longi green energy technology co., ltd. annual report 2020

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

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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


Xinwei New Energy refers to Xuzhou Xinwei New Energy Technology Co., Ltd., a wholly-owned


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


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


Intelligent

Technology refers to

Xi’an LONGi Intelligent Technology Co., Ltd., a wholly-owned


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


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


(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


(III) Explanation for the differences in domestic and foreign accounting standards:


IX. Key Financial Data by Quarter in 2020


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


X. Non-recurring Profit or Loss Items and Amounts



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



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


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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


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


(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


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


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


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


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

Annual Report 2020

21 / 312

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


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

Annual Report 2020

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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


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


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


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


(III) Breakdown of assets and liabilities


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

Annual Report 2020

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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

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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


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


(IV) Analysis of business information of the industry


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


2. Key technical indicators of PV products


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




Annual Report 2020

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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


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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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


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


4. Other notes


Annual Report 2020

31 / 312

(V) Investment analysis

1. General analysis of equity investments in external entities


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


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


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


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


Lijiang

Huaping


Self-pooled

funds

5

10GW Mono Wafer


Chuxiong

Chuxiong


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


funds

9 5GW Mono Module

Project of Xianyang

Xianyang

LONGi

Solar


funds

10

5GW Mono Module


Chuzhou

Chuzhou

LONGi

Solar


funds

11

5GW Mono Cell

Project of Xi'an

Jingwei New Town

Shaanxi

LONGi

Solar


Raised funds +

self-pooled

funds

12 5GW Mono Module

Project of Jiaxing

Jiaxing

LONGi

Solar


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


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


See "XI. Disclosure of Fair Value" in Section XI of this Report for details.

(VI) Sales of material assets and equities


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


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


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


III. Discussion and Analysis on the Company's Future Development

(I) Industry structure and trend


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%


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%


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

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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


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


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


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

40 / 312

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


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


Annual Report 2020

42 / 312

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


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


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


(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


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


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


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


Others

Li Chunan as the

person acting in

concert Note ④

July 27,

2011,

from the

date of

commitm

ent

None Yes Not


Other commitments

Restricted shares

Shaanxi Coal

Industry Company

Limited

Note ⑤

July 16,

2020, for 12

months

Yes Yes Not


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


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


IV. Explanations of the Company on the “Non-standard Audit Report” Issued by Certified

Public Accountants

Annual Report 2020

45 / 312


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


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


(III) Communication with former accounting firm


(IV) Other notes


VI. Appointment and Dismissal of Accounting Firms


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


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


VII. Risks of Listing Suspension

(I) Reasons for listing suspension


(II) Countermeasures to be taken by the Company


Annual Report 2020

46 / 312

VIII. Facts and Causes of Listing Termination


IX. Matters concerning Bankruptcy and Restructuring


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


XII. Credit Conditions of the Company and its Controlling Shareholders and Actual

Controllers during the Reporting Period


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


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


Other notes

Annual Report 2020

47 / 312


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


Other incentive measures


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


2. Matters disclosed in the temporary announcement, but with progresses or changes during

the follow-up implementation process


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:


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.,


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

48 / 312



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.,


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



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


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


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


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


market

price

/ 146,643.54 0.02 Cash

transaction /

Not

applicable

Suzhou Yingzhen Intelligent Technology Co., Ltd. Others Purchasing

of goods


market

price

/ 31,465.49 0.00 Cash

transaction /

Not

applicable

Yingkou Jinchen Machinery Co., Ltd. Others Purchasing

of goods


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


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


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


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


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









4. Matters concerning performance achievement during the reporting period should be

disclosed if performance agreement is involved


(III) Significant related party transactions for joint external investments









(IV) Transactions of related creditor's rights and debts









(V) Miscellaneous


XV. Material Contracts and Performance

(I) Trusteeship, contracting and leasing

1. Trusteeship


2. Contracting


3. Leasing

Annual Report 2020

54 / 312


Annual Report 2020

55 / 312

(II) Guarantee


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 11,221 2015-8-28 2015-9-15 2030-9-14

