believes that such
subsidiaries can continue to be recognized as high-tech enterprises in the future years, and then the
corresponding deferred income tax will be calculated according to the preferential tax rate of 15%. If
some subsidiaries fail to be re-recognized after the expiration of the qualification of high-tech
enterprises in the future, the income tax shall be calculated at the statutory rate of 25%, thus affecting
recognized deferred tax assets, deferred tax liabilities and income tax expenses.
For deductible losses that can be carried over to subsequent periods, the Group recognizes the
deferred tax assets to the extent that it is likely that the taxable income will be available in the future
for deduction against deductible losses. The amount of taxable income obtained in future periods
includes the amount of taxable income that the Group can realize through normal production and
business activities, and the taxable income that will increase when the taxable temporary difference
is carried back in the future. The Group needs to use estimation and judgment when determining the
time and amount of taxable income in the future period. Any discrepancy between the actual situation
and the estimate may result in an adjustment to the book value of the deferred tax asset.
VI. Taxes
1. Main tax categories and tax rates
Major tax categories and tax rates
√ Applicable □ Not Applicable
Tax category Tax basis Tax rate
VAT
Taxable added value (tax payable shall be the
balance after deduction of deductible input tax in the
current period from the product of taxable sales and
applicable tax rate).
13%, 9% and 6%
City maintenance and
construction tax VAT and excise tax paid 7% and 5%
Enterprise income tax Taxable income 9%, 12%, 15% and 25%,
etc.
Educational surcharges VAT and excise tax paid 3%
Local educational
surcharges VAT and excise tax paid 2%
(a) According to the Notice on Policy Regarding Deduction of Enterprise Income Tax for Equipment
and Appliances (CS [2018] No. 54) and relevant regulations issued by the State Taxation
Administration, the Group's newly purchased equipment less than RMB 5 million during the period
from January 1, 2018 to December 31, 2020 can be included in the current cost in one lump sum in
the next month when the assets are put into use, and deducted when calculating taxable income, and
depreciation will not be calculated on an annual basis.
Disclosure statement of tax payers with different enterprise income tax rates
√ Applicable □ Not Applicable
Name of tax payer Income tax rate (%)
LONGi Green Energy Technology Co., Ltd. 15
Xi’an LONGi Clean Energy Co., Ltd. 15
LONGi Green Energy Solar Engineering Co., Ltd. 15
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PV Solar Project Company "Three exemptions and
three 50% reductions"
Ningxia LONGi Silicon Materials Co., Ltd. 15, 9
Yinchuan LONGi Silicon Materials Co., Ltd. 15, 12
LONGi (H.K.) Trading Limited 16.5
Lijiang LONGi Silicon Materials Co., Ltd. 15
Baoshan LONGi Silicon Materials Co., Ltd. 15
Chuxiong LONGi Silicon Materials Co., Ltd. 15
Huaping LONGi Silicon Materials Co., Ltd. 15
Wuxi LONGi Silicon Materials Co., Ltd. 15
Qujing LONGi Silicon Materials Co., Ltd. 15
Tengchong LONGi Silicon Materials Co., Ltd. 15
Lufeng LONGi Silicon Materials Co., Ltd. 15
Yinchuan LONGi PV Technology Co., Ltd. 9
LONGi Solar Technology Co., Ltd. 15
Xianyang LONGi Solar Technology Co., Ltd. 15
Xi’an LONGi Solar Technology Co., Ltd. 15
Shaanxi LONGi Solar Technology Co., Ltd. 15
Taizhou LONGi Solar Technology Co., Ltd. 15
Zhejiang LONGi Solar Technology Co., Ltd. 15
Chuzhou LONGi Solar Technology Co., Ltd. 15
Yinchuan LONGi Solar Technology Co., Ltd. 12
Ningxia LONGi Solar Technology Co., Ltd. 9
LERRI SOLAR TECHNOLOGY (INDIA) PRIVATE LIMITED 27.75
LONGI (KUCHING) SDN. BHD. See VI. 3 for details.
LONGi TECHNOLOGY (KUCHING) SDN BHD See VI. 3 for details.
LONGI SOLAR TECHNOLOGY K.K. 23.2
LONGi Solar Technology (U.S.) Inc. See VI. 3 for details.
LONGI Solar Technologie GmbH See VI. 3 for details.
LONGi Solar Australia Pty Ltd 30
LONGI NEW ENERGY (THAILAND) CO., LTD 20
LONGi (Netherlands) Trading B.V. See VI. 3 for details.
VINA SOLAR TECHNOLOGY CO.,LTD See VI. 3 for details.
VINA CELL TECHNOLOGY CO.,LTD See VI. 3 for details.
EZ International Co., Ltd. 16.5
2. Tax preference
√ Applicable □ Not Applicable
(a) According to the Notice on Tax Policy Issues Relating to the Deep Implementation of the Great
Western Development Strategy (CSF [2011] No. 58) issued by the Ministry of Finance, State Taxation
Administration and General Administration of Customs, after the implementation of the new
enterprise income tax law, the preferential policies of enterprise income tax for the development of
the western region in the document will continue to be implemented. From January 1, 2011 to
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December 31, 2020, the enterprise income tax was levied at a reduced rate of 15% on encouraged
industrial enterprises located in the western region. The above encouraged enterprises refer to the
enterprises with the main business listed in the Catalogue of Industries Encouraged to Develop in the
West Region, and the income of main business accounts for over 70% of total revenue. The following
enterprises could enjoy the above preferential policies in 2020: LONGi, Clean Energy, LONGi
Engineering, LONGi Solar, Ningxia LONGi, Yinchuan LONGi, Yinchuan LONGi PV, Lijiang
LONGi, Baoshan LONGi, Chuxiong LONGi, Huaping LONGi, Qujing LONGi, Tengchong LONGi,
Lufeng LONGi, Xianyang LONGi Solar, Xi’an LONGi Solar, Shaanxi LONGi Solar, Yinchuan
LONGi Solar and Ningxia LONGi Solar.
(b) In 2019, the subsidiary of the Company, Lijiang LONGi, obtained the High-tech Enterprise
Certificate (No. GR201953000156), and the validity period of the certificate is 3 years. In accordance
with Article 28 of Enterprise Income Tax Law of the People's Republic of China, the enterprise income
tax rate applicable to Lijiang LONGi in 2020 shall be 15%.
In 2019, the subsidiary of the Company, Baoshan LONGi, obtained the High-tech Enterprise
Certificate (No. GR201953000505), and the validity period of the certificate is 3 years. In accordance
with Article 28 of Enterprise Income Tax Law of the People's Republic of China, the enterprise income
tax rate applicable to Baoshan LONGi in 2020 shall be 15%.
In 2020, the subsidiary of the Company, Wuxi LONGi, obtained the High-tech Enterprise Certificate
(No. GR202032004006), and the validity period of the certificate is 3 years. In accordance with
Article 28 of Enterprise Income Tax Law of the People's Republic of China, the enterprise income tax
rate applicable to Wuxi LONGi in 2020 shall be 15%.
In 2019, the subsidiary of the Company, Zhejiang LONGi Solar, obtained the High-tech Enterprise
Certificate (No. GR201933000939), and the validity period of the certificate is 3 years. In accordance
with Article 28 of Enterprise Income Tax Law of the People's Republic of China, the enterprise income
tax rate applicable to Zhejiang Solar in 2020 shall be 15%.
In 2020, the subsidiary of the Company, Taizhou LONGi Solar, obtained the High-tech Enterprise
Certificate (No. GR202032011440), and the validity period of the certificate is 3 years. In accordance
with Article 28 of Enterprise Income Tax Law of the People's Republic of China, the enterprise income
tax rate applicable to Taizhou Solar in 2020 shall be 15%.
In 2020, the subsidiary of the Company, Chuzhou LONGi Solar, obtained the High-tech Enterprise
Certificate (No. GR202034001386), and the validity period of the certificate is 3 years. In accordance
with Article 28 of Enterprise Income Tax Law of the People's Republic of China, the enterprise income
tax rate applicable to Chuzhou Solar in 2020 shall be 15%.
(c) According to Article 27 of Enterprise Income Tax Law of the People's Republic of China, and
Article 28 of the Implementation Regulations, for the income from the enterprise's investment and
operation of the infrastructure projects mainly supported by the government, since the tax year in
which the first income from production and operation of the project is obtained, the enterprise income
tax is exempted from the first year to the third year, and the enterprise income tax is half exempted
from the fourth year to the sixth year.
According to the Notice of Ministry of Finance, State Taxation Administration and National
Development and Reform Commission on Releasing the Catalogue of Enterprise Income Tax
Preferences for Public Infrastructure Projects (2008) (CS [2008] No. 116), and the Notice of Ministry
of Finance and State Taxation Administration on Issues Related to the Catalogue of Enterprise
Income Tax Preferences for Public Infrastructure Projects (CS [2008] No. 46), new solar power
projects are listed in the relevant preference catalogue.
Among the subsidiaries of the Company, the project companies that meet the above conditions can
enjoy the preference of "three exemptions and three 50% reductions" of enterprise income tax.
(d) After the filing, the enterprise income tax share of the local part was exempted from 2016 to
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2018 for 1.2GW mono ingot construction project (Phase II) of Yinchuan LONGi, and the enterprise
income tax share of the local part will be halved from 2019 to 2021. In 2020, Yinchuan LONGi
implemented the tax rate of 12% on the income from 1.2GW mono ingot construction project (Phase
II) of Yinchuan LONGi.
After the filing, the enterprise income tax share of the local part was exempted from 2017 to 2019 for
5GW mono ingot construction project of Yinchuan LONGi, and the enterprise income tax share of
the local part will be halved from 2020 to 2022. In 2020, Yinchuan LONGi implemented the tax rate
of 12% on the income from 5GW mono ingot construction project of Yinchuan LONGi.
After the filing, the enterprise income tax share of the local part was exempted for Yinchuan Solar
from 2016 to 2018, and the enterprise income tax share of the local part will be halved from 2019 to
2021. In 2020, Yinchuan Solar implemented the tax rate of 12%.
After the filing, the enterprise income tax share of the local part was exempted from 2018 to 2020 for
annual output of 1GW mono ingot project of Ningxia LONGi, and the enterprise income tax share of
the local part will be halved from 2021 to 2023. In 2020, Ningxia LONGi implemented the tax rate
of 9% for 1GW mono ingot project.
After the filing, the enterprise income tax share of the local part was exempted from 2019 to 2021 for
annual output of 5GW cell project of Ningxia Solar and the enterprise income tax share of the local
part will be halved from 2022 to 2024. In 2020, Ningxia Solar implemented the tax rate of 9%.
After the filing, the enterprise income tax share of the local part will be exempted from 2020 to 2022
for annual output of 15GW mono ingot and 15GW wafer project of Yinchuan LONGi PV, and the
enterprise income tax share of the local part will be halved from 2023 to 2025. In 2020, Yinchuan
LONGi PV implemented the tax rate of 9% for annual output of 15GW mono ingot and 15GW wafer
project.
3. Others
√ Applicable □ Not Applicable
According to the relevant tax policies of MIDA in Kuching, Malaysia, if the relevant conditions are
met, the enterprise income tax of LONGi (Kuching) will be exempted for 10 years from the year 2016
approved by the government.
According to the relevant tax policies of MIDA in Kuching, Malaysia, if the relevant conditions are
met, the enterprise income tax of LONGi Technology (Kuching) will be exempted for 5 years from
the year 2019 approved by the government.
LONGi (U.S.) applies to the federal income tax rate of 21% of taxable income and the state income
tax rate of 2.58% to 9.50% for payment of enterprise income tax.
Germany LONGi applies to the income tax of 31.925% of taxable income, solidarity surcharge and
comprehensive trade tax rate for payment of enterprise income tax.
For Netherlands LONGi, the tax rate for the part of taxable income not more than EUR 200,000 is
16.5%, and the tax rate for the part of taxable income exceeding EUR 200,000 is 25%.
In accordance with the official document (No. 3001/CT-KTT 1) issued by Buc Giang Department of
Taxation, Vietnam State Taxation Administration, Vietnam Cell will enjoy a preferential tax policy of
10% of enterprise income tax for 15 years from the year of 2017 when it made profits. On this basis,
it will enjoy the exemption of enterprise income tax from the first year to the fourth year, and the
enterprise income tax will be halved from the fifth year to the thirteenth year. In 2020, the 0% tax rate
was implemented for the income related to the production of PV cells and the 20% tax rate was
implemented for the income from other income.
According to the document on the guide of enterprise income tax preference (No. 1805/CT-KK)
issued by Buc Giang Department of Taxation, Vietnam State Taxation Administration, Vina Solar will
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enjoy the exemption of enterprise income tax from the first year to the fourth year since 2015 when
the new investment project made profits, and the enterprise income tax will be halved from the fifth
year to the thirteenth year. In 2020, Vina Solar implemented the 10% tax rate for the income related
to the production of PV cells and the 20% tax rate was implemented for the income from other income.
VII. Notes to Items of Consolidated Financial Statements
1. Monetary fund
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Cash on hand 180,514.50 11,810.11
Bank deposits 23,905,010,739.72 15,560,263,661.74
Other monetary funds 3,058,197,281.56 3,775,477,407.56
Total 26,963,388,535.78 19,335,752,879.41
Including: total amount of
funds deposited abroad 2,017,476,467.87 2,137,239,171.58
Other notes
As of December 31, 2020, the amount of other monetary funds was RMB 3,058,197,281.56 (RMB
3,775,477,407.56 as of December 31, 2019), which is the margin deposit for security deposited to
apply for the unconditional and irrevocable letter of guarantee, letter of credit and banker’s acceptance
bill by the Group.
2. Financial assets held for trading
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Financial assets at fair value through profit
or loss
4,000,971.20
Including:
Bank financial products with fluctuating
revenue
4,000,971.20
Total 4,000,971.20
Other notes:
√ Applicable □ Not Applicable
As of December 31, 2020, financial assets held for trading included bank financial products with the
term of one year and fluctuating revenue (RMB 4,000,971.20).
3. Derivative financial assets
□ Applicable √ Not Applicable
4. Notes Receivable
(1). Notes receivable listed by category
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
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Item Ending balance Beginning balance
Banker’s acceptance bill 4,264,164,372.63 4,553,400,751.13
Trade acceptance bill
Total 4,264,164,372.63 4,553,400,751.13
(2). Notes receivable pledged by the Company at the end of the period
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Pledged amount at the end of the period
Banker’s acceptance bill 4,101,821,669.69
Trade acceptance bill
Total 4,101,821,669.69
(3). Notes receivable endorsed or discounted by the Company at end of the period and yet
undue on the balance sheet date
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending amount derecognized Ending amount not derecognized
Banker’s acceptance bill 39,320,902.86 13,177,180.52
Trade acceptance bill
Total 39,320,902.86 13,177,180.52
(4). Notes of the Company transferred into accounts receivable due to non-performance of
drawers
□ Applicable √ Not Applicable
(5). Disclosure based on classification of bad debt provision methods
□ Applicable √ Not Applicable
Bad debt reserves withdrawn by single items:
□ Applicable √ Not Applicable
Provision for bad debt reserves by portfolio:
□ Applicable √ Not Applicable
In case of provisions for bad debt reserve based on general model of expected credit loss, please refer
to the disclosure of other receivables:
√ Applicable □ Not Applicable
The notes receivable of the Group are generated by daily business activities such as sale of goods and
rendering of services, and the Group measures the loss reserves according to the expected credit loss
during the entire duration period, whether there are significant financing components or not.
(i) Analysis of notes receivable with provision for bad debt reserves by portfolio is as below:
Portfolio - banker's acceptance bill:
As of December 31, 2020, the Group measured the bad debt reserve according to the expected credit
loss during the entire duration period. The Group believed that there was no significant credit risk in
the banker’s acceptance bill held by the Group and there will be no significant loss due to the default
of the bank. No bad debt reserve was accrued.
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(ii) The bad debt reserve was not accrued or carried back at the end of the year.
(iii) No notes receivable were actually written off in the year.
(6). Bad debt reserve
□ Applicable √ Not Applicable
(7) Notes receivable actually written off in the current period
□ Applicable √ Not Applicable
Other notes
√ Applicable □ Not Applicable
In 2020, some subsidiaries of the Group discounted and endorsed a part of banker’s acceptance bills
according to their daily fund management requirements, so there were classified as financial assets at
fair value through other comprehensive income, and listed as receivables financing. Except the above
subsidiaries, other subsidiaries endorsed or discounted only a small number of banker’s acceptance
bills receivable and terminated recognition of them. Thus, they were classified as financial assets
measured at amortized cost.
5. Accounts receivable
(1). Disclosure by aging
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending book balance
Within 1 year
Including: subentry within 1 year
Including: within 6 months 5,804,352,604.71
7 to 12 months 669,741,348.71
Subtotal within 1 year 6,474,093,953.42
1 to 2 years 571,525,929.78
2 to 3 years 339,184,768.01
3 to 4 years 100,321,373.31
4 to 5 years 13,627,263.02
Above 5 years 13,015,849.85
Total 7,511,769,137.39
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(2). Disclosure based on classification of bad debt provision methods
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Category
Ending balance Beginning balance
Book balance Bad debt reserve
Book value
Book balance Bad debt reserve
Book value Amount
Proportion
(%) Amount
Proportion
of provision
(%)
Amount Proportion
(%) Amount
Proportion
of provision
(%)
Provision for
bad debt
reserve by
single item
77,060,633.24 1.03 70,070,903.11 90.93 6,989,730.13 98,554,221.82 3.97 84,727,255.61 85.97 13,826,966.21
Including:
Provision for
bad debt
reserve by
single item
77,060,633.24 1.03 70,070,903.11 90.93 6,989,730.13 98,554,221.82 3.97 84,727,255.61 85.97 13,826,966.21
Provision for
bad debt
reserve as per
portfolio
7,434,708,504.15 98.97 171,196,436.35 2.30 7,263,512,067.80 2,381,703,315.97 96.03 53,345,056.61 2.24 2,328,358,259.36
Including:
Portfolio -
portfolio of
electric
charge
receivable
778,151,262.09 10.36 50,180,855.32 6.45 727,970,406.77 30,980,811.85 1.25 988,948.82 3.19 29,991,863.03
Portfolio -
portfolio of
enterprise
customers
receivable
6,656,557,242.06 88.61 121,015,581.03 1.82 6,535,541,661.03 2,350,722,504.12 94.78 52,356,107.79 2.23 2,298,366,396.33
Total 7,511,769,137.39 / 241,267,339.46 / 7,270,501,797.93 2,480,257,537.79 / 138,072,312.22 / 2,342,185,225.57
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Bad debt reserves withdrawn by single items:
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Name
Ending balance
Book balance Bad debt reserve
Proportion
of
provision
(%)
Reason for
provision
Customer I 33,981,483.70 27,185,186.96 80.00
Provision based on
estimated
recoverable
amount
Customer II 13,414,317.00 13,414,317.00 100.00 Predicted to be
unrecoverable
Customer III 13,102,572.50 13,102,572.50 100.00 Predicted to be
unrecoverable
Customer IV 8,752,579.22 8,752,579.22 100.00 Predicted to be
unrecoverable
Customer V 3,826,315.63 3,826,315.63 100.00 Predicted to be
unrecoverable
Customer VI 1,216,429.41 1,216,429.41 100.00 Predicted to be
unrecoverable
Customer VII 967,166.96 773,733.57 80.00
Provision based on
estimated
recoverable
amount
Others 1,799,768.82 1,799,768.82 100.00 Predicted to be
unrecoverable
Total 77,060,633.24 70,070,903.11 90.93
Provision for bad debt reserve by single item:
□ Applicable √ Not Applicable
Provision for bad debt reserves by portfolio:
√ Applicable □ Not Applicable
Portfolio provision item: portfolio - portfolio of electric charge receivable
Unit: Yuan Currency: RMB
Name
Ending balance
Accounts receivable Bad debt reserve Proportion of provision
(%)
Within 1 year 263,053,456.28 7,891,603.88 3.00
1 to 2 year 216,642,553.39 12,998,553.25 6.00
2 to 3 years 217,464,403.13 19,571,796.28 9.00
3 to 4 years 80,968,848.77 9,716,261.85 12.00
4 to 5 years 22,000.52 2,640.06 12.00
Above 5 years 12.00
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Total 778,151,262.09 50,180,855.32
Recognition criteria and description for provision of bad debt reserve by portfolio:
□ Applicable √ Not Applicable
Portfolio provision item: portfolio - portfolio of enterprise customers receivable
Unit: Yuan Currency: RMB
Name
Ending balance
Accounts receivable Bad debt reserve Proportion of provision
(%)
Within 1 year
Including: within 6
months
5,650,703,192.94 49,726,188.10 0.88
7 to 12 months 559,286,910.20 10,539,626.20 1.88
1 to 2 year 354,883,376.39 21,293,002.58 6.00
2 to 3 years 80,150,174.90 28,397,206.97 35.43
3 to 4 years 11,533,587.63 11,059,557.18 95.89
4 to 5 years 100.00
Above 5 years 100.00
Total 6,656,557,242.06 121,015,581.03
Recognition criteria and description for provision of bad debt reserve by portfolio:
□ Applicable √ Not Applicable
In case of provisions for bad debt reserve based on general model of expected credit loss, please refer
to the disclosure of other receivables:
□ Applicable √ Not Applicable
(3). Bad debt reserve
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Category Beginning
balance
Amount changed in the current period Ending
balance Provision Recovery or
reversal
Write-off or
charge-off
Other
changes
Bad debt
reserve for
accounts
receivable
138,072,312.22 149,149,749.91 20,890,961.69 14,005,944.41 11,057,816.57 241,267,339.46
Total 138,072,312.22 149,149,749.91 20,890,961.69 14,005,944.41 11,057,816.57 241,267,339.46
Including major amount of recovered or reversed bad debt reserves in the current period:
□ Applicable √ Not Applicable
(4). Accounts receivable actually written off in the current period
□ Applicable √ Not Applicable
(5). Accounts receivable of top 5 in terms of ending balance pooled by the Debtor
√ Applicable □ Not Applicable
As of December 31, 2020, the accounts receivable of top five in terms of ending balance collected by
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the Debtor are as follows:
Unit: RMB
Item Balance Amount of bad debt
reserve
Proportion in the total
accounts receivable
Total amount of accounts
receivable of top 5 in
terms of balance
1,349,530,030.93 25,614,350.34 17.97%
(6). Accounts receivable derecognized due to transfer of financial assets
□ Applicable √ Not Applicable
(7). Assets and liabilities formed by transfer of accounts receivable and continuous
involvement
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
6. Financing of accounts receivable
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Financing of accounts receivable 238,952,924.42 829,052,223.55
Total 238,952,924.42 829,052,223.55
Increase/decrease in financing of accounts receivable in the current period and changes in fair value
√ Applicable □ Not Applicable
In 2020, some subsidiaries of the Group discounted and endorsed a part of banker’s acceptance bills
according to their daily fund management requirements, so there were classified as financial assets at
fair value through other comprehensive income, and listed as receivables financing.
In case of provisions for bad debt reserve based on general model of expected credit loss, please refer
to the disclosure of other receivables:
√ Applicable □ Not Applicable
The Group had no banker’s acceptance bill with the single provision for impairment. As of December
31, 2020, the Group measured the bad debt reserve in accordance with the expected credit loss during
the entire duration period. The Group believed that there was no significant credit risk in the banker’s
acceptance bill held by the Group and there will be no significant loss due to the default of the bank.
Other notes:
√ Applicable □ Not Applicable
As of December 31, 2020, the notes receivable of the Group for receivables financing endorsed but
not yet due are as follows:
Unit: RMB
Derecognition Non-derecognition
Banker’s acceptance bill 11,619,371,029.36
As of December 31, 2020, the group had no notes receivable for receivables financing endorsed but
Annual Report 2020
179 / 312
not yet due.
7. Advance payment
(1). Advance payment listed by aging
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending balance Beginning balance
Amount Proportion (%) Amount Proportion (%)
Within 1 year 1,754,077,637.10 92.76 878,938,456.44 85.22
1 to 2 years 92,968,035.57 4.92 121,178,407.58 11.75
2 to 3 years 25,008,377.02 1.32 31,277,343.45 3.03
More than 3
years
18,882,571.27 1.00 8,185.00 0.00
Total 1,890,936,620.96 100.00 1,031,402,392.47 100.00
Explanation of reasons for failure in timely settling advance payment with the aging of more than 1
year and significant amount:
As of December 31, 2020, the advance payment with the aging of more than one year was RMB
136,858,983.86 (RMB 152,463,936.03 as of December 31, 2019), which is mainly the advance
payment for material purchase), and the date of delivery has not arrived yet.
(2). Advance payment with the ending balance ranking top five collected by advance payment
object
√ Applicable □ Not Applicable
As of December 31, 2020, the advance payment with the ending balance ranking top five collected
by the Debtor is analyzed as follows:
Unit: RMB
Amount Proportion in the total advance
payment (%)
Total amount of advance payment
of top 5 in terms of balance
969,240,330.27 51.26%
Other notes
□ Applicable √ Not Applicable
8. Other receivables
Item listing
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 119,709,414.72 41,421,502.96
Other receivables 323,124,581.85 254,576,090.41
Total 442,833,996.57 295,997,593.37
Other notes:
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□ Applicable √ Not Applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable √ Not Applicable
(2). Significant overdue interest
□ Applicable √ Not Applicable
(3). Provision for bad debt reserves
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
Dividends receivable
(4). Dividends receivable
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Project (or investee) Ending balance Beginning balance
Lingwu Longqiao Solar New Energy Co., Ltd. 79,547,720.40
Zhaozhou Longhui New Energy Co., Ltd. 17,526,345.67 17,526,345.67
Wuzhong Leheng Solar Energy Technology
Co., Ltd. 5,988,893.24 5,988,893.24
Xi’an Letian Solar Energy Co., Ltd. 4,821,174.55 4,821,174.55
Xi’an Lejing Solar Energy Co., Ltd. 2,790,461.84 2,790,461.84
Xi’an LONGi Anfang Solar Energy Co., Ltd. 2,305,356.67 2,305,356.67
Others 6,729,462.35 7,989,270.99
Total 119,709,414.72 41,421,502.96
(5). Significant dividends receivable with the aging over 1 year
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Project (or investee) Ending balance Aging
Reasons for
outstanding
dividends
Impairment or
not and its
reasons for
judgment
Zhaozhou Longhui New Energy
Co., Ltd. 17,526,345.67 2 to 3 years
Undue
according to the
agreement
None
Total 17,526,345.67 / / /
(6). Provision for bad debt reserves
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
Other receivables
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(7). Disclosure by aging
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending book balance
Within 1 year
Including: subentry within 1 year
Subtotal within 1 year 187,925,436.29
1 to 2 years 34,839,943.15
2 to 3 years 160,395,118.65
3 to 4 years 4,396,799.92
4 to 5 years 5,134,328.62
Above 5 years 2,982,163.97
Total 395,673,790.60
(8). Classification by payment nature
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Nature of payment Ending book balance Beginning book balance
Equity transfer payment 106,441,484.16 61,900,020.78
Security 91,660,917.64 68,697,822.05
Disposed advance payment of
subsidiaries receivable
88,959,939.09 99,529,473.80
Profit from procurement of auxiliary
materials
77,947,348.33 29,378,285.06
Current account 17,000,014.35 22,583,162.88
Reserve funds 4,570,549.54 4,510,473.89
Others 9,093,537.49 5,423,606.34
Total 395,673,790.60 292,022,844.80
(9). Provision for bad debt reserve
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Bad debt reserve
Stage I Stage II Stage III
Total Expected credit
loss in the next 12
months
Expected credit loss
throughout the entire
duration (no depreciation
of credit)
Expected credit loss
throughout the entire
duration (depreciation of
credit)
Balance on January 1,
2020 26,946,754.39 10,500,000.00 37,446,754.39
Current balance on
January 1, 2020
- Transferred to Stage II
- Transferred to Stage
III
- Reversed to Stage II
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182 / 312
- Reversed to Stage I
Provision in the current
period 39,397,310.70 1,364,580.00 40,761,890.70
Current reversal 1,701,340.85 500,000.00 2,201,340.85
Write-off in the current
period
Write-off in the current
period 7,500,000.00 7,500,000.00
Other changes -4,041,904.51 -4,041,904.51
Balance as of
December 31, 2020 68,684,628.75 3,864,580.00 72,549,208.75
Explanation of significant changes in the book balance of other receivables resulting from changes in
the loss provision in the current period:
□ Applicable √ Not Applicable
The basis for the amount of bad debt reserve in the current period and the evaluation of whether the
credit risk of financial instruments has significantly increased:
□ Applicable √ Not Applicable
(10). Bad debt reserve
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Category Beginning
balance
Amount changed in the current period Ending
balance Provision Recovery or
reversal
Write-off or
charge-off Other changes
Bad debt
reserve for
other
receivables
37,446,754.39 40,761,890.70 2,201,340.85 7,500,000.00 -4,041,904.51 72,549,208.75
Total 37,446,754.39 40,761,890.70 2,201,340.85 7,500,000.00 -4,041,904.51 72,549,208.75
Return or recovery of bad debt reserves of major amount in the current period:
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Organization name Reversed or recovered amount Recovery method
Other receivables 1 1,468,914.25 Bank deposits
Other receivables 2 500,000.00 Bank deposits
Other receivables 3 163,000.00 Bank deposits
Total 2,131,914.25 /
(11). Other receivables actually written off in current period
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Write-off amount
Other receivables actually written off 7,500,000.00
Written-off for other major receivables:
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√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Organization
name
Nature of other
receivables
Write-off
amount
Reason for
the write-off
Write-off
procedures
performed
Arising from a
related party
transaction or not
Customer I Current
account 7,500,000.00
Signing of
settlement
agreement
between the
parties
Signing of
settlement
agreement
between the
parties
None
Total / 7,500,000.00 / / /
Description of the written-off for other receivables:
□ Applicable √ Not Applicable
(12). Other receivables with the ending balance ranking among the top five collected by the
debtor
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Organization
name
Nature of the
payment Ending balance Aging
Proportion in
total ending
balance of
other
receivables
(%)
Bad debt reserve
Ending balance
Top 1 Profit from
procurement of
auxiliary materials
77,947,348.33 Within 1 year 19.70 3,897,367.42
Top 2 Equity transfer
payment
46,778,050.00 Within 1 year 11.82 2,338,902.50
Top 3 Deposit
26,425,845.00 Two to four
years
6.68 7,993,002.50
Top 4 Equity transfer
payment
17,854,494.23 One to three
years
4.51 5,025,694.40
Top 5 Equity transfer
payment
17,793,932.76 Two to three
years
4.50 5,338,179.83
Total / 186,799,670.32 / 47.21 24,593,146.65
(13). Receivables involving government grants
□ Applicable √ Not Applicable
(14). Other receivables derecognized due to transfer of financial assets
□ Applicable √ Not Applicable
(15). Amount of assets and liabilities formed by transfer of other receivables and continuous
involvement
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
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184 / 312
9. Inventory
(1). Inventory classification
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Ending balance Beginning balance
Book balance
Inventory
depreciation
reserve or
provision for
impairment of
contract
performance
cost
Book value Book balance
Inventory
depreciation
reserve or
provision for
impairment of
contract
performance
cost
Book value
Raw
materials 3,576,060,045.54 1,551,966.04 3,574,508,079.50
1,887,242,022.3
6 2,608,479.18
1,884,633,543.1
8
Goods in
process 1,353,459,568.27
28,166,823.5
0 1,325,292,744.77 806,798,521.81 4,352,241.87 802,446,279.94
Commodit
y stocks 5,551,705,824.81
24,037,553.7
1 5,527,668,271.10
3,171,327,791.4
7
23,329,185.7
2
3,147,998,605.7
5
Outsourced
processing
materials
224,389,153.81 518.99 224,388,634.82 197,167,674.72 11,652.27 197,156,022.45
Goods
shipped in
transit
803,886,149.67 3,327,561.13 800,558,588.54 323,927,541.02 17,207.56 323,910,333.46
Total 11,509,500,742.1
0
57,084,423.3
7
11,452,416,318.7
3
6,386,463,551.3
8
30,318,766.6
0
6,356,144,784.7
8
(2). Inventory depreciation reserve or provision for impairment of contract performance cost
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning
balance
Increase in the current period Decrease in the current
period
Ending
balance
Provision Others Reversal or
write-off Others
Raw
materials
2,608,479.18 19,596,902.05 -237,078.52 20,416,336.67 1,551,966.04
Goods in
process
4,352,241.87 32,693,322.59 8,878,740.96 28,166,823.50
Commodity
stocks
23,329,185.72 181,751,522.41 -2,171,227.62 178,871,926.80 24,037,553.71
Outsourced
processing
materials
11,652.27 406,949.94 233.28 418,316.50 518.99
Goods
shipped in
transit
17,207.56 128,284,774.59 124,974,421.02 3,327,561.13
Total 30,318,766.60 362,733,471.58 -2,408,072.86 333,559,741.95 57,084,423.37
(3). Description of ending balance of inventories with capitalized borrowing costs
□ Applicable √ Not Applicable
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185 / 312
(4). Explanation for the current amortization amount of the contract performance cost
□ Applicable √ Not Applicable
Other notes
√ Applicable □ Not Applicable
The inventory depreciation reserve as of December 31, 2020 us as below:
Item Specific basis for recognizing
net realizable value
Reasons for reversal of inventory
depreciation reserves in the year
Reasons for write-
off of inventory
depreciation
reserves in the
year
Raw materials
The net realizable value of raw
materials is mainly determined
by the market price of final
products
The impact of previous write-down of
the value of inventories has
disappeared, causing the net realizable
value of inventories is higher than
their book value
External sales
Goods in
process
The net realizable value of goods
in process is mainly determined
by the market price of final
products
The impact of previous write-down of
the value of inventories has
disappeared, causing the net realizable
value of inventories is higher than
their book value
Completion of
production and
external sales
Commodity
stocks
There are two parts: non-
existence of contract guarantee
and existence of irrevocable
contract guarantee. If there is no
contract guarantee, the net
realizable value of the product is
determined by deducting
relevant expenses from the
market price of the final product.
