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1、2024 Annual Report of Tongwei Co.,Ltd.1/269Stock Code:600438Short Name:Tongwei Co.,LtdTongwei Co.,Ltd.2024 Annual Report2024 Annual Report of Tongwei Co.,Ltd.2/269Important NoticeI.The board of directors,supervisory committee as well as directors,supervisors and senior managersof the Company are res
2、ponsible for the authenticity,accuracy and completeness of the informationcontained in this Annual Report without false records,misleading statements or material omissions,andassume joint and several liability therefor.II.All directors of the Company have been present in the board meeting.III.Sichua
3、n Huaxin(Group)CPA(Special General Partnership)has expressed a standard unqualifiedopinion on the financial statements of the Company.IV.Liu Shuqi,Head of the Company,Zhou Bin,Head of accounting affairs and Gan Lu,Head ofaccounting department represent that they are responsible for the authenticity,
4、accuracy and completenessof the financial statements in this Annual Report.V.The proposal on profit distribution or the proposal on conversion of capital reserve to share capitalfor current period resolved in the board meetingAfter comprehensive evaluation of industry trends,corporate developmental
5、phase,and actual operational performance,Tongweis Board has determined to retain 2024 earnings to safeguard long-term shareholder value and ensure sustainabledevelopment capital requirements.The current profit allocation proposal,involving neither cash dividends,capital reserveconversions,nor bonus
6、share distributions,fully complies with regulatory requirements including the No.3 Guideline for theSupervision of Listed Companies Cash Dividends of Listed Companies and the Tongweis Articles of Association.In accordance with pertinent regulations,specifically the Rules for Repurchase of Shares by
7、Listed Companies,when cashdividend distributions by listed companies include share repurchases conducted via offers or centralized competitive bidding,theserepurchases,executed with cash as the consideration,are treated as cash dividends in relevant proportion calculations.In 2024,theCompany success
8、fully repurchased 101,360,012 shares through centralized competitive trading,amounting to a total of2,001,014,959.13 yuan,exclusive of transaction fees such as stamp duty and trading commissions.It is crucial to note that this profit distribution proposal has not been submitted to the general meetin
9、g of shareholders.VI.Cautionary note on forward-looking statementApplicable Not ApplicableThe forward-looking statements of the Company regarding its future development strategies and business plans do not constitute anysubstantial commitment of the Company to investors;and investors should pay atte
10、ntion to risksVII.Any funds possessed by the controlling shareholder and other related parties for non-operatingpurposes?NoVIII.Any outward guarantee by the Company in violation of the prescribed decision-making procedures?NoIX.More than half of the directors cannot ensure the truthfulness,accuracy,
11、and completeness of theannual report disclosed by the Company?NoX.Notiece on material risksThe Company had detailed possible risks in this Report.Please refer to VI“discussion and analysis on the Companys futuredevelopment”in Section III Management Discussion andAnalysis for more information on poss
12、ible risks and actions.XI.OthersApplicable Not Applicable*The 2024 Annual Report of Tongwei Co.,Ltd.was published both in Chinese and English.Where any discrepancy arisesbetween the English and the Chinese content,the Chinese version shall prevail.The English version here was only used for investors
13、reference.2024 Annual Report of Tongwei Co.,Ltd.3/269ContentsSection I.Definitions.4Section II.Company Profile and Major Financial Indicators.5Section III.Management Discussion and Analysis.8Section IV.Company Governance.39Section V.Environmental and Social Responsibility.58Section VI.Important Matt
14、ers.75Section VII.Share Changes and Shareholders.97Section VIII.Preference Shares.104Section IX.Bonds.105Section X.Financial Report.114List of documents tobe checkedFinancial statements bearing the signatures and seals of the head of the Company,the head of the accountingaffairs,and the head of the
15、accounting department.Original auditors report bearing the seal of the accountant firm and the signatures of the CPAs.Formal copies of all Company documents and the original announcements publicly disclosed in websitesdesignated by the CSRC.2024 Annual Report of Tongwei Co.,Ltd.4/269Section I.Defini