Joint and

several

liability guarantee



LONGi 3,724 2015-8-28 2015-9-15 2030-9-14

Joint and

several

liability

guarantee


LONGi Head Office LONGi

Tianhua 7,448 2015-8-28 2015-9-15 2030-9-14

Joint and

several

liability

guarantee


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




Development Bank




Development Bank

Annual Report 2020

57 / 312

4 LONGi Tianhua 7,448


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


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


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


business applied by Ningde LONGi Solar to


2018-6-16




6 Lechang Solar 6,679.00


business applied by Lechang Solar to CITIC


2018-6-16




7 Jinli New Energy 3,398.09


business applied by Jinli New Energy to CITIC


2018-6-16




8 Lijiang LONGi 49,656.06


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


Annual Report 2020

58 / 312

9 Xinwei New Energy 10,100.59


business applied by Xinwei New Energy to


2018-8-31


in 2018; Authorized at the First Extraordinary


10 Datong Clean Energy 13,367.18


business applied by Datong Clean Energy to


2019-3-27

The 4th Meeting of the 4th Board of Directors

in 2019; Authorized at the 4th Extraordinary


11 Guangling Clean Energy 13,337.20


business applied by Guangling Clean Energy to


2019-3-27





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



13 Xuanli Solar 11,064.38


business applied by Xuanli Solar to CITIC


2019-6-5




14 LONGi Solar 10,000.00


business applied by LONGi Solar in Xi'an High-

tech Industries Development Zone Sub-Branch

of China Construction Bank Corporation

2019-5-23




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





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



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



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


in 2020; authorized at the First Extraordinary


19 LONGi Solar 40,000.00 Provide guarantee for the credit extension

business applied by LONGi Solar in Xi'an 2020-6-23



Annual Report 2020

59 / 312

Branch of Shanghai Pudong Development Bank

Co., Ltd.


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






used by LONGi Solar applied by the Company

to Shaanxi Branch of Bank of Communications

Co., Ltd.

2020-7-14





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






business applied by LONGi Solar in Bank of

Communications Co., Ltd.

2020-10-14






business applied by LONGi Solar, a wholly-

owned subsidiary, in Export-Import Bank of

China

2020-10-14







Branch of China CITIC Bank Co., Ltd.

2020-12-15




26 LONGi Solar USD 15 million



Branch of HSBC Bank (China) Company

Limited

2018-3-10


in 2018; Authorized at the First Extraordinary


27 LONGi (H.K.) and

LONGi (Kuching) USD 40 million


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



28 LONGi (H.K.) USD 15 million


business applied by LONGi (H.K.) in Industrial

and Commercial Bank of China (Asia) Limited

2019-7-17




29 LONGi Solar USD 50 million Provide guarantee for the line of credit applied

by LONGi Solar shared companies to the 2019-11-23


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


shared by LONGi Solar applied by the Company

in Citibank (China) Co., Ltd.

2020-8-28




(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



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


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



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


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


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


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


China

Everbright Bank

Bank

financial products

100,000,000.00 2019-1-15 2020-1-15 Own

funds

Structured

deposits

Interest

accrued

according to


management

4.10% / 4,100,000.00 Full


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


Annual Report 2020

63 / 312

products according to


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


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


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


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


China Minsheng Bank

Bank financial

products

1,000,000,000.00 2020-4-1 2020-6-29 Own funds

Structured deposits

Interest

accrued


asset

management

4.05% / 9,875,342.47 Full


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


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


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


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


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


management

0.50% / 1,232,876.71 Full


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


ABC - Xi'an Bank

financial

products

1,500,000,000.00 2020-7-1 2020-9-29 Own

funds

Structured

deposits

Interest


actual days of

asset

management

3.80% / 14,054,794.52 Full


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


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


Bank of Chengdu

Bank

financial products

1,000,000,000.00 2020-10-9 2020-12-29 Own funds

Structured deposits

Interest

accrued


asset

management

3.84% / 8,521,643.84 Full


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


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


actual days of

asset

management

3.59% / 15,146,849.32 Full


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


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


Bank of Communications

Bank financial

products

1,000,000,000.00 2020-10-12 2020-12-29 Funds raised

Structured deposits

Interest

accrued


asset

management

3.02% / 6,453,698.63 Full


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


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


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


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


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


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


Bank of Ningbo

Bank

financial

products

4,400,000.00 2020-5-26 2020-9-22 Own

funds

Structured

deposits

Interest


the days of

asset

management

2.97% / 42,605.26 Full


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


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


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


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


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


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


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


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


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


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


2. Entrusted loans

(1) Overall situation


Others


(2) Individual situation


Others


(3) Provision for impairment


3. Others


(IV) Other material contracts


(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, Jiangsu


LONGi Solar, Xianyang

LONGi Solar, Jiaxing


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, 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, 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, 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, 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


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


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


LONGi and Jolywood

(Taizhou) Solar


January

2020 to

December

2022

800 million 2019-9-16 In progress

17 Long-term


LONGi and Jiangsu

Runergy New Energy


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


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


(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


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


1. Targeted poverty alleviation plans


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

Annual Report 2020

76 / 312


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



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


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


Please refer to the 2020 Sustainability Report disclosed by the Company on the same day as this

Report.

(III) Environmental information

Annual Report 2020

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


(1) Pollution drainage information


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

79 / 312

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


Grade III:

COD≤500mg/L

Suspended solids ≤ 400mg/L

Animal and vegetable oils ≤ 100mg/L

Total phosphorus ≤ 8.0mg/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


PH: 7.44

COD: 90.03mg/L

Ammonia nitrogen:

0.65mg/L

Suspended solids:

5mg/L Petroleum: 0.42mg/L


Grade I:

6≤Ph≤9

COD≤100mg/L


Petroleum ≤ 10mg/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

Annual Report 2020

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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


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


Total phosphorus ≤ 2mg/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.