If there is contractual guarantee,
the net realizable value of the
product is determined at the
irrevocable contract unit price
The impact of previous write-down of
the value of inventories has
disappeared, causing the net realizable
value of inventories is higher than
their book value
External sales
Outsourced
processing
materials
The net realizable value is
mainly determined by the market
price of final products
The impact of previous write-down of
the value of inventories has
disappeared, causing the net realizable
value of inventories is higher than
their book value
Outsourced
recovery of
external sales
Goods shipped
in transit
The net realizable value is
determined according to contract
unit price
The impact of previous write-down of
the value of inventories has
disappeared, causing the net realizable
value of inventories is higher than
their book value
External sales
10. Contract assets
(1). Contract assets
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Ending balance Beginning balance
Book balance Provision for
impairment Book value Book balance
Provision for
impairment Book value
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186 / 312
Contract
assets 1,173,892,311.91 47,163,909.09 1,126,728,402.82 1,559,370,817.38 75,810,772.30 1,483,560,045.08
Total 1,173,892,311.91 47,163,909.09 1,126,728,402.82 1,559,370,817.38 75,810,772.30 1,483,560,045.08
(2). Amount of and reason for significant changes in the book value within the reporting period
□ Applicable √ Not Applicable
(3). Provision for impairment of contract assets in the current period
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Provision in the
current period Current reversal
Write-off
/cancellation after
verification in
current period
Reasons
Provision for impairment
of contract assets
19,604,495.02 47,885,432.85 365,925.38
Total 19,604,495.02 47,885,432.85 365,925.38 /
In case of provisions for bad debt reserve based on general model of expected credit loss, please refer
to the disclosure of other receivables:
√ Applicable □ Not Applicable
For contract assets, whether there are significant financing components or not, the Group measures
the loss reserves according to the expected credit loss throughout the duration. As of December 31,
2020, the Group had no contract assets for which there is no provision for impairment on an individual
basis.
Analysis of contract assets with provision for bad debt reserves by portfolio is as below:
Item Book balance
Expected credit loss
rate during the entire
duration (%)
Provision for impairment
Within 1 year 835,100,476.59 1.58 13,227,858.72
1 to 2 year 193,684,771.14 6.93 13,420,617.62
2 to 3 years 96,946,485.23 9.41 9,124,074.14
3 to 4 years 47,948,520.71 23.32 11,179,300.37
4 to 5 years 212,058.24 100.00 212,058.24
Above 5 years
Total 1,173,892,311.91 47,163,909.09
Other notes:
□ Applicable √ Not Applicable
11. Held-for-sale assets
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Provision for impairment
Ending book value
Fair value
Estimated
disposal
cost
Estimated
disposal
time
Held-for-
sale asset - 14,353,177.40 9,928,398.64 4,424,778.76 4,424,778.76 March
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fixed asset 2021
Total 14,353,177.40 9,928,398.64 4,424,778.76 4,424,778.76 /
Other notes:
N/A
12. Non-current assets due within one year
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Long-term receivables due within one
year
1,078,392.41 31,419,922.32
Total 1,078,392.41 31,419,922.32
Significant creditors investment and other creditors investments at the end of the period:
□ Applicable √ Not Applicable
Other notes
N/A
13. Other current assets
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
VAT to be deducted 1,416,337,680.32 986,023,707.56
Prepaid income tax 25,363,327.57 6,940,496.79
Prepaid taxes and surcharges 82,862.04 3,187,121.21
Bank financing 100,000,000.00
Export tax refund receivable 11,456,668.11
Total 1,441,783,869.93 1,107,607,993.67
Other notes
N/A
14. Creditors investment
(1). Creditors investment
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Ending balance Beginning balance
Book
balance
Provision
for
impairment
Book value Book
balance
Provision
for
impairment
Book value
Bank bonds 115,363.30 115,363.30
Total 115,363.30 115,363.30
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(2). Significant creditors investment at the end of the period
□ Applicable √ Not Applicable
(3). Provision for impairment
□ Applicable √ Not Applicable
The basis for the amount of provision for impairment in the current period and the evaluation of
whether the credit risk of financial instruments has significantly increased:
□ Applicable √ Not Applicable
Other notes
□ Applicable √ Not Applicable
15. Other creditors investments
(1). Other creditors investments
□ Applicable √ Not Applicable
(2). Significant creditors investment at the end of the period
□ Applicable √ Not Applicable
(3). Provision for impairment
□ Applicable √ Not Applicable
The basis for the amount of provision for impairment in the current period and the evaluation of
whether the credit risk of financial instruments has significantly increased:
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
16. Long-term receivables
(1). Long-term receivables
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Range
of
discount
rate
Book balance
Bad
debt
reserve
Book value Book balance
Bad
debt
reserve
Book value
Security 19,189,754.16 19,189,754.16 25,585,349.25 25,585,349.25
EPC
project of
installment
collection
2,589,304.25 2,589,304.25 31,419,922.32 31,419,922.32
Others 1,078,392.41 1,078,392.41
(Less) The -1,078,392.41 -1,078,392.41 - -
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part due
within one
year
31,419,922.32 31,419,922.32
Total 21,779,058.41 21,779,058.41 25,585,349.25 25,585,349.25 /
(2). Provision for bad debt reserves
□ Applicable √ Not Applicable
The basis for the amount of bad debt reserve in the current period and the evaluation of whether the
credit risk of financial instruments has significantly increased:
□ Applicable √ Not Applicable
(3). Long-term receivables derecognized due to transfer of financial assets
□ Applicable √ Not Applicable
(4). Assets and liabilities formed by transfer of long-term receivables and continuous
involvement
□ Applicable √ Not Applicable
Other notes
□ Applicable √ Not Applicable
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17. Long-term equity investment
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
The investee Beginning
balance
Current increase /decrease
Ending balance
Balance
Ending
balance of
provision
for
impairment
Increase in
investment
Decrease in
investment
Investment
profits or
losses
recognized
under equity
method
Adjustment of
other
comprehensive
income
Other
equity
changes
Declared
cash
dividends
or profits
Provision
for
impairment
Others
I. Joint venture
Subtotal
II. Associate
Sichuan
Yongxiang 203,153,590.52 58,863,750.67 262,017,341.19
Pingmei
LONGi 212,506,211.73 23,091,840.04 235,598,051.77
Yunnan
Tongwei 199,200,000.00 199,200,000.00
Tongchuan
Xiaguang 138,614,056.21 24,769,162.76 163,383,218.97
Tongxin
LONGi 151,421,637.21 11,259,305.98 162,680,943.19
Zhongning
New Energy 111,070,859.11 57,956.87 111,128,815.98
Daqing New
Energy 65,132,206.11 9,475,137.98 74,607,344.09
Xi'an
Ruicheng
Longtai New
Energy Co.,
Ltd.
57,381,717.12 869.12 57,382,586.24
Zhejiang
MTCN 42,112,204.50 10,476,405.17 52,588,609.67
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Zhaozhou New
Energy 44,574,179.11 7,190,631.92 51,764,811.03
LONGi
Tianhua 28,127,757.77 2,983,479.95 31,111,237.72
Zhengzhou
Lemou Solar
Energy Co.,
Ltd.
13,312,900.64 1,380,470.56 14,693,371.20
Xi’an LONGi
Anfang Solar
Energy Co.,
Ltd.
12,028,543.38 1,256,743.00 13,285,286.38
Wuzhong
Leheng Solar
Energy
Technology
Co., Ltd.
9,703,076.67 950,619.03 10,653,695.70
Xi’an Letian
Solar Energy
Co., Ltd.
8,491,423.33 793,059.35 9,284,482.68
Yidao New
Energy 15,338,511.75 15,504,961.73 166,449.98
Trina Solar
(Singapore)
Science &
Technology
New Energy
Pte. Ltd.
107,973,009.25 121,489,728.05 13,516,718.80
Other
associates 18,597,539.36 10,505,110.84 -20,016,235.13 -115,117.75
-
2,489,946.64 6,481,350.68
Subtotal 1,074,184,697.40 375,059,837.21 136,994,689.78 146,216,366.05 -115,117.75
-
2,489,946.64 1,455,861,146.49
Total 1,074,184,697.40 375,059,837.21 136,994,689.78 146,216,366.05 -115,117.75 -
2,489,946.64 1,455,861,146.49
Other notes
N/A
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18. Investment in other equity instruments
(1). Investment in other equity instruments
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Equity of unlisted companies - Lijiang LONGi Clean
Energy Co., Ltd.
37,142,441.49 21,959,667.68
Total 37,142,441.49 21,959,667.68
(2). Non-marketable equity instrument investment
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Dividend
revenue
recognized
in current
period
Accumulated
gains
Accumulated
losses
Amount
transferred
from other
comprehensive
income to
retained
earnings
Reasons for
being measured
at fair value
through other
comprehensive
income
Reason for
being
transferred to
retained
earnings from
other
comprehensive
income
Lijiang
LONGi
Clean
Energy
Co., Ltd.
13,610,706.92
The purpose of
holding the
company is non-
contractual
interest
Other notes:
□ Applicable √ Not Applicable
19. Other non-current financial assets
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
20. Investment real estate
Measurement model for investment real estate
(1). Investment real estate measured at cost
Unit: Yuan Currency: RMB
Item Houses and
buildings Land use rights
Construction in
progress Total
I. Original book value
1. Beginning balance
2. Increase in the current
period
72,894,027.61 14,034,728.39 86,928,756.00
(1) Outsourcing
(2) Transfer-in of inventory
/fixed assets /construction in
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progress
(3) Increase from business
combination
72,894,027.61 14,034,728.39 86,928,756.00
3. Decrease in the current
period
5,756,927.87 732,933.89 6,489,861.76
(1) Disposal
(2) Other transfer-out 1,429,574.43 686,097.89 2,115,672.32
(3) Impact of foreign currency
translation
4,327,353.44 46,836.00 4,374,189.44
4. Ending balance 67,137,099.74 13,301,794.50 80,438,894.24
II. Accumulated depreciation
and accumulated amortization
1. Beginning balance
2. Increase in the current
period
2,309,323.13 166,363.51 2,475,686.64
(1) Accrual or amortization 2,309,323.13 166,363.51 2,475,686.64
3. Decrease in the current
period
726,649.43 84,347.54 810,996.97
(1) Disposal
(2) Other transfer-out 311,199.99 73,309.78 384,509.77
(3) Impact of foreign currency
translation
415,449.44 11,037.76 426,487.20
4. Ending balance 1,582,673.70 82,015.97 1,664,689.67
III. Provision for impairment
1. Beginning balance
2. Increase in the current
period
(1) Accrual
3. Decrease in the current
period
(1) Disposal
(2) Other transfer-out
4. Ending balance
IV. Book value
1. Ending book value 65,554,426.04 13,219,778.53 78,774,204.57
2. Beginning book value
(2). Investment real estate without property ownership certificate
□ Applicable √ Not Applicable
Other notes
□ Applicable √ Not Applicable
21. Fixed assets
Item listing
√ Applicable □ Not Applicable
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Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Fixed assets 24,505,980,871.80 15,467,300,311.79
Clearing of fixed assets
Total 24,505,980,871.80 15,467,300,311.79
Other notes:
□ Applicable √ Not Applicable
Fixed assets
(1). Fixed assets
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Houses and
buildings PV solar plant
Machinery and
equipment
Transportation
vehicles
Electronic
equipment and
others
Total
I. Original
book value:
1. Beginning balance
1,790,386,172.34 3,870,450,666.31 13,405,634,258.35 71,849,462.20 162,281,049.85 19,300,601,609.05
2. Increase in
the current period 800,387,481.90 700,279,791.06 11,476,586,832.07 48,662,703.21 105,357,091.22 13,131,273,899.46
(1)
Acquisitio
n
14,285,421.88 104,618,210.28 53,273,902.12 38,915,888.79 74,190,633.72 285,284,056.79
(2) Transfer-
in of construction
in progress
451,165,950.70 595,661,580.78 10,298,164,047.09 1,471,752.79 7,753,724.58 11,354,217,055.94
(3) Increase
from business
combination
398,737,120.62 1,352,633,397.92 9,767,071.07 22,285,717.59 1,783,423,307.20
(4) Others 1,429,574.43 1,429,574.43
(5) Impact of
foreign currency translation
-65,230,585.73 -227,484,515.06 -1,492,009.44 1,127,015.33 -293,080,094.90
3. Decrease
in the current
period
12,145,796.48 1,398,417,513.03 439,267,445.36 415,087.74 6,990,176.83 1,857,236,019.44
(1)
Dispositio
n or retirement
12,145,796.48 12,981,052.14 222,874,434.40 285,344.15 6,946,956.97 255,233,584.14
(2)
Classificat
ion as held for sale
15,952,786.96 15,952,786.96
(3) Reduction
due to disposal of
subsidiaries
1,385,436,460.89 129,743.59 43,219.86 1,385,609,424.34
(4) Transfer-in of construction
in progress
142,902,490.11 142,902,490.11
(5) Others 57,537,733.89 57,537,733.89
4. Ending
balance 2,578,627,857.76 3,172,312,944.34 24,442,953,645.06 120,097,077.67 260,647,964.24 30,574,639,489.07
II.
Accumulat
ed depreciation
1. Beginning
balance 453,117,835.08 347,670,337.06 2,840,936,322.57 32,091,956.50 67,813,986.87 3,741,630,438.08
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2. Increase in
the current period 89,898,938.03 155,558,563.71 1,630,951,518.66 14,832,600.34 29,250,740.81 1,920,492,361.55
(1) Accrual 99,277,601.73 155,558,563.71 1,677,820,459.60 14,193,477.03 29,456,192.24 1,976,306,294.31
(2) Impact of foreign currency
translation
-9,378,663.70 -46,868,940.94 639,123.31 -205,451.43 -55,813,932.76
3. Decrease
in the current
period
2,922,222.30 65,013,721.84 120,346,723.50 1,369,673.00 3,328,917.40 192,981,258.04
(1)
Dispositio
n or retirement
2,922,222.30 855,854.42 72,212,238.71 1,324,479.02 3,316,494.62 80,631,289.07
(2)
Classificat
ion as held for sale
1,599,609.56 1,599,609.56
(3) Reduction
due to disposal of subsidiaries
64,157,867.42 45,193.98 12,422.78 64,215,484.18
(4) Transfer-
in of construction
in progress
46,534,875.23 46,534,875.23
4. Ending
balance 540,094,550.81 438,215,178.93 4,351,541,117.73 45,554,883.84 93,735,810.28 5,469,141,541.59
III. Provision
for impairment
1. Beginning
balance 91,509,742.70 10,767.82 150,348.66 91,670,859.18
2. Increase in
the current period 20,783,162.48 589,507,315.80 15,283.91 265,977.77 610,571,739.96
(1) Accrual 20,783,162.48 590,420,671.90 15,283.91 265,977.77 611,485,096.06
(2) Impact of
foreign currency
translation
-913,356.10 -913,356.10
3. Decrease
in the current period
102,572,022.96 2,593.37 150,907.13 102,725,523.46
(1)
Dispositio
n or retirement
92,643,624.32 2,593.37 150,907.13 92,797,124.82
(2)
Classificat
ion as held for sale
9,928,398.64 9,928,398.64
(3) Others
4. Ending
balance 20,783,162.48 578,445,035.54 23,458.36 265,419.30 599,517,075.68
IV. Book
value
1. Ending
book value 2,038,533,306.95 2,713,314,602.93 19,512,967,491.79 74,518,735.47 166,646,734.66 24,505,980,871.80
2. Beginning
book value 1,337,268,337.26 3,522,780,329.25 10,473,188,193.08 39,746,737.88 94,316,714.32 15,467,300,311.79
(2). Temporarily idle fixed assets
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Original book
value
Accumulated
depreciation
Provision for
impairment Book value Remarks
Machinery and
equipment
737,166,806.08 135,913,055.20 505,406,253.34 95,847,497.54
Electronic
equipment and
others
4,173,312.68 3,018,889.07 1,154,423.61
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Transportation
vehicles
268,151.38 112,273.58 155,877.80
Total 741,608,270.14 139,044,217.85 505,406,253.34 97,157,798.95
As of December 31, 2020, the machines and equipment with the book value of about RMB
91,071,328.71 (original price RMB 728,239,018.48) were expected to be sold or scrapped and
temporarily idle due to production line upgrading and transformation, and the provision for
impairment was made according to the inquiry.
(3) Fixed assets leased by financial leasing
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Original book value Accumulated
depreciation
Provision for
impairment Book value
Houses and
buildings
161,601,387.10 117,620,608.40 43,980,778.70
Machinery and
equipment
689,106,853.49 192,674,017.89 496,432,835.60
PV solar plant 927,998,068.67 110,263,153.38 817,734,915.29
Total 1,778,706,309.26 420,557,779.67 1,358,148,529.59
(4) Fixed assets rented out through operating lease
□ Applicable √ Not Applicable
(5) Fixed assets without property ownership certificate
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Book value Reasons for failure in obtaining the
property ownership certificate
Real estate of LONGi Solar 52,226,874.51 Involving loan mortgage
Real estate of Ningxia LONGi 19,208,540.77 Public rental housing is not
available for the moment
Real estate of LONGi Technology
(Kuching)
130,980,273.14 The property ownership certificate
for new houses is being handled
Other notes:
√ Applicable □ Not Applicable
As of December 31, 2020, the houses & buildings and machinery with book value of about RMB
1,586,926,782.93 (original price RMB 2,001,136,418.22) (as of December 31, 2019: book value
RMB 1,439,423,188.08, original price RMB 1,722,794,574.78) were used as the collaterals of RMB
368,986,472.70 short-term borrowings (as of December 31, 2019: no), RMB 36,786,240.30 long-
term borrowings (as of December 31, 2019: RMB 1,120,084,306.97) and long-term borrowings of
RMB 79,705,404.78 due within one year (as of December 31, 2019: RMB 269,486,000.00).
The depreciation amount of fixed assets in 2020 was RMB 1,976,306,294.31 (2019: RMB
1,338,092,862.65), where the depreciation expenses included in the operating cost, selling expense,
administrative expenses and R&D expenses were RMB 1,909,623,137.88, RMB 993,823.70, RMB
39,860,451.41 and RMB 25,828,881.32 (2019: RMB 1,282,615,521.79, RMB 1,116,730.90, RMB
34,069,699.22and RMB 20,290,910.74).
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The original price of the fixed assets transferred from the construction in progress was RMB
11,354,217,055.94 (2019: RMB 4,168,041,050.37).
Clearing of fixed assets
□ Applicable √ Not Applicable
22. Construction in progress
Item listing
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Construction in progress 2,338,365,204.43 2,875,023,029.20
Project material 61,405,252.46 7,012,140.59
Total 2,399,770,456.89 2,882,035,169.79
Other notes:
□ Applicable √ Not Applicable
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Construction in progress
(1) Construction in progress
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Ending balance Beginning balance
Book balance Provision for
impairment Book value Book balance
Provision for
impairment Book value
7.5GW Mono Cell Project (Phase I)
of Xi'an Aerospace Base 536,474,969.31 536,474,969.31 1,683,618.24 1,683,618.24
10GW Mono Ingot Project of
Tengchong LONGi 378,084,714.68 378,084,714.68
100MW PV Composite Power
Generation Project of Longhe in
Qianyang, Shaanxi
255,683,886.05 255,683,886.05
100MW Bidding Online PV Solar
Project in Hainan Prefecture,
Qinghai
206,536,142.93 206,536,142.93
10GW Mono Ingot and Wafer
Project of Qujing 163,257,294.05 163,257,294.05
G1 and G2 Workshop Upgrade and
Renovation Project 125,924,896.80 125,924,896.80
M05, 07 and 10 Module Workshop
Renovation Project 98,759,635.39 98,759,635.39
15GW Mono Ingot and Wafer
Project of Yinchuan 94,776,917.90 94,776,917.90 4,163,432.96 4,163,432.96
M15 and M16 Module Workshop
Expansion Project 47,377,787.35 47,377,787.35
20GW Mono Silicon Wafer Manufacturing Project (Phase III)
of Chuxiong
36,058,201.41 36,058,201.41
B4 Module Workshop in Xi'an 32,175,345.76 32,175,345.76
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Economic Development Zone
Technology Project of Kuching
Cell Plant No. 1 28,944,464.03 28,944,464.03
Solar 5GW Mono Module Project
of Jiaxing LONGi 23,599,088.01 23,599,088.01
Plant Technological
Transformation Project 20,843,972.59 20,843,972.59 105,107,168.16 105,107,168.16
W11 and W12 Warehouse
Expansion Project 19,892,120.59 19,892,120.59
Office Building & Conference
Center Project (Phase I) of Solar
Headquarters Production Base
17,826,322.59 17,826,322.59 93,526,817.88 93,526,817.88
Liyang Distributed Solar Project
(Phase III) 15,892,353.44 15,892,353.44
Taizhou Solar CDM-01 Project 15,721,344.89 15,721,344.89 9,103,380.00 9,103,380.00
5GW Mono Ingot Project of
Baoshan 12,302,883.00 12,302,883.00 11,900,372.22 11,900,372.22
5GW Cell Project of Ningxia Solar
- Yinchuan 9,863,189.31 9,863,189.31 484,950,382.71 484,950,382.71
6GW Mono Ingot Project (Phase II)
of Baoshan LONGi 8,949,837.24 8,949,837.24 588,422,288.40 588,422,288.40
Mono Workshop Technology
Upgrading Project of Huaping
LONGi
8,290,931.28 8,290,931.28
G4 Workshop Cell Expansion
Project 8,157,677.73 8,157,677.73
6GW Mono Ingot Project of
Huaping LONGi 7,135,154.88 7,135,154.88 297,986,881.80 297,986,881.80
5GW Mono Ingot Project of Lijiang
LONGi 6,770,952.96 6,770,952.96 20,130,390.58 20,130,390.58
5GW Mono Module Manufacturing
Project of Xianyang LONGi Solar 6,684,211.02 6,684,211.02 7,405,907.02 7,405,907.02
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New 5GW Module Project of
Jiangsu LONGi Solar 6,506,364.27 6,506,364.27 22,947,093.64 22,947,093.64
20MW Solar Power Generation
Project of Raoyang 3,380,629.27 3,380,629.27 3,291,391.07 3,291,391.07
10GW Mono Wafer Project (Phase
II) of Chuxiong LONGi 3,290,977.80 3,290,977.80 228,838,725.36 228,838,725.36
Taizhou Base Transformation
Project 3,012,794.45 3,012,794.45 1,018,965.52 1,018,965.52
5GW Mono Cell Project in Xi'an
Jingwei New Town 2,506,289.03 2,506,289.03 280,367.28 280,367.28
Kuching Cell Project (Phase III) 2,118,494.22 2,118,494.22 409,213,296.07 409,213,296.07
B1 Module Workshop Project in
Xi'an Economic Development Zone 1,129,691.54 1,129,691.54 8,193,175.61 8,193,175.61
5GW Module Project of Chuzhou
Solar 13,794.71 13,794.71 25,271,952.87 25,271,952.87
150MW PV Solar Project of
Ruicheng 183,740,542.78 183,740,542.78
5GW Mono Module Project (Phase
II) of Chuzhou LONGi Solar 80,625,814.99 80,625,814.99
B2 Module Workshop Project in
Xi'an Economic Development Zone 38,981,242.94 38,981,242.94
Raw Material Cleaning Workshop
Project 11,684,546.27 11,684,546.27
5.4MW Distributed Solar- Project
of Liyang Shidai 10,052,711.68 10,052,711.68
Other sporadic projects 166,187,536.76 35,765,662.81 130,421,873.95 254,773,908.65 28,271,345.50 226,502,563.15
Total 2,374,130,867.24 35,765,662.81 2,338,365,204.43 2,903,294,374.70 28,271,345.50 2,875,023,029.20
(2). Changes in major construction in progress in current period
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
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Description Budget amount Beginning
balance
Increase in the
current period
Amount of
transferred fixed
assets in the
current period
Other decrease
in the current
period
Ending balance
Balance
Proportion
of accumulated
project
investment
to the
budget (%)
Project
progress
Accumulated
amount of
interest
capitalization
Including: amount of
interest
capitalization
in the current
period
Interest capitalization
rate in the
current
period (%)
Source
of
funds
7.5GW Mono
Cell Project
(Phase I) of
Xi'an Aerospace
Base
1,915,730,000.00 1,683,618.24 1,303,634,907.09 768,843,556.02 536,474,969.31 68.14 70.25%
Self-
pooled funds
10GW Mono
Ingot Project of
Tengchong
LONGi
1,500,000,000.00 697,226,574.93 319,141,860.25 378,084,714.68 46.48 46.48%
Self-
pooled
funds
100MW PV
Composite
Power
Generation Project of
Longhe in
Qianyang,
Shaanxi
398,565,910.00 255,683,886.05 255,683,886.05 64.15 64.15% Self-pooled
funds
100MW
Bidding Online
PV Solar
Project in
Hainan Prefecture,
Qinghai
404,566,459.00 206,536,142.93 206,536,142.93 51.05 51.05%
Self-
pooled
funds
10GW Mono
Ingot and
Wafer Project
of Qujing
2,200,000,000.00 225,230,832.04 61,973,537.99 163,257,294.05 10.24 10.24%
Self-
pooled
funds
G1 and G2
Workshop
Upgrade and
Renovation Project
129,480,000.00 136,681,840.06 3,435,561.42 7,321,381.84 125,924,896.80 99.91 99.91%
Self-
pooled
funds
M05, 07 and 10
Module
Workshop
Renovation
Project
148,500,000.00 145,827,186.08 41,325,580.52 5,741,970.17 98,759,635.39 94.33 94.33%
Self-
pooled
funds
15GW Mono
Ingot and
Wafer Project
3,662,200,000.00 4,163,432.96 2,452,360,421.47 2,341,023,256.31 20,723,680.22 94,776,917.90 67.08 90.00% Funds
raised
Annual Report 2020
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M15 and M16
Module Workshop
Expansion
Project of
Yinchuan
247,600,000.00 126,851,552.28 76,566,016.78 2,907,748.15 47,377,787.35 50.06 50.06%
Self-
pooled
funds
20GW Mono
Silicon Wafer
Manufacturing
Project (Phase
III) of Chuxiong
421,270,000.00 93,487,360.68 57,429,159.27 36,058,201.41 22.19 35.00%
Self-
pooled
funds
B4 Module
Workshop in
Xi'an
Economic
Development
Zone
139,890,800.00 32,175,345.76 32,175,345.76 23.00 36.00%
Self-
pooled
funds
Technology
Project of
Kuching Cell Plant No. 1
48,008,500.00 28,944,464.03 28,944,464.03 60.29 60.29%
Self-
pooled funds
5GW Mono
Module Project
of Jiaxing
LONGi Solar
999,017,000.00 516,481,509.76 492,882,421.75 23,599,088.01 51.70 75.32%
Self-
pooled
funds
Plant
Technological
Transformation
Project
230,018,000.00 105,107,168.16 126,974,996.46 211,238,192.03 20,843,972.59 100.00 91.00%
Self-
pooled
funds
W11 and W12
Warehouse Expansion
Project
165,270,000.00 21,048,665.60 1,156,545.01 19,892,120.59 12.04 12.04%
Self-
pooled funds
Office
Building &
Conference
Center Project
(Phase I) of
Solar
Headquarters Production
Base
245,350,000.00 93,526,817.88 106,545,199.63 182,245,694.92 17,826,322.59 88.12 93.00% 4,831,467.63 2,884,590.06 5.13
Self-
pooled
funds
Distributed
Solar Project
(Phase III) of
Liyang
30,517,540.58 15,892,353.44 15,892,353.44 52.08 50.00%
Self-
pooled
funds
CDM-01
Project of 120,000,000.00 9,103,380.00 6,617,964.89 15,721,344.89 28.83 28.83% Self-
pooled
Annual Report 2020
203 / 312
Taizhou Solar funds
5GW Mono
Ingot Project of Baoshan
1,591,720,000.00 11,900,372.22 22,028,472.25 21,625,961.47 12,302,883.00 100.00 100.00% Funds
raised
5GW Cell
Project of
Ningxia Solar -
Yinchuan
2,544,100,000.00 484,950,382.71 6,381,121.11 481,468,314.51 9,863,189.31 59.75 96.67% Funds
raised
6GW Mono
Ingot Project
(Phase II) of
Baoshan
LONGi
1,474,150,000.00 588,422,288.40 28,098,272.37 607,570,723.53 8,949,837.24 62.40 99.00%
Self-
pooled
funds
Mono Workshop
Technology
Upgrading
Project of
Huaping
LONGi
38,710,000.00 20,136,381.24 11,845,449.96 8,290,931.28 52.02 50.00%
Self-
pooled
funds
G4 Workshop
Cell Expansion
Project
413,810,000.00 8,631,972.13 474,294.40 8,157,677.73 1.97 1.97%
Self-
pooled
funds
6GW Mono
Ingot Project of Huaping
LONGi
1,633,393,400.00 297,986,881.80 367,260,248.43 658,111,975.35 7,135,154.88 59.23 100.00% Self-pooled
funds
5GW Mono
Ingot Project of
Lijiang LONGi
1,736,650,000.00 20,130,390.58 41,764,089.70 53,851,120.69 1,272,406.63 6,770,952.96 100.00 100.00%
Self-
pooled
funds
5GW Mono
Module
Manufacturing
Project of
Xianyang LONGi Solar
655,149,200.00 7,405,907.02 561,188,370.96 479,400,461.40 82,509,605.56 6,684,211.02 86.79 90.00%
Self-
pooled
funds
New 5GW
Module Project
of Jiangsu
LONGi Solar
838,590,000.00 22,947,093.64 545,394,878.17 485,659,126.91 76,176,480.63 6,506,364.27 67.77 99.00%
Self-
pooled
funds
20MW Solar
Power
Generation
Project of
Raoyang
127,568,800.00 3,291,391.07 89,238.20 3,380,629.27 100.00 100.00%
Self-
pooled
funds
10GW Mono Wafer Project
(Phase II) of
Chuxiong
917,330,000.00 228,838,725.36 29,378,394.88 211,196,479.48 43,729,662.96 3,290,977.80 52.51 99.00% Self-pooled
funds
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LONGi
Taizhou Base
Transformation Project
372,330,000.00 1,018,965.52 267,232,064.54 253,046,447.62 12,191,787.99 3,012,794.45 81.06 99.08%
Self-
pooled funds
5GW Mono
Cell Project in
Xi'an Jingwei
New Town
2,142,590,000.00 280,367.28 1,266,022,478.58 1,235,470,965.08 28,325,591.75 2,506,289.03 59.10 99.00% Funds
raised
Kuching Cell
Project (Phase
III)
680,620,000.00 409,213,296.07 73,322,426.26 480,417,228.11 2,118,494.22 70.89 87.23%
Self-
pooled
funds
B1 Module
Workshop
Project in Xi'an Economic
Development
Zone
109,960,000.00 8,193,175.61 7,063,484.07 1,129,691.54 100.00 100.00% 126,506.20 5.13
Self-
pooled funds
150MW PV
Solar Project of
Ruicheng
796,917,000.00 183,740,542.78 424,025,824.00 607,766,366.78 76.27 100.00%
Self-
pooled
funds
5GW Mono
Module Project
(Phase II) of
Chuzhou
LONGi Solar
1,033,348,700.00 80,625,814.99 550,290,340.03 546,798,037.82 84,118,117.20 61.05 80.95%
Self-
pooled
funds
B2 Module Workshop
Project in Xi'an
Economic
Development
Zone
199,840,000.00 38,981,242.94 26,795,122.42 65,776,365.36 78.41 100.00% 43,861.18 15,760.48 5.13
Self-
pooled
funds
5.4MW
Distributed
Solar - Project
of Liyang Shidai
43,061,800.00 10,052,711.68 1,013,554.32 11,066,266.00 100.00 100.00%
Self-
pooled
funds
Others 291,730,407.79 748,976,255.16 579,977,444.54 294,527,886.94 166,201,331.47
Total 30,355,823,109.58 2,903,294,374.70 11,486,230,707.93 11,354,217,055.94 661,177,159.45 2,374,130,867.24 / / 5,001,835.01 2,900,350.54 / /
Note: The budget amount of the above investment projects shall be adjusted timely by the Company according to the market conditions, excluding the
basic working capital.