16、tionsI.DefinitionsUnless otherwise indicated in the context,the following terms shall have the following meanings in this Report:Definitions of frequently used termsTongwei,Company,We,or usrefers toTongwei Co.,Ltd.Tongwei Grouprefers toTongwei Group Co.,Ltd.Yongxiangrefers toYongxiang Co.,Ltd.Yongxi
17、ang Polysiliconrefers toSichuan Yongxiang Polysilicon Co.,Ltd.Yongxiang New Energyrefers toSichuan Yongxiang New Energy Co.,Ltd.Inner Mongolia Tongweirefers toInner Mongolia Tongwei High-purity Crystalline Silicon CompanyYunnan Tongweirefers toYunnan Tongwei High-purity Crystalline Silicon CompanyTo
18、ngwei New Energyrefers toTongwei New Energy Co.,Ltd.Hefei Solarrefers toTongwei Solar(Hefei)Co.,Ltd.Anhui Solarrefers toTongwei Solar(Anhui)Co.,Ltd.Chengdu Solarrefers toTongwei Solar(Chengdu)Co.,Ltd.Meishan Solarrefers toTongwei Solar(Meishan)Co.,Ltd.Tongyu Propertyrefers toChengdu Tongyu Property
19、Management Co.,Ltd.Tongwei Mediarefers toChengdu Tongwei Culture Media Co.,Ltd.Shuangliu 25GW TNC Projectrefers toPhase V 25 GW High-efficiency Cell Project of Chengdu SolarMeishan 16GW TNC Projectrefers toThe project with an annual capacity of 16 GW high-efficiency solar cells(MeishanPhase IV)200,0
20、00-ton High-purityPolysilicon Project in Yunnanrefers toPhase II 200,000-ton High-Purity Polysilicon Project of Yunnan Tongwei200,000-ton High-purityPolysilicon Project in InnerMongoliarefers toPhase I 200,000-ton High-Purity Polysilicon Project and Its Supporting Facilities ofInner Mongolia Silicon
21、 EnergyDarhan-Muminggan Qi Phase Irefers toPhase I 120,000-ton Industrial Silicon Project Powered by from Wind and SolarCombined Green Electricity of Inner Mongolia Tongwei Green SubstrateGuangyuan Phase Irefers toPhase I 180,000-ton Green Substrate(Industrial Silicon)Project by GuangyuanSichuan Hua
22、xinrefers toSichuan Huaxin(Group)CPA(Special General Partnership)Energy conversion efficiencyrefers toAmeasure that indicates the ability of solar cells to convert light energy into electricalenergyConvertible bondsrefers toConvertible corporate bondsWrefers toWatt,the unit of powerKW、MW、GWrefers to
23、Units of power,1 KW=1000 W,1 MW=1000 KW,and 1 GW=1000 MWHigh-purity Polysiliconrefers toHigh-purity metal silicon with purity greater than 99.9999999%182 mm cellrefers toAcell produced with M10 silicon wafer(with a length of 182 mm),whose area is35.34%larger than that of a cell produced by the conve
24、ntional M2 silicon wafer(witha length of 156.75 mm).210 mm cellrefers toAcell produced with M12 silicon wafer(with a length of 210 mm),whose area is80.5%larger than that of a cell produced by the conventional M2 silicon wafer(witha length of 156.75 mm).PERC Cellrefers toPassivated Emitter and Rear C
25、ontact,a high-efficiency crystalline silicon solar cellstructure,where a passivation layer of AL2O3 or SiNx is added on the back side ofthe cell to deal with the high carrier recombination on the back side of all aluminumback surface field solar cells,and then the film will be opened to make the alu
26、minumback surface field effectively contact with the silicon substrate.IBC Cellrefers toInterdigitated Back Contact,a high-efficiency solar cell structure.The front side onlyhas a passivation and anti-reflection coating without any grating electrodes with bothpositive and negative poles crossed on t
27、he back side.The biggest feature of an IBCcell is that both the PN junction and metal contact are on the back side so that thefront side is protected against from the metal shading,which provides more effectivepower generation area and therefore helps increasing the energy conversionefficiency.TOPCo
28、n Cellrefers toTunnel Oxide Passivated Contact,where an ultra-thin tunnel oxide and a heavilydoped polysilicon thin film are prepared on the surface of the cell to form apassivation contact structure,thus increasing the open-circuit voltage and short-circuitcurrent of the cell and then improving the
29、 energy conversion efficiency.2024 Annual Report of Tongwei Co.,Ltd.5/269HJT Cellrefers toHetero-junction with Intrinsic Thin-layer,a high-efficiency crystalline silicon solarcell structure,a hybrid solar cell made of crystalline silicon substrate and amorphoussilicon thin film,i.e.adding a non-dope
30、d(intrinsic)hydrogenated amorphous siliconthin film between P-type hydrogenated amorphous silicon and N-type hydrogenatedamorphous silicon and N-type silicon substrate.HJT cells are welcomed due to theirlow process temperature,good passivation effect,high open-circuit voltage and highbifacial rate.P