Annual Report 2020

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(2) Construction and operation of pollution prevention and control facilities


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


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


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


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


2. Environmental protection of companies other than key pollutant discharging units


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


4. Subsequent progress or changes of environmental information disclosed during the

reporting period


(IV) Other notes


XVIII. Convertible Corporate Bonds


(I) Issuance of convertible corporate bonds


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


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:

Annual Report 2020

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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


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


Registration and Settlement System (BOC) 82,737,000 1.65


Registration and Settlement System (China Merchants

Bank Company Limited)

80,202,000 1.60

(III) Changes in convertible corporate bonds during the reporting period


Accumulated convertible bonds into equity during the reporting period


(IV) Previous adjustments of prices of convertible corporate bonds into equity



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


(VI) Other notes

Annual Report 2020

85 / 312


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


(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

87 / 312

(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)


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


(II) Changes in restricted shares


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


Unit: share Currency: RMB

Classes of Issue date Issue Number of Listing date Approved Transaction

Annual Report 2020

88 / 312

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):


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


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


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

89 / 312

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


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




3 Zhou Heng 8,400 / 0




4 Yin Yulin 7,700 / 0




5 Sun

Guofeng 4,200 / 0




6 An Yanzhou 4,200 / 0




7 Liu Yahui 4,200 / 0




8 Tian Hao 3,850 / 0




9 Tuo Boxu 3,850 / 0




10 Zhang

Xuehua 3,850 / 0




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


IV. Controlling Shareholders and Actual Controllers

(I) Controlling shareholders

1 Legal person


2 Natural person


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


4 Index and date of change in controlling shareholders in the reporting period


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


2 Natural person


Name Li Zhenguo and Li Xiyan

Nationality China


Controlling shareholders and actual controllers

Li Chun'an Li Zhenguo Li Xiyan Other

shareholders

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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


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


5 Block diagram of the ownership and control relationship between the Company and the

actual controllers


6 The actual controllers control the Company through trust or other asset management

methods


(III) Other information on controlling shareholders and actual controllers


V. Other Corporate Shareholders with More than 10% Shares


VI. Explanation of Restriction and Reduction of Shares



Controlling shareholders and actual controllers

Li Chun'an Li Zhenguo Li Xiyan Other

shareholders

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Section VII Preferred Shares


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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


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


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


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


Tian

Gaoliang

Independent

Director Male 57 July 2, 2018 July 1, 2021 0 0 0

Not

applicable 13 None

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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


He Jing Supervisor Female 41 28 June 2018 July 1, 2021 0 0 0 Not


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


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

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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


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


II. Current and Outgoing Directors, Supervisors and Senior Management during the Reporting Period

(I) Service in shareholders’ unit


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

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(II) Service in other companies


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

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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


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


V. Penalties by Securities Regulatory Authority in Recent Three Years


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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


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


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


Total working hours 16.43 million hours

Total remuneration paid RMB 389.23 million

VII. Miscellaneous


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Section IX Corporate Governance

I. Relevant Information on Corporate Governance


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

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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


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


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

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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


(III) Miscellaneous


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)


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


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


Corresponding solutions, job schedules and follow-up work plans in case of horizontal competition


VII. Establishment and Implementation of Appraisal System and Incentive System for Senior

Management during the Reporting Period


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


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


IX. Explanation on the Internal Control Audit Report


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


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Section X Corporate Bonds


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


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


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:


III. Use of Funds Raised through Corporate Bonds


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


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


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


VII. Performance of Duties by Corporate Bonds Trustee


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

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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



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


X. Bank Lines of Credit to the Company in the Reporting Period


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


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


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Section XI Financial Reports

I. Audit Report


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

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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

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II. Financial Statements

Consolidated Balance Sheet

December 31, 2020

Prepared by: LONGi Green Energy Technology Co., Ltd.


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


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

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Balance Sheet of the Parent Company

December 31, 2020

Prepared by: LONGi Green Energy Technology Co., Ltd.


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


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


Dividends receivable

Inventory 327,814,007.47 292,181,201.03

Contract assets 19,699,442.85

Held-for-sale assets


year

Other current assets 18,736,759.53 103,398,223.80


Non-current assets:

Creditors investment


Long-term receivables

Long-term equity investment XVII. 3 25,993,402,524.24 16,894,919,327.92


instruments


Investment real estate

Fixed assets 246,786,989.81 345,361,895.62

Construction in progress 10,833,341.92 8,012,360.58


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 assets 47,321,135,052.11 35,847,176,894.16


Short-term borrowings 1,001,055,555.55


trading


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




one year

1,912,337,303.50 200,000,000.00

Other current liabilities 127,124,040.32



Long-term borrowings 998,500,000.00 450,000,000.00

Bonds payable 4,351,411,265.99 995,584,143.19


Perpetual bond

Leasing liabilities

Long-term payables


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



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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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


equity)

23,515,295,511.42 19,580,184,361.05


(or shareholder's equity)

47,321,135,052.11 35,847,176,894.16


Zhenguo


Liu Xuewen



Consolidated Income Statement

January - December, 2020


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


(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


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.