(3). Provision for impairment of construction in progress in the current period
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Annual Report 2020
205 / 312
Item Amount of provision in the current period Reason for provision
Equipment to be installed 7,494,317.31 Equipment damage
Total 7,494,317.31 /
Other notes
√ Applicable □ Not Applicable
As of December 31, 2020, there was no construction in progress rented by financing (as of December 31, 2019, the book value of RMB 176,991,150.44
was construction in progress rented by financing).
Project material
(4). Project material
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Ending balance Beginning balance
Book balance
Provision
for
impairment
Book value Book balance
Provision
for
impairment
Book value
Materials and equipment prepared for
the project
61,405,252.46 61,405,252.46 7,012,140.59 7,012,140.59
Total 61,405,252.46 61,405,252.46 7,012,140.59 7,012,140.59
Other notes:
N/A
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23. Productive biological assets
(1) Productive biological assets measured at cost
□ Applicable √ Not Applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not Applicable
Other notes
□ Applicable √ Not Applicable
24. Oil and gas assets
□ Applicable √ Not Applicable
25. Right-of-use assets
□ Applicable √ Not Applicable
26. Intangible assets
(1) Intangible assets
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Land use rights ERP /software Others Total
I. Original book value
1. Beginning balance 244,682,215.46 74,999,439.35 2,951,158.68 322,632,813.49
2. Increase in the current
period 129,600,455.70 44,501,080.95 257,740,522.79 431,842,059.44
(1) Acquisition 19,046,650.67 29,697,176.50 3,089,448.36 51,833,275.53
(2) Internal R&D
(3) Increase from business
combination 110,553,805.03 2,779,877.41 252,151,518.85 365,485,201.29
(4) Transfer from construction
in progress 12,024,027.04 2,499,555.58 14,523,582.62
3. Decrease in the current
period 20,206,743.46 196,954.30 20,403,697.76
(1) Disposal 14,611,440.19 14,611,440.19
(2) Impact of foreign currency
translation 5,595,303.27 196,954.30 5,792,257.57
4. Ending balance 354,075,927.70 119,303,566.00 260,691,681.47 734,071,175.17
II. Accumulated amortization
1. Beginning balance 59,126,078.90 17,792,575.27 548,991.35 77,467,645.52
2. Increase in the current
period 14,809,697.34 14,318,496.88 36,747,893.37 65,876,087.59
(1) Accrual 14,809,697.34 14,318,496.88 36,747,893.37 65,876,087.59
3. Decrease in the current
period 7,553,208.44 1,297,516.33 8,850,724.77
(1) Disposal 6,025,079.92 1,313,698.00 7,338,777.92
(2) Impact of foreign currency
translation 1,528,128.52 -16,181.67 1,511,946.85
Annual Report 2020
207 / 312
4. Ending balance 66,382,567.80 30,813,555.82 37,296,884.72 134,493,008.34
III. Provision for impairment
1. Beginning balance
2. Increase in the current
period 1,937,500.04 1,937,500.04
(1) Accrual 1,937,500.04 1,937,500.04
3. Decrease in the current
period
(1) Disposal
4. Ending balance 1,937,500.04 1,937,500.04
IV. Book value
1. Ending book value 287,693,359.90 88,490,010.18 221,457,296.71 597,640,666.79
2. Beginning book value 185,556,136.56 57,206,864.08 2,402,167.33 245,165,167.97
Intangible assets generated via internal R&D of the Company account for 0.00% of intangible assets
balance at the end of the current period.
(2). Land use right without property ownership certificate
□ Applicable √ Not Applicable
Other notes:
√ Applicable □ Not Applicable
(1) The amortization amount of intangible assets in 2020 was RMB 65,876,087.59 (2019: RMB
15,702,439.25).
(2) As of December 31, 2020, the land use right with the book value of RMB 10,589,144.24 (original
price RMB 46,207,177.00) was rented by financing (as of December 31, 2019, book value RMB
14,439,742.32 (original price RMB 46,207,177.00)).
27. Development expenditure
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning
balance
Increase in the current period Decrease in the current period
Ending
balance
Balance
Internal
development
expenditure
Others
Recognized
as the
intangible
assets
Transferred into
current profits
or losses
Expended
expenditure
499,058,005.55 499,058,005.55
Capitalized
expenditure
45,849.02 363,280.98 45,849.02 363,280.98
Total 45,849.02 499,421,286.53 499,103,854.57 363,280.98
Other notes
N/A
28. Goodwill
(1). Original book value of goodwill
Annual Report 2020
208 / 312
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Name of the
investee or items
which form THE
goodwill
Beginning
balance
Increase in the current
period
Decrease in
the current
period Ending balance
Formed from
business combination Disposal
Ningbo Jiangbei EZ
New Energy Co.,
Ltd.
165,205,880.21 165,205,880.21
Hami Liushuquan
Xuanli Solar Power
Generation Co., Ltd.
5,006,322.98 5,006,322.98
Hami Liurui New
Energy
Development Co.,
Ltd.
2,000,000.00 2,000,000.00
Hami Liuyang Solar
Technology
Development Co.,
Ltd.
4,004,742.49 4,004,742.49
Total 11,011,065.47 165,205,880.21 176,216,945.68
(2). Provision for impairment of goodwill
□ Applicable √ Not Applicable
(3). Relevant information of goodwill in the asset group or asset group portfolio
□ Applicable √ Not Applicable
(4). Explain the process of goodwill impairment test, key parameters (such as the growth rate
in the forecast period, the growth rate in the stable period, the profit rate, the discount rate and
the forecast period adopted when estimating the present value of future cash flow) and the
recognition method of goodwill impairment loss
□ Applicable √ Not Applicable
(5). Impact of goodwill impairment test
□ Applicable √ Not Applicable
Other notes
√ Applicable □ Not Applicable
During the goodwill impairment test, the Group compares the book value of the relevant asset or asset
portfolio (including goodwill) with the recoverable amount. If the recoverable amount is lower than
the book value, the difference is included in the current profit or loss. The Group's goodwill
apportionment had no change in 2020.
29. Long-term unamortized expenses
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning
balance
Increase in the
current period
Amortization
amount in the
current period
Other
decreases Ending balance
Annual Report 2020
209 / 312
Expenses for
decoration
and
reconstruction
902,666,260.47 649,289,842.68 162,909,920.82 14,221,067.44 1,374,825,114.89
Prepaid rent 67,831,569.73 77,826,852.79 15,804,892.91 21,751,467.87 108,102,061.74
Others 467,604.25 3,728,955.44 333,244.17 3,863,315.52
Total 970,965,434.45 730,845,650.91 179,048,057.90 35,972,535.31 1,486,790,492.15
Other notes:
N/A
30. Deferred tax assets /deferred tax liabilities
(1). Deferred tax assets before offsetting
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Ending balance Beginning balance
Deductible
temporary
differences
Deferred income tax
Assets
Deductible
temporary
differences
Deferred income
tax
Assets
Provision for
impairment of
assets
1,035,864,314.21 157,687,888.63 387,383,441.84 49,144,968.17
Unrealized profits
from internal
transactions
2,027,134,949.77 301,273,782.49 1,698,404,891.00 283,016,088.95
Deductible losses 1,661,956,734.92 284,031,075.21 895,047,239.72 193,532,703.70
Deferred income 667,793,296.61 91,671,976.00 516,595,134.18 73,109,827.50
Depreciation of
fixed assets 91,260,553.40 12,900,599.84 71,157,444.54 17,774,603.56
Amortization of
intangible assets 88,586,871.39 13,288,030.71 48,984,177.59 12,246,044.40
Share-based
payment 40,786,138.48 6,200,522.72
Long-term payables 178,905,319.42 27,103,182.12 122,615,425.68 19,848,659.20
Accrued liabilities 791,682,397.83 116,691,669.40 472,474,334.03 64,114,225.33
Accrued expenses 74,548,315.72 11,182,247.37
Amortization of
long-term
unamortized
expenses
42,520,446.71 6,378,067.00 29,781,654.19 3,451,372.13
Changes in fair
value of the
investment in other
equity instruments
1,572,066.89 235,810.03
Total 6,660,253,199.98 1,022,208,518.77 4,284,801,948.14 722,674,825.69
(2). Deferred tax liabilities before offsetting
√ Applicable □ Not Applicable
Annual Report 2020
210 / 312
Unit: Yuan Currency: RMB
Item
Ending balance Beginning balance
Taxable
temporary
difference
Deferred income
tax
Liabilities
Taxable
temporary
difference
Deferred income
tax
Liabilities
Asset valuation
appreciation arising from
business combination not
under the common control
355,572,689.71 35,433,375.50 14,123,497.79 2,118,524.67
Changes in fair value of the
investment in other equity
instruments
13,610,706.92 2,041,606.03
Accelerated depreciation of
fixed assets 4,655,574,771.17 734,092,973.13 3,225,400,795.44 544,424,952.30
If the overseas subsidiary
distributes the dividend, it
needs to pay the
supplementary income tax
1,947,632,936.99 97,381,646.85
Long-term equity
investment 4,495,038.26 674,255.74
Total 6,976,886,143.05 869,623,857.25 3,239,524,293.23 546,543,476.97
(3). Deferred tax assets or liabilities listed through the net amount after offsetting
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Offsetting amount
of deferred tax
assets and
liabilities at the
end of the period
Ending balance of
deferred tax assets
or liabilities after
offsetting
Offsetting amount
of deferred tax
assets and
liabilities at the
beginning of the
period
Beginning
balance of
deferred tax
assets or
liabilities after
offsetting
Deferred tax assets 142,006,155.75 880,202,363.02 222,739,373.71 499,935,451.98
Deferred tax liabilities 142,006,155.75 727,617,701.50 222,739,373.71 323,804,103.26
(4). Details of unrecognized deferred tax assets
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Deductible temporary differences 141,054,717.74 168,061,401.79
Deductible losses 52,559,477.50 37,281,564.41
Total 193,614,195.24 205,342,966.20
(5). Deductible losses of unrecognized deferred tax assets to be due in the following years
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Year Ending balance Beginning balance Remarks
2022 1,576,992.51 7,651,031.71
Annual Report 2020
211 / 312
2023 1,861,508.15 12,279,949.37
2024 2,982,628.20 17,350,583.33
2025 46,138,348.64
Total 52,559,477.50 37,281,564.41 /
Other notes:
□ Applicable √ Not Applicable
31. Other non-current assets
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Ending balance Beginning balance
Book balance
Provision
for
impairment
Book value Book balance
Provision
for
impairment
Book value
Advance
payment
for
equipment
and
project
funds
892,980,410.38 892,980,410.38 739,261,134.38 739,261,134.38
Total 892,980,410.38 892,980,410.38 739,261,134.38 739,261,134.38
Other notes:
N/A
32. Short-term borrowings
(1). Classification of short-term borrowings
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Secured borrowings 454,371,792.82
Mortgage borrowings 368,986,472.70
Credit borrowings 2,046,979,153.36 400,000,000.00
Total 2,415,965,626.06 854,371,792.82
Note of classification of short-term borrowings:
N/A
(2). Outstanding overdue short-term borrowings
□ Applicable √ Not Applicable
Significant short-term borrowings due but unpaid are shown as follows:
□ Applicable √ Not Applicable
Other notes
√ Applicable □ Not Applicable
Annual Report 2020
212 / 312
(a) As of December 31, 2020, there was no bank mortgage loan. As of December 31, 2019, the bank
mortgage loan RMB 454,371,792.82 was RMB 454,371,792.82 receivables financing as the pledge.
(b) As of December 31, 2020, the bank mortgage loan RMB 368,986,472.70 was pledged by the
fixed assets with the book value of RMB 772,349,463.23 (original price RMB 957,975,976.69), the
intangible assets with the book value of RMB 470,932,932.62 (original price RMB 1,006,146,301.82)
and the accounts receivable with the book value of RMB 97,221,010.00 (original price RMB
97,221,010.00).
(c) As of December 31, 2020, the interest rate range of RMB short-term borrowings was from 3.050%
to 3.750% (as of December 31, 2019: 4.785%), and the interest rate range of foreign currency short-
term borrowings was from 1.280% to 3.000% (as of December 31, 2019: no).
33. Financial liabilities held for trading
□ Applicable √ Not Applicable
34. Derivative financial liabilities
□ Applicable √ Not Applicable
35. Notes payable
(1). Presentation of notes payable
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Class Ending balance Beginning balance
Commercial acceptance
bill
Banker’s acceptance bill 10,974,916,004.45 8,111,877,027.54
Total 10,974,916,004.45 8,111,877,027.54
Total amount of notes payable due but unpaid yet at the end of current period was RMB 0.00.
36. Accounts payable
(1). Presentation of accounts payable
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Trade accounts payable 11,169,277,619.28 5,602,048,097.26
Total 11,169,277,619.28 5,602,048,097.26
(2). Important accounts payable with the aging of more than one year
□ Applicable √ Not Applicable
Other notes
√ Applicable □ Not Applicable
As of December 31, 2020, the accounts payable with the aging of more than one year was RMB
194,520,495.27 (RMB 119,033,628.72 as of December 31, 2019), which is mainly the trade account
payable), and the payment has not been paid yet.
37. Advance receipts
(1). Presentation of advances from customers
Annual Report 2020
213 / 312
□ Applicable √ Not Applicable
(2). Significant advance receipts aged more than 1 year
□ Applicable √ Not Applicable
Other notes
□ Applicable √ Not Applicable
38. Contract liabilities
(1). Contract liabilities
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Advances from customers 5,017,755,319.14 3,679,503,563.97
Total 5,017,755,319.14 3,679,503,563.97
(2). Amount of and reason for significant changes in the book value within the reporting period
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
39. Payroll payable
(1). Presentation of payroll payable
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning
balance
Increase in the
current period
Decrease in the
current period Ending balance
I. Short-term
remuneration 552,085,308.20 4,742,877,424.65 4,286,180,109.88 1,008,782,622.97
II. Post-employment
benefits - defined
contribution plans
5,315,878.91 147,604,762.24 141,993,905.60 10,926,735.55
III. Dismissal benefits 954,035.71 4,540,872.34 4,520,465.72 974,442.33
IV. Other benefits due
within one year
Total 558,355,222.82 4,895,023,059.23 4,432,694,481.20 1,020,683,800.85
(2). Presentation of short-term remuneration
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning balance Increase in the
current period
Decrease in the
current period Ending balance
I. Wages,
bonuses, allowances
and subsidies
466,391,046.02 4,058,229,593.54 3,656,807,927.27 867,812,712.29
II. Employee
benefits 190,565.92 402,890,847.18 403,048,320.12 33,092.98
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III. Social
insurance premium 2,345,915.11 127,848,665.28 123,641,880.30 6,552,700.09
Including: Medical
insurance premium 1,651,947.86 114,305,088.00 110,780,261.67 5,176,774.19
Work-related injury
insurance premium 484,087.65 8,858,800.76 8,520,937.90 821,950.51
Maternity insurance
premium 209,879.60 4,684,776.52 4,340,680.73 553,975.39
IV. Housing
provident fund 444,885.78 81,587,620.91 81,158,608.28 873,898.41
V. Labor union
expenditures and
employee education
expenses
82,712,895.37 72,320,697.74 21,523,373.91 133,510,219.20
VI. Short-term
paid absence
VII. Short-term
profit sharing plan
Total 552,085,308.20 4,742,877,424.65 4,286,180,109.88 1,008,782,622.97
(3). Presentation of defined contribution plan
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning
balance
Increase in the
current period
Decrease in the
current period Ending balance
1. Basic endowment
insurance
5,061,360.52 140,366,527.71 134,934,676.18 10,493,212.05
2. Unemployment
insurance premium
254,518.39 7,238,234.53 7,059,229.42 433,523.50
3. Enterprise annuity
payment
Total 5,315,878.91 147,604,762.24 141,993,905.60 10,926,735.55
Other notes:
□ Applicable √ Not Applicable
40. Taxes payable
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
VAT 158,924,142.37 93,294,164.88
Enterprise income tax 446,621,530.53 214,015,814.13
Individual income tax 14,721,185.29 17,385,810.55
City maintenance and construction
tax
7,894,806.94 2,468,975.10
Stamp tax 12,588,262.52 6,767,491.70
Foundation for water conservancy 9,243,404.65 4,037,411.35
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Educational surcharges 7,121,176.26 1,819,311.35
Housing property tax 2,634,139.33 1,990,353.86
Others 1,096,475.07 2,310,092.03
Total 660,845,122.96 344,089,424.95
Other notes:
N/A
41. Other payables
Item listing
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Interest payable 53,289,437.89
Dividends payable 3,946.32
Other payables 8,611,882,515.40 3,844,825,637.60
Total 8,611,886,461.72 3,898,115,075.49
Other notes:
□ Applicable √ Not Applicable
Interest payable
(1). Presentation by classification
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Interests of long-term borrowings whose
interests are paid by installments and
principal is paid on the maturity date
4,073,310.77
Enterprise bond interest 48,631,293.80
Interest payable of short-term
borrowings
584,833.32
Total 53,289,437.89
Significant interests due but unpaid:
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
Dividends payable
(2). Presentation by classification
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Annual Report 2020
216 / 312
Ordinary share dividends 3,946.32
Total 3,946.32
Other notes: Including significant dividends payable unpaid for over 1 year. Reasons for non-payment
shall be disclosed:
N/A
Other payables
(1). Other payables presented by nature of payment
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Payment for equipment 5,862,885,028.19 2,926,223,317.48
Equity transfer fund payable 712,115,231.47
Freight and miscellaneous charges 489,817,510.21 152,820,183.61
Retention money 416,916,849.15 143,483,060.29
Accrued expenses 229,535,036.38 74,507,439.47
Project fund 213,055,895.86 91,912,453.53
Security 112,699,976.23 82,294,883.41
Electric charge 41,930,258.86 58,315,784.13
Agent commission 30,996,812.92 8,129,716.68
Restricted share repurchase
obligation
114,889.13 22,526,342.00
Others 501,815,027.00 284,612,457.00
Total 8,611,882,515.40 3,844,825,637.60
(2). Other significant payables aged more than 1 year
□ Applicable √ Not Applicable
Other notes:
√ Applicable □ Not Applicable
As of December 31, 2020, other payables with the aging of more than one year was RMB
834,450,388.29 (RMB 287,996,251.26 as of December 31, 2019), which is mainly the equipment
fund payable).
42. Held-for-sale liabilities
□ Applicable √ Not Applicable
43. Non-current liabilities due within one year
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Long-term borrowings due within one
year
981,698,298.76 963,166,000.00
Bonds payable due within one year 1,045,913,314.17
Long-term payables due within one year 393,803,551.49 608,315,098.00
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Other non-current liabilities due within
one year
365,059,333.10
Total 2,786,474,497.52 1,571,481,098.00
44. Other current liabilities
Other current liabilities
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Pending output tax 434,652,976.40
Total 434,652,976.40
Increase and decrease in short-term bonds payable:
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
45. Long-term borrowings
(1). Classification of long-term borrowings
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Secured borrowings 300,220,000.00 700,000,000.00
Mortgage borrowings 116,491,645.08 1,389,570,306.97
Guaranteed loan 310,000,000.00
Credit borrowings 1,690,272,893.97 1,072,189,916.00
Less: long-term borrowings due
within one year
Secured borrowings -300,220,000.00 -200,000,000.00
Mortgage borrowings -79,705,404.78 -269,486,000.00
Guaranteed loan -60,000,000.00
Credit borrowings -601,772,893.98 -433,680,000.00
Total 1,125,286,240.29 2,508,594,222.97
Note of classification of long-term borrowings:
N/A
Other descriptions, including the interest rate range:
√ Applicable □ Not Applicable
(a) As of December 31, 2020, the bank mortgage loan RMB 116,491,645.08 (as of December 31,
2019: RMB 1,389,570,306.97 was pledged by the Group’s fixed assets with the book value of RMB
814,577,319.70 (original price: RMB 1,043,160,441.53) (as of December 31, 2019: book value RMB
1,439,423,188.08 (original price: RMB 1,722,794,574.78)), and the intangible assets with the book
value of RMB 310,059,488.03 (original price: RMB 340,148,880.01) (as of December 31, 2019: book
value RMB 79,535,329.81 (original price: RMB 85,675,400.00)).
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(b) As of December 31, 2020, the bank mortgage loan RMB 300,220,000.00 (as of December 31,
2019: RMB 700,000,000.00) was pledged by Li Chunan with the Company’s equity (as of December
31, 2019: pledged by Li Zhenguo and Li Chunan with the Company’s equity).
(c) As of December 31, 2020, there was no guaranteed loan (as of December 31, 2019: RMB
310,000,000.00) (Li Zhenguo provided the guarantee as of December 31, 2019).
(d)As of December 31, 2020, the interest rate range of RMB long-term borrowings was from 2.915%
to 4.988% (as of December 31, 2019: 2.915% to 4.988%), and the interest rate range of foreign
currency long-term borrowings was from 3.742% to 10.200% (as of December 31, 2019: 5.060%).
46. Bonds payable
(1). Bonds payable
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
16 LONGi 01 1,045,913,314.17 995,584,143.19
(Less) Bonds payable due within
one year
-1,045,913,314.17
L20 Convertible Bonds 4,351,411,265.99
Total 4,351,411,265.99 995,584,143.19
(2). Increase and decrease in bonds payable: (excluding preferred shares classified as financial
liabilities, perpetual bond and other financial instruments)
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Name Par
value Issue date
Bond
term
Issuance
amount
Beginning
balance
Issuance in the
current period
Interest
accrued by
par value
Amortization
of premiums
or discounts
Repayment
in the
current
period
Ending balance
16 LONGi
01 100 2016.03.07
5
years 1,000,000,000 995,584,143.19 48,631,293.74 1,697,877.24 1,045,913,314.17
L20
Convertible
Bonds
100 2020.07.31 6
years 5,000,000,000 4,283,438,956.19 6,250,000.00 61,722,309.80 4,351,411,265.99
Total / / / 6,000,000,000 995,584,143.19 4,283,438,956.19 54,881,293.74 63,420,187.04 5,397,324,580.16
(3). Description of the conditions and time for the conversion of convertible corporate bonds
to equity
√ Applicable □ Not Applicable
(a) Approved by China Securities Regulatory Commission in the Regulation Permit ([2016] No.
296), the Company issued corporate bonds on March 7, 2016. The interest of such bonds was
calculated with simple interest rate on an annual basis and the nominal interest rate was 5.63% for
the first three years during the duration. In 2019, the Issuer up-regulated the nominal interest rate to
5.85% in the last 2 years (from March 7, 2019 to March 6, 2021), and the interest shall be paid once
annually.
As of December 31, 2020, the Group listed the bonds payable within one year (RMB
1,045,913,314.17) as the non-current liabilities due within one year.
(b) Approved by China Securities Regulatory Commission in the Regulation Permit ([2020] No.
1092), the Company issued 50,000,000 convertible bonds with the face amount of RMB 100 on July
31, 2020. The annual coupon rate of bonds was 0.3% in the first year, 0.4% in the second year, 0.8%
in the third year, 1.5% in the fourth year, 1.8% in the fifth year and 2% in the sixth year. The following
Annual Report 2020
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payment method is adopted: pay the interest once a year, repay the principal and pay the interest of
the last year upon maturity. The period for the conversion of the convertible corporate bonds issued
starts on the first trading day after the expiration of six months from the date of issuance completion
and expires on the maturity date of the convertible corporate bonds.
The initial conversion price of the convertible bonds issued this time is RMB 52.77 /share. After this
issuance, In the event of the issuance of bonus shares, conversion into additional share capital,
additional issuance of new shares (excluding the additional share capital due to the conversion of the
convertible corporate bonds issued this time), allotment of shares and distribution of cash dividends,
the conversion price shall be adjusted accordingly. In the duration of the convertible corporate bonds
issued by the Company, when the closing price of the Company's shares is less than 85% of the current
conversion price on at least 15 of any 30 consecutive trading days, the Board has the right to propose
a downward revision plan for the share transfer price and submit it to the Shareholders' Meeting for
voting.
Within five trading days after the expiration of the convertible corporate bonds issued this time, the
Company will redeem the convertible corporate bonds without conversion at the price of 107% of the
par value of the bonds (including the interest of the last installment).
Within the period of conversion of convertible corporate bonds issued this time, if the closing price
of A shares of the Company is not less than 130% (inclusive) of the current transfer price on at least
20 consecutive trading days of 30 consecutive trading days, or the balance of unconverted bonds
issued this time is less than RMB 30 million, the Company has the right to redeem all or part of the
convertible corporate bonds that have not been converted at the par value of the bonds plus current
accrued interest.
In the last two interest years of the convertible corporate bonds issued this time, if the closing price
of the Company's A-shares is less than 70% of the current transfer price on any 30 consecutive trading
days, the holders of convertible corporate bonds have the right to sell all or part of their convertible
corporate bonds back to the Company at the par value of the bonds plus the current accrued interest.
Where issuing convertible bonds to raise funds is inconsistent with the Company’s commitment in
the prospectus, and such change is considered by China Securities Regulatory Commission (CSRC)
to alter the purpose of the funds, the holders of convertible corporate bonds have an one-time right to
sell back all or part of their convertible corporate bonds to the Company at par value plus current
accrued interest. Under the above circumstances, the holders of convertible corporate bonds may buy
them back during the buy-back reporting period. If they do not buy them back during the buy-back
reporting period, they shall not exercise the additional buy-back right.
On the issuance date, the interest rate of the Company's recent comprehensive financing cost was
used to estimate the fair value of the liability part of such bonds, and the rest as the fair value of the
equity part was recorded into shareholders' equity.
The Company held the second extraordinary general meeting in 2020 on September 15, 2020 and
approved the 2020 semi-annual profit distribution plan, that is, the cash dividend of RMB 1.80 (tax-
inclusive) will be paid to all shareholders for every 10 shares based on the total share capital of
3,771,827,351 shares on the record date when the profit distribution is implemented minus 58,450
shares of restricted shares to be repurchased by the Company which do not participate in the profit
distribution.
According to the issuance terms and relevant provisions of Prospectus for Public Issuance of
Convertible Corporate Bonds, after “LONG 20 Convertible Bonds” are issued, in the event of the
issuance of bonus shares, conversion into additional share capital, additional issuance of new shares
(excluding the additional share capital due to the conversion of the convertible corporate bonds issued
this time), allotment of shares and distribution of cash dividends, the conversion price shall be
adjusted accordingly. The period of the transfer is from February 8, 2021 to July 30, 2026, and the
initial transfer price is RMB 52.77 /share. The transfer price will be adjusted to RMB 52.59 /share
Annual Report 2020
220 / 312
after the completion of the half-year equity distribution in 2020.
(4). Description of other financial instruments divided into financial liabilities
Basic information of outstanding preferred share, perpetual bond and other financial instruments at
the end of period
□ Applicable √ Not Applicable
Change statement of outstanding preferred share, perpetual bond and other financial instruments at
the end of period
□ Applicable √ Not Applicable
Description of the basis for the classification of other financial instruments into financial liabilities:
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
47. Lease liabilities
□ Applicable √ Not Applicable
48. Long-term payables
Item listing
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Long-term payables 889,053,865.52 1,528,226,692.46
Special accounts payable
Total 889,053,865.52 1,528,226,692.46
Other notes:
□ Applicable √ Not Applicable
Long-term payables
(1). Long-term payables presented by nature of payment
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning balance Ending balance
Financial leasing payable 2,178,077,816.42 901,805,739.47
Less: unrealized financing expenses -286,068,155.11 -92,310,432.64
Asses purchased by installment
payment
153,346,906.71 258,029,191.63
accrued rent in the rent-free period 91,185,222.44 215,332,918.55
(Less) long-term payables due within
one year
-608,315,098.00 -393,803,551.49
Total 1,528,226,692.46 889,053,865.52
Other notes:
N/A
Annual Report 2020
221 / 312
Special accounts payable
(2). Presentation of special payables by nature
□ Applicable √ Not Applicable
49. Long-term payroll payable
□ Applicable √ Not Applicable
50. Accrued liabilities
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning balance Ending balance Reason for formation
Product quality assurance 476,930,834.07 845,200,236.28
Product quality assurance
security accrued for sales
of module products
Others 39,580,000.00 61,952,710.08
Total 516,510,834.07 907,152,946.36 /
Other notes (including important assumptions and estimations about important accrued liabilities):
N/A
51. Deferred income
Deferred income
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning balance Increase in the
current period
Decrease in the
current period Ending balance
Reason for
formation
Government
grants
516,595,134.18 238,185,040.02 80,823,513.37 673,956,660.83
Total 516,595,134.18 238,185,040.02 80,823,513.37 673,956,660.83 /
Items involving government grants:
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Liability items Beginning
balance
Newly-added
grant amount
in the current
period
Amount
included in
non-
operating
revenue in
the current
period
Amount
included in
other
incomes in
the current
period
Other
changes
Ending
balance
Related to
assets /
income
Fixed asset
investment
reward
255,444,359.58 153,144,740.02 44,725,597.86 363,863,501.74
Asset-related
Reward for
intelligent
production
capacity of
mono ingot
and mono
wafer with an
annual output
49,085,657.86 5,609,789.52 43,475,868.34
Asset-related
Annual Report 2020
222 / 312
of more than
1GW
Support funds
for major
projects in
Yinchuan
Economic and
Technological
Development
Zone
29,199,000.00 556,171.43 28,642,828.57
Asset-related
National robot
project 29,978,632.49 3,128,205.12 26,850,427.37
Asset-related
Subsidies for
"three majors
and one
innovation"
18,468,300.00 2,067,613.92 16,400,686.08
Income-
related
R&D and
application
subsidy for
intelligent
wafer control
and
transportation
production
line
17,000,000.00 864,406.79 16,135,593.21
Asset-related
Special funds
for
transformatio
n and
upgrading
12,424,000.10 3,000,000.00 1,665,149.45 13,758,850.65
Asset-related
Public rental
housing
subsidy of
Ningxia
LONGi
10,624,035.17 781,435.07 9,842,600.10
Asset-related
Special funds
for industrial
and IT
development -
mono ingot
construction
project with
annual output
of 5GW
9,047,707.05 1,122,997.80 7,924,709.25
Asset-related
Special fund
subsidy for
industrial
robot purchase
project
7,736,000.00 773,599.92 6,962,400.08
Asset-related
Energy-saving
renovation
project of
high-
efficiency
crystal silicon
material low-
energy
diamond wire
cutting
process
system
6,808,801.76 1,016,949.12 5,791,852.64
Asset-related
Investment
subsidy from
the central
budget for
6,714,285.74 1,342,857.12 5,371,428.62
Asset-related
Annual Report 2020
223 / 312
resource
conservation
and
environmental
protection
Special
subsidies for
public housing
of Yinchuan
LONGi
5,557,109.05 502,500.00 5,054,609.05
Asset-related
Special fund
of Hailing
District
Finance
Bureau for
2018
provincial
scientific and
technological
achievements
transformatio
n
5,384,615.40 615,384.60 4,769,230.80
Asset-related
Fixed asset
subsidy of
Economic and
Trade Bureau
of High-tech
Zone
5,848,854.68 1,132,036.32 4,716,818.36
Asset-related
Technological
transformatio
n project of
diamond wire
saw cutting
5,388,938.40 842,105.28 4,546,833.12
Asset-related
2016
Technological
transformatio
n guiding fund
project (first
batch)
(850MW
technological
transformatio
n project)
5,256,410.26 841,025.64 4,415,384.62
Asset-related
500MW mono
ingot project
(Phase II)
5,333,333.35 1,333,333.32 4,000,000.03
Asset-related
Special funds
for intelligent
factory, green
factory and
digital
workshop
3,000,000.00 138,888.91 2,861,111.09
Asset-related
Others 86,698,393.29 23,637,000.00 11,763,466.18 98,571,927.11
Related to
assets /
income
Total 516,595,134.18 238,185,040.02 80,823,513.37 673,956,660.83
Other notes:
□ Applicable √ Not Applicable
52. Other non-current liabilities
√ Applicable □ Not Applicable
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224 / 312
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Contract liabilities
Variable consideration payable for
business combinations under common
control
634,890,914.87
Less: other non-current liabilities due
within one year -365,059,333.10
Total 269,831,581.77
Other notes:
N/A
53. Share capital
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Beginning
balance
Increase/decrease (+, -) Ending balance
New
issue
of
shares
Issuance
of
additional
shares as
dividends
Shares
transferred
from
provident
fund
Others Subtotal
Total
number
of
shares
3,772,016,757.00 -
247,856.00
-
247,856.00 3,771,768,901.00
Other notes:
The 2019 annual meeting of the fourth Board and 2019 Annual General Meeting passed the Proposal
on Repurchase and Write-off of Some Restricted Shares, agreeing to handle repurchase and
cancellation of 189,406.00 restricted shares that have been granted and have not yet been unlocked
under the Company's Phase II restricted share incentive plan, and to reduce the registered capital of
RMB 189,406.00 and capital reserve of RMB 765,741.40.