31、erovskite/silicon stacked solarcellrefers toAdual-junction solar cell,formed by stacking perovskite solar cells and crystallinesilicon solar cells,maximizes the utilization of sunlight for higher conversionefficiency because the wide-bandgap perovskite absorbs short to mid-wavelengthlight,while narr
32、ow-bandgap crystalline silicon absorbs mid to long-wavelength light.Through optimization in bandgap matching,overall optical management,carrierexchange layers,and other aspects,the conversion efficiency of this dual-junctionsolar cell can exceed the Shockley-Queisser limit of single-junction solar c
33、ells,achieving over 30%.CTM valuerefers toThe percentage of the total output power of the module to the cell power shows thedegree of module power loss.Ahigher CTM value indicates a smaller degree ofmodule package power loss.TPCrefers toTongwei PERC Cell,a Tongwei solar cell designed with PERC techn
34、ology.TNCrefers toTongwei N-passivated Contact Cell,an advanced solar cell utilizing type-npassivated contact technology developed by Tongwei,featuring Tongweis proprietaryPECVD polysilicon deposition technology to enhance conversion efficiency.TBCrefers toTongwei Back Contact Cell,a Tongwei solar c
35、ell designed with back contacttechnology.THCrefers toTongwei HJT Cell,a Tongwei solar cell designed with HJT technology.Flexible supportrefers toAlarge spanning support consisting of prestrained flexible rigging structures that canincrease the land utilization.Reflective busbarsrefers toNovel busbar
36、s upgraded from conventional busbar structure by redesigning thesurface with V-grooves which allow incident light on the surface to be directionallyreflected to the upper glass layer,and further reflected onto the surface of the solarcell,thereby enhancing the utilization efficiency of light by the
37、photovoltaic module.InfoLink Consultingrefers toAglobal leader of research and consulting services in the renewable energy andtechnology sectorIRENArefers toInternational Renewable EnergyAgencyCPIArefers toChina Photovoltaic Industry AssociationAntaikerefers toBeijingAntaike Information Development
38、Co.,Ltd.CSRCrefers toChina Securities Regulatory CommissionSSErefers toShanghai Stock ExchangeDesignated Disclosure Mediarefers toChina Securities Journal,Shanghai Securities News,Securities Daily,STCN,andEconomic Information DailyReporting periodrefers toFrom January 1,2024 to December 31,2024Note:
39、Minor differences between subtotals and grand totals in tables,as mentioned in this annual report,are a result of roundingadjustmentsSection II.Company Profile and Major Financial IndicatorsI.Company informationFull Chinese name通威股份有限公司Short Chinese name通威股份Full English nameTONGWEI CO.,LTD.Short Eng
40、lish nameTONGWEI CO.,LTD.Legal representativeLiu ShuqiII.Contacts and contact detailsSecretary of the Board of DirectorsRepresentative of Securities AffairsNameYan KeLi HuayuAddressNo.588,Middle Section Tianfu Avenue,High-TechZone,Chengdu,China(Sichuan)Pilot Free Trade ZoneNo.588,Middle Section Tian
41、fu Avenue,High-TechZone,Chengdu,China(Sichuan)Pilot Free Trade ZoneTelephone028-86168555028-861685552024 Annual Report of Tongwei Co.,Ltd.6/269Fax028-85199999028-85199999EIII.Basic InformationRegistered addressNo.588,Middle Section Tianfu Avenue,High-Tech Zone,Chengdu,China(Sichuan)PilotFree Trade Z
42、oneChanges of the registered addressOn November 16,2016,the Companys registered address was changed from No.11,Forth Section of South 2nd Ring Road,High-tech Zone,Chengdu to No.588,MiddleSection Tianfu Avenue,High-Tech Zone,Chengdu.On May 16,2022,the Companysregistered address was changed from No.58
43、8,Middle Section Tianfu Avenue,High-TechZone,Chengdu to No.588,Middle Section Tianfu Avenue,High-Tech Zone,Chengdu,China(Sichuan)Pilot Free Trade Zone.Office addressNo.588,Middle Section Tianfu Avenue,High-Tech Zone,Chengdu,China(Sichuan)PilotFree Trade ZonePost code610041Websitehttp:/EIV.Informatio
44、n disclosure and siteMedianames andwebsiteswheretheCompanydisclose its annual reportsChina Securities Journal,Shanghai Securities News,Securities Daily,STCN,and Economic Information DailyStock exchange websites where the Company discloseits annual Location where the Company stores its annual reportS
45、ecurities DepartmentV.Stock informationStock informationStock typeStock exchangeStock nameStock codePrevious stock nameA-shareShanghaiStockExchange通威股份600438VI.Other informationAccountant firmengaged by theCompany(domestic)NameSichuan Huaxin(Group)CPA(Special General Partnership)Office location28th