Zhenguo


Liu Xuewen



Income Statement of the Parent Company




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


V. After-tax Net Amount of Other

Comprehensive Income

-6,169,340.04

(I) Other comprehensive income


losses

-6,169,340.04

1. Changes in re-measurement of defined benefit plans


unable to be transferred to profits or losses

Annual Report 2020

122 / 312


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


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)


Zhenguo


Liu Xuewen



Consolidated Statement of Cash Flows




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

Annual Report 2020

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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


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


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

Annual Report 2020

124 / 312


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



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


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



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


Zhenguo


Liu Xuewen



Annual Report 2020

126 / 312

Statement of Cash Flows of the Parent Company




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



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



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


fixed assets, intangible assets and

other long-term assets

12,493,518.99 9,440,084.85


subsidiaries and other business units

Other cash received from investing

activities

10,465,689.82 1,442,953.41



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

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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



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



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


Zhenguo


Liu Xuewen



Annual Report 2020

128 / 312

Consolidated Statement of Changes in Owner's Equity



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

129 / 312

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


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



Item

Year 2020

Paid-in capital (or

share capital)


Capital reserve Less: Treasury

share

Other


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


capital (or share

capital)

3. Surplus reserve for making up

loss

4. Retained

earnings carried over

by changes of defined

benefit plan

5. Retained


by other


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


capital (or share capital)

2. Surplus reserve converted to

capital (or share

capital)

3. Surplus

reserve for making up

loss

4. Retained


by changes of defined

benefit plan

5. Retained


by other


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


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


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


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:


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

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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


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


(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

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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


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


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


(a) Foreign currency transaction

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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


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


See V. 10. (a). (ii) Impairment.


Recognition and accounting methods for expected credit loss of accounts receivable



13. Receivables financing




Recognition and accounting methods for expected credit loss of other receivables



15. Inventory


(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


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


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


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.


(1). Recognition and accounting methods for expected credit loss of creditors investment



19. Other creditors investment

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(1). Recognition and accounting methods for expected credit loss of other creditors investment



(1). Recognition and accounting methods for expected credit loss of long-term receivables



21. Long-term equity investment


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


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


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


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


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


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


27. Oil & gas assets


28. Right-of-use assets


29. Intangible assets

(1) Valuation method, service life and impairment test


(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


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


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


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


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


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


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


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


34. Lease liabilities


35. Accrued liabilities


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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(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


38. Income

(1). Accounting policies used for income recognition and measurement


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.


39. Contract cost


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


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


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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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


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


43. Other significant accounting policies and accounting estimates


(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


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


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


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


(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


Consolidated Balance Sheet


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




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



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



year 31,419,922.32 31,419,922.32

Other current assets 1,107,607,993.67 1,107,607,993.67


Non-current assets:

Loans and advances:



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


instruments 21,959,667.68 21,959,667.68



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


Oil & gas assets

Right-of-use assets


Expenditure on development 45,849.02 45,849.02

Goodwill 11,011,065.47 11,011,065.47


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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 assets 59,303,973,110.53 59,303,973,110.53


Short-term borrowings 854,371,792.82 854,371,792.82

Loans from the Central Bank

Loans from other banks


trading


Notes payable 8,111,877,027.54 8,111,877,027.54


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



one year 1,571,481,098.00 1,571,481,098.00

Other 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


Perpetual bond

Leasing liabilities

Long-term payables 1,528,226,692.46 1,528,226,692.46

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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



Owner's equity (or shareholders' equity):




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


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


equity) 28,294,816,677.55 28,294,816,677.55


(or shareholder's equity) 59,303,973,110.53 59,303,973,110.53

Notes on adjustments:


See V. 44. (1). Changes in significant accounting policies for details.

Balance Sheet of the Parent Company


Item December 31, 2019 January 1, 2020 Amount adjusted

Current assets:

Monetary fund 11,730,982,685.57 11,730,982,685.57




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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Inventory 292,181,201.03 292,181,201.03

Contract assets 50,970,100.06 50,970,100.06



year



Non-current assets:



Long-term receivables

Long-term equity investment 16,894,919,327.92 16,894,919,327.92


instruments



Fixed assets 345,361,895.62 345,361,895.62



Oil & gas assets

Right-of-use assets


Expenditure on development

Goodwill


Deferred tax assets

Other non-current assets 534,480.00 534,480.00


Total assets 35,847,176,894.16 35,847,176,894.16


Short-term borrowings

Financial liabilities held for trading


Notes payable 3,131,897,342.73 3,131,897,342.73


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



one year

200,000,000.00 200,000,000.00




Long-term borrowings 450,000,000.00 450,000,000.00

Bonds payable 995,584,143.19 995,584,143.19


Perpetual bond

Leasing liabilities

Long-term payables



Deferred income 35,786,292.41 35,786,292.41

Deferred tax liabilities 159,267.98 159,267.98

Other non-current liabilities



Owner's equity (or shareholders' equity):




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



equity) 19,580,184,361.05 19,580,184,361.05


(or shareholder's equity) 35,847,176,894.16 35,847,176,894.16

Notes on adjustments:



(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


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45. Others


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


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


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


(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



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



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



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



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%.