The 13th meeting of the fourth Board in 2020 and the second extraordinary general meeting in 2020
passed the Proposal on Repurchase and Write-off of Some Restricted Shares, agreeing to handle
repurchase and cancellation of 58,450.00 restricted shares that have been granted and have not yet
been unlocked under the Company's Phase II restricted share incentive plan, and to reduce the
registered capital of RMB 58,450.00 and capital reserve of RMB 236,305.00.
54. Other equity instruments
(1). Basic information of outstanding preferred share, perpetual bond and other financial
instruments at the end of period
√ Applicable □ Not Applicable
See V. 46 Bonds payable for details.
(2). Change statement of outstanding preferred share, perpetual bond and other financial
instruments at the end of period
√ Applicable □ Not Applicable
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225 / 312
Explanation of increase and decrease in other equity instruments in the current period and reasons,
and basis of related accounting treatment:
√ Applicable □ Not Applicable
See V. 46 Bonds payable for details.
Other notes:
□ Applicable √ Not Applicable
55. Capital reserves
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning balance Increase in the
current period
Decrease in the
current period Ending balance
Capital premium
(share premium) 10,420,718,190.06 20,136,118.20 1,002,046.40 10,439,852,261.86
Other capital
reserves 41,297,484.77 3,822,900.83 23,835,309.88 21,285,075.72
Total 10,462,015,674.83 23,959,019.03 24,837,356.28 10,461,137,337.58
Other notes include condition and causes of variation in the current period:
(a) In accordance with the Proposal on Phase IV Unlocking & Listing in Phase II Restricted Share
Incentive Plan passed by the fourth Board of the Company on the 18th meeting in 2020, the unlocked
restricted shares this year are transferred from other capital reserves to the capital reserve (share
premium) RMB 20,136,118.20.
The change in capital reserves (share capital premium) due to share repurchase this year is shown in
V. 53. Share capital, and the decrease amount of capital reserves (share premium) this year is RMB
1,002,046.40.
(b) Other capital reserves increase by RMB 3,822,900.83 this year. According to the fair value of
restricted shares on the grant date, the services provided by the employees in the current period are
included into the related cost expense RMB 3,822,900.83.
Other capital reserves decrease by RMB 23,835,309.88 this year, in which the transfer of the unlocked
restricted shares into capital reserves (share premium) reduces other capital reserves by RMB
20,136,118.20.
56. Treasury share
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Outstandin
g financial
instruments
At the
beginning
of the
period
Increase in the current period
Decrease in
the current
period
Ending balance
Qty. Book
value Qty. Book value Qty.
Book
value Qty. Book value
Convertible
corporate
bonds
94,750,805.0
0
674,563,439.3
6
94,750,805.0
0
674,563,439.3
6
Total 94,750,805.0
0
674,563,439.3
6
94,750,805.0
0
674,563,439.3
6
Annual Report 2020
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Item Beginning balance Increase in the
current period
Decrease in the
current period Ending balance
Share-based
payment
22,526,342.00 22,094,623.00 431,719.00
Total 22,526,342.00 22,094,623.00 431,719.00
Other notes include condition and causes of variation in the current period:
According to the Restricted Share Incentive Plan and its abstract passed by the fourth extraordinary
general meeting of the Company on December 12, 2014, after China Securities Regulatory
Commission confirmed no objection and filed, the Company planned to grant 12.225 million of
restricted shares to 728 incentive objects, including some directors, senior management, core
technology, business and management personnel of the Company. The price per share was RMB 9.90.
The actual grant date was December 16, 2014. A total of 489 incentive objects were granted to
subscribe 9,272,300.00 restricted RMB ordinary shares and the registered capital increased by RMB
9,272,300.00.
In accordance with the Proposal on Granting Reserved Restricted Shares to Incentive Objects passed
in the 16th session of by the third board meeting held on November 10, 2015, the Company granted
3,000,000.00 restricted RMB ordinary shares to 76 incentive objects by the way of non-public
offering. The par value per share was RMB 1, and the selling price per share was RMB 6.26. The
actual grant date was December 10, 2015. A total of 76 incentive objects were granted to subscribe
2,960,000.00 restricted RMB ordinary shares and the registered capital increased by RMB
2,960,000.00.
According to the resolution of the seventh extraordinary shareholders’ meeting of the Company on
October 17, 2016 and the revised Articles of Association, the Company applied for granting 18.90
million of restricted RMB ordinary shares to 1371 incentive objects including middle management
and core technology (business) personnel by the way of non-public offering. Among them, 15.12
million of shares were granted in the first time. 12,577,400.00 restricted RMB ordinary shares were
first granted to 1202 incentive objects including middle management and core technology (business)
personnel, and the registered capital increased by RMB 12,577,400.00.
The lock-up period and unlocking conditions were stipulated for the shares granted by the Company
to the incentive objects by the above non-public offering. The Company has recognized other
payables in full the subscription money received abased on the repurchase obligations - restricted
share repurchase obligation and recognized the treasury shares. If the unlocking conditions stipulated
in the final equity incentive plan are not met, the Company will buy back the shares at the grant price
and write down treasury shares at the same time. The restricted shares reaching the unlocking
conditions will be used to write down the treasury shares.
Annual Report 2020
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57. Other comprehensive income
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning balance
Current amount incurred Ending balance
Balance
The amount incurred
before income tax in
the current period
Less: Amount
included in
other
comprehensive
income in the
prior period
and converted
into current
profit or loss
Less: Amount
included in
other
comprehensive
income in the
prior period
and converted
into retained
earnings in the
current period
Less: Income tax
expense
Attributable to parent
company after tax
Attributable
to the
minority
shareholders
after tax
I. Other comprehensive
income that cannot be
reclassified into profits
or losses
-1,336,256.86 15,182,773.81 2,277,416.06 12,905,357.75 11,569,100.89
Including: changes
from re-measurement
of the defined benefit
plan
Other comprehensive
income that cannot be
converted into profits
or losses by the equity
method
Changes in fair value of
the investment in other
equity instruments
-1,336,256.86 15,182,773.81 2,277,416.06 12,905,357.75 11,569,100.89
Changes in fair value of
the credit risk of the
Company
II. Other
comprehensive income
reclassified to profits or
34,166,987.16 -350,598,336.72 -350,598,336.72 -316,431,349.56
Annual Report 2020
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losses
Including: Other
comprehensive income
convertible to profits or
losses under the equity
method
Changes in fair values
of other creditors
investments
Amount of financial
assets reclassified into
other comprehensive
income
Provision for credit
impairment of other
creditors investments
Cash flow hedge
reserve
Translation difference
of foreign currency
financial statements
34,166,987.16 -350,598,336.72 -350,598,336.72 -316,431,349.56
Total of other
comprehensive income 32,830,730.30 -335,415,562.91 2,277,416.06 -337,692,978.97 -304,862,248.67
Other notes: including the adjustment converting effective part of profit or loss of cash flow hedges to the initial recognition amount of the hedged item:
N/A
Annual Report 2020
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58. Special reserve
□ Applicable √ Not Applicable
59. Surplus reserve
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Beginning balance Increase in the
current period
Decrease in the
current period Ending balance
Statutory surplus
reserve 683,195,269.55 467,025,570.89 1,150,220,840.44
Discretionary
surplus reserve
Reserve funds
Enterprise
development fund
Others
Total 683,195,269.55 467,025,570.89 1,150,220,840.44
Surplus reserves description includes the increase/decrease in the current period and the reasons for
the change:
According to the Company Law of the People's Republic of China and the Articles of Association of
the Company, the Company shall withdraw the statutory surplus reserve at the rate of 10% of the
annual net profit. When the cumulative amount of the statutory surplus reserve exceeds 50% of the
registered capital, the Company may not withdraw the surplus reserve. After approval, the statutory
surplus reserve may be used to make up losses or increase share capital. The Company withdrew the
statutory surplus reserve of RMB 467,025,570.89 (2019: RMB 216,742,275.43, at the rate of 10% of
net profit) at the rate of 10% of net profit in 2020.
60. Undistributed profit
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Current period Previous period
Undistributed profit at the end of previous
period before adjustment
12,701,261,983.10 7,974,695,023.80
Total undistributed profits at the
beginning of the adjustment period
(increase expressed with +, and decrease
expressed with -)
Undistributed profit at the beginning of
the period after adjustment
12,701,261,983.10 7,974,695,023.80
Add: Net profit attributable to owners of
the parent company in the current period
8,552,369,160.81 5,279,552,073.55
Less: Withdrawal of statutory surplus
reserve
467,025,570.89 216,742,275.43
Withdrawal of discretionary surplus
reserve
Withdrawal of general risk reserves
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Dividends payable on ordinary share 1,433,236,706.96 362,200,621.44
Ordinary share dividend converted into
share capital
Less: Transfer from disposal of other
equity instruments
-25,957,782.62
Undistributed profit at the end of the
period
19,353,368,866.06 12,701,261,983.10
Undistributed profit details at the beginning of adjustment period:
1. Retroactive adjustment as required by Accounting Standards for Business Enterprises and
relevant new regulations influences the undistributed profits of RMB 0.00 at the beginning of the
period.
2. The alteration of accounting policies influences the undistributed profit of RMB 0.00 at
beginning of the period.
3. The alteration of major errors in accounting policies influences the undistributed profit of RMB
0.00 at beginning of the period.
4. Change in consolidation scope due to common control influences the undistributed profit of
RMB 0.00 at the beginning of the period.
5. Other adjustments influences the undistributed profit of RMB 0.00 at the beginning of the period.
61. Operating revenue and operating cost
(1). Operating revenue and operating cost
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Revenue Cost Revenue Cost
Main business 54,583,183,588.46 41,145,628,529.00 32,897,455,384.24 23,389,364,451.22
Other business
Total 54,583,183,588.46 41,145,628,529.00 32,897,455,384.24 23,389,364,451.22
(2). Revenue from contracts
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Contract
classification
Wafer Business
Unit
Module Business
Unit
Centralized
solar plant
Distributed
solar plant Others Total
Commodity
type
Product sale 15,095,875,973.09 36,578,780,279.45 76,576,555.94 51,751,232,808.48
Solar plant
construction
and services
888,989,644.93 436,196,801.02 1,325,186,445.95
Electric
power
307,234,902.12 386,438,522.07 693,673,424.19
Others 359,134,720.32 403,581,611.97 4,152,902.06 44,100,456.84 2,121,218.65 813,090,909.84
Classification
by business
region
Annual Report 2020
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Within China 14,042,519,035.22 17,105,509,940.27 1,200,377,449.11 771,640,271.28 2,121,218.65 33,122,167,914.53
Overseas 1,412,491,658.19 19,876,851,951.15 171,672,064.59 21,461,015,673.93
Classification
by
commodity
transfer time
Recognition
at a certain
point in time
15,455,010,693.41 36,982,361,891.42 311,387,804.18 507,115,534.85 2,121,218.65 53,257,997,142.51
Recognition
in a certain
period of
time
888,989,644.93 436,196,801.02 1,325,186,445.95
Total 15,455,010,693.41 36,982,361,891.42 1,200,377,449.11 943,312,335.87 2,121,218.65 54,583,183,588.46
Description for revenue from contracts:
□ Applicable √ Not Applicable
(3). Description of performance obligations
□ Applicable √ Not Applicable
(4). Description of the apportionment to the remaining performance obligations
□ Applicable √ Not Applicable
Other notes:
N/A
62. Taxes and surcharges
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
City maintenance and
construction tax
56,014,639.65 55,623,620.54
Educational surcharges 45,499,004.47 41,035,698.21
Housing property tax 8,367,568.59 7,700,425.52
Land use tax 4,474,512.79 5,440,046.06
Stamp tax 70,707,039.11 43,531,498.62
Foundation for water conservancy 92,283,921.70 22,268,294.06
Insurance funds for the disabled 3,358,007.11 2,064,193.90
Others 1,157,320.62 754,324.47
Total 281,862,014.04 178,418,101.38
Other notes:
N/A
63. Selling expense
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
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Retention money 334,391,867.65 160,532,088.75
Employee remuneration 313,152,853.01 225,384,885.73
Agent commission 82,138,552.42 18,759,221.29
Rental fees 70,933,872.84 33,911,388.55
Professional fee 63,530,415.61 105,708,745.85
Premium 49,356,834.53 38,982,673.28
Advertising and promotion expenses 38,462,086.84 56,163,467.84
Amortization of intangible assets 35,226,389.21 68,352.13
Travel expense 31,398,685.46 51,772,094.47
Entertainment expense 21,583,753.21 16,079,419.11
Amortization of long-term unamortized
expenses 1,499,331.40 1,081,769.04
Depreciation of fixed assets 993,823.70 1,116,730.90
Freight and miscellaneous charges 597,448,794.90
Others 30,769,710.54 22,738,702.83
Total 1,073,438,176.42 1,329,748,334.67
Other notes:
N/A
64. Administrative expenses
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous
period
Employee remuneration 1,008,460,929.81 653,541,903.87
Professional fee 50,325,342.24 37,625,277.86
Depreciation of fixed assets 39,860,451.41 34,069,699.22
Travel expense 30,317,668.01 37,495,913.96
Machinery and material consumption 25,145,859.29 11,359,278.20
Office expenses 20,246,659.34 10,328,571.84
Recruitment expenses 17,358,451.44 12,949,512.55
Entertainment expense 17,121,999.48 15,164,566.96
Water, electricity and power charges 15,218,136.78 12,627,484.88
Rental fees 8,124,628.78 17,443,104.08
Repair fee 7,323,988.05 3,135,009.42
Others 226,308,260.64 125,284,785.98
Total 1,465,812,375.27 971,025,108.82
Other notes:
N/A
65. R&D expenses
√ Applicable □ Not Applicable
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233 / 312
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous
period
Employee remuneration 330,617,360.28 181,165,910.63
Machinery and material consumption 46,077,709.04 25,680,740.48
Depreciation of fixed assets 25,828,881.32 20,290,910.74
Professional fee 24,508,323.03 19,908,215.64
Travel expense 18,802,425.55 12,260,868.10
Inspection and test expenses 9,235,920.29 6,572,711.82
Rental fees 6,025,284.00 4,430,521.55
Repair fee 3,131,939.80 6,913,236.14
Water, electricity and power charges 285,945.91 5,279,419.38
Others 34,590,065.35 21,695,781.36
Total 499,103,854.57 304,198,315.84
Other notes:
N/A
66. Financial expense
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous
period
Interest expense 386,097,557.25 458,432,621.25
Interest income -306,586,205.87 -232,879,970.03
Net exchange profits or losses 314,240,824.11 -30,205,736.66
Bank service charges 41,121,063.58 32,731,775.59
Others -56,579,865.40 21,529,740.58
Total 378,293,373.67 249,608,430.73
Other notes:
N/A
67. Other incomes
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Government project subsidy 282,996,117.88 203,896,364.11
Total 282,996,117.88 203,896,364.11
Other notes:
N/A
68. Investment income
√ Applicable □ Not Applicable
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Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Long-term equity investment income
accounted by the equity method
146,216,366.05 117,194,275.31
Investment income from disposal of long-
term equity investments
660,516,794.27 7,918,075.35
Investment income from disposal of
financial assets held for trading 268,840,012.16 109,984,235.52
Gains from surplus entities remeasured as
per fair value after the loss of the control
right
1,930,701.04 4,887,193.17
Total 1,077,503,873.52 239,983,779.35
Other notes:
N/A
69. Net exposure hedge income
□ Applicable √ Not Applicable
70. Income from changes in fair value
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Sources of income from changes in fair
value Amount of the current period Amount of the previous period
Financial assets held for trading 971.20
Including: Income from changes in fair
value caused by derivative financial
instruments
Financial liabilities held for trading
Investment real estate measured at fair
value
Total 971.20
Other notes:
N/A
71. Credit impairment loss
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Bad debt losses of notes receivable
Bad debt losses of accounts receivable -128,258,788.22 -69,697,517.36
Bad debt losses of other receivables -38,560,549.85 8,485,978.62
Impairment loss of creditors investment
Impairment losses of other creditors
investments
Bad debt losses of long-term receivables
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Contract assets impairment loss
Total -166,819,338.07 -61,211,538.74
Other notes:
N/A
72. Assets impairment loss
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
I. Bad debt loss
II. Inventory falling price loss and
impairment loss of contract performance
cost
-357,082,654.22 -362,330,188.71
III. Impairment loss of long-term
equity investment
IV. Impairment loss of investment
real estate
IV. Fixed assets impairment loss -611,485,096.06 -138,959,792.28
VI. Project material impairment loss
VII. Impairment loss of construction in
progress
-7,494,317.31
VIII. Productive biological assets
impairment loss
IX. Oil and gas assets impairment loss
X. Intangible assets impairment loss -1,937,500.04
XI. Goodwill impairment loss
XII. Miscellaneous
XIII. Contract assets impairment loss 28,280,937.83
Total -949,718,629.80 -501,289,980.99
Other notes:
N/A
73. Asset disposal income
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Losses on fixed asset disposal -11,845,241.91 -58,643,251.81
Total -11,845,241.91 -58,643,251.81
Other notes:
N/A
74. Non-operating revenue
Non-operating revenue
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√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current
period
Amount of the previous
period
Amount included in
current non-recurring
profit or loss
Total gains from non-
current assets disposal 237,170.83 1,416,533.62 237,170.83
Including: Gains from
fixed asset disposal 237,170.83 1,416,533.62 237,170.83
Government grants 763,902.40 1,159,843.50 763,902.40
Income from fines and
penalties 1,005,000.00 1,005,000.00
Income from business
combination 3,448,382.66 3,448,382.66
Others 8,673,205.37 5,608,314.23 8,673,205.37
Total 14,127,661.26 8,184,691.35 14,127,661.26
Government grants included in current profit or loss
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Subsidy item Current amount incurred The amount incurred
in the previous period Related to assets / income
Chuxiong Technician
College - enterprise
cooperation agreement
subsidy
254,200.00 Income-related
Japanese port subsidy 18,404.40 Income-related
Subsidies for stabilizing
employment 845,743.50 Income-related
Others 491,298.00 314,100.00 Income-related
Total 763,902.40 1,159,843.50
Other notes:
□ Applicable √ Not Applicable
75. Non-operating expenses
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current
period
Amount of the previous
period
Amount included in
current non-recurring
profit or loss
Total loss from non-
current asset disposal 9,362,013.02 13,004,602.93 9,362,013.02
Including: loss on
fixed asset disposal 9,362,013.02 13,004,602.93 9,362,013.02
External donation 22,972,508.32 33,845,857.58 22,972,508.32
Loss from inventory 28,944,634.21 28,944,634.21
Annual Report 2020
237 / 312
retirement and
scrapping
Contractual liquidated
damages 835,186.57 5,004,615.57 835,186.57
Others 11,270,811.29 7,225,354.91 11,270,811.29
Total 73,385,153.41 59,080,430.99 73,385,153.41
Other notes:
N/A
76. Income tax expense
(1). List of income tax expenses
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Current income tax expense 1,310,063,102.03 595,420,501.64
Deferred income tax expenses -97,853,498.32 94,348,009.07
Total 1,212,209,603.71 689,768,510.71
(2). Adjustment process of accounting profit and income tax expense
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period
Total profit 9,911,905,526.16
Income tax expense calculated at statutory/applicable
tax rate 1,486,785,828.92
Influence of different tax rates applicable to
subsidiaries -206,591,087.58
Influence of income tax adjustments of previous
periods 3,752,969.61
Influence of non-taxable income -43,167,241.84
Influence of non-deductible costs, expenses and
losses 36,909,944.95
Influence of using the deductable loss of unconfirmed
deferred tax assets in the previous period -20,195,046.22
Influence of deductible temporary difference or
deductible losses of deferred tax assets not
recognized in the current period
27,863,580.46
Balance changes of deferred tax asset/liability at the
beginning of the year by tax rate adjustment 15,193,350.55
Expenses eligible for tax benefits -88,342,695.14
Income tax expense 1,212,209,603.71
Other notes:
□ Applicable √ Not Applicable
77. Other comprehensive income
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238 / 312
√ Applicable □ Not Applicable
See VII. 57. Other comprehensive income.
78. Items of Statement of Cash Flows
(1). Other cash received in relation to operating activities
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Security and deposit 731,527,137.99 1,170,484,307.48
Government grants 453,148,983.03 369,748,200.56
Current account 397,771,889.19 187,415,046.15
Interest income 300,566,601.36 216,472,229.82
Loan repayment by employees 3,413,911.58 413,967.78
Others 103,701,343.31 178,854,177.54
Total 1,990,129,866.46 2,123,387,929.33
Notes to other received cashes related to operating activities:
N/A
(2). Cash paid for other activities related to operating activities
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Period expense 1,379,580,693.03 1,533,519,151.89
Security 354,503,276.08 585,498,552.53
Bank service charges 41,121,063.58 32,731,775.59
Personal borrowing 6,329,584.69 1,569,766.32
Others 15,958,101.63 19,666,684.62
Total 1,797,492,719.01 2,172,985,930.95
Note to cash paid for other operating activities:
N/A
(3). Other cash received from investment activities
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Security 59,434,424.76 40,002,895.64
Others 31,918,363.42 7,923,000.00
Total 91,352,788.18 47,925,895.64
Note to cash received from other investment activities:
N/A
(4). Other cash paid in relation to investment activities
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239 / 312
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Disposal of subsidiaries 182,040,890.49 343,606,499.69
Security 72,998,447.05 80,077,951.93
Others 55,439,811.70 37,170,136.06
Total 310,479,149.24 460,854,587.68
Notes to other paid cashes related to the investment activities:
N/A
(5). Cash received from other financing activities
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Leaseback payment 100,000,000.00 907,034,782.78
Redemption of excess advance payment
on convertible bonds
2,404,983,548.43
Return of financing security 511,254,726.45
Withdrawal of fixed-time deposit
pledged 12,077,280.10
66,365,000.00
Financial leasing security 6,243,101.19
Total 112,077,280.10 3,895,881,158.85
Note to cash received from other financing activities:
N/A
(6). Cash paid for other financing activities
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Financial leasing rent 296,738,790.61 507,793,398.90
Equity incentive buy-back 667,776.55 3,763,531.12
Redemption of advance payment on
convertible bonds
2,441,098,837.25
Financing security 26,774,400.00
Others 13,220,904.07 31,306,284.40
Total 310,627,471.23 3,010,736,451.67
Note to cash paid for other financing activities:
N/A
79. Supplementary information of Statement of Cash Flows
(1). Supplementary information of Statement of Cash Flows
√ Applicable □ Not Applicable
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240 / 312
Unit: Yuan Currency: RMB
Supplementary information Current amount Amount in the prior period
1. Conversion of net profit to cash
flow from operating activities:
Net profit 8,699,695,922.45 5,557,163,763.15
Add: Provision for asset impairment 949,718,629.80 501,289,980.99
Credit impairment loss 166,819,338.07 61,211,538.74
Depreciation of fixed assets, depletion of
oil and gas assets, and depreciation of
productive biological assets
1,976,306,294.31 1,338,092,862.65
Right-of-use asset amortization
Amortization of intangible assets 65,876,087.59 15,702,439.25
Amortization of long-term unamortized
expenses 179,048,057.90 133,731,865.16
Losses arising from disposal of fixed
assets, intangible assets and other long-
term assets (gains expressed with "-")
11,845,241.91 58,643,251.81
Losses from scrapping of fixed assets
(gains expressed with “-”) 9,124,842.19 11,588,069.31
Loss from changes in fair value (gains
expressed with “-”) -971.20
Financial expenses (gains expressed with
“-”) 385,022,715.93 181,238,515.71
Investment losses (Gains expressed with
“-”) -1,077,503,873.52 -239,983,779.35
Decrease in deferred tax assets (Increase
expressed with "-") -370,527,323.14 -183,274,620.09
Increase in deferred tax liabilities
(decrease expressed with "-") 291,477,513.48 275,815,191.29
Decrease in inventories (increase
expressed with "-") -4,578,333,437.35 -2,435,930,854.54
Decrease of operational receivables
(increase expressed with "-") -4,641,093,280.56 -852,527,442.00
Increase in operating payables (decrease
expressed with "-") 8,121,990,038.07 4,830,225,114.00
Others 825,413,632.12 -1,094,744,869.55
Net cash flow from operating activities 11,014,879,428.05 8,158,241,026.53
2. Major investment and financing
activities not related to cash flow:
Debt converted into capital
Convertible bonds due within one year
Fixed assets under financing lease 22,307,451.36 1,065,444,855.79
3. Net changes of cash and cash
equivalents:
Ending balance of cash 23,905,191,254.22 15,560,275,471.85
Less: Beginning balance of cash 15,560,275,471.85 5,665,040,168.08
Annual Report 2020
241 / 312
Add: Ending balance of cash equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash equivalents 8,344,915,782.37 9,895,235,303.77
Major operating and investing activities that do not involve cash receipts and payments
Unit: RMB
Item Year 2020 Year 2019
Inventory purchase payment paid
by banker’s acceptance bill 12,740,702,720.58 4,500,213,093.57
Long-term asset purchase payment
paid by banker’s acceptance bill 3,557,337,284.23 2,374,438,392.37
Total 16,298,040,004.81 6,874,651,485.94
(2). Net amount paid for acquisition of the subsidiary in the current period
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount
Cash or cash equivalents paid for the business combination incurred in
the current period
1,213,476,505.79
Including: Ningbo EZ 1,213,476,505.79
Less: Cash and cash equivalent hold by the subsidiaries on the purchase
date
340,050,219.83
Including: Ningbo EZ 340,050,219.83
Add: Cash and cash equivalent paid in the current period for business
combinations in previous years
Net amount paid for acquisition of subsidiaries 873,426,285.96
Other notes:
N/A
(3). Net amount of cash received for disposal of subsidiaries in the current period
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Amount
Cash and cash equivalent paid for the disposal of subsidiaries in the
current period
288,997,844.33
Including: Lingwu Longqiao Solar New Energy Co., Ltd. 272,502,450.00
Xi'an Ruicheng Longtai New Energy Co., Ltd. 16,495,394.33
Less: Cash and cash equivalents held by subsidiaries on the date of loss
of control
14,919,419.79
Including: Xi'an Ruicheng Longtai New Energy Co., Ltd. 14,851,707.01
Lingwu Longqiao Solar New Energy Co., Ltd. 67,710.21
Henan Xindong New Energy Technology Co., Ltd. 2.57
Add: Cash or cash equivalents received in the current period for disposal
of subsidiaries incurred in previous periods
12,872,276.03
Annual Report 2020
242 / 312
Including: Zhengzhou Lemou Solar Energy Co., Ltd. 2,994,000.00
Xi’an LONGi Anfang Solar Energy Co., Ltd. 2,748,000.00
Weifang Senneng New Energy Technology Co., Ltd. 2,463,920.16
Lijiang LONGi Clean Energy Co., Ltd. 2,283,300.00
Jiaozhou Dingrui New Energy Technology Co., Ltd. 2,014,385.87
Yancheng Xingqi New Energy Technology Co., Ltd. 338,670.00
Beipiao Longtan New Energy Co., Ltd. 30,000.00
Net amount of cash received from disposal of subsidiaries 286,950,700.57
Other notes:
N/A
(4). Composition of cash and cash equivalents
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
I. Cash 23,905,191,254.22 15,560,275,471.85
Including: Cash on hand 180,514.50 11,810.11
Bank deposits available for payment at
any time
23,905,010,739.72 15,560,263,661.74
Other monetary funds available for
payment at any time
Deposits in the central bank available for
payment
Deposits in other banks
Interbank lending funds
II. Cash equivalents
Including: Bond investment due within
three months
III. Ending balance of cash and cash
equivalents
23,905,191,254.22 15,560,275,471.85
Including: Restricted cash and cash
equivalents of subsidiaries in the Group
or the parent company
Other notes:
□ Applicable √ Not Applicable
80. Notes to items in Statement of Changes in Owner’s Equity
Notes to names of “other” adjusted items under ending balance of the previous year, adjustment
amount and other matters:
□ Applicable √ Not Applicable
81. Assets with limited ownership and use right
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Annual Report 2020
243 / 312
Item Ending book value Reasons for limit
Monetary fund 3,058,197,281.56 Security
Notes receivable 4,101,821,669.69 Pledge for notes
Accounts receivable 97,221,010.00 Pledge for short-term
borrowings
Land use rights 310,059,488.03 Pledge for long-term
borrowings
Land use rights 470,932,932.62 Pledge for short-term
borrowings
Land use rights 10,589,144.24 Financial leasing
House buildings 43,980,778.70 Financial leasing
House buildings 140,527,809.16 Pledge for long-term
borrowings
House buildings 98,299,951.50 Pledge for short-term
borrowings
PV solar plant 817,734,915.29 Financial leasing
Machinery and equipment 674,049,510.54 Pledge for long-term
borrowings
Machinery and equipment 674,049,511.73 Pledge for short-term
borrowings
Machinery and equipment 496,432,835.60 Financial leasing
Total 10,993,896,838.66 /
Other notes:
N/A
82. Foreign currency monetary items
(1). Foreign currency monetary items
√ Applicable □ Not Applicable
Unit: RMB
Item Ending balance in
foreign currencies
Translation exchange
rate
Ending balance in
RMB
Balance
Monetary fund - - 7,593,441,020.14
Including: USD 929,578,769.32 6.5249 6,065,408,511.94
EUR 130,397,637.91 8.0250 1,046,441,044.23
JPY 2,986,500,731.00 0.0632 188,746,846.20
Rupee 15,987,225.80 0.0891 1,424,461.82
AUD 630,474.82 5.0163 3,162,650.84
Ugandan shilling 72,526,066.00 0.0018 130,546.92
THB 110,760,885.03 0.2179 24,134,796.85
RM 15,252,577.96 1.6173 24,667,994.33
HK dollar 7,932.59 0.8416 6,676.07
VND 848,643,584,889.00 0.0003 239,317,490.94
Accounts receivable - - 3,464,047,378.01
Annual Report 2020
244 / 312
Including: USD 471,023,872.89 6.5249 3,073,383,668.22
EUR 42,878,032.71 8.0250 344,096,212.50
JPY 671,301,614.00 0.0632 42,426,262.00
AUD 99,709.79 5.0163 500,174.22
VND 12,911,564,046.00 0.0003 3,641,061.06
THB 0.03 0.2179 0.01
Other receivables - - 112,944,843.77
Including: USD 16,054,067.29 6.5249 104,751,183.66
EUR 173,803.40 8.0250 1,394,772.29
JPY 19,584,000.00 0.0632 1,237,708.80
HK dollar 500 0.8416 420.80
Rupee 215,000.00 0.0891 19,156.50
RM 343,197.94 1.6173 555,054.03
VND 17,316,906,105.00 0.0003 4,883,367.52
THB 473,520.75 0.2179 103,180.17
Accounts payable - - 1,503,219,978.99
Including: USD 215,830,542.16 6.5249 1,408,272,704.54
EUR 46,160.60 8.0250 370,438.82
THB 1,066,870.09 0.2179 232,470.99
VND 125,369,468,575.00 0.0003 35,354,190.14
RM 36,474,478.76 1.6173 58,990,174.50
Long-term borrowings - - 66,391,066.95
Including: USD 10,175,032.10 6.5249 66,391,066.95
Short-term borrowings - - 413,779,711.45
Including: USD 63,415,487.05 6.5249 413,779,711.45
Long-term payables - - 16,539,005.55
Including: USD 2,398,886.46 6.5249 15,652,494.26
AUD 176,726.13 5.0163 886,511.29
Other payables - - 828,644,054.22
Including: USD 103,772,489.13 6.5249 677,105,114.32
EUR 11,278,405.07 8.0250 90,509,200.69
Ugandan shilling 333,000.00 0.0018 599.40
VND 122,209,258,213.00 0.0003 34,463,010.82
Pound 233.23 8.8903 2,073.48
HK dollar 286,000.00 0.8416 240,697.60
JPY 20,489,747.00 0.0632 1,294,952.01
Rupee 28,800.00 0.0891 2,566.08
RM 13,802,088.36 1.6173 22,322,117.50
AUD 271,970.38 5.0163 1,364,285.02
THB 6,147,027.54 0.2179 1,339,437.30
Other notes:
Annual Report 2020
245 / 312
The above foreign currency monetary items refer to all currencies except RMB (the scope is different
from that in X. Foreign currency items in the risk associated with financial instruments).