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.


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


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



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




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:


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


4. Notes Receivable

(1). Notes receivable listed by category



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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



Item Pledged amount at the end of the period

Banker’s acceptance bill 4,101,821,669.69


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



Item Ending amount derecognized Ending amount not derecognized

Banker’s acceptance bill 39,320,902.86 13,177,180.52


Total 39,320,902.86 13,177,180.52

(4). Notes of the Company transferred into accounts receivable due to non-performance of

drawers


(5). Disclosure based on classification of bad debt provision methods


Bad debt reserves withdrawn by single items:


Provision for bad debt reserves by portfolio:


In case of provisions for bad debt reserve based on general model of expected credit loss, please refer

to the disclosure of other receivables:


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


(7) Notes receivable actually written off in the current period


Other notes


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.


(1). Disclosure by aging



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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Category

Ending balance Beginning balance

Book balance Bad debt reserve

Book value


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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Name

Ending balance


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:




Portfolio provision item: portfolio - portfolio of electric charge receivable


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:


Portfolio provision item: portfolio - portfolio of enterprise customers receivable


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









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:


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


(5). Accounts receivable of top 5 in terms of ending balance pooled by the Debtor


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


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

involvement


Other notes:


6. Financing of accounts receivable




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


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.




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:


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

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not yet due.

7. Advance payment

(1). Advance payment listed by aging



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


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



Item listing




Interest receivable



Total 442,833,996.57 295,997,593.37

Other notes:

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Interest receivable

(1). Classification of interest receivable


(2). Significant overdue interest


(3). Provision for bad debt reserves


Other notes:



(4). Dividends receivable



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



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 / / /



Other notes:


Other receivables

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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



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



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)



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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- 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:


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:





Category Beginning

balance



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:



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



Item Write-off amount

Other receivables actually written off 7,500,000.00

Written-off for other major receivables:

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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:


(12). Other receivables with the ending balance ranking among the top five collected by the

debtor



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


payment

17,854,494.23 One to three

years

4.51 5,025,694.40


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


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


(15). Amount of assets and liabilities formed by transfer of other receivables and continuous

involvement


Other notes:


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9. Inventory

(1). Inventory classification



Item


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



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


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


Other notes


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





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





their book value

External sales

Outsourced

processing

materials

The net realizable value is

mainly determined by the market

price of final products





their book value

Outsourced

recovery of

external sales

Goods shipped

in transit

The net realizable value is

determined according to contract

unit price





their book value

External sales

10. Contract assets

(1). Contract assets



Item


Book balance Provision for

impairment Book value Book balance

Provision for

impairment Book value

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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


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



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 /




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


rate during the entire

duration (%)


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:


11. Held-for-sale assets



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




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:


Other notes

N/A

13. Other current assets




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


(1). Creditors investment



Item


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


(3). Provision for impairment


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:


Other notes


15. Other creditors investments

(1). Other creditors investments


(2). Significant creditors investment at the end of the period


(3). Provision for impairment


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:


Other notes:



(1). Long-term receivables




Range

of

discount

rate

Book balance

Bad

debt

reserve


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 /






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


(4). Assets and liabilities formed by transfer of long-term receivables and continuous

involvement


Other notes


Annual Report 2020

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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




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



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:


19. Other non-current financial assets


Other notes:


20. Investment real estate

Measurement model for investment real estate

(1). Investment real estate measured at cost


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

Annual Report 2020

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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



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


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


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



period

(1) Accrual


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


Other notes


21. Fixed assets

Item listing


Annual Report 2020

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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:


Fixed assets

(1). Fixed assets



Item Houses and

buildings PV solar plant

Machinery and

equipment

Transportation

vehicles

Electronic

equipment and

others

Total

I. Original

book value:


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


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


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


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



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

Annual Report 2020

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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



Item Original book value Accumulated

depreciation

Provision for


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


(5) Fixed assets without property ownership certificate



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:


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


22. Construction in progress

Item listing




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:


Annual Report 2020

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Construction in progress

(1) Construction in progress



Item


Book balance Provision for

impairment Book value Book balance

Provision for


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


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


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



Annual Report 2020

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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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204 / 312

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



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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


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



Item


Book balance

Provision

for

impairment


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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206 / 312

23. Productive biological assets

(1) Productive biological assets measured at cost


(2) Productive biological assets measured at fair value


Other notes


24. Oil and gas assets


25. Right-of-use assets


26. Intangible assets

(1) Intangible assets



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


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


period 20,206,743.46 196,954.30 20,403,697.76

(1) Disposal 14,611,440.19 14,611,440.19


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


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


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


translation 1,528,128.52 -16,181.67 1,511,946.85

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4. Ending balance 66,382,567.80 30,813,555.82 37,296,884.72 134,493,008.34

III. Provision for impairment



period 1,937,500.04 1,937,500.04

(1) Accrual 1,937,500.04 1,937,500.04


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


Other notes:


(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



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

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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


(3). Relevant information of goodwill in the asset group or asset group portfolio


(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


(5). Impact of goodwill impairment test


Other notes


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



Item Beginning

balance

Increase in the

current period

Amortization

amount in the

current period

Other

decreases Ending balance

Annual Report 2020

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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



Item


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


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Item


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



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




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



Year Ending balance Beginning balance Remarks

2022 1,576,992.51 7,651,031.71

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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:


31. Other non-current assets



Item


Book balance

Provision

for

impairment


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




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


Significant short-term borrowings due but unpaid are shown as follows:


Other notes


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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


34. Derivative financial liabilities


35. Notes payable

(1). Presentation of notes payable



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




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


Other notes


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


(2). Significant advance receipts aged more than 1 year


Other notes


38. Contract liabilities

(1). Contract liabilities




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


Other notes:


39. Payroll payable

(1). Presentation of payroll payable



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



Item Beginning balance Increase in the

current period

Decrease in the


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

Annual Report 2020

214 / 312

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



Item Beginning

balance

Increase in the

current period

Decrease in the


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:


40. Taxes payable




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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215 / 312

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




Interest payable 53,289,437.89


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:


Interest payable

(1). Presentation by classification




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:


Other notes:


Dividends payable

(2). Presentation by classification




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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




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


Other notes:


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


43. Non-current liabilities due within one year




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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217 / 312

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





Pending output tax 434,652,976.40

Total 434,652,976.40

Increase and decrease in short-term bonds payable:


Other notes:


45. Long-term borrowings

(1). Classification of long-term borrowings




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:


(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)).

Annual Report 2020

218 / 312

(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




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)



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


(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


Change statement of outstanding preferred share, perpetual bond and other financial instruments at

the end of period


Description of the basis for the classification of other financial instruments into financial liabilities:


Other notes:


47. Lease liabilities


48. Long-term payables

Item listing




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:


Long-term payables

(1). Long-term payables presented by nature of payment



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

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Special accounts payable

(2). Presentation of special payables by nature


49. Long-term payroll payable


50. Accrued liabilities



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




current period

Decrease in the


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:



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

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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

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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:


52. Other non-current liabilities


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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



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


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


Annual Report 2020

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Explanation of increase and decrease in other equity instruments in the current period and reasons,

and basis of related accounting treatment:


See V. 46 Bonds payable for details.

Other notes:


55. Capital reserves




current period

Decrease in the


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



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

226 / 312


current period

Decrease in the


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

227 / 312




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


reclassified to profits or

34,166,987.16 -350,598,336.72 -350,598,336.72 -316,431,349.56

Annual Report 2020

228 / 312

losses

Including: Other


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

229 / 312

58. Special reserve


59. Surplus reserve




current period

Decrease in the


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



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

Annual Report 2020

230 / 312

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



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



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

231 / 312

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:


(3). Description of performance obligations


(4). Description of the apportionment to the remaining performance obligations


Other notes:

N/A

62. Taxes and surcharges




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




Annual Report 2020

232 / 312

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



Item Amount of the current period Amount of the previous

period

Employee remuneration 1,008,460,929.81 653,541,903.87


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


Annual Report 2020

233 / 312



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


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




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




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


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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


70. Income from changes in fair value



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




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




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




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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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



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:


75. Non-operating expenses




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

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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




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



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:



Annual Report 2020

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See VII. 57. Other comprehensive income.

78. Items of Statement of Cash Flows

(1). Other cash received in relation to operating activities




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




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




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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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




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




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


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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

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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



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



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

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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




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:


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:


81. Assets with limited ownership and use right



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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


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

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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.


83. Hedging


84. Government grants

(1). Basic information of government grants



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

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(2). Return of government grants


Other notes:

N/A

85. Others


VIII. Change of consolidation scope

1. Business combinations not under common control


(1). Business combinations not under common control in the current period



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



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



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


Notes receivable 26,597,993.23 26,597,993.23


Prepayment 168,754,461.59 168,754,461.59

Non-current assets due within one year 1,154,401.64 1,154,401.64


Long-term equity investment 107,973,009.25 107,973,009.25

Investment real estate 86,928,756.00 66,510,980.75



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

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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


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


(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


(6). Other notes


2. Business combinations under common control


3. Counter purchase


Annual Report 2020

249 / 312

4. Disposal of subsidiary

Whether there exists the situation of disposing subsidiaries and losing control right in one time?