(2). In terms of notes to overseas operation entities, including significant overseas operation
entities, it is necessary to disclose their major operating locations, recording currencies and
selection basis. In case of any change in recording currency, it is important to disclose its causes.
□ Applicable √ Not Applicable
83. Hedging
□ Applicable √ Not Applicable
84. Government grants
(1). Basic information of government grants
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Class Amount Items Amounts included in
current profits or losses
Financial incentive of HQ enterprise 58,290,144.58 Other incomes 58,290,144.58
Fixed asset investment reward 44,725,597.86 Other incomes 44,725,597.86
Rewards for steady growth 14,622,000.00 Other incomes 14,622,000.00
Export-oriented economic development
project subsidy funds 9,357,654.00 Other incomes 9,357,654.00
Technological innovation reward 8,937,800.00 Other incomes 8,937,800.00
R&D subsidy 7,185,400.00 Other incomes 7,185,400.00
Subsidy for work-based training 7,040,780.46 Other incomes 7,040,780.46
Special awards- for structural
adjustment of industrial enterprises 7,000,000.00 Other incomes 7,000,000.00
Special subsidies for the transformation
and upgrading of provincial industrial
enterprises
5,700,000.00 Other incomes 5,700,000.00
Reward for intelligent production
capacity of mono ingot and mono wafer
with an annual output of more than
1GW
5,609,789.52 Other incomes 5,609,789.52
Special subsidy for industrial
development 4,669,174.30 Other incomes 4,669,174.30
Special contribution award 4,404,859.23 Other incomes 4,404,859.23
National robot project 3,128,205.12 Other incomes 3,128,205.12
Investment reward 3,000,000.00 Other incomes 3,000,000.00
Subsidies for "three majors and one
innovation" 2,067,613.92 Other incomes 2,067,613.92
Special funds for transformation and
upgrading 1,665,149.45 Other incomes 1,665,149.45
Subsidy for technological
transformation 1,647,018.12 Other incomes 1,647,018.12
Others 94,708,833.72
Other incomes
/non-operating
revenue
94,708,833.72
Annual Report 2020
246 / 312
(2). Return of government grants
□ Applicable √ Not Applicable
Other notes:
N/A
85. Others
□ Applicable √ Not Applicable
VIII. Change of consolidation scope
1. Business combinations not under common control
√ Applicable □ Not Applicable
(1). Business combinations not under common control in the current period
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Name
of the
acquiree
Date of
acquiring
equity
Cost of equity
acquisition
Proportion of equity
acquisition
(%)
Method of
equity
acquisition
Purchase
date
Confirmation basis for
purchase
date
Revenues of the acquiree from the
purchase date to the
end of the period
Net profit of the acquiree from
purchase date to the
end of the period
Ningbo
EZ
July 31,
2020 2,560,482,652.13 100
Mergers
and
acquisitions
July 31,
2020
Control right
transfer 2,172,782,093.82 319,660,815.01
Other notes:
N/A
(2). Combination cost and goodwill
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Combination cost Ningbo EZ
- Cash 2,560,482,652.13
- Fair value of non-cash assets
- Fair value of debt issued or assumed
- Fair value of equity securities issued
- Fair value of contingent consideration
- Fair value of equity held previously on the
purchase date
- Others
Total cost of combination 2,560,482,652.13
Less: Share of fair value of identifiable net assets
obtained
2,395,276,771.92
Amount with goodwill / combination cost less than
share of fair value of identifiable net assets obtained
165,205,880.21
Description for determination method, contingency consideration and change of the fair value of
combination cost:
N/A
Main reason for the formation of large goodwill:
Annual Report 2020
247 / 312
N/A
Other notes:
The combination cost is divided into two parts, namely the benchmark consideration and the floating
consideration. The benchmark consideration is RMB 1,780,000,000.00 and paid in cash. The floating
consideration is linked to the performance during the performance commitment period, and paid in
cash according to the percentage of the excess net profit and floating consideration of each year from
2019 to 2021. As of December 31, 2020, the floating consideration corresponding to the benchmark
consideration and the excess net profit of 2019 still had RMB 712,115,231.47 outstanding and was
reported in other payables. The floating consideration calculated according to the net profit of 2020
was RMB 365,059,333.10, and reported in the non-current liabilities due within one year. The floating
consideration calculated according to the predicted net profit of 2021 is RMB 269,831,581.77 and
reported in other non-current liabilities.
(3). The identifiable assets and liabilities of the acquiree on the purchase date
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ningbo EZ
Fair value on purchase date Book value on purchase
date
Assets: 4,382,266,401.98 3,990,631,759.10
Monetary fund 443,550,219.83 443,550,219.83
Receivables 426,507,531.16 426,507,531.16
Inventory 544,703,753.37 544,703,753.37
Fixed assets 1,783,423,307.20 1,702,237,227.30
Intangible assets 365,485,201.29 75,454,413.56
Notes receivable 26,597,993.23 26,597,993.23
Other receivables 14,396,313.70 14,396,313.70
Prepayment 168,754,461.59 168,754,461.59
Non-current assets due within one year 1,154,401.64 1,154,401.64
Other current assets 343,448,397.37 343,448,397.37
Long-term equity investment 107,973,009.25 107,973,009.25
Investment real estate 86,928,756.00 66,510,980.75
Construction in progress 42,810,053.35 42,810,053.35
Long-term unamortized expenses 16,557,605.07 16,557,605.07
Deferred tax assets 9,975,397.93 9,975,397.93
Liabilities: 1,986,989,630.06 1,957,252,943.84
Borrowings 684,022,021.23 684,022,021.23
Accounts payable 666,219,518.10 666,219,518.10
Deferred tax liabilities 110,294,478.73 80,557,792.51
Notes payable 175,856,461.20 175,856,461.20
Contract liabilities 46,366,085.16 46,366,085.16
Payroll payable 42,037,825.73 42,037,825.73
Taxes payable 12,280,794.71 12,280,794.71
Other payables 14,022,653.42 14,022,653.42
Annual Report 2020
248 / 312
Non-current liabilities due within one year 166,931,266.69 166,931,266.69
Long-term payables 21,053,774.89 21,053,774.89
Deferred income 7,020,837.94 7,020,837.94
Accrued liabilities 40,883,912.26 40,883,912.26
Net assets 2,395,276,771.92 2,033,378,815.26
Less: Minority equity
Net assets acquired 2,395,276,771.92 2,033,378,815.26
Determination method on fair value of the identifiable assets and liabilities:
The Group employs an independent third party appraiser to determine the fair value of Ningbo EZ's
assets and liabilities on the purchase date by valuation techniques. The evaluation method and its key
assumption of main assets are shown as follows:
The evaluation method of investment real estate is replacement cost method.
The evaluation method of fixed assets is replacement cost method.
The evaluation method of intangible assets is income method.
Contingent liabilities of the acquiree undertaken in business combination:
N/A
Other notes:
N/A
(4). Gains or losses of the equity held before purchase date re-measured by fair value
Whether the business combination is realized through many transactions in stage or not and there is
a transaction with controlling rights obtained in the reporting period
□ Applicable √ Not Applicable
(5). Relevant description for combination consideration or fair values of acquiree's identifiable
assets and liabilities on the purchase date or at the end of current period of combination
□ Applicable √ Not Applicable
(6). Other notes
□ Applicable √ Not Applicable
2. Business combinations under common control
□ Applicable √ Not Applicable
3. Counter purchase
□ Applicable √ Not Applicable
Annual Report 2020
249 / 312
4. Disposal of subsidiary
Whether there exists the situation of disposing subsidiaries and losing control right in one time?
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Name of
subsidiary
Equity
disposal cost
Equity
disposal
share (%)
Equity
disposal
method
Date of
losing
control
Basis for
determinin
g the date
of losing
control
The difference
of the net asset
share of the
subsidiary at
the
consolidated
financial
statement level
corresponding
to disposal
cost and
disposal
investment
Share of
remainin
g equity
of losing
control
(%)
Book value
of remaining
equity
interests on
the date of
losing control
Fair value of
remaining
equity
interests on
the date of
losing control
Profits or
losses
resulting
from
recalculatio
n of
remaining
equity in
accordance
with fair
value
Method of
determining
the fair
value of
remaining
equity on
the date of
losing
control and
the main
assumption
s
Amount of
investment
profits or
losses
transferred
from other
comprehensiv
e incomes
related to
previous
equity
investment in
subsidiaries
Lingwu
Longqiao
Solar New
Energy Co.,
Ltd.
317,780,500.0
0 100% Cash
April
2020
Completion
of equity
closing
297,823,018.7
6
Not
applicabl
e
Not
applicable N/A
Not
applicable
Not
applicable
Xi'an
Ruicheng
Longtai
New
Energy Co.,
Ltd.
(including
the
subsidiary
Ruicheng
Lvlong)
23,564,849.04 21% Cash Novembe
r 2020
Completion
of equity
closing
278,985,062.3
8 30
31,765,021.9
8
33,664,070.0
6
1,899,048.0
8
Conversion
with
reference to
the selling
price of
equity
Xi'an
Lvlong
Clean
Energy Co.,
Ltd.
(including
the
subsidiary
Not applicable
Not
applicabl
e
Not
applicabl
e
Novembe
r 2020
Completion
of equity
closing
41,529,567.70 30 28,018,611.8
8
28,035,000.0
0 16,388.12
Conversion
with
reference to
the selling
price of
equity
Annual Report 2020
250 / 312
Hunyuan
Chenglong
Clean
Energy Co.,
Ltd.)
Xi'an
Shenglong
Clean
Energy Co.,
Ltd.
(including
the
subsidiary
Datong
Xinrong
Oulong
Clean
Energy Co.,
Ltd.)
Not applicable
Not
applicabl
e
Not
applicabl
e
Novembe
r 2020
Completion
of equity
closing
67,802,363.92 30 29,279,735.1
6
29,295,000.0
0 15,264.84
Conversion
with
reference to
the selling
price of
equity
Heyuan
Longle
Clean
Energy Co.,
Ltd.
1 100% Cash July 2020
Completion
of equity
closing
Not
applicabl
e
Not
applicable N/A N/A
Not
applicable
Chuzhou
Longle
Clean
Energy Co.,
Ltd.
100% Cash Novembe
r 2020
Completion
of equity
closing
Not
applicabl
e
Not
applicable N/A N/A
Not
applicable
Xi'an
Longyiyan
g New
Energy Co.,
Ltd.
1 100% Cash August
2020
Completion
of equity
closing
-561.00
Not
applicabl
e
Not
applicable N/A N/A
Not
applicable
Xi'an
Longyixin
New
Energy Co.,
Ltd.
1 100% Cash December
2020
Completion
of equity
closing
Not
applicabl
e
N/A N/A Not
applicable
Not
applicable
Other notes:
□ Applicable √ Not Applicable
Annual Report 2020
251 / 312
5. Change of combination scope caused by other reasons
Specify the change of combination scope and other related situations caused by other reasons (such as new establishment of subsidiaries and liquidation
of subsidiaries):
√ Applicable □ Not Applicable
As of the end of the year, the Company increased the investment in the following 41 companies, which are included in the scope of combination.
Name of subsidiary Main place of
business Domicile
Shareholding (%) Registered capital Paid-in capital
Direct Indirect
LONGi (Netherlands) Trading B.V. Netherlands Netherlands 100 EUR 500,000.00 EUR 10,000.00
Xi’an LONGi Intelligent Technology Co.,
Ltd.
Xi’an City,
Shaanxi
Province
Xi'an Economic &
Technological
Development
Zone
100 5,000,000.00 5,000,000.00
Lufeng LONGi Silicon Materials Co., Ltd.
Yi
Autonomous
Prefecture,
Chuxiong,
Yunnan
Province
Lufeng County, Yi
Autonomous
Prefecture,
Chuxiong
100 300,000,000.00 5,000,000.00
Qujing LONGi Silicon Materials Co., Ltd.
Qujing City,
Yunnan
Province
Qilin District,
Qujing City 100 600,000,000.00 100,000,000.00
Jiaxing LONGi Solar Technology Co., Ltd.
Jiaxing City,
Zhejiang
Province
Jiaxing City,
Xiuzhou Distinct 100 400,000,000.00 10,500,000.00
Taizhou LONGi Solar Trade Co., Ltd.
Taizhou City,
Jiangsu
Province
Taizhou
Comprehensive
Bonded Area
100 1,000,000.00
Qinghai LONGi Solar Technology Co., Ltd.
Hainan
Prefecture,
Qinghai Province
Gonghe County,
Hainan Prefecture 100 20,000,000.00 8,800,000.00
Lufeng Yunlong Clean Energy Co., Ltd. Shanwei City, Lufeng, Shanwei 100 1,000,000.00
Annual Report 2020
252 / 312
Guangdong
Province
City
Xi’an Jiangrui New Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil Aerospace
Industrial Base
100 100,000.00
Shenmu Longhua Solar Power Co., Ltd.
Yulin City,
Shaanxi
Province
Shenmu, Yulin
City 100 500,000.00
Tumd Left Banner Hualong New Energy
Co., Ltd.
Hohhot, Inner
Mongolia
Tumd Left
Banner, Hohhot 100 1,000,000.00
Baoji Longfujia Power Generation Co., Ltd.
Baoji City,
Shaanxi
Province
Qianyang County,
Baoji City 100 94,600,000.00
Shihezi Jinglong Baosheng New energy Co.,
Ltd.-
Shihezi City,
Xinjiang
Liuxiao District,
Shihezi City 100 1,000,000.00
Baoji Longhe LvnengNew Energy Co., Ltd.
Baoji City,
Shaanxi
Province
Qianyang County,
Baoji City 100 94,600,000.00
Yinchuan Jingqiao New Energy Co., Ltd. Yinchuan,
Ningxia
Xingqing District,
Yinchuan 100 1,000,000.00
Yinchuan Xinhui New Energy Co., Ltd. Yinchuan,
Ningxia
Xingqing District,
Yinchuan 100 1,000,000.00
Huanglong Longqing PV Power Co., Ltd.
Yan’an,
Shaanxi
Province
Huanglong
County, Yan’an
City
100 1,000,000.00
Huanglong Longjie PV Power Co., Ltd.
Yan’an,
Shaanxi
Province
Huanglong
County, Yan’an
City
100 1,000,000.00
Xi'an Longfa New Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil Aerospace
Industrial Base
100 1,000,000.00
Xi'an Longjie New Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil Aerospace
Industrial Base
100 1,000,000.00
Annual Report 2020
253 / 312
Xi'an Longqing New Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil Aerospace
Industrial Base
100 1,000,000.00 10,000.00
Xining Longyou New Energy Technology
Co., Ltd.
Xining City,
Qinghai
Province
Chengxi District,
Xining City 100 1,000,000.00
Hainan Longyue New Energy Co., Ltd.
Hainan
Prefecture,
Qinghai
Province
Gonghe County,
Hainan Prefecture 80 1,000,000.00
Xi'an Fulong New Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil Aerospace
Industrial Base
100 1,000,000.00
Bozhou Wenquan Jinglong New Energy
Co., Ltd.
Bortala
Mongol
Autonomous
Prefecture,
Xinjiang
Wenquan County,
Bortala Mongol
Autonomous
Prefecture
100 1,000,000.00
Bozhou Jinghe Fulong New Energy Co.,
Ltd.
Bortala
Mongol
Autonomous
Prefecture,
Xinjiang
Jinghe County,
Bortala Mongol
Autonomous
Prefecture
100 1,000,000.00
Xi'an Shanglong New Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil Aerospace
Industrial Base
100 1,000,000.00
Datong Xinrong Ruilong Clean Energy Co.,
Ltd.
Datong City,
Shanxi
Province
Xinrong District,
Datong City 100 1,000,000.00
Qinghai Longji New Energy Co., Ltd.
Hainan
Prefecture,
Qinghai
Province
Gonghe County,
Hainan Prefecture 100 1,000,000.00
Hainan Jiulong New Energy Co., Ltd. Hainan
Prefecture,
Gonghe County,
Hainan Prefecture 80 1,000,000.00
Annual Report 2020
254 / 312
Qinghai
Province
Qian'an Longfa Energy Development Co.,
Ltd.
Songyuan
City, Jilin
Province
Qian'an County,
Songyuan City 100 1,000,000.00
Qishan Baotong Solar Energy Co., Ltd.
Baoji City,
Shaanxi
Province
Qishan County,
Baoji City 100 8,000,000.00 8,000,000.00
Xianyang Qinyile New Energy Co., Ltd.
Xianyang City,
Shaanxi
Province
Qindu District,
Xianyang City 100 100,000.00
Chuzhou Longle Clean Energy Co., Ltd.
Chuzhou,
Anhui
Province
Langya District,
Chuzhou City 100 43,987,500.00
Qingyuan Longteng New Energy Co., Ltd.
Qingyuan
City,
Guangdong
Province
Qingcheng
District,
Qingyuan City
100 100,000.00
Yangzhou Tengyang New Energy Co., Ltd.
Yangzhou,
Jiangsu
Province
Yizheng City,
Yangzhou City 100 100,000.00
Fengxiang Lefeng New Energy Co., Ltd.
Baoji City,
Shaanxi
Province
Fengxiang
County, Baoji
City
100 100,000.00
Xi'an Longyiyang New Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Baqiao District,
Xi’an City 100 7,000,000.00
Xi'an Longyxin New Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil Aerospace
Industrial Base
100 100,000.00
Shizhou Gangchi New Energy Co., Ltd.
Chizhou City,
Anhui
Province
Chizhou High-
tech Zone 100 100,000.00
Chuzhou Zhonglong New Energy Co., Ltd. Chuzhou,
Anhui Langya District, 100 100,000.00
Annual Report 2020
255 / 312
Province Chuzhou City
17 subsidiaries are reduced this year due to other reasons as below:
Name of subsidiary Date of losing control Basis for determining the date of losing control
Zhangpu LONGi New Energy Co., Ltd. January 2020 Cancellation
Jinjiang LONGi New Energy Co., Ltd. January 2020 Cancellation
Jiangmen Jiye New Energy Co., Ltd. January 2020 Cancellation
Shanghai Lvjian New Energy Technology Co., Ltd. March 2020 Cancellation
Wulian LONGi Solar Energy Co., Ltd. March 2020 Cancellation
Quzhou Julong Clean Energy Co., Ltd. April 2020 Cancellation
Jiujiang Solar New Energy Co., Ltd. April 2020 Cancellation
Shijiazhuang Longye New Energy Technology Co.,
Ltd.
May 2020 Cancellation
Xi’an Lehang Solar Energy Co., Ltd. May 2020 Cancellation
Shangqiu Lehai New Energy Technology Co., Ltd. August 2020 Cancellation
Zhuhai Solar Clean Energy Co., Ltd. August 2020 Cancellation
Liujing Energy Engineering (Kunshan) Co., Ltd. August 2020 Cancellation
Henan LONGi Green Energy Technology Co., Ltd. October 2020 Cancellation
Emin LONGi Muguang New Energy Co., Ltd. December 2020 Cancellation
Nierong Shenglong Clean Energy Co., Ltd. December 2020 Cancellation
Yan'an Yanlong Clean Energy Co., Ltd. December 2020 Cancellation
Yan'an Longsheng Clean Energy Co., Ltd. December 2020 Cancellation
6. Others
□ Applicable √ Not Applicable
Annual Report 2020
256 / 312
IX. Equities in Other Entities
1. Equity in subsidiaries
(1). Composition of enterprise group
√ Applicable □ Not Applicable
Name of subsidiary Main place
of business Domicile
Nature of
business
Shareholding
(%) Way of
acquisition Direct Indirect
LONGi (H.K.) Trading
Limited
Xi’an City,
Shaanxi
Province
Hong Kong Imports and
exports 100
Newly
established
LONGI (KUCHING)
SDN. BHD.
Kuching
(Malaysia)
Kuching
(Malaysia)
Production
and sale 100
Newly
established
LONGi New Energy
(Uganda) Limited Uganda Uganda
Investment
and
development:
99 Newly
established
LONGi (Netherlands)
Trading B.V. Netherlands Netherlands Sales 100
Newly
established
LONGI SOLAR
TECHNOLOGY K.K.
Tokyo
(Japan) Tokyo (Japan) Sales 100
Newly
established
LONGi Solar Technology
(U.S.) Inc.
Delaware
(USA)
Delaware
(USA) Sales 100
Newly
established
LONGI Solar
Technologie GmbH
Frankfurt
Hesse
(Germany)
Frankfurt
Hesse
(Germany)
Sales 100 Newly
established
Ningbo Jiangbei EZ New
Energy Co., Ltd.
Ningbo,
Zhejiang
Jiangbei
District,
Ningbo City
Production
and sale 100
Business
combinations
not under
common
control
VINA SOLAR
TECHNOLOGY
CO.,LTD
Vietnam Vietnam Production
and sale 100
Business
combinations
not under
common
control
VINA CELL
TECHNOLOGY
CO.,LTD
Vietnam Vietnam Production
and sale 100
Business
combinations
not under
common
control
EZ International Co., Ltd. Hong Kong Hong Kong Trade and
sale 100
Business
combinations
not under
common
control
Shanghai EZ New Energy
Co., Ltd Shanghai
Shanghai Pilot
Free Trade Test
Zone
Import &
export trade
and sale
100
Business
combinations
not under
common
control
Guangxi EZ International
Trading Company Ltd. Chongzuo
City,
Pingxiang City,
Chongzuo Import &
export trade 100
Business
combinations
Annual Report 2020
257 / 312
Guangxi and sale not under
common
control
Xi’an LONGi Green
Energy Venture Capital
Management Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
management 100
Newly
established
Xi'an LONGi Lithium
Cell New Materials Co.,
Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Production
and sale 51
Newly
established
Xi'an LONGi Green
Energy Architecture
Technology Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi'an
Economic &
Technological
Development
Zone
Production
and sale 100
Newly
established
Xi’an LONGi Intelligent
Technology Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi'an
Economic &
Technological
Development
Zone
Technological
development
and service
100 Newly
established
Ningxia LONGi Silicon
Materials Co., Ltd.
Zhongwei
City,
Ningxia
Zhongning
County,
Zhongwei City
Production
and sale 100
Newly
established
Yinchuan LONGi Silicon
Materials Co., Ltd.
Yinchuan,
Ningxia
Yinchuan
Economic and
Technological
Development
Zone
Production
and sale 100
Newly
established
Wuxi LONGi Silicon
Materials Co., Ltd.
Wuxi City,
Jiangsu
Province
Wuxi High-
tech Zone
Production
and sale 98.67 1.33
Newly
established
Baoshan LONGi Silicon
Materials Co., Ltd.
Baoshan
City, Yunnan
Province
Longling
County,
Baoshan City
Production
and sale 100
Newly
established
Lijiang LONGi Silicon
Materials Co., Ltd.
Lijiang City,
Yunnan
Province
Huaping
County, Lijiang
City
Production
and sale 60
Newly
established
Chuxiong LONGi Silicon
Materials Co., Ltd.
Yi
Autonomous
Prefecture,
Chuxiong,
Yunnan
Province
Lufeng County,
Yi Autonomous
Prefecture,
Chuxiong
Production
and sale 100
Newly
established
Huaping LONGi Silicon
Materials Co., Ltd.
Lijiang City,
Yunnan
Province
Huaping
County, Lijiang
City
Production
and sale 100
Newly
established
Yinchuan LONGi PV
Technology Co., Ltd.
Yinchuan,
Ningxia
Xixia District,
Yinchuan
Production
and sale 100
Newly
established
Tengchong LONGi
Silicon Materials Co., Ltd.
Baoshan
City, Yunnan Province
Tengchong
City, Baoshan City
Production
and sale 100
Newly
established
Lufeng LONGi Silicon Yi
Autonomous
Lufeng County,
Yi Autonomous Production 100 Newly
Annual Report 2020
258 / 312
Materials Co., Ltd. Prefecture,
Chuxiong,
Yunnan
Province
Prefecture,
Chuxiong
and sale established
Qujing LONGi Silicon
Materials Co., Ltd.
Qujing City,
Yunnan
Province
Qilin District,
Qujing City
Production
and sale 100
Newly
established
LONGi Solar Technology
Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi'an
Economic &
Technological
Development
Zone
Production
and sale 100
Newly
established
Zhejiang LONGi Solar
Technology Co., Ltd.
Quzhou City,
Zhejiang
Province
Quzhou
Economic
Development
Zone
Production
and sale 100
Business
combinations
not under
common
control
Hefei LONGi Solar
Technology Co., Ltd.
Hefei City,
Anhui
province
Hefei High-
tech Zone
Production
and sale 100
Newly
established
Taizhou LONGi Solar
Technology Co., Ltd.
Taizhou
City, Jiangsu
Province
Hailing
District,
Taizhou City
Production
and sale 100
Newly
established
Yinchuan LONGi Solar
Technology Co., Ltd.
Yinchuan,
Ningxia
Yinchuan
Economic and
Technological
Development
Zone
Production
and sale 100
Newly
established
LERRI SOLAR
TECHNOLOGY
(INDIA) PRIVATE
LIMITED
Andhra
Pradesh
(India)
Andhra
Pradesh (India)
Production
and sale 40 60
Newly
established
Datong LONGi Solar
Technology Co., Ltd.
Datong City,
Shanxi
Province
Datong County,
Datong City
Production
and sale 100
Newly
established
Xi’an LONGi Solar
Technology Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Production
and sale 100
Newly
established
Chuzhou LONGi Solar
Technology Co., Ltd.
Chuzhou,
Anhui
Province
Chuzhou
Economic and
Technological
Development
Zone
Production
and sale 100
Newly
established
Ningxia LONGi Solar
Technology Co., Ltd.
Yinchuan,
Ningxia
Yinchuan
Economic and
Technological
Development
Zone
Production
and sale 100
Newly
established
Shaanxi LONGi Solar Technology Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi'an
Economic &
Technological
Development
Zone
Production and sale
100 Newly established
Annual Report 2020
259 / 312
LONGi TECHNOLOGY
(KUCHING) SDN BHD
Kuching
(Malaysia)
Kuching
(Malaysia)
Production
and sale 100
Newly
established
Tongchuan LONGi Solar
Technology Co., Ltd.
Tongchuan
City,
Shaanxi
Province
Yijun County,
Tongchuan
City
Sales 100 Newly
established
LONGi Solar Australia
Pty Ltd Australia Australia Sales 100
Newly
established
Jiangsu LONGi Solar
Technology Co., Ltd.
Taizhou
City, Jiangsu
Province
Hailing
District,
Taizhou City
Production
and sale 100
Newly
established
Xi’an LONGi Green
Energy Intelligent
Technology Partnership
(Limited Partnership)
Xi’an City,
Shaanxi
Province
Xi'an
Economic &
Technological
Development
Zone
Technological
development
and service
20 Newly
established
Xianyang LONGi Solar
Technology Co., Ltd.
Xianyang
City,
Shaanxi
Province
Qindu District,
Xianyang City
Production
and sale 100
Newly
established
Jiaxing LONGi Solar
Technology Co., Ltd.
Jiaxing City,
Zhejiang
Province
Jiaxing City,
Xiuzhou
Distinct
Production
and sale 100
Newly
established
Taizhou LONGi Solar
Trade Co., Ltd.
Taizhou
City, Jiangsu
Province
Taizhou
Comprehensive
Bonded Area
Sales 100 Newly
established
Qinghai LONGi Solar
Technology Co., Ltd.
Hainan
Prefecture,
Qinghai
Province
Gonghe
County, Hainan
Prefecture
Production
and sale 100
Newly
established
Xi’an LONGi Clean
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Qinghai Baihe Clean
Energy Co., Ltd.
Xining City,
Qinghai
Province
Chengzhong
District, Xining
City
Investment
and
development:
100 Newly
established
Nanyang Wolong LONGi
Clean Energy Co., Ltd.
Nanyang
City, Henan
Province
Wolong
District,
Nanyang City
Investment
and
development:
100 Newly
established
Zaozhuang LONGi Clean
Energy Co., Ltd.
Zaozhuang
City,
Shandong
Province
Shizhong
District,
Zaozhuang
City
Investment
and
development:
100 Newly
established
Zaozhuang Shanting
LONGi Eco-Agriculture
Solar New Energy Co.,
Ltd.
Zaozhuang
City,
Shandong
Province
Shanting
District,
Zaozhuang
City
Investment
and
development:
100 Newly
established
Ningxia LONGi Clean
Energy Co., Ltd.
Yinchuan,
Ningxia
Xixia District,
Yinchuan
Investment
and
development:
100 Newly
established
Guangdong Yanyuan
Longqing New Energy
Dongguan
City,
Dongguan
Songshan Lake
Investment
and 70
Newly
established
Annual Report 2020
260 / 312
Co., Ltd. Guangdong
Province
High-tech
Industrial
Development
Zone
development:
Anhui USTC Jiancheng
LONGi New Energy Co.,
Ltd.
Hefei City,
Anhui
province
Hefei High-
tech Zone
Investment
and
development:
60 Newly
established
Xi'an Longqiao Clean
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Baqiao District,
Xi’an City
Investment
and
development:
100 Newly
established
Liaoning Zhaori New
Energy Co., Ltd.
Chaoyang
City,
Liaoning
Province
Longcheng
District,
Chaoyang City
Investment
and
development:
100 Newly
established
Hami Liurui New Energy
Development Co., Ltd.
Hami
Prefecture,
Xinjiang
Hami City,
Hami
Prefecture
Investment
and
development:
100
Business
combinations
not under
common
control
Hami Liuyang Solar
Technology Development
Co., Ltd.
Hami
Prefecture,
Xinjiang
Hami City,
Hami
Prefecture
Investment
and
development:
100
Business
combinations
not under
common
control
Baoji Longxing Clean
Energy Power Generation
Co., Ltd.
Baoji City,
Shaanxi
Province
Chencang
District, Baoji
City
Investment
and
development:
100 Newly
established
Danzhou LONGi Solar
Agricultural
Development Co., Ltd.
Danzhou
City, Hainan
Province
Nada Town,
Danzhou City
Investment
and
development:
100 Newly
established
Yanchuan Minhao -Solar
Plant Investment
Management Co., Ltd.
Yan’an,
Shaanxi
Province
Yanchuan
County, Yan’an
City
Investment
and
development:
100
Business
combinations
not under
common
control
Xi'an Baolong Clean
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Hebei Shenrao
Agricultural
Development Co., Ltd.
Hengshui
City, Hebei
Province
Raoyang
County,
Hengshui City
Investment
and
development:
100
Business
combinations
not under
common
control
Xi'an LONGi Zhihui
Energy Testing Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Huludao Longxing New
Energy Co., Ltd.
Huludao
City,
Liaoning
Province
Lianshan
District,
Huludao City
Investment
and
development:
100 Newly
established
Hainan LONGi Solar
New Energy Co., Ltd. Baisha Li
Autonomous
Baisha Li
Autonomous
Investment
and 100
Newly
established
Annual Report 2020
261 / 312
County,
Hainan
Province
County development:
Hami Liushuquan Xuanli
Solar Power Generation
Co., Ltd.
Hami
Prefecture,
Xinjiang
Hami City,
Hami
Prefecture
Investment
and
development:
100
Business
combinations
not under
common
control
Datong Yunzhou LONGi
Lvneng-Clean Energy
Co., Ltd.-
Datong City,
Shanxi
Province
Yunzhou
District,
Datong City
Investment
and
development:
100 Newly
established
Guangling Longxing
Lvneng Clean Energy
Co., Ltd.
Datong City,
Shanxi
Province
Guangling
County, Datong
City
Investment
and
development:
100 Newly
established
Guangling Jinpeng New
Energy Co., Ltd.
Datong City,
Shanxi
Province
Guangling
County, Datong
City
Investment
and
development:
100 Newly
established
Datong Yunzhou
Yunzhong Lvneng New
Energy Co., Ltd.
Datong City,
Shanxi
Province
Datong County,
Datong City
Investment
and
development:
100 Newly
established
Ninghai Junlong New
Energy Co., Ltd.