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:


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):


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 Jiulong New Energy Co., Ltd. Hainan

Prefecture,

Gonghe County,


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


Annual Report 2020

256 / 312

IX. Equities in Other Entities

1. Equity in subsidiaries

(1). Composition of enterprise group


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


Xi’an City,

Shaanxi

Province

Xi'an

Economic &

Technological

Development

Zone

Production

and sale 100

Newly

established

Xi’an LONGi Intelligent


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


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


Quzhou City,

Zhejiang

Province

Quzhou

Economic

Development

Zone

Production

and sale 100

Business

combinations

not under

common

control

Hefei LONGi Solar


Hefei City,

Anhui

province

Hefei High-

tech Zone

Production

and sale 100

Newly

established

Taizhou LONGi Solar


Taizhou

City, Jiangsu

Province

Hailing

District,

Taizhou City

Production

and sale 100

Newly

established

Yinchuan LONGi Solar


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


Datong City,

Shanxi

Province

Datong County,

Datong City

Production

and sale 100

Newly

established

Xi’an LONGi Solar


Xi’an City,

Shaanxi

Province

Xi’an National

Civil

Aerospace

Industrial Base

Production

and sale 100

Newly

established

Chuzhou LONGi Solar


Chuzhou,

Anhui

Province

Chuzhou

Economic and

Technological

Development

Zone

Production

and sale 100

Newly

established

Ningxia LONGi Solar


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


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


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


Xianyang

City,

Shaanxi

Province

Qindu District,

Xianyang City

Production

and sale 100

Newly

established

Jiaxing LONGi Solar


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


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


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


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


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


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


Ordos, Inner

Mongolia

Otog Front

Banner, Ordos

Investment

and

development:

100 Newly

established

Hangjin Banner

Xingguang Solar Power


Ordos, Inner

Mongolia

Hangjin

Banner, Ordos

Investment

and

development:

100 Newly

established

Heilongjiang Longjia


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


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


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


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


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


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


Ltd.

Handan City,

Hebei

Province

Daming

County,

Handan City

Investment

and

development:

100 Newly

established

Shouguang Jinhe Solar


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


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


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


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


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


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


Xianyang

City,

Shaanxi

Province

Xixian New

Area, Xianyang

City

Investment

and

development:

100 Newly

established

Jinxiang Huiqun New


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


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


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


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


Xuzhou City,

Jiangsu

Province

Quanshan

District,

Xuzhou City

Investment

and

development:

100

Business

combinations

not under

common

control

Wucheng Senneng Power


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


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


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


Co., Ltd.

Songyuan

City, Jilin

Province

Changling

County,

Songyuan City

Investment

and

development:

100 Newly

established

Linyi Dongsong Energy


Dezhou City,

Shandong

Province

Linyi County,

Dezhou City

Investment

and

development:

100

Business

combinations

not under

common

control

Dezhou Dongsen Power


Dezhou City,

Shandong

Province

Decheng

District,

Dezhou City

Investment

and

development:

100

Business

combinations

not under

common

control

Linqu Senneng New


Ltd.

Weifang

City,

Shandong

Province

Linqu County,

Weifang City

Investment

and

development:

100

Business

combinations

not under

common

control

Shanghe Zhongsen Solar


Ltd.

Jinan City,

Shandong

Province

Shanghe

County, Jinan

City

Investment

and

development:

100

Business

combinations

not under

common

control

Xuzhou Xinwei New


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


Guangzhou

City,

Guangdong

Province

Zengcheng

District,

Guangzhou

City

Investment

and

development:

100 Newly

established

Xuzhou Nuoyuan New


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


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


(3). Main financial information of the important non-wholly-owned subsidiaries


(4). Major restriction on using the assets of the Group and debt liquidation of the Group


(5). Financial support and other support provided for structured entities included in the scope

of consolidated financial statements:


Other notes:


2. Transaction with change in the owner’s equity in subsidiary and continuous control over

the subsidiary


3. Equity in joint ventures or associates


(1). Important joint ventures or associates



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

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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


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(3). Main financial information of important associates



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

Annual Report 2020

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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.

Annual Report 2020

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(4). Summary of the financial information for minor joint ventures and associates



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:


(6). Excess loss suffered by joint ventures or associates


(7). Unrecognized commitments related to the investment of joint ventures


(8). Contingent liabilities related to investment of joint ventures or associates


4. Important joint operation


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:


6. Others


X. Risks Related to Financial Instruments


The Group's operating activities will be subject to various financial risks: market risks (mainly

Annual Report 2020

275 / 312

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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276 / 312

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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277 / 312

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



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

279 / 312

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

280 / 312

at fair value

2. Determination basis of market price for items measured at Level 1 fair value on a sustained

and non-sustained basis


3. Valuation techniques, qualitative and quantitative information on important parameters

adopted for Level 2 continuous and non-continuous fair value measurement items


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


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


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


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


8. Fair value of financial assets and financial liabilities not measured at fair value


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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281 / 312

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


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


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


See IX. 1. Equity in subsidiaries for the information about subsidiaries of the Company.