Ningbo,
Zhejiang
Ninghai
County,
Ningbo City
Investment
and
development:
100 Newly
established
Ninghai Hailong Clean
Energy Co., Ltd.
Ningbo,
Zhejiang
Ninghai
County,
Ningbo City
Investment
and
development:
100 Newly
established
Datong Yunzhou Longtai
Lvneng Solar Power
Generation Co., Ltd.
Datong City,
Shanxi
Province
Yunzhou
District,
Datong City
Investment
and
development:
100 Newly
established
Xi'an Lvsheng Clean
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Tongchuan Baicao
Modern Agricultural
Technology Co., Ltd.
Tongchuan
City,
Shaanxi
Province
Yijun County,
Tongchuan
City
Investment
and
development:
100 Newly
established
Xi'an Longhua New
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Xi'an Xuying New
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Guanyun Ganglong Clean
Energy Co., Ltd.
Lianyungang
City, Jiangsu
Province
Guanyun
County,
Lianyungang
City
Investment
and
development:
100 Newly
established
Guanyun Yunlong Clean
Energy Co., Ltd.
Lianyungang
City, Jiangsu
Province
Guanyun
County,
Lianyungang
City
Investment
and
development:
100 Newly
established
Annual Report 2020
262 / 312
Otog Front Banner
Longhui Solar Power
Generation Co., Ltd.
Ordos, Inner
Mongolia
Otog Front
Banner, Ordos
Investment
and
development:
100 Newly
established
Hangjin Banner
Xingguang Solar Power
Generation Co., Ltd.
Ordos, Inner
Mongolia
Hangjin
Banner, Ordos
Investment
and
development:
100 Newly
established
Heilongjiang Longjia
Clean Energy Co., Ltd.
Qiqihar,
Heilongjian
Tiefeng
District,
Qiqihar City
Investment
and
development:
100 Newly
established
Lufeng Yunlong Clean
Energy Co., Ltd.
Shanwei
City,
Guangdong
Province
Lufeng,
Shanwei City
Investment
and
development:
100 Newly
established
Xi’an Jiangrui New
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Shenmu Longhua Solar
Power Co., Ltd.
Yulin City,
Shaanxi
Province
Shenmu, Yulin
City
Investment
and
development:
100 Newly
established
Tumd Left Banner
Hualong New Energy Co.,
Ltd.
Hohhot,
Inner
Mongolia
Tumd Left
Banner,
Hohhot
Investment
and
development:
100 Newly
established
Baoji Longfujia Power
Generation Co., Ltd.
Baoji City,
Shaanxi
Province
Qianyang
County, Baoji
City
Investment
and
development:
100 Newly
established
Jinglong Baosheng New
energy Co.,Ltd. in Shihezi
City
Shihezi City,
Xinjiang
Liuxiao
District,
Shihezi City
Investment
and
development:
100 Newly
established
Baoji Longhe Lvneng
New Energy Co., Ltd.
Baoji City,
Shaanxi
Province
Qianyang
County, Baoji
City
Investment
and
development:
100 Newly
established
Yinchuan Jingqiao New
Energy Co., Ltd.
Yinchuan,
Ningxia
Xingqing
District,
Yinchuan
Investment
and
development:
100 Newly
established
Yinchuan Xinhui New
Energy Co., Ltd.
Yinchuan,
Ningxia
Xingqing
District,
Yinchuan
Investment
and
development:
100 Newly
established
Huanglong Longqing PV
Power Co., Ltd.
Yan’an,
Shaanxi
Province
Huanglong
County, Yan’an
City
Investment
and
development:
100 Newly
established
Huanglong Longjie PV
Power Co., Ltd.
Yan’an,
Shaanxi
Province
Huanglong
County, Yan’an
City
Investment
and
development:
100 Newly
established
Xi'an Longfa New Energy
Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Xi'an Longjie New
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Annual Report 2020
263 / 312
Xi'an Longqing New
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Xining Longyou New
Energy Technology Co.,
Ltd.
Xining City,
Qinghai
Province
Chengxi
District, Xining
City
Investment
and
development:
100 Newly
established
Hainan Longyue New
Energy Co., Ltd.
Hainan
Prefecture,
Qinghai
Province
Gonghe
County, Hainan
Prefecture
Investment
and
development:
80 Newly
established
Xi'an Fulong New Energy
Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Bozhou Wenquan
Jinglong New Energy Co.,
Ltd.
Bortala
Mongol
Autonomous
Prefecture,
Xinjiang
Wenquan
County, Bortala
Mongol
Autonomous
Prefecture
Investment
and
development:
100 Newly
established
Bozhou Jinghe Fulong
New Energy Co., Ltd.
Bortala
Mongol
Autonomous
Prefecture,
Xinjiang
Jinghe County,
Bortala
Mongol
Autonomous
Prefecture
Investment
and
development:
100 Newly
established
Xi'an Shanglong New
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Datong Xinrong Ruilong
Clean Energy Co., Ltd.
Datong City,
Shanxi
Province
Xinrong
District,
Datong City
Investment
and
development:
100 Newly
established
Qinghai Longji New
Energy Co., Ltd.
Hainan
Prefecture,
Qinghai
Province
Gonghe
County, Hainan
Prefecture
Investment
and
development:
100 Newly
established
Hainan Jiulong New
Energy Co., Ltd.
Hainan
Prefecture,
Qinghai
Province
Gonghe
County, Hainan
Prefecture
Investment
and
development:
80 Newly
established
Qian'an Longfa Energy
Development Co., Ltd.
Songyuan
City, Jilin
Province
Qian'an
County,
Songyuan City
Investment
and
development:
100 Newly
established
Xi’an LONGi New
Energy Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Guangdong LONGi New
Energy Co., Ltd.
Guangzhou
City,
Guangdong
Province
Panyu District,
Guangzhou
City
Investment
and
development:
100 Newly
established
Beijing LONGi New
Energy Co., Ltd. Beijing City
Beijing
Economic-
Technological
Investment
and
development:
100 Newly
established
Annual Report 2020
264 / 312
Development
Area
Shangdong Leguang
Solar Energy Co., Ltd.
Jinan City,
Shandong
Province
Lixia District,
Jinan City
Investment
and
development:
100 Newly
established
Hebei LONGi New
Energy Development Co.,
Ltd.
Shijiazhuang
City, Hebei
Province
Changan
District,
Shijiazhuang
City
Investment
and
development:
100 Newly
established
LONGi Green Energy
Solar Engineering Co.,
Ltd.
Xi’an City,
Shaanxi
Province
Xi’an National
Civil
Aerospace
Industrial Base
Investment
and
development:
100 Newly
established
Huizhou Fukangyuan
Technology Co., Ltd.
Huizhou
City,
Guangdong
Province
Huicheng
District,
Huizhou
Investment
and
development:
100
Business
combinations
not under
common
control
Qishan Baotong Solar
Energy Co., Ltd.
Baoji City,
Shaanxi
Province
Qishan County,
Baoji City
Investment
and
development:
100 Newly
established
Daming Lezhao Solar
Energy Technology Co.,
Ltd.
Handan City,
Hebei
Province
Daming
County,
Handan City
Investment
and
development:
100 Newly
established
Shouguang Jinhe Solar
Technology Co., Ltd.
Weifang
City,
Shandong
Province
Shouguang
City, Weifang
City
Investment
and
development:
100
Business
combinations
not under
common
control
Heze Ningdian New
Energy Co., Ltd.
Heze City,
Shandong
Province
Heze
Development
Zone
Investment
and
development:
100
Business
combinations
not under
common
control
Cangzhou Bohai Jile
Solar Energy Co., Ltd.
Cangzhou
City, Hebei
Province
Bohai New
Area,
Cangzhou
Investment
and
development:
100 Newly
established
Jining LONGi Solar
Energy Co., Ltd.
Jining City,
Shandong
Province
Jining High-
tech Zone
Investment
and
development:
100 Newly
established
Weixian Lezhao Solar
Energy Co., Ltd.
Handan City,
Hebei
Province
Weixian
County,
Handan City
Investment
and
development:
100 Newly
established
Linzhang Lezhao Solar
Energy Co., Ltd.
Handan City,
Hebei
Province
Linzhang
County,
Handan City
Investment
and
development:
100 Newly
established
Qingzhou Yuhui Solar
Co., Ltd.
Weifang
City,
Shandong
Province
Qingzhou City,
Weifang City
Investment
and
development:
100
Business
combinations
not under
common
control
Taizhou LONGi Solar
Energy Co., Ltd. Taizhou
City, Jiangsu
Hailing
District,
Investment
and 100
Newly
established
Annual Report 2020
265 / 312
Province Taizhou City development:
Longkou LONGi Solar
Energy Co., Ltd.
Yantai City,
Shandong
Province
Longkou City,
Yantai City
Investment
and
development:
100 Newly
established
Ningxia LONGi Lvneng
New Energy Co., Ltd.
Yinchuan,
Ningxia
Yinchuan
Economic and
Technological
Development
Zone
Investment
and
development:
100 Newly
established
Qufu Lexiang Solar
Energy Co., Ltd.
Jining City,
Shandong
Province
Qufu City,
Jining City
Investment
and
development:
100 Newly
established
Yangjiang Solar Clean
Energy Co., Ltd.
Yangjiang
City,
Guangdong
Province
Yangdong
District,
Yangjiang City
Investment
and
development:
100 Newly
established
Shantou Solar Power Co.,
Ltd.
Shantou
City,
Guangdong
Province
Chenghai
District,
Shantou City
Investment
and
development:
100
Business
combinations
not under
common
control
Binzhou Lezhao Solar
Energy Co., Ltd.
Binzhou
City,
Shandong
Province
Bincheng
District,
Binzhou City
Investment
and
development:
100 Newly
established
Xiangcheng Lechang
Solar Energy Co., Ltd.
Xuchang
City, Henan
Province
Xiangcheng
County,
Xuchang City
Investment
and
development:
100 Newly
established
Ningde LONGi Solar
Energy Co., Ltd.
Ningde City,
Fujian
Province
Jiaocheng
District,
Ningde City
Investment
and
development:
100 Newly
established
Zhumadian Qijian New
Energy Co., Ltd.
Zhumadian
City, Henan
Province
Electronic
Industrial Park,
Zhumadian
Investment
and
development:
100
Business
combinations
not under
common
control
Caoxian Lezhao Solar
Technology Co., Ltd.
Heze City,
Shandong
Province
Caoxian
County, Heze
City
Investment
and
development:
100 Newly
established
Tianjin Lexiang Solar
Energy Co., Ltd. Tianjin
Baodi District,
Tianjin City
Investment
and
development:
100 Newly
established
Linqu Letou Solar Energy
Co., Ltd.
Weifang
City,
Shandong
Province
Linqu County,
Weifang City
Investment
and
development:
100 Newly
established
Linyi Lezhao Solar
Energy Co., Ltd.
Linyi City,
Shandong
Province
Feixian
County, Linyi
City
Investment
and
development:
100 Newly
established
Shijiazhuang Lezhao New
Energy Co., Ltd.
Shijiazhuang
City, Hebei
Province
Luquan
District,
Shijiazhuang
City
Investment
and
development:
100 Newly
established
Annual Report 2020
266 / 312
Zoucheng LONGi Solar
Energy Co., Ltd.
Zoucheng
City,
Shandong
Province
Taiping
Industrial Park,
Zoucheng City
Investment
and
development:
100 Newly
established
Linqing Lezhao Solar
Technology Co., Ltd.
Liaocheng
City,
Shandong
Province
Linqing City,
Liaocheng City
Investment
and
development:
100 Newly
established
Guangrao Leguang Solar
Energy Co., Ltd.
Dongying
City,
Shandong
Province
Guangrao
County,
Dongying City
Investment
and
development:
100 Newly
established
Weifang LONGi Solar
Energy Co., Ltd.
Weifang
City,
Shandong
Province
Weicheng
District,
Weifang City
Investment
and
development:
100 Newly
established
Leguang Solar Energy
Co., Ltd., Jining
Economic Development
Zone
Jining City,
Shandong
Province
Jining
Economic
Development
Zone
Investment
and
development:
100 Newly
established
Xixian New Area Ledong
Solar Energy Co., Ltd.
Xianyang
City,
Shaanxi
Province
Xixian New
Area, Xianyang
City
Investment
and
development:
100 Newly
established
Jinxiang Huiqun New
Energy Technology Co.,
Ltd.
Jining City,
Shandong
Province
Jinxiang
County, Jining
City
Investment
and
development:
100
Business
combinations
not under
common
control
Zoucheng Lehui New
Energy Co., Ltd.
Jining City,
Shandong
Province
Zoucheng City,
Jining City
Investment
and
development:
100
Business
combinations
not under
common
control
Jining Yanzhou Leguang
Solar Energy Co., Ltd.
Jining City,
Shandong
Province
Yanzhou
District, Jining
City
Investment
and
development:
100 Newly
established
Sishui LONGi Solar
Energy Co., Ltd.
Jining City,
Shandong
Province
Sishui County,
Jining City
Investment
and
development:
100 Newly
established
Ningde Leguang Solar
Energy Co., Ltd.
Ningde City,
Fujian
Province
Dongqiao
Economic
Development
Zone, Ningde
City
Investment
and
development:
100 Newly
established
Sanya LONGi Solar
Energy Co., Ltd.
Sanya City,
Hainan
Province
Yazhou
District, Sanya
City
Investment
and
development:
100 Newly
established
Suzhou Leguang Energy
Co., Ltd.
Suzhou City,
Jiangsu
Province
Wujiang
District,
Suzhou City
Investment
and
development:
100 Newly
established
Liyang LONGi Solar
Energy Co., Ltd.
Changzhou
City, Jiangsu
Province
Liyang City,
Changzhou
City
Investment
and
development:
100 Newly
established
Annual Report 2020
267 / 312
Xianghe Leguang Solar
Energy Co., Ltd.
Langfang
City, HHebei
Province
Xianghe
County,
Langfang City
Investment
and
development:
100 Newly
established
Haicheng Disheng
Hailian New Energy
Technology Co., Ltd.
Anshan City,
Liaoning
Province
Haicheng City,
Anshan City
Investment
and
development:
100
Business
combinations
not under
common
control
Zhongshan LONGi Solar
Energy Co., Ltd.
Zhongshan
City,
Guangdong
Province
Banfu Town,
Zhongshan
City
Investment
and
development:
100 Newly
established
Yancheng Shangfeng
New Energy Technology
Co., Ltd.
Yancheng
City, Jiangsu
Province
Yandu District,
Yancheng City
Investment
and
development:
100
Business
combinations
not under
common
control
Jiangmen LONGi Solar
Energy Co., Ltd.
Jiangmen
City,
Guangdong
Province
Pengjiang
District,
Jiangmen City
Investment
and
development:
100 Newly
established
Luoding Solar New
Energy Co., Ltd.
Yunfu City,
Guangdong
Province
Luoding City,
Yunfu City
Investment
and
development:
100 Newly
established
Shenzhen Grid
Connection Solar Co.,
Ltd.
Shenzhen
City,
Guangdong
Province
Yantian
District,
Shenzhen City
Investment
and
development:
90
Business
combinations
not under
common
control
Xuzhou LONGi Solar
Technology Co., Ltd.
Xuzhou City,
Jiangsu
Province
Quanshan
District,
Xuzhou City
Investment
and
development:
100
Business
combinations
not under
common
control
Wucheng Senneng Power
Technology Co., Ltd.
Dezhou City,
Shandong
Province
Wucheng
County,
Dezhou City
Investment
and
development:
100
Business
combinations
not under
common
control
Zhejiang Dongsong
Power Technology Co.,
Ltd.
Weifang
City,
Shandong
Province
Weifang
Economic
Development
Zone
Investment
and
development:
100
Business
combinations
not under
common
control
Changling Suorui New
Energy Technology Co.,
Ltd.
Songyuan
City, Jilin
Province
Changling
County,
Songyuan City
Investment
and
development:
100
Business
combinations
not under
common
control
Jiangsu LONGi New
Energy Co., Ltd.
Nanjing
City, Jiangsu
Province
Jiangning
District,
Nanjing City
Investment
and
development:
100 Newly
established
Jiaozhou Rongrui New
Energy Technology Co.,
Qingdao
City,
Jiaozhou City,
Qingdao City Investment
and 100
Business
combinations
Annual Report 2020
268 / 312
Ltd. Shandong
Province
development: not under
common
control
Xi'an Zhongxing
Zhaoyang New Energy
Co., Ltd.
Xi’an City,
Shaanxi
Province
Xi’an New City
Area
Investment
and
development:
100
Business
combinations
not under
common
control
Cheng’an Lezhao Solar
Energy Co., Ltd.
Handan City,
Hebei
Province
Cheng'an
County,
Handan City
Investment
and
development:
100 Newly
established
Changling Dongsong
New Energy Technology
Co., Ltd.
Songyuan
City, Jilin
Province
Changling
County,
Songyuan City
Investment
and
development:
100 Newly
established
Linyi Dongsong Energy
Technology Co., Ltd.
Dezhou City,
Shandong
Province
Linyi County,
Dezhou City
Investment
and
development:
100
Business
combinations
not under
common
control
Dezhou Dongsen Power
Technology Co., Ltd.
Dezhou City,
Shandong
Province
Decheng
District,
Dezhou City
Investment
and
development:
100
Business
combinations
not under
common
control
Linqu Senneng New
Energy Technology Co.,
Ltd.
Weifang
City,
Shandong
Province
Linqu County,
Weifang City
Investment
and
development:
100
Business
combinations
not under
common
control
Shanghe Zhongsen Solar
Energy Technology Co.,
Ltd.
Jinan City,
Shandong
Province
Shanghe
County, Jinan
City
Investment
and
development:
100
Business
combinations
not under
common
control
Xuzhou Xinwei New
Energy Technology Co.,
Ltd.
Xuzhou City,
Jiangsu
Province
Xuzhou
National Hi-
Tech Industrial
Development
Zone
Investment
and
development:
100
Business
combinations
not under
common
control
Ningxia Xiaoli New
Energy Co., Ltd.
Shizuishan
City,
Ningxia
Dawukou
District,
Shizuishan
City
Investment
and
development:
100
Business
combinations
not under
common
control
Ningxia Xiaodong Clean
Energy Co., Ltd.
Qingtongxia
City,
Ningxia
Qingtongxia
Jiabao
Industrial Park
Investment
and
development:
100
Business
combinations
not under
common
control
Xinyang Jinli New
Energy Equipment Co.,
Ltd.
Xinyang
City, Henan
Province
Yangshan New
Area, Xinyang
City
Investment
and
development:
100
Business
combinations
not under
common
control
Annual Report 2020
269 / 312
Guangzhou Longle Solar
Technology Co., Ltd.
Guangzhou
City,
Guangdong
Province
Zengcheng
District,
Guangzhou
City
Investment
and
development:
100 Newly
established
Xuzhou Nuoyuan New
Energy Technology Co.,
Ltd.
Xuzhou City,
Jiangsu
Province
Tongshan
District,
Xuzhou City
Investment
and
development:
100 Newly
established
Shaoyang Guotai New
Energy Development Co.,
Ltd.
Shaoyang
City, Hunan
Province
Shaoyang
County,
Shaoyang City
Investment
and
development:
100
Business
combinations
not under
common
control
Dingyuan Jingneng Solar
Power Co., Ltd.
Chuzhou,
Anhui
Province
Dingyuan
County,
Chuzhou City
Investment
and
development:
100 Newly
established
LONGI NEW ENERGY
(THAILAND) CO., LTD Thailand Thailand
Investment
and
development:
100 Newly
established
Yinchuan Leda New
Energy Co., Ltd.
Yinchuan,
Ningxia
Xixia District,
Yinchuan
Investment
and
development:
100 Newly
established
Caoxian Dalin New
Energy Co., Ltd.
Heze City,
Shandong
Province
Caoxian
County, Heze
City
Investment
and
development:
100
Business
combinations
not under
common
control
Guangzhou Longyuan
New Energy Co., Ltd.
Guangzhou
City,
Guangdong
Province
Zengcheng
District,
Guangzhou
City
Investment
and
development:
100 Newly
established
Zhuhai Longle New
Energy Co., Ltd.
Zhuhai City,
Guangdong
Province
Jinwan District,
Zhuhai City
Investment
and
development:
100 Newly
established
Xianyang Qinyile New
Energy Co., Ltd.
Xianyang
City,
Shaanxi
Province
Qindu District,
Xianyang City
Investment
and
development:
100 Newly
established
Qingyuan Longteng New
Energy Co., Ltd.
Qingyuan
City,
Guangdong
Province
Qingcheng
District,
Qingyuan City
Investment
and
development:
100 Newly
established
Yangzhou Tengyang New
Energy Co., Ltd.
Yangzhou,
Jiangsu
Province
Yizheng City,
Yangzhou City
Investment
and
development:
100 Newly
established
Fengxiang Lefeng New
Energy Co., Ltd.
Baoji City,
Shaanxi
Province
Fengxiang
County, Baoji
City
Investment
and
development:
100 Newly
established
Shizhou Gangchi New
Energy Co., Ltd.
Chizhou
City, Anhui
Province
Chizhou High-
tech Zone
Investment
and
development:
100 Newly
established
Chuzhou Zhonglong New
Energy Co., Ltd.
Chuzhou,
Anhui
Province
Langya
District,
Chuzhou City
Investment
and
development:
100 Newly
established
Annual Report 2020
270 / 312
Note about the difference between the shareholding ratio of subsidiary and the ratio with voting right:
N/A
The basis for the fact that the investee is controlled by half or less voting rights and the fact that the
investee is not controlled by half or more voting rights:
Although LONGi Solar holds 20% of equity of Xi’an LONGi Green Energy Intelligent Technology
Partnership (Limited Partnership), it is the executive partner of the enterprise and has the control right.
For the important structured entities included in the scope of consolidation, the basis of control is as
follows:
N/A
The basis for determining whether the company is an agent or a client:
N/A
Other notes:
N/A
(2). Important non-wholly-owned subsidiaries
□ Applicable √ Not Applicable
(3). Main financial information of the important non-wholly-owned subsidiaries
□ Applicable √ Not Applicable
(4). Major restriction on using the assets of the Group and debt liquidation of the Group
□ Applicable √ Not Applicable
(5). Financial support and other support provided for structured entities included in the scope
of consolidated financial statements:
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
2. Transaction with change in the owner’s equity in subsidiary and continuous control over
the subsidiary
□ Applicable √ Not Applicable
3. Equity in joint ventures or associates
√ Applicable □ Not Applicable
(1). Important joint ventures or associates
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Name of joint
venture or
associate
Main place of
business Domicile
Nature of
business
Shareholding (%)
Accounting
treatment on
investments
in joint
ventures and
associates
Direct Indirect
Zhongning Zhongning County, Zhongning Investment and 30 Equity
Annual Report 2020
271 / 312
New Energy Ningxia County development: method
Tongxin
LONGi
Tongxin County,
Ningxia
Tongxin
County
Investment and
development:
49 Equity
method
Sichuan
Yongxiang
Leshan City,
Sichuan Province
Leshan City Production and
sale
15 Equity
method
Tongchuan
Xiaguang
Tongchuan City,
Shaanxi Province
Tongchuan
City
Investment and
development:
51 Equity
method
Pingmei
LONGi
Xuchang City,
Henan Province
Xuchang
City
Production and
sale
19.8 Equity
method
Daqing New
Energy
Daqing City,
Heilongjiang
Province
Daqing City Investment and
development:
30 Equity
method
Zhaozhou New
Energy
Daqing City,
Heilongjiang
Province
Daqing City Investment and
development:
30 Equity
method
Description of the difference between the shareholding ratio in joint ventures or associates and the
ratio with voting right:
N/A
Basis for one having voting rights of below 20% but significant influence or one having voting rights
of 20% or above but no significant influence:
Although the Group has less than 20% of the proportion of Pingmei LONGi and Sichuan Yongxiang,
one of directors in Pingmei LONGi and Sichuan Yongxiang is appointed by the Group. Thus, the
Group is able to exert significant influence on the above companies, so they are accounted as
associates.
Although the Group has more than 50% of the proportion of Tongchuan Xiaguang, according to the
Articles of Association, the Group exercises 49% of the voting rights. The appointed directors
constitute less than half of the number of directors on the board, and there is no decision on executive
appointment. The Group does not participate in the investee’s production and operation, so it has no
control right over Tongchuan Xiaguang which is not included in the scope of combination.
(2). Main financial information of important joint ventures
□ Applicable √ Not Applicable
Annual Report 2020
272 / 312
(3). Main financial information of important associates
√ Applicable □ Not Applicable
Unit: Ten Thousand Yuan Currency: RMB
Ending balance/Amount of the current period Beginning balance/Amount of the previous period
Zhongning
New Energy
Tongxin
LONGi
Sichuan
Yongxiang
Pingmei
LONGi
Tongchuan
Xiaguang
Daqing
New Energy
Zhaozhou
New Energy
Zhongning
New Energy
Tongxin
LONGi
Sichuan
Yongxiang
Pingmei
LONGi
Tongchuan
Xiaguang
Daqing
New Energy
Zhaozhou
New Energy
Current assets 35,696.83 27,988.26 175,113.85 86,948.52 24,540.26 27,195.61 16,050.02 33,007.96 26,093.22 98,947.57 74,156.01 28,705.72 23,762.40 13,882.73
Non-current
assets 112,653.01 46,424.41 311,501.89 172,536.69 151,653.45 49,509.67 47,998.02 134,342.19 49,452.87 283,088.93 107,467.52 151,653.78 51,339.52 49,720.83
Total assets 148,349.84 74,412.67 486,615.74 259,485.21 176,193.71 76,705.28 64,048.04 167,350.15 75,546.09 382,036.50 181,623.53 180,359.50 75,101.92 63,603.56
Current
liabilities 15,104.11 3,846.38 147,109.44 127,204.34 17,356.19 1,462.72 4,797.04 25,553.74 3,794.58 92,731.76 65,466.23 41,453.40 1,993.19 5,813.68
Non-current
liabilities 94,290.00 36,041.40 147,888.16 9,508.54 104,777.38 50,401.88 42,021.41 102,860.00 39,525.13 153,869.01 6,238.10 93,688.89 51,400.00 42,600.00
Total liabilities 109,394.11 39,887.78 294,997.60 136,712.88 122,133.57 51,864.60 46,818.45 128,413.74 43,319.71 246,600.77 71,704.33 135,142.29 53,393.19 48,413.68
Minority
equity
Shareholders'
equity
attributable to
the parent company
38,955.73 34,524.89 191,618.14 122,772.33 54,060.14 24,840.68 17,229.59 38,936.41 32,226.38 135,435.73 109,919.20 45,217.21 21,708.73 15,189.88
Share of net
assets
calculated by
shareholding
ratio
11,686.72 16,917.20 28,742.72 24,308.92 27,570.67 7,452.20 5,168.88 11,680.92 15,790.92 20,315.36 21,764.00 23,060.78 6,512.62 4,556.96
Adjusting
events -573.84 -649.11 -2,540.99 -749.11 -11,232.35 8.53 7.60 -573.83 -648.76 0 -513.38 -9,199.37 0.6 -99.54
- Goodwill
- Unrealized
profits of
internal
transactions
-2,540.99 -204.41 -11,203.36 41.42 -9,170.39
- Others -573.84 -649.11 -544.70 -28.99 8.53 7.60 -573.83 -648.76 -554.8 -28.98 0.6 -99.54
Book value of
equity
investment in
associates
11,112.88 16,268.09 26,201.73 23,559.81 16,338.32 7,460.73 5,176.48 11,107.09 15,142.16 20,315.36 21,250.62 13,861.41 6,513.22 4,457.42
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Fair value of
equity investments in
associates with
public offer
Operating
revenue 17,675.70 7,720.62 229,045.81 290,115.16 22,314.89 9,798.94 8,045.58 17,382.41 7,778.40 124,654.22 249,479.20 3,826.31 10,190.69 8,107.17
Net profit 19.32 2,297.82 52,239.95 12,694.90 8,842.92 3,158.38 2,396.88 4,375.08 2,256.52 15,448.80 15,475.46 2,469.06 3,535.40 2,490.51
Net profits of
discontinued
operation
Other
comprehensive
income
Total
comprehensive
income
19.32 2,297.82 52,239.95 12,694.90 8,842.92 3,158.38 2,396.88 4,375.08 2,256.52 15,448.80 15,475.46 2,469.06 3,535.40 2,490.51
Dividends
received from
the associates
in the current year
Other notes
The Group calculates asset share in proportion to the shareholding based on the amount assigned to the parent company in the consolidated financial
statements of associates. The amount in the consolidated financial statements of associates takes into account the fair value of identifiable net assets and
liabilities of associates when investment is obtained and impact of uniform accounting policies.
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(4). Summary of the financial information for minor joint ventures and associates
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Ending balance/Amount of the
current period
Beginning balance/Amount of the
previous period
Joint venture:
Total book value of investment
The following total amount calculated by shareholding
- Net profits
- Other comprehensive income
- Total comprehensive income
Associate:
Total book value of investment 394,680,620.27 147,711,957.40
The following total amount calculated by shareholding
- Net profits 11,508,579.83 9,201,566.93
- Other comprehensive income -115,117.75 -615.18
- Total comprehensive income 11,393,462.08 9,200,951.75
Other notes
Both net profit and other comprehensive income have taken into account of the influence of the fair
value of identifiable assets and liabilities at the time of obtaining the investment.
(5). Notes to the significant restrictions on the ability of joint ventures or associates to transfer
funds to the Company:
□ Applicable √ Not Applicable
(6). Excess loss suffered by joint ventures or associates
□ Applicable √ Not Applicable
(7). Unrecognized commitments related to the investment of joint ventures
□ Applicable √ Not Applicable
(8). Contingent liabilities related to investment of joint ventures or associates
□ Applicable √ Not Applicable
4. Important joint operation
□ Applicable √ Not Applicable
5. Equity in structured entities not included in the consolidated financial statements
Related notes on structured entities not included in the scope of consolidated financial statements:
□ Applicable √ Not Applicable
6. Others
□ Applicable √ Not Applicable
X. Risks Related to Financial Instruments
√ Applicable □ Not Applicable
The Group's operating activities will be subject to various financial risks: market risks (mainly
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including foreign exchange risks and interest rate risks), credit risks and liquidity risks. The Group’s
overall risk management plan focuses on the unpredictability of financial markets and seeks to
minimize potential adverse effects on the Group’s financial performance.
(1) Market risk
(a) Foreign exchange risk
The Group's main business is located in China and its principal business is settled in RMB. However,
the foreign currency assets and liabilities recognized and future foreign currency transactions of the
Group (foreign currency assets, liabilities and foreign currency transactions are mainly measured in
USD) still have foreign exchange risks. The Finance Department of Group Headquarters is
responsible for monitoring the size of foreign currency transaction, foreign currency assets and
liabilities to minimize foreign exchange risks. For this purpose, the Group may sign the forward
foreign exchange contracts or currency swap contracts to achieve the purpose of avoiding foreign
exchange risks.
On December 31, 2020 and December 31, 2019, the amounts of foreign currency financial assets and
foreign currency financial liabilities held by companies in the Group whose recording currency is
RMB were converted to RMB as follows:
December 31, 2020
USD item Item of other foreign
currencies Total
Foreign currency
financial assets -
Monetary fund 4,802,312,564.73 910,168,509.93 5,712,481,074.66
Accounts receivable 2,581,492,858.30 128,697,339.34 2,710,190,197.64
Other receivables 78,030,018.82 158,448.31 78,188,467.13
Total 7,461,835,441.85 1,039,024,297.58 8,500,859,739.43
Foreign currency
financial liabilities -
Accounts payable 1,091,702,993.41 80,250.00 1,091,783,243.41
Other payables 60,016,655.29 52,224,006.64 112,240,661.93
Short-term borrowings 97,221,010.00 97,221,010.00
Total 1,248,940,658.70 52,304,256.64 1,301,244,915.34
December 31, 2019
USD item Item of other foreign
currencies Total
Foreign currency
financial assets -
Monetary fund 4,684,559,549.15 404,884,865.68 5,089,444,414.83
Accounts receivable 661,713,886.13 86,851,971.80 748,565,857.93
Other receivables 28,972,984.58 2,502,956.21 31,475,940.79
Total 5,375,246,419.86 494,239,793.69 5,869,486,213.55
Foreign currency financial liabilities -
Accounts payable 1,110,863,133.22 63,152,409.71 1,174,015,542.93
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Other payables 287,928,217.82 142,530,951.67 430,459,169.49
Long-term borrowings 1,185,954,000.00 1,185,954,000.00
Long-term payables 1,561,908.59 1,561,908.59
Total 2,584,745,351.04 207,245,269.97 2,791,990,621.01
As of December 31, 2020, if RMB appreciates or depreciates by 4% against USD and other factors
remain unchanged, the Group will reduce or increase its net profit by about RMB 195,968,009.99
(December 31, 2019: about RMB 80,720,784.33) for all kinds of USD financial assets and USD
financial liabilities of the companies with RMB as the recording currency.
As of December 31, 2020 and December 31, 2019, the amounts of foreign currency financial assets
and foreign currency financial liabilities held by companies in the Group whose recording currency
is RMB were converted to RMB as follows:
(b) Interest rate risks
The interest rate risk of the Group principally arises from long-term bank loans, bonds payable and
other long-term interest-bearing debts. The financial liabilities with a floating rate make the Group
exposed to cash flow interest rate risk while the financial liabilities with a fixed rate make the Group
exposed to fair value interest rate risk. The Group determines the relative proportions of fixed interest
rate and floating interest rate contracts according to current market environment. As of December 31,
2020, the Group's long-term interest-bearing debts were mainly floating interest rate contracts
denominated in RMB, with an amount of RMB 1,125,286,240.29 (as of December 31, 2019: RMB
2,508,594,222.97).
The Finance Department of Group Headquarters continuously monitors the interest rate position of
the Group. The increase in interest rates will increase the cost of new interest-bearing debts and the
interest expense of the Group's outstanding interest-bearing debts of which the interest is accrued by
a floating interest rate, which will have a material adverse effect on the Group's financial performance.
The Management will timely make adjustments according to the latest market conditions. These
adjustments may reduce interest rate risks through the arrangement of interest rate swaps. The Group
had no interest rate swap arrangement in 2020 and 2019.
As of December 31, 2020, if interest rates of the floating rate borrowings increased or decreased by
50 basis points while all other factors remained unchanged, the Group's net profit would decrease or
increase by approximately RMB 23,608,132.24 (as of December 31, 2019: about RMB
19,072,231.57).
(2) Credit risks
The Group manages the credit risks on a group basis. Credit risks mainly arise from bank deposits,
accounts receivable, notes receivable and other receivables, etc.
The bank deposits of the Group are mainly deposited at state-owned banks, other medium and large-
size listed banks, and the bank of deposits are dispersed. The Group believes that there is no
significant credit risk, and that no significant losses from non-performance by these counterparties
will be incurred.
In addition, the Group has policies to limit the credit risk exposure on accounts receivable, notes
receivable, contract assets and other receivables. Based on the financial position of customers, the
possibility of winning guarantee from a third party, credit record and other factors, such as current
market conditions, the Group evaluates the credit qualification of customer and defines the
corresponding credit period. The Group monitors the credit records of customer on a regular basis.
For the customer with bad credit records, the Group will adopt different manners, such as written
collection, shortening credit period or cancelling credit period, to guarantee the entire credit risk of
the Group is within the controllable scope.
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As of December 31, 2020, the Group had no significant collateral held by the debtor's pledge or other
credit enhancements (as of December 31, 2019: none).
(3) Liquidity risks
Cash flow forecasting is performed by each subsidiary of the Group. The Finance Department of the
Headquarters continues to monitor short- and long-term capital needs at the level of the Group to
ensure the maintenance of sufficient cash reserves on the basis of aggregating the cash flow forecasts
of the subsidiaries. Meanwhile, the Finance Department supervises the compliance with loan
agreements, and the commitment from major financial institutions for sufficient reserve funds to
satisfy the short-term and long-term capital demands.
The financial liabilities of the Group on the balance sheet date are listed by their maturity date as
below at their undiscounted contractual cash flow:
December 31, 2020
Within 1 year One to two years Two to five
years Above five years Total
Short-term
borrowing
s
2,452,384,166.15 2,452,384,166.15
Notes
payable
10,974,916,004.4
5
10,974,916,004.4
5
Accounts
payable 11,169,277,619.28 11,169,277,619.28
Other
payables 8,611,886,461.72 8,611,886,461.72
Long-term
borrowing
s
1,055,511,618.58 641,014,560.22 543,904,361.7
7 2,240,430,540.57
Bonds
payable 1,012,282,020.43 15,000,000.00 45,000,000.00 4,346,411,265.99 5,418,693,286.42
Other non-
current
liabilities
365,059,333.10 269,831,581.77 634,890,914.87
Long-term
payables 417,580,045.77 263,398,382.89
346,360,655.0
6 416,574,387.61 1,443,913,471.33
Total 36,058,897,269.4
8
1,189,244,524.8
8
935,265,016.8
3
4,762,985,653.6
0
42,946,392,464.7
9
December 31, 2019
Within 1 year One to two years Two to five
years
Above five
years Total
Short-term
borrowing
s
868,262,792.82 868,262,792.82
Notes
payable 8,111,877,027.54 8,111,877,027.54
Accounts
payable 5,602,048,097.26 5,602,048,097.26
Other
payables 3,898,115,075.49 3,898,115,075.49
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Long-term
borrowing
s
1,096,831,459.75 1,403,866,117.5
9
1,266,670,478.1
3 3,767,368,055.47
Bonds
payable 58,357,552.50
1,055,922,552.5
0 1,114,280,105.00
Long-term
payables 534,620,621.96 313,226,805.25 645,060,164.68
1,008,113,115.9
0 2,501,020,707.79
Total 20,170,112,627.3
2
2,773,015,475.3
4
1,911,730,642.8
1
1,008,113,115.9
0
25,862,971,861.3
7
On the balance sheet date, the maximum amount of the financial guarantee provided by the Group is
listed as follows according to the earliest period that interested parties can require payment:
December 31, 2020
Within 1 year One to two
years
Two to five
years Above five years Total
Guarantee 21,560,000.00 22,050,000.00 70,315,000.00 134,995,000.00 248,920,000.00
December 31, 2019
Within 1 year
One to two
years
Two to five
years
Above five
years Total
Guarantee 20,335,000.00 21,560,000.00 68,110,000.00 159,250,000.00 269,255,000.00
XI. Disclosure of Fair Value
1. Ending fair value of assets and liabilities measured at fair value
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Ending fair value
Level 1 fair value
measurement
Level 2 fair value
measurement
Level 3 fair value
measurement Total
I. Sustained
measurement of fair value
(I) Financial assets held
for trading 4,000,971.20 4,000,971.20
1. Financial assets at fair
value through current profit
or loss
4,000,971.20 4,000,971.20
(1) Investments in debt
instruments
(2) Investment in equity
instruments
(3) Derivative financial
assets
2. Financial assets at fair
value through profit or loss
(1) Investments in debt
instruments
(2) Investment in equity
Annual Report 2020
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instruments
(II) Other creditors
investment
(III) Investment with other
equity instruments 37,142,441.49 37,142,441.49
(IV) Investment real estate
1. Land use right for
leasing
2. Buildings leased
3. Land use right held
for transfer upon
appreciation
(V) Biological assets
1. Consumable
biological assets
2. Productive biological
assets
(VI) Receivables
financing 238,952,924.42 238,952,924.42
Total assets measured
continuously at fair value 4,000,971.20 276,095,365.91 280,096,337.11
(VI) Financial liabilities
held for trading
1. Financial liabilities at
fair value through current
profit or loss
Including: Bonds issued for
trading
Derivative financial
liabilities
Others
2. Financial liabilities at
fair value through current
profit or loss
Non-current liabilities due
within one year 365,059,333.10 365,059,333.10
Other non-current
liabilities 269,831,581.77 269,831,581.77
Total liabilities
continuously measured at
fair value
634,890,914.87 634,890,914.87
II. Non-continuous
measurement of fair value
(I) Held-for-sale assets 4,424,778.76 4,424,778.76
Total assets
uncontinuously measured
at fair value
4,424,778.76 4,424,778.76
Total liabilities
uncontinuously measured
Annual Report 2020
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at fair value
2. Determination basis of market price for items measured at Level 1 fair value on a sustained
and non-sustained basis
□ Applicable √ Not Applicable
3. Valuation techniques, qualitative and quantitative information on important parameters
adopted for Level 2 continuous and non-continuous fair value measurement items
√ Applicable □ Not Applicable
For financial instruments traded in active markets, the Group determines their fair values based on
their quotations in active markets. For financial instruments that are not traded in active markets, the
Group uses valuation techniques to determine their fair values. The valuation models used are mainly
cash flow discount model and market comparable company model, etc. The input values of valuation
technology mainly include risk-free interest rates, benchmark interest rates, exchange rates, credit
differences, liquidity premium, EBITDA multipliers, and lack of liquidity discount.
4. Valuation techniques, qualitative and quantitative information on important parameters
adopted for Level 3 continuous and non-continuous fair value measurement
√ Applicable □ Not Applicable
For financial instruments traded in active markets, the Group determines their fair values based on
their quotations in active markets. For financial instruments that are not traded in active markets, the
Group uses valuation techniques to determine their fair values. The valuation models used are mainly
cash flow discount model and market comparable company model, etc. The input values of valuation
technology mainly include risk-free interest rates, benchmark interest rates, exchange rates, credit
differences, liquidity premium, EBITDA multipliers, and lack of liquidity discount.
5. Adjustment information between beginning and ending book values and sensitivity
analysis of unobservable parameters of sustained Level 3 fair value measurement items
□ Applicable √ Not Applicable
6. Conversion causes and policy to determine the conversion time point in case of conversion
between levels in the current period for the items of continuous fair value measurement
√ Applicable □ Not Applicable
The Group takes the occurrence date of events causing transfers at each level as the time point to
recognize the transfers at each level. There is no the transfer at Level 1 and Level 2 this year.
7. Changes of valuation techniques in current period and causes
□ Applicable √ Not Applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
√ Applicable □ Not Applicable
Financial assets and financial liabilities measured by amortized cost of the Group mainly include:
notes receivable, accounts receivable, other receivables, long-term receivables, short-term
borrowings, payables, long-term borrowings, bonds payable and long-term payable.
In addition to the following financial assets and financial liabilities, the difference between the book
value and fair value of other financial assets and financial liabilities that are not measured at fair value
is small.
Item December 31, 2020 December 31, 2019
Book value Fair value Book value Fair value
Financial
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liabilities -
Long-term
borrowings 1,125,286,240.29 1,125,286,240.29 2,508,594,222.97 2,508,594,222.97
Bonds payable 4,351,411,265.99 4,351,411,265.99 995,584,143.19 995,584,143.19
Long-term
payables 889,053,865.52 889,053,865.52 1,528,226,692.46 1,528,226,692.46
Total 6,365,751,371.80 6,365,751,371.80 5,032,405,058.62 5,032,405,058.62
9. Others
√ Applicable □ Not Applicable
The level into which measurement results of fair value are divided depends on the lowest level into
which the input value with importance in measurement of fair value is divided:
Level 1: unadjusted quotation for the same assets or liabilities in an active market.
Level 2: Input value of relevant assets or liabilities to be directly or indirectly observed other than the
input value at Level 1.
Level 3: Unobservable input value of relevant assets or liabilities.
XII. Related Parties and Related Party Transaction
1. Parent company of the Company
√ Applicable □ Not Applicable
Note to information about the Company's parent company
The Company has no parent company, and the actual controllers of the Company are the couple Li
Zhenguo (shareholding 14.44%) and Li Xiyan (shareholding 5.15%), totaling 19.59%.
The ultimate controlling parties of the Company are Li Zhenguo and Li Xiyan.
Other notes:
N/A
2. Information about subsidiaries of the Company
√ Applicable □ Not Applicable
See IX. 1. Equity in subsidiaries for the information about subsidiaries of the Company.
3. Joint ventures and associates of the Company
√ Applicable □ Not Applicable
Please refer to "Note IX. 3. Equity in joint ventures or associates" for details of major joint ventures
and associates of the Company.
The status of other joint ventures and associates that have related party transactions with the Company
in current period or had related party transactions with the Company in previous periods and
generated balances is as follows
√ Applicable □ Not Applicable
Name of joint venture or associate Relation with the Company
Sichuan Yongxiang New Energy Co., Ltd. Associate
Tongxin LONGi New Energy Co., Ltd. Associate
Pingmei LONGi New Energy Technology Co.,
Ltd. Associate
Annual Report 2020
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Zhongning LONGi Solar New Energy Co., Ltd. Associate
Daqing Huiqing New Energy Co., Ltd. Associate
Zhaozhou Longhui New Energy Co., Ltd. Associate
Zhongning LONGi Tianhua New Energy Co.,
Ltd. Associate
Yidao New Energy Technology (Quzhou) Co.,
Ltd. Associate
Bao Grid Shanghai Energy Technology Co., Ltd. Associate
SRICITY ELECTRONICS
MANUFACTURING CLUSTER PRIVATE
LIMITED
Associate
Tongchuan Xiaguang New Energy Power
Generation Co., Ltd. Associate
Xi’an LONGi Anfang Solar Energy Co., Ltd. Associate
Qishan Baotong Solar Energy Co., Ltd. Associate
Xixian New Area Leyue Solar Energy Co., Ltd. Associate
Xi’an Letian Solar Energy Co., Ltd. Associate
Lantian Mingrui New Energy Co., Ltd. Associate
Wuzhong Leheng Solar Energy Technology Co.,
Ltd. Associate
Xi’an Lejing Solar Energy Co., Ltd. Associate
Zhengzhou Lemou Solar Energy Co., Ltd. Associate
Yunnan Tongwei High-purity Crystalline
Silicon Co., Ltd. Associate
Xi'an Ruicheng Longtai New Energy Co., Ltd. Associate
Xi'an Shenglong New Energy Co., Ltd. Associate
Xi 'an Lvlong Clean Energy Co., Ltd. Associate
Ruicheng Lvlong Clean Energy Co., Ltd. Associate
Datong Xinrong Oulong Clean Energy Co., Ltd. Associate
Hunyuan Chenglong Clean Energy Co., Ltd. Associate
Zhejiang Zhongjing Technology Co., Ltd. Associate
Xi'an Zhongjing Semiconductor Materials Co.,
Ltd. Associate
Ningxia Zhongjing Semiconductor Materials
Co., Ltd. Associate
Other notes
□ Applicable √ Not Applicable
4. Other related parties
√ Applicable □ Not Applicable
Name of other related parties Relation between other related parties and the
Company
Li Zhenguo Others
Annual Report 2020
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Li Xiyan Others
Li Chun'an Others
Zhong Baoshen Others
Liu Xuewen Others
Xu Dapeng Others
Bai Zhongxue Others
Zou Zonghai Others
Zhang Rumin Others
Tian Gaoliang Others
Li Shoushuang Others
Guo Ju'e Others
Qi Chengjun Others
Li Xiangju Others
He Jing Others
Liu Xiaodong Others
Ningxia Zhongjing Semiconductor Materials Co., Ltd. Others
Xi'an Zhongjing Semiconductor Materials Co., Ltd. Others
Audiowell Electronics (Guangdong) Co., Ltd. Others
Audiowell Electronics (Zhaoqing) Co., Ltd. Others
Dalian Linton NC Machine Co., Ltd. Others
Dalian Weikaite Technology Co., Ltd. Others
Linton Kayex Technology Co., Ltd. Others
Xinyi Zhongda Energy Saving Technology Co., Ltd. Others
Shanghai Fuchuan Intelligent Technology Co., Ltd. Others
Ningxia LONGi Meter Co., Ltd. Others
Shenyang LONGi Electromagnetic Technology Co., Ltd. Others
Yingkou Jinchen Machinery Co., Ltd. Others
Suzhou Yingzhen Intelligent Technology Co., Ltd. Others
Suzhou DR Link Automation Technology Co., Ltd. Others
United Nations Quality Detection Group Co., Ltd. Others
Licheng Yingheng Clean Energy Co., Ltd. Others
Other notes
N/A
5. Related party transaction
(1). Related party transactions of purchase and sales of commodities, supply and acceptance
of labor services
Information about goods purchase/receiving labor services
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Annual Report 2020
284 / 312
Related parties
Contents of
related party
transaction
Amount of the current
period
Amount of the
previous period
Dalian Linton NC Machine Co., Ltd. Production
equipment 1,368,036,459.23 817,095,808.98
Sichuan Yongxiang New Energy Co., Ltd. Poly silicon
material 1,307,765,734.50 466,814,123.91
Pingmei LONGi New Energy Technology
Co., Ltd.
Outsourced
processing of
cells
1,106,844,550.38 934,778,344.41
Linton Kayex Technology Co., Ltd. Production
equipment 766,584,070.18
Yingkou Jinchen Machinery Co., Ltd. Production
equipment 104,561,940.24 311,280,079.79
Shenyang LONGi Electromagnetic
Technology Co., Ltd.
Production
equipment 44,402,592.80 18,807,876.73
Shanghai Fuchuan Intelligent Technology
Co., Ltd.
Production
equipment 41,301,942.83 101,421,456.18
Dalian Weikaite Technology Co., Ltd. Production
equipment 30,361,238.95
Sichuan Yongxiang New Energy Co., Ltd. Spare parts 30,203,469.02
Yidao New Energy Technology (Quzhou)
Co., Ltd.
Cell 14,539,470.18
Dalian Linton NC Machine Co., Ltd. Spare parts 2,638,520.27 2,037,954.81
Ningxia Zhongjing Semiconductor
Materials Co., Ltd.
Poly silicon
material 2,547,590.45 10,539,616.13
Shenyang LONGi Electromagnetic
Technology Co., Ltd.
Spare parts 2,075,740.46 904,698.34
–Shanghai Baowang Energy Technology
Co., Ltd.
Others 918,875.13
Ningxia Zhongjing Semiconductor
Materials Co., Ltd.
Spare parts 736,968.68
Xi’an United Nations Quality Detection -
Co., Ltd.
Testing
services 343,962.26
Shanghai Fuchuan Intelligent Technology
Co., Ltd.
Spare parts 146,643.54 271,208.68
Suzhou Yingzhen Intelligent Technology
Co., Ltd.
Spare parts 31,465.49
Yingkou Jinchen Machinery Co., Ltd. Spare parts 13,800.39 297,497.36
Dalian Linton NC Machine Co., Ltd. Equipment
renovation 392,241.38
Ningxia LONGi Meter Co., Ltd. Spare parts 23,628.32
Suzhou DR Link Automation Technology
Co., Ltd.
Spare parts 513.27
Total 4,824,055,034.98 2,664,665,048.29
Information on goods selling/services rendering
√ Applicable □ Not Applicable
Annual Report 2020
285 / 312
Unit: Yuan Currency: RMB
Related parties
Contents of
related party
transaction
Amount of the
current period
Amount of the
previous period
Tongchuan Xiaguang New Energy Power Generation
Co., Ltd.
Solar plant
construction and
services
152,440,125.26 1,190,479,308.83
Datong Xinrong Oulong Clean Energy Co., Ltd.
Solar plant
construction and
services
135,383,317.76
Hunyuan Chenglong Clean Energy Co., Ltd.
Solar plant
construction and
services
121,215,174.60
Pingmei LONGi New Energy Technology Co., Ltd. Wafer 107,709,341.06 280,208,715.23
Yidao New Energy Technology (Quzhou) Co., Ltd. Wafer 59,069,925.77 7,266,500.01
Pingmei LONGi New Energy Technology Co., Ltd. Module 38,041,096.53 36,829,559.72
Ningxia Zhongjing Semiconductor Materials Co.,
Ltd.
Utilities 11,625,763.72 9,745,907.36
Trina Solar (Vietnam) Science&Technology Co., Ltd. Others 4,708,934.91
Linton Kayex Technology Co., Ltd. Module 2,509,503.12
Linton Kayex Technology Co., Ltd.
Solar plant
construction and
services
1,817,592.30
Xi'an Zhongjing Semiconductor Materials Co., Ltd. Utilities 1,284,878.95 1,211,744.03
Pingmei LONGi New Energy Technology Co., Ltd. Technical
services 1,082,379.51
Sichuan Yongxiang New Energy Co., Ltd. Square silicon
core 619,469.03 4,244,424.77
Ningxia Zhongjing Semiconductor Materials Co.,
Ltd.
Others 473,373.26 736,339.88
Sichuan Yongxiang New Energy Co., Ltd. Others 249,666.62
Xi'an Zhongjing Semiconductor Materials Co., Ltd. Others 198,514.22 10,754.72
Zhaozhou Longhui New Energy Co., Ltd. Module 126,159.29
Dalian Linton NC Machine Co., Ltd. Auxiliary
materials 88,495.58
Dalian Linton NC Machine Co., Ltd. Others 67,141.94 14,683.92
Xinyi Zhongda Energy Saving Technology Co., Ltd.
Solar plant
construction and
services
20,047.17
Shenyang LONGi Electromagnetic Technology Co.,
Ltd.
Others 1,800.00
Linton Kayex Technology Co., Ltd. Others 1,760.00
Shanghai Fuchuan Intelligent Technology Co., Ltd. Others 1,480.00
Audiowell Electronics (Zhaoqing) Co., Ltd.
Solar plant
construction and
services
3,553,701.80
Yingkou Jinchen Machinery Co., Ltd. Cell 55,816.14
Annual Report 2020
286 / 312
Yingkou Jinchen Machinery Co., Ltd. Spare parts 42,197.99
Licheng Yingheng Clean Energy Co., Ltd.
Solar plant
construction and
services
875,551,365.53
Total 638,735,940.60 2,409,951,019.93
Note to related party transactions of goods purchase & sale, supply and acceptance of labor services
□ Applicable √ Not Applicable
(2). Related trusteeship/contracting and entrust management/ outsourcing
Commissioned management/contracting of the Company:
□ Applicable √ Not Applicable
Information on commissioned management/contracting
□ Applicable √ Not Applicable
Statement of entrusted management/ outsourcing of the Company:
□ Applicable √ Not Applicable
Information on related management/contracting
□ Applicable √ Not Applicable
(3). Related leasing
The Company as the Lessor:
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Name of the Lessee Type of
lease assets
Lease income
recognized in the
current period
Lease income recognized in the
prior period
Ningxia Zhongjing Semiconductor
Materials Co., Ltd.
Housing 1,768,217.36 1,781,265.14
Ningxia Zhongjing Semiconductor
Materials Co., Ltd.
Equipment 56,952.00 56,952.00
Total 1,825,169.36 1,838,217.14
The Company as the Lessee:
□ Applicable √ Not Applicable
Related lease
□ Applicable √ Not Applicable
(4). Related guarantees
The Company as the Guarantor
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Guaranteed party Guarantee amount Starting date Maturity date Whether the guarantee
has been fulfilled
Tongxin LONGi 12,201.00 2015-8-28 2030-8-27 None
Tongxin LONGi 11,221.00 2015-9-15 2030-9-14 None
Annual Report 2020
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LONGi Tianhua 7,448.00 2015-9-15 2030-9-14 None
Tongxin LONGi 3,724.00 2015-9-15 2030-9-14 None
The Company as the Guaranteed Party
□ Applicable √ Not Applicable
Information on guarantees for related parties
√ Applicable □ Not Applicable
On August 25, 2015, the Company provided joint and several liability guaranty to the Lender for the
principal of RMB 122.01 million included in the long-term borrowings of RMB 249 million signed
between the associate Tongxin LONGi and China development Bank Ningxia Hui Autonomous
Region Branch with a term of 15 years (from August 28, 2015 to August 27, 2030) as well as the
interest, interest penalty, compound interest, compensatory payment, liquidated damages, damage
awards and the expense for achieving creditor’s rights. The guarantee period is two years from the
expiration date of the performance period of each debt under the master contract.
On August 25, 2015, the Company provided joint and several liability guaranty to the Lender for the
principal of RMB 112.21 million included in the long-term borrowings of RMB 229 million signed
between the associate Tongxin LONGi and China development Bank Ningxia Hui Autonomous
Region Branch with a term of 15 years (from September 15, 2015 to September 14, 2030) as well as
the interest, interest penalty, compound interest, compensatory payment, liquidated damages, damage
awards and the expense for achieving creditor’s rights. The guarantee period is two years from the
expiration date of the performance period of each debt under the master contract.
On August 28, 2015, the Company provided joint and several liability guaranty to the Lender for the
principal of RMB 74.48 million included in the long-term borrowings of RMB 152 million signed
between the associate LONGi Tianhua and China Development Bank Ningxia Hui Autonomous
Region Branch with a term of 15 years (from September 15, 2015 to September 14, 2030) as well as
the interest, interest penalty, compound interest, compensatory payment, liquidated damages, damage
awards and the expense for achieving creditor’s rights. The guarantee period is two years from the
expiration date of the performance period of each debt under the master contract.
On August 25, 2015, the Company provided joint and several liability guaranty to the Lender for the
principal of RMB 37.24 million included in the long-term borrowings of RMB 76 million signed
between the associate Tongxin LONGi and China development Bank Ningxia Hui Autonomous
Region Branch with a term of 15 years (from September 15, 2015 to September 14, 2030) as well as
the interest, interest penalty, compound interest, compensatory payment, liquidated damages, damage
awards and the expense for achieving creditor’s rights. The guarantee period is two years from the
expiration date of the performance period of each debt under the master contract.
(5). Inter-bank lending of related parties
□ Applicable √ Not Applicable
(6). Asset transfer and debt restructuring of related parties
□ Applicable √ Not Applicable
(7). Compensations for key executives
√ Applicable □ Not Applicable
Unit: Ten Thousand Yuan Currency: RMB
Item Amount of the current period Amount of the previous
period
Compensations for key executives 1,488.62 1,327.58
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288 / 312
(8). Other related party transactions
√ Applicable □ Not Applicable
On July 23, 2019, Li Chun’an provided RMB 300 million (33 million shares) guarantee of stock
pledge for the seller's credit loan contract on exports signed between LONGi and Export-Import Bank
of China Shaanxi Branch.
6. Accounts receivable and payable of related parties
(1). Receivables
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Description Related parties
Ending balance Beginning balance
Book balance Bad debt
reserve Book balance
Bad debt
reserve
Notes
receivable
and
receivables
financing
Ningxia Zhongjing
Semiconductor
Materials Co., Ltd. 2,702,964.45 982,333.69
Notes
receivable
and
receivables
financing
Xi'an Zhongjing
Semiconductor
Materials Co., Ltd. 618,393.80 591,173.00
Notes
receivable
and
receivables
financing
Licheng Yingheng
Clean Energy Co.,
Ltd. 454,371,792.82
Total 3,321,358.25 455,945,299.51
Accounts
receivable
and contract
assets
Pingmei LONGi
New Energy
Technology Co.,
Ltd.
142,495,395.69 1,424,953.96 3,977,356.71 39,773.57
Accounts
receivable
and contract
assets
Datong Xinrong
Oulong Clean
Energy Co., Ltd. 137,808,564.27 1,378,085.64
Accounts
receivable
and contract
assets
Hunyuan
Chenglong Clean
Energy Co., Ltd. 121,608,820.88 1,216,088.21
Accounts
receivable
and contract
assets
Tongchuan
Xiaguang New
Energy Power
Generation Co.,
Ltd.
122,825,036.12 2,073,934.89 113,208,581.43 1,132,085.81
Accounts
receivable
and contract
assets
Ruicheng Lvlong
Clean Energy Co.,
Ltd. 24,424,942.00 488,498.84
Accounts Zhaozhou Longhui 17,150,097.53 5,145,029.26 28,193,939.37 1,409,696.97
Annual Report 2020
289 / 312
receivable
and contract
assets
New Energy Co.,
Ltd.
Accounts
receivable
and contract
assets
Linton Kayex
Technology Co.,
Ltd. 3,388,354.50 33,883.54
Accounts
receivable
and contract
assets
Wuzhong Leheng
Solar Energy
Technology Co.,
Ltd.
286,301.50 286,301.50 286,301.50 85,890.45
Accounts
receivable
and contract
assets
Qishan Baotong
Solar Energy Co.,
Ltd. 9,995,334.00 9,995,334.00
Accounts
receivable
and contract
assets
Audiowell
Electronics
(Zhaoqing) Co.,
Ltd.
120,427.43 2,408.55
Total 569,987,512.49 12,046,775.84 155,781,940.44 12,665,189.35
Other
receivables
Ningxia Zhongjing
Semiconductor
Materials Co., Ltd.
37,837.53 1,891.88 34,375.72 1,718.79
Other
receivables
Sichuan
Yongxiang New
Energy Co., Ltd.
36,052.80 1,802.64
Other
receivables
Xi'an Zhongjing
Semiconductor
Materials Co., Ltd.
22,732.16 1,136.61 157,617.85 7,880.90
Other
receivables
Licheng Yingheng
Clean Energy Co.,
Ltd.
3,260,000.00 163,000.00
Other
receivables
Zhaozhou Longhui
New Energy Co.,
Ltd.
234,863.14 23,486.31
Other
receivables
Tongchuan
Xiaguang New
Energy Power
Generation Co.,
Ltd.
1,110.00 111.00
Total 96,622.49 4,831.13 3,687,966.71 196,197.00
Advance
payment
Sichuan
Yongxiang New
Energy Co., Ltd.
184,504,080.00 58,494,666.89
Advance
payment
Linton Kayex
Technology Co.,
Ltd.
26,400,000.00
Advance
payment
Dalian Linton NC
Machine Co., Ltd. 17,014,056.80 203,831,273.76
Advance
payment
Shenyang LONGi
Electromagnetic
Technology Co.,
Ltd.
1,396,640.00 778,800.00
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290 / 312
Advance
payment
Dalian Weikaite
Technology Co.,
Ltd.
238,400.00
Advance
payment
Xi’an United
Nations Quality
Detection- Co.,
Ltd.
4,200.00
Advance
payment
Yingkou Jinchen
Machinery Co.,
Ltd.
39,418,698.72
Advance
payment
Shanghai Fuchuan
Intelligent
Technology Co.,
Ltd.
28,772,038.62
Total 229,557,376.80 331,295,477.99
(2). Payables
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Description Related parties Ending book balance Beginning book balance
Notes payable Pingmei LONGi New Energy
Technology Co., Ltd.
240,531,163.49 338,526,603.61
Notes payable Sichuan Yongxiang New Energy Co.,
Ltd.
166,746,284.00 92,453,122.44
Notes payable Dalian Linton NC Machine Co., Ltd. 41,152,349.00 127,534,856.19
Notes payable Linton Kayex Technology Co., Ltd. 26,400,000.00
Notes payable Shenyang LONGi Electromagnetic
Technology Co., Ltd.
3,986,960.00 2,468,216.00
Notes payable Dalian Weikaite Technology Co.,
Ltd.
238,400.00
Notes payable Shanghai Fuchuan Intelligent
Technology Co., Ltd.
1,621,607.27
Notes payable Ningxia Zhongjing Semiconductor
Materials Co., Ltd.
143,612.73
Notes payable Yingkou Jinchen Machinery Co.,
Ltd.
117,600.00
Total 479,055,156.49 562,865,618.24
Accounts
payable
Pingmei LONGi New Energy
Technology Co., Ltd.
262,885,086.68 88,242,078.78
Accounts
payable
Sichuan Yongxiang New Energy Co.,
Ltd.
105,595,327.47 25,170,265.50
Accounts
payable
Dalian Linton NC Machine Co., Ltd. 1,715,065.61 1,896,451.88
Accounts
payable
Ningxia Zhongjing Semiconductor
Materials Co., Ltd.
408,991.04 4,860,919.25
Accounts
payable
Shenyang LONGi Electromagnetic
Technology Co., Ltd.
244,361.55 240,535.35
Accounts
payable
Yingkou Jinchen Machinery Co.,
Ltd.
12,279,194.03
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291 / 312
Accounts
payable
Suzhou Yingzhen Intelligent
Technology Co., Ltd.
90,000.00
Accounts
payable
Shanghai Fuchuan Intelligent
Technology Co., Ltd.
33,698.03
Accounts
payable
Ningxia LONGi Meter Co., Ltd. 26,700.00
Accounts
payable
Suzhou DR Link Automation
Technology Co., Ltd.
16,068.72
Total 370,848,832.35 132,855,911.54
Advance
receipts and
contract
liabilities
Licheng Yingheng Clean Energy Co.,
Ltd. 90,471,731.40 102,946,550.79
Total 90,471,731.40 102,946,550.79
Other payables Dalian Linton NC Machine Co., Ltd. 658,308,734.02 534,802,102.74
Other payables Linton Kayex Technology Co., Ltd. 440,920,353.97
Other payables Shenyang LONGi Electromagnetic
Technology Co., Ltd. 26,877,975.67 9,324,376.42
Other payables Dalian Weikaite Technology Co.,
Ltd. 20,656,680.00
Other payables Ningxia Zhongjing Semiconductor
Materials Co., Ltd. 1,100,000.00 1,100,000.00
Other payables Xi’an United Nations Quality
Detection Co., Ltd. 164,000.00
Other payables Xi'an Zhongjing Semiconductor
Materials Co., Ltd. 135.01 97,594.32
Other payables Shanghai Fuchuan Intelligent
Technology Co., Ltd. 74,552,765.14
Other payables Yingkou Jinchen Machinery Co.,
Ltd. 103,464,735.14
Other payables Zhongning LONGi Solar New
Energy Co., Ltd. 32,605,972.95
Total 1,148,027,878.67 755,947,546.71
7. Commitments of related parties
□ Applicable √ Not Applicable
8. Others
□ Applicable √ Not Applicable
XIII. Share Payment
1. Overview of share payment
√ Applicable □ Not Applicable
Unit: share Currency: RMB
Total equity instruments granted by the Company in the
current period
Total equity instruments exercised by the Company in
the current period
4,133,514.00
Annual Report 2020
292 / 312
Total invalid equity instruments of the Company in the
current period
247,856.00
The range of the exercise prices for the outstanding share
options of the Company at the end of the period, and the
remaining contract period
The range of the exercise prices for the other outstanding
equity instruments of the Company at the end of the
period, and the remaining contract period
Other notes
See VII. 56. Treasury share.