3. Joint ventures and associates of the Company


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


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

282 / 312

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


4. Other related parties


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



Annual Report 2020

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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


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



Spare parts 2,075,740.46 904,698.34

–Shanghai Baowang Energy Technology

Co., Ltd.

Others 918,875.13


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


Annual Report 2020

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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

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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


(2). Related trusteeship/contracting and entrust management/ outsourcing

Commissioned management/contracting of the Company:


Information on commissioned management/contracting


Statement of entrusted management/ outsourcing of the Company:


Information on related management/contracting


(3). Related leasing

The Company as the Lessor:



Name of the Lessee Type of

lease assets

Lease income

recognized in the

current period

Lease income recognized in the

prior period


Materials Co., Ltd.

Housing 1,768,217.36 1,781,265.14


Materials Co., Ltd.

Equipment 56,952.00 56,952.00

Total 1,825,169.36 1,838,217.14

The Company as the Lessee:


Related lease


(4). Related guarantees

The Company as the Guarantor



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


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LONGi Tianhua 7,448.00 2015-9-15 2030-9-14 None


The Company as the Guaranteed Party


Information on guarantees for related parties


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.




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





between the associate LONGi Tianhua and China Development Bank Ningxia Hui Autonomous












(5). Inter-bank lending of related parties


(6). Asset transfer and debt restructuring of related parties


(7). Compensations for key executives




period

Compensations for key executives 1,488.62 1,327.58

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(8). Other related party transactions


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



Description Related parties


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

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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



Description Related parties Ending book balance Beginning book balance

Notes payable Pingmei LONGi New Energy


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


3,986,960.00 2,468,216.00

Notes payable Dalian Weikaite Technology Co.,

Ltd.

238,400.00

Notes payable Shanghai Fuchuan Intelligent


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


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


Materials Co., Ltd.

408,991.04 4,860,919.25

Accounts

payable



244,361.55 240,535.35

Accounts

payable


Ltd.

12,279,194.03

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291 / 312

Accounts

payable

Suzhou Yingzhen Intelligent


90,000.00

Accounts

payable

Shanghai Fuchuan Intelligent


33,698.03

Accounts

payable

Ningxia LONGi Meter Co., Ltd. 26,700.00

Accounts

payable

Suzhou DR Link Automation


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


8. Others


XIII. Share Payment

1. Overview of share payment


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

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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



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


4. Modification and termination of share-based payment


5. Others


XIV. Commitments and Contingencies

1. Important commitments


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


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:


3. Others


XV. Events after the Balance Sheet Date

1. Important non-adjusting events


2. Condition of profit distribution



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


4. Description of other events after the balance sheet date


(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

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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


(2). Prospective application


2. Debt restructuring


3. Replacement of assets

(1). Exchange of non-monetary assets


(2). Replacement of other assets


4. Pension plan


5. Discontinued operations


6. Division information

(1). Basis for reporting divisions and accounting policies


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



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.


(4). Other notes


7. Other important transactions and events impacting the investor's decision-making

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8. Others


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






Within 1 year


Within 6 months 4,962,161,941.86

7 to 12 months 56,433,040.39


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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Category



Book value

Value


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




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Portfolio provision item: portfolio - enterprise customers receivable


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



Portfolio provision item: portfolio - receivables of related parties within the Group


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



In case of provisions for bad debt reserve based on general model of expected credit loss, please refer to the disclosure of other receivables:


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Category Beginning

balance



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:


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


Write-off of significant accounts receivable


(5). Accounts receivable of top 5 in terms of ending balance pooled by the Debtor


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


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

involvement


Other notes:


2. Other receivable

Item listing




Interest 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:


Interest receivable

(1). Classification of interest receivable


(2). Significant overdue interest




Other notes:



(4). Dividends receivable


(5). Significant dividends receivable with the aging over 1 year




Other notes:


Other receivables

(1).Disclosure by aging




Within 1 year



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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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




Bad debt reserve

Stage I Stage II Stage III

Total Expected credit

loss in the next

12 months



duration (no

depreciation of credit)



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:




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Category Beginning

balance



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:


(5). Other receivables actually written off in the current period


(6). Information of top 5 receivables in terms of ending balance pooled by the Debtor



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


(8). Other receivables derecognized due to transfer of financial assets


(9). Amount of assets and liabilities formed by transfer of other receivables and continuous

involvement


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Other notes:





Item


Book balance

Provision

for

impairment


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



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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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



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


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

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4. Operating revenue and operating cost

(1). Operating revenue and operating cost




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



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:


(3). Description of performance obligations


(4). Description of the apportionment to the remaining performance obligations


Other notes:

N/A

5. Investment income


Annual Report 2020

310 / 312



period Amount of the previous period


accounted by cost method

2,980,661,804.88 1,000,000,000.00


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


XVIII. Supplementary Information

1. Statement of non-recurring profit or loss incurred in the current period



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.


2. Return on equity and EPS


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


4. Miscellaneous


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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)


Reference

Original of the audit report with the seal of the accounting firm, together with

signature and seal of the certified public accountant


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