2. Equity-settled share-based payment
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Method for determining the fair value of equity
instruments on the grant date
Share price minus grant price on the grant date
Basis for determining the number of the vested equity
instruments
The optimal estimate of the Management
Reasons for material differences between the estimates
of the current period and those of the previous period
Not applicable
Accumulative amount of equity-settled share-based
payment included in capital reserve 108,340,910.36
Total expenses recognized by equity-settled share-based
payment in the current period 3,822,900.83
Other notes
N/A
3. Cash-settled share-based payment
□ Applicable √ Not Applicable
4. Modification and termination of share-based payment
□ Applicable √ Not Applicable
5. Others
□ Applicable √ Not Applicable
XIV. Commitments and Contingencies
1. Important commitments
√ Applicable □ Not Applicable
Major external commitments on the balance sheet date, and their nature and amounts
(1) Capital expenditure commitments
The following are the capital expenditure commitments that have been signed by the Group on the
balance sheet date but without a need of being listed on the Balance Sheet:
Unit: RMB
Item December 31, 2020
Housing, structures and machinery equipment 3,485,739,363.51
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293 / 312
Intangible assets 21,219,925.89
Total 3,506,959,289.40
(2) Operating lease commitments
According to the irrevocable operating lease contract that has been signed and cannot be revoked, the
minimum rent payable of the Group in future is summarized as follows:
Unit: RMB
Item December 31, 2020 December 31, 2019
Within 1 year 93,417,270.28 73,390,735.77
One to two years 45,714,752.67 67,425,606.31
Two to three years 53,993,543.34 52,677,141.57
Above three years 1,040,626,106.82 615,608,027.54
Total 1,233,751,673.11 809,101,511.19
2. Contingencies
(1). Significant contingencies on the balance sheet date
√ Applicable □ Not Applicable
In March and April 2019, Hanwha Q Cells & Advanced Materials Corp. and its related parties
(hereinafter collectively referred to as "Hanwha") filed patent infringement lawsuits to the United
States International Trade Commission (ITC), the United States District Court for the District of
Delaware, Federal Court of Australia, and District Court of Dusseldorf, Germany, claiming that some
of the products sold by LONGi and its subsidiaries in the above-mentioned areas had infringed
Hanwha's patent rights. The claims included the following: prohibiting the Company and its
subsidiaries from selling infringing products in the above-mentioned areas, indemnifying for losses
and other expenses. The above case has been accepted by ITC and relevant count. The litigation
progress of the Company in the above three areas is as blow:
(a) In June 2020, ITC issued the final ruling that the accused enterprises (including LONGi) did not
infringe Hanwha's patent (patent number: US9893215), nor violate Article 337, and terminated the
investigation.
In July 2020, Hanwha filed an appeal with the US Court of Appeals for the Federal Circuit (CAFC),
and the case is still pending as of the disclosure date of this Report.
The United States District Court for the District of Delaware ordered in April 2019 that the case be
halted pending a final ruling of the ITC proceedings (including the appeal procedure) or the dismissal
of investigation. As of the date of this Report, the case remains suspended in the United States District
Court for the District of Delaware.
(b) In June 2020, LONGi (Germany), a subsidiary of LONGi, received the written judgment of first
instance from District Court of Dusseldorf, which ruled that Germany LONGi infringed Hanwha's
patent right and its alleged products were forbidden from being sold in the German market; besides,
Germany LONGi must recall its products sold to commercial customers since 30 January 2019, and
destroy the alleged products directly or indirectly possessed or owned by Germany LONGi. The
Plaintiff bore 25% of the litigation costs, and three Defendants (Germany LONGi, JinkoSolar GmbH
and REC Solar EMEA GmbH) bore the remaining 75%; provisional enforcement was allowed after
the Plaintiff paid a security bond of EUR 750,000 to the Court.
In July 2020, Germany LONGi received a letter of service for the Provisional Enforcement Order
from the District Court of Dusseldorf.
In July 2020, the Company appealed to the High District Court of Dusseldorf, and was accepted. The
Annual Report 2020
294 / 312
case is still in the trial stage as of the disclosure date of this Report.
(c) As of the disclosure date of this Report, the case in the Federal Court of Australia is still at the
pleadings and evidence investigation stage.
In addition, the Company has also filed invalidation or opposition procedures with the US Patent and
Trademark Office and the European Patent Office.
In December 2020, the US Patent and Trademark Office made a ruling on the IPR (inter parties review)
procedure filed by the Company against the patent in question (US9893215) that all the above-
mentioned patent rights were invalid.
In February 2021, Hanwha filed an appeal against the invalidated ruling with the CAFC, which is
pending as of the disclosure date of this Report.
In October 2020, the European Patent Office (EPO) issued a preliminary opinion on the opposition
procedure to the patent in question (EP2220689) filed by the Company and other interested parties
that the claims of the patent lacked novelty. As of the disclosure date of this Report, the EPO had not
made a ruling yet.
Based on the global litigation progress and relevant evidence, the Company believes that the relevant
products do not infringe the disputed patent rights, and the disputed patent rights have been mostly
or partially invalid in the world.
(2). It is also important to explain that the Company has no significant contingency to disclose:
□ Applicable √ Not Applicable
3. Others
□ Applicable √ Not Applicable
XV. Events after the Balance Sheet Date
1. Important non-adjusting events
□ Applicable √ Not Applicable
2. Condition of profit distribution
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Profits or dividends proposed to be
distributed
966,598,698.00
Profits or dividends announced and issued
upon review and approval
According to the 2020 Annual Profit Distribution Plan of the Company passed during the 2020
Annual Meeting of the Company's Fourth Board of Directors on April 19, 2021, the Company intends
to pay a cash dividend of RMB 2.5 (tax inclusive) for every 10 shares to all shareholders. As of
December 31, 2020, the total share capital of the Company was 3,771,768,901. Coupled with “LONG
20 Convertible Bonds”, the cumulative number of shares transferred was 94,625,891. On this basis,
the total cash dividend to be distributed was RMB 966,598,698.00 (tax inclusive). The above plan
needs be submitted to the Shareholders’ Meeting for approval, and the amount is not recognized as
liabilities in the financial statement.
According to the Company’s plan of capital reserve converted to share capital passed during the 2020
Annual Meeting of the Company's Fourth Board of Directors on April 19, 2021, the Company intends
to increase 4 additional shares for every 10 shares through the capital reserve to all shareholders. As
of December 31, 2020, the total share capital of the Company was 3,771,768,901. Coupled with
“LONG 20 Convertible Bonds”, the cumulative number of shares transferred was 94,625,891. On
Annual Report 2020
295 / 312
this basis, after the conversion to the share capital, the total share capital of the Company was
5,412,952,708. The above plan needs be submitted to the Shareholders’ Meeting for approval.
3. Sales return
□ Applicable √ Not Applicable
4. Description of other events after the balance sheet date
√ Applicable □ Not Applicable
(1) Assessment on impacts of the application of new lease criteria
In 2018, the Ministry of Finance revised and issued the Accounting Standards for Business
Enterprises No.21 - Lease ("New Lease Standards"). The Group will execute the standards from
January 1, 2021.
Under the New Lease Standards, for the Lessee, no distinction will be made between operating lease
and financial leasing. Except low-value or short-term leases, almost all leases must be recognized in
the balance sheet. On the first execution date, as the Lessee, the Group adopted the fixed cyclical
interest rate (embedded interest rate or incremental borrowing rate) of the Group on January 1, 2021
to discount the remaining lease payments and measure the lease liabilities, while recognizing the
right-of-use assets.
(2) Other events
The shareholder of the Company Li Chun’an, holding more than 5% of shares, signed the Share
Transfer Agreement of LONGi Green Energy Technology Co., Ltd. with Hillhouse Capital
Management Co., Ltd. on December 19, 2020 to transfer 226,306,134 shares of the Company's
unlimited tradable shares (accounting for 6.00% of total share capital of the Company). The
registration formalities for the transfer of shares under this Agreement were completed on February
4, 2021.
The corporate bond (called "16 LONGi 01", bond code “136264”) of RMB 1 billion issued by the
Company in March 2016 was due on March 6, 2021. On March 8, 2021, the Company completed the
redemption of the due bonds and repaid the principal of RMB 997,565,000.00. Since March 8, 2021,
"16 LONGi 01" has been delisted at Shanghai Stock Exchange.
According to the Proposal for the Agreement on Transfer of Some Equities of Center INT passed by
the fourth Board during the third meeting of 2021 on March 4, 2021, the Company signed the Share
Transfer Agreement of Center INT Group Co., Ltd. with Beijing Shixing Shengya Investment Co.,
Ltd., ChinaYong Group Co., Ltd. and Liu Aisen, planning to transfer 130,805,407 shares of Center
INT and the corresponding shareholders' equity in cash. The number of shares to be transferred under
the agreement accounted for 27.25% of the target company's total share capital of 480,019,842 shares
as of December 31, 2020. Beijing Shixing Shengya Investment Co., Ltd. transferred 48,001,984
shares of the target company, and ChinaYong Group Co., Ltd. transferred 48,001,984 shares of the
target company, while Liu Aisen transferred 34,801,439 shares of the target company. The transfer
price of this transaction is RMB 12.50/share, and the total transaction consideration is RMB
1,635,067,587.50.
The Company issued RMB 5 billion of convertible corporate bonds in July 2020 (called "Long 20
Convertible Bonds", bond code "113038"). Because the closing price of stocks of the Company was
not lower than 130% of the current conversion price for 15 consecutive trading days (from February
8 to March 5, 2021), the redemption right clause was triggered according to the prospectus agreement.
The Proposal on Early Redemption of "Long 20 Convertible Bonds" was passed by the fourth Board
during the fifth meeting of 2021 on March 15, 2021, deciding to redeem all the "Long 20 Convertible
Bonds" registered on the redemption registration date. As of the redemption registration date (March
30, 2021), a total of RMB 4,976,518,000.00 of Long 20 Convertible Bonds had been converted into
shares of the Company, accounting for 99.53% of total “LONGi Convertible Bonds”. For RMB
Annual Report 2020
296 / 312
23,482,000.00 of "Long 20 Convertible Bonds" that have not been converted to shares, the Company
has redeemed all of them. Since March 31, 2021, "Long 20 Convertible Bonds" have been delisted at
Shanghai Stock Exchange.
XVI. Other Important Matters
1. Correction of accounting errors in the previous period
(1). Retrospective restatement
□ Applicable √ Not Applicable
(2). Prospective application
□ Applicable √ Not Applicable
2. Debt restructuring
□ Applicable √ Not Applicable
3. Replacement of assets
(1). Exchange of non-monetary assets
□ Applicable √ Not Applicable
(2). Replacement of other assets
□ Applicable √ Not Applicable
4. Pension plan
□ Applicable √ Not Applicable
5. Discontinued operations
□ Applicable √ Not Applicable
6. Division information
(1). Basis for reporting divisions and accounting policies
√ Applicable □ Not Applicable
The reporting division of the Group is the business unit that provides different products or service, or
operates in different regions. Because different businesses or regions require different technologies
and marketing strategies, the Group will respectively manage production and management activities
of each reporting division and evaluate its operating results to decide the allocation of resources and
evaluate its performance.
The Group has 5 reporting divisions, and they are:
- Wafer Business Unit is mainly engaged in production and sales of mono wafers;
- Module Business Unit is mainly engaged in production and sales of solar mono modules;
- Centralized Solar Plant Business Unit is mainly engaged in centralized solar plant construction;
- Distributed Solar Plant Business Unit is mainly engaged in distributed solar plant construction;
- Other divisions are responsible for providing the Group's investment and internal operation
management services.
The transfer price between the divisions is determined by reference to the price used in the third party
sales.
The assets are allocated according to the operation of the division and the location of the asset. The
liabilities are allocated according to the operation of the division. The expenses indirectly attributable
to divisions are distributed among divisions in proportion to the revenue.
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(2). Financial information on reporting division
√ Applicable □ Not Applicable
Unit: Ten Thousand Yuan Currency: RMB
Item Wafer
Business Unit
Module
Business Unit
Centralized
Solar Plant
Business
Unit
Distributed
solar plant
Business
Unit
Others Inter-division
offset Total
Operating
revenue 2,752,145.68 3,798,083.62 120,098.59 100,043.62 13,460.15 1,325,513.30 5,458,318.36
Income from
external
transactions
1,545,501.07 3,698,236.19 120,037.74 94,331.23 212.13 5,458,318.36
Income from
transactions
among
divisions
1,206,644.61 99,847.43 60.85 5,712.39 13,248.02 1,325,513.30
Operating
cost 1,816,790.99 3,423,297.85 82,958.53 67,027.18 10,337.53 1,285,849.23 4,114,562.85
Assets
impairment
loss
-13,124.75 -95,048.45 1,352.47 -880.52 480.16 -12,249.23 -94,971.86
Credit
impairment
loss/(reversal)
321.16 -4,661.86 -6,527.99 -4,883.52 -1,302.79 -373.07 -16,681.93
Total profit 874,735.11 54,115.25 66,764.62 12,885.36 -9,734.85 7,574.94 991,190.55
Income tax
expense 120,201.30 -7,699.27 9,796.33 1,473.12 -4,447.68 -1,897.16 121,220.96
Net profit 754,533.81 61,814.52 56,968.29 11,412.24 -5,287.17 9,472.10 869,969.59
Total assets 3,771,196.63 4,550,203.19 437,298.75 416,565.40 1,773,334.72 2,185,115.82 8,763,482.87
Total
liabilities 1,394,907.72 3,176,646.13 237,988.89 237,297.93 1,007,822.22 850,986.12 5,203,676.77
Non-cash
expenditures
excluding
depreciation
and
amortization
30,473.33 2,237.27 32,710.60
Long-term
equity
investment in
associates and
joint ventures
70,810.40 23,676.49 44,934.41 6,164.81 145,586.11
Increase/
(decrease) of
non-current
assets (i)
308,506.11 652,856.47 -50,521.66 -6,241.67 7,556.47 -69,748.51 981,904.23
(i) Non-current assets exclude financial assets, long-term equity investments and deferred tax assets.
(3). Where the Company has no reporting division or cannot disclose the total assets and total
liabilities of each reporting division, the Company shall make explanation for it.
□ Applicable √ Not Applicable
(4). Other notes
□ Applicable √ Not Applicable
7. Other important transactions and events impacting the investor's decision-making
Annual Report 2020
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□ Applicable √ Not Applicable
8. Others
√ Applicable □ Not Applicable
The objective of the capital management policy of the Group is to ensure the Group's going concern,
provide returns to shareholders, benefit other stakeholders, and maintain the best capital structure to
reduce cost of funds.
To maintain or adjust capital structure, the Group may possibly adjust the dividends paid to
shareholders, return share capital to shareholders, issue new shares or sell assets to pay off liabilities.
The total capital of the Group is the shareholders’ equity listed in the Consolidated Balance Sheet.
The Group is not subject to external mandatory capital requirements and utilizes the liability-to-asset
ratio to monitor capital.
As of December 31, 2020 and December 31, 2019, the Group's liability-to-asset ratio is listed as
follows:
December 31, 2020 December 31, 2019
Liability-to-asset ratio 59.38% 52.29%
XVII. Notes on Major Items of Financial Statements of the Parent Company
1. Accounts receivable
(1). Disclosure by aging
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending book balance
Within 1 year
Including: subentry within 1 year
Within 6 months 4,962,161,941.86
7 to 12 months 56,433,040.39
Subtotal within 1 year 5,018,594,982.25
1 to 2 years 35,483.61
2 to 3 years 815,039.94
3 to 4 years 7,000,000.00
4 to 5 years
Above 5 years
Total 5,026,445,505.80
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(2). Disclosure based on classification of bad debt provision methods
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Category
Ending balance Beginning balance
Book balance Bad debt reserve
Book value
Value
Book balance Bad debt reserve
Book value
Value Amount Proportion
(%) Amount
Proportion
of
provision
(%)
Amount Proportion
(%) Amount
Proportion
of
provision
(%)
Provision for
bad debt
reserve by
single item
Including:
Provision for
bad debt
reserve as
per portfolio
5,026,445,505.80 100.00 10,997,180.22 0.22 5,015,448,325.58 1,217,536,265.23 100.00 2,568,830.44 0.21 1,214,967,434.79
Including:
Portfolio -
enterprise
customers
receivable
382,663,125.02 7.61 10,997,180.22 2.87 371,665,944.8 256,883,040.53 21.10 2,568,830.44 1.00 254,314,210.09
Portfolio -
receivables
of related
parties
within the
Group
4,643,782,380.78 92.39 4,643,782,380.78 960,653,224.70 78.90 960,653,224.70
Total 5,026,445,505.80 / 10,997,180.22 / 5,015,448,325.58 1,217,536,265.23 / 2,568,830.44 / 1,214,967,434.79
Bad debt reserves withdrawn by single items:
□ Applicable √ Not Applicable
Provision for bad debt reserves by portfolio:
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√ Applicable □ Not Applicable
Portfolio provision item: portfolio - enterprise customers receivable
Unit: Yuan Currency: RMB
Name Ending balance
Accounts receivable Bad debt reserve Proportion of provision (%)
Within 1 year
Including: within 6 months 374,535,801.09 3,701,078.70 0.99
7 to 12 months 276,800.38 5,203.85 1.88
1 to 2 year 35,483.61 2,129.02 6.00
2 to 3 years 815,039.94 288,768.65 35.43
3 to 4 years 7,000,000.00 7,000,000.00 100.00
4 to 5 years 100.00
Above 5 years 100.00
Total 382,663,125.02 10,997,180.22
Recognition criteria and description for provision of bad debt reserve by portfolio:
□ Applicable √ Not Applicable
Portfolio provision item: portfolio - receivables of related parties within the Group
Unit: Yuan Currency: RMB
Name Ending balance
Accounts receivable Bad debt reserve Proportion of provision (%)
Within 1 year
Including: within 6 months 4,587,626,140.77
7 to 12 months 56,156,240.01
1 to 2 year
2 to 3 years
More than 3 years
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Total 4,643,782,380.78
Recognition criteria and description for provision of bad debt reserve by portfolio:
□ Applicable √ Not Applicable
In case of provisions for bad debt reserve based on general model of expected credit loss, please refer to the disclosure of other receivables:
□ Applicable √ Not Applicable
Annual Report 2020
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(3). Bad debt reserve
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Category Beginning
balance
Amount changed in the current period Ending
balance Provision Recovery or
reversal
Write-off or
charge-off
Other
changes
Bad debt
reserve for
accounts
receivable
2,568,830.44 15,471,639.03 7,043,289.25 10,997,180.22
Total 2,568,830.44 15,471,639.03 7,043,289.25 10,997,180.22
Including major amount of recovered or reversed bad debt reserves in the current period:
□ Applicable √ Not Applicable
(4). Accounts receivable actually written off in the current period
□ Applicable √ Not Applicable
Write-off of significant accounts receivable
□ Applicable √ Not Applicable
(5). Accounts receivable of top 5 in terms of ending balance pooled by the Debtor
√ Applicable □ Not Applicable
As of December 31, 2020, the accounts receivable of top five in terms of ending balance collected by
the Debtor are as follows:
Unit: RMB
Balance Amount of bad
debt reserve
Proportion in the total
accounts receivable
Total amount of accounts receivable
of top 5 in terms of balance 4,579,448,484.95 91.11%
(6). Accounts receivable derecognized due to transfer of financial assets
□ Applicable √ Not Applicable
(7). Assets and liabilities formed by transfer of accounts receivable and continuous
involvement
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
2. Other receivable
Item listing
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Interest receivable
Dividends receivable
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Other receivables 2,192,229,655.28 1,381,531,710.34
Total 2,192,229,655.28 1,381,531,710.34
Other notes:
□ Applicable √ Not Applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable √ Not Applicable
(2). Significant overdue interest
□ Applicable √ Not Applicable
(3). Provision for bad debt reserves
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
Dividends receivable
(4). Dividends receivable
□ Applicable √ Not Applicable
(5). Significant dividends receivable with the aging over 1 year
□ Applicable √ Not Applicable
(6). Provision for bad debt reserves
□ Applicable √ Not Applicable
Other notes:
□ Applicable √ Not Applicable
Other receivables
(1).Disclosure by aging
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Aging Ending book balance
Within 1 year
Including: subentry within 1 year
Subtotal within 1 year 2,180,794,401.09
1 to 2 years 10,574,490.12
2 to 3 years 1,171,810.87
3 to 4 years 510,722.79
4 to 5 years 2,861,279.31
Above 5 years
Total 2,195,912,704.18
(2). Classification by nature of payment
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√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Nature of payment Ending book balance Beginning book balance
Inter-group accounts 2,187,832,440.07 1,377,614,084.33
Security 5,829,518.37 4,567,973.37
Reserve funds 344,428.32 160,128.30
Current account 1,548,445.96 591,662.79
Others 357,871.46 1,401,238.98
Total 2,195,912,704.18 1,384,335,087.77
(3). Provision for bad debt reserves
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Bad debt reserve
Stage I Stage II Stage III
Total Expected credit
loss in the next
12 months
Expected credit loss
throughout the entire
duration (no
depreciation of credit)
Expected credit loss
throughout the entire
duration (depreciation
of credit)
Balance on January
1, 2020
803,377.43 2,000,000.00 2,803,377.43
Current balance on
January 1, 2020
- Transferred to
Stage II
- Transferred to
Stage III
- Reversed to Stage
II
- Reversed to Stage
I
Provision in the
current period
879,671.47 879,671.47
Current reversal
Write-off in the
current period
Write-off in the
current period
Other changes
Balance as of
December 31, 2020
1,683,048.90 2,000,000.00 3,683,048.90
Explanation of significant changes in the book balance of other receivables resulting from changes in
the loss provision in the current period:
□ Applicable √ Not Applicable
The basis for the amount of bad debt reserve in the current period and the evaluation of whether the
credit risk of financial instruments has significantly increased:
Annual Report 2020
305 / 312
□ Applicable √ Not Applicable
(4). Bad debt reserve
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Category Beginning
balance
Amount changed in the current period Ending
balance Provision Recovery or
reversal
Write-off or
charge-off
Other
changes
Bad debt
reserve for
other
receivables
2,803,377.43 879,671.47 3,683,048.90
Total 2,803,377.43 879,671.47 3,683,048.90
Return or recovery of bad debt reserves of major amount in the current period:
□ Applicable √ Not Applicable
(5). Other receivables actually written off in the current period
□ Applicable √ Not Applicable
(6). Information of top 5 receivables in terms of ending balance pooled by the Debtor
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Organization name Nature of
the payment Ending balance Aging
Proportion in
total ending
balance of
other
receivables
(%)
Bad debt
reserve
Ending
balance
Ningxia LONGi Current
account
934,744,443.86 Within 1 year 42.57
Ningxia LONGi
Solar
Current
account
317,923,950.96 Within 1 year 14.48
LONGi New Energy Current
account
281,192,564.64 Within 1 year 12.81
Taizhou LONGi
Solar
Current
account
222,324,889.41 Within 1 year 10.12
LONGi Green
Energy Architecture
Current
account
208,639,800.49 Within 1 year 9.50
Total / 1,964,825,649.36 / 89.48
(7). Receivables involving government grants
□ Applicable √ Not Applicable
(8). Other receivables derecognized due to transfer of financial assets
□ Applicable √ Not Applicable
(9). Amount of assets and liabilities formed by transfer of other receivables and continuous
involvement
□ Applicable √ Not Applicable
Annual Report 2020
306 / 312
Other notes:
□ Applicable √ Not Applicable
3. Long-term equity investment
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item
Ending balance Beginning balance
Book balance
Provision
for
impairment
Book value Book balance
Provision
for
impairment
Book value
Investment
in
subsidiaries
25,453,680,805.78 25,453,680,805.78 16,647,448,793.33 16,647,448,793.33
Investments
in
associates
and joint
ventures
539,721,718.46 539,721,718.46 247,470,534.59 247,470,534.59
Total 25,993,402,524.24 25,993,402,524.24 16,894,919,327.92 16,894,919,327.92
(1). Investment in subsidiaries
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
The
investee
Beginning
balance
Increase in the
current period
Decreas
e in the
current
period
Ending balance
Provision
for
impairmen
t in the
current
period
Ending
balance of
provision
for
impairmen
t
LONGi
Solar
6,676,372,086.15 1,500,309,726.2
9
8,176,681,812.44
Yinchuan
LONGi PV
125,601.31 3,455,635,225.2
4
3,455,760,826.55
Yinchuan
LONGi
3,423,864,161.03 372,201.72 3,424,236,362.75
Ningbo EZ 2,560,482,652.1
3
2,560,482,652.13
LONGi
(H.K.)
642,122,205.42 1,026,345,000.0
0
1,668,467,205.42
Baoshan
LONGi
1,636,455,531.85 39,641.27 1,636,495,173.12
LONGi
New
Energy
1,376,507,717.35 25,575.00 1,376,533,292.35
Ningxia
LONGi
530,395,341.81 341,767.32 530,737,109.13
Clean
Energy
503,621,419.83 150,849.88 503,772,269.71
Chuxiong
LONGi
500,468,736.01 49,402.02 500,518,138.03
Wuxi 493,719,215.97 104,431.25 493,823,647.22
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307 / 312
LONGi
Lijiang
LONGi
480,679,568.56 60,314.52 480,739,883.08
Huaping
LONGi
300,029,963.83 23,230.55 300,053,194.38
LONGi
Venture
Capital
15,110,000.00 90,550,000.00 105,660,000.00
Qujing
LONGi
100,035,207.76 100,035,207.76
Tengchong
LONGi
60,601,918.02 60,601,918.02
LERRI
Solar
(India)
20,480,000.00 20,480,000.00
LONGi
(U.S.)
17,076,250.00 17,076,250.00
Japan
LONGi
6,431,139.21 6,431,139.21
Intelligent
Technolog
y
5,015,771.07 5,015,771.07
Lufeng
LONGi
5,001,918.04 5,001,918.04
Germany
LONGi
3,807,600.00 3,807,600.00
Equity
incentive
of other
investment
units below
the second
level
(exclusive)
20,182,255.00 1,087,180.37 21,269,435.37
Total 16,647,448,793.3
3
8,806,232,012.4
5
25,453,680,805.7
8
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(2). Investments in associates and joint ventures
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Investment
Unit
At the beginning of the period
Balance
Current increase /decrease
Ending balance
Balance
Ending balance of provision for
impairment Increase in investment
Decrease in investment
Investment profits
or losses recognized under
equity method
Adjustment of other comprehensive
income
Other equity
changes
Declared
cash dividends or
profits
Provision for impairment
Others
I. Joint venture
Subtotal
II. Associate
Sichuan
Yongxiang 203,153,590.52 84,273,601.53 287,427,192.05
Yunnan
Tongwei 199,200,000.00 199,200,000.00
Zhejiang
MTCN 42,112,204.50 10,476,405.17 52,588,609.67
Bao Grid
Shanghai
Energy
Technology
Co., Ltd.
2,204,739.57 -1,698,822.83 505,916.74
Subtotal 247,470,534.59 199,200,000.00 93,051,183.87 539,721,718.46
Total 247,470,534.59 199,200,000.00 93,051,183.87 539,721,718.46
Other notes:
N/A
Annual Report 2020
309 / 312
4. Operating revenue and operating cost
(1). Operating revenue and operating cost
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount of the current period Amount of the previous period
Revenue Cost Revenue Cost
Main
business
27,114,964,554.90 24,805,093,133.60 18,847,294,185.26 17,110,557,405.67
Other
business
Total 27,114,964,554.90 24,805,093,133.60 18,847,294,185.26 17,110,557,405.67
(2). Revenue from contracts
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Contract classification Wafer Business
Unit
Module Business
Unit Others Total
Commodity type
Product sale 25,936,566,339.51 978,453,757.91 26,915,020,097.42
Others 72,646,466.60 16,368,446.15 110,929,544.73 199,944,457.48
Classification by business
region
Within China 22,796,913,892.68 382,903,095.00 110,929,544.73 23,290,746,532.41
Overseas 3,212,298,913.43 611,919,109.06 3,824,218,022.49
Classification by commodity
transfer time
Recognition at a certain
point in time
26,009,212,806.11 994,822,204.06 110,929,544.73 27,114,964,554.90
Recognition in a certain
period of time
Total 26,009,212,806.11 994,822,204.06 110,929,544.73 27,114,964,554.90
Description for revenue from contracts:
□ Applicable √ Not Applicable
(3). Description of performance obligations
□ Applicable √ Not Applicable
(4). Description of the apportionment to the remaining performance obligations
□ Applicable √ Not Applicable
Other notes:
N/A
5. Investment income
√ Applicable □ Not Applicable
Annual Report 2020
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Unit: Yuan Currency: RMB
Item Amount of the current
period Amount of the previous period
Long-term equity investment income
accounted by cost method
2,980,661,804.88 1,000,000,000.00
Long-term equity investment income
accounted by the equity method
93,051,183.87 28,946,649.45
Investment income from disposal of financial
assets held for trading
177,761,301.09 99,818,139.63
Total 3,251,474,289.84 1,128,764,789.08
Other notes:
There are no major limits on repatriation of investment income in the Company.
6. Others
□ Applicable √ Not Applicable
XVIII. Supplementary Information
1. Statement of non-recurring profit or loss incurred in the current period
√ Applicable □ Not Applicable
Unit: Yuan Currency: RMB
Item Amount Remarks
Profit or loss from disposal of non-current assets -35,996,653.60
Government grants included in current profits or
losses (except for the government grants that are
closely related to the Company's business and
distributed in a fixed quota or amount in
accordance with unified national standards)
302,808,294.32
Profits or losses from changes in fair value
arising from the holding of financial assets held
for trading, derivative financial assets, financial
liabilities held for trading and derivative financial
liabilities, and investment incomes from the
disposal of financial assets held for trading,
derivative financial assets, financial liabilities
held for trading, derivative financial liabilities
and other creditors investments, excluding the
effective hedging business related to the normal
operation of the Company
268,840,983.36
Carry-back of provision for impairment of
receivables and contract assets subject to separate
impairment test
5,321,141.53
Non-operating revenues and expenses other than
the items above -50,896,552.36
Amount of effect on income tax -78,211,086.08
Amount of effect on minority equity -2,585,181.73
Total 409,280,945.44
It is necessary to make explanations for non-recurring profit or loss determined based on definitions
in No. 1 Explanatory Announcement on Information Disclosure of Companies Publically Issuing
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Securities - Non-recurring Profit or Loss and the reason why non-recurring profit or loss listed in No.
1 Explanatory Announcement on Information Disclosure of Companies Publically Issuing Securities
- Non-recurring Profit or Loss are determined as recurring profit or loss.
□ Applicable √ Not Applicable
2. Return on equity and EPS
√ Applicable □ Not Applicable
Profit in the reporting period Weighted average
return on equity (%)
EPS
Basic EPS Diluted EPS
Net profit attributable to common
shareholders of the Company 27.23 2.27 2.26
Net profit attributable to common
shareholders of the Company after
deducting non-recurring profit or
loss
25.93 2.16 2.15
3. Discrepancy of accounting data under accounting standards at home and abroad
□ Applicable √ Not Applicable
4. Miscellaneous
□ Applicable √ Not Applicable
Annual Report 2020
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Section XII List of Documents for Reference
List of Documents for
Reference
Financial statements with signatures and seals of the Legal Representative of the
Company, person in charge of accounting and person in charge of accounting
organization and the chief accountant (person in charge of accounting)
List of Documents for
Reference
Original of the audit report with the seal of the accounting firm, together with
signature and seal of the certified public accountant
List of Documents for
Reference
Original documents and announcements of the Company published in the websites
appointed by CSRC during the reporting period
Chairman: Zhong Baoshen
Date of submission approved by the Board of Directors: April 19, 2021
Revision information
□ Applicable √ Not Applicable