46、Floor,Jinmao Lidu South,No.18,Ximianqiao Street,ChengduSignatory accountantsLi Wulin,Tang Fangmo,and Xia HongboVII.Major accounting data and financial indicators within the latest three years(I)Major accounting dataUnit:YuanCurrency:CNYMajor accounting data20242023YoY change(%)2022Operating revenue9
47、1,994,404,333.54139,104,062,084.52-33.87142,422,517,994.99Adjustedoperatingrevenueafterrevenueunrelatedtoprincipalbusiness activities and transactionswithout commercial substance91,572,565,115.77138,580,632,526.78-33.92141,829,013,095.00Netprofitattributabletoshareholders of the listed company-7,038
48、,757,392.5413,573,900,132.37-151.8625,733,777,019.25Net profit net of non-recurring gainand loss attributable to shareholdersof the listed company-7,057,321,013.5913,613,305,529.94-151.8426,554,703,512.74Netcashflowgeneratedfromoperating activities1,143,735,923.3730,679,303,971.17-96.2743,817,909,63
49、1.702024 close2023 closeYoY change(%)2022 closeNet assets attributable to48,455,869,630.7661,528,838,529.70-21.2560,793,209,105.632024 Annual Report of Tongwei Co.,Ltd.7/269shareholders of the listed companyTotal assets195,916,763,061.99164,363,161,459.6619.20145,574,988,754.45(II)Major financial in
50、dicatorsMajor financial indicators20242023YoY change(%)2022Basic earnings per share(yuan/share)-1.57903.0151-152.375.7166Diluted earnings per share(yuan/share)-1.57902.8737-154.955.4905Basic earnings per share net of non-recurringgain and loss(yuan/share)-1.58323.0239-152.365.8989Weighted average re
51、turn on net assets(%)-12.7722.59-35.36ppts52.38Weighted average return on net assetsexcluding of non-recurring gain and loss(%)-12.8122.66-35.47ppts54.05Note on major accounting data and financial indicators within the latest three years by the end of reportingApplicable Not ApplicableVIII.Differenc
52、es between accounting data under domestic and foreign accounting standards(I)Difference in net profit and net assets attributable to shareholders of the listed company contained in the financialstatements disclosed simultaneously under International Accounting Standard and ChinaAccounting StandardAp
53、plicable Not Applicable(II)Difference in net profit and net assets attributable to shareholders of the listed company contained in the financialstatements disclosed simultaneously under Foreign Accounting Standard and China Accounting StandardApplicable Not Applicable(III)Note on differences between
54、 China and foreign accounting standards:Applicable Not ApplicableIX.2024 major financial data by quartersUnit:YuanCurrency:CNYQ1(Jan-Mar)Q2(Apr-Jun)Q3(Jul-Sept)Q4(Oct-Dec)Operating revenue19,570,420,152.6924,226,695,983.3124,475,361,167.3623,721,927,030.18Net profit attributable toshareholders of th
55、e listedcompany-786,737,334.37-2,342,713,585.71-843,806,175.83-3,065,500,296.63Net profit net of non-recurringgain and loss attributable toshareholders of the listedcompany-790,179,660.91-2,388,277,631.03-859,159,161.72-3,019,704,559.93Net cash flow generated fromoperating activities-1,393,906,280.0
56、22,355,203,043.952,027,151,610.25-1,844,712,450.81Note on differences between these quarterly data and data contained in disclosed regular reportsApplicableNot ApplicableX.Items measured at fair valueApplicable Not ApplicableXI.Non-recurring gain and loss items and amountsApplicable Not ApplicableUn
57、it:YuanCurrency:CNYNon-recurring gain and loss items2024Notes(if applicable)20232022Gain or loss on from disposal of non-current assets,including the reversal of previously recognizedimpairment loss provision for assets127,776,432.5428,747,409.32-12,315,759.20Government grants included in current pr
58、ofit or loss,butexcluding government grants that are closely related to thenormal operating activities of the Company,have a lasting168,150,746.52163,223,026.68387,940,097.372024 Annual Report of Tongwei Co.,Ltd.8/269impact on the Companys profit or loss,and to which theCompany is entitled under nat
59、ional policies andregulations.In addition to the effective hedging business related to thenormal operating activities of the Company,the fair valuegain and loss from held-for-trading financial assets andliabilities held by a non-financial company as well as gainor loss on the disposal of financial a
60、ssets and liabilities9,653,755.3017,273,678.45-130,149,063.69Charges for money occupation levied on non-financialinstitutions recognized in current profit or loss6,844,182.25The profit when the investment cost of acquiringsubsidiaries,associates,and joint ventures by a companyis less than the fair v
61、alue of the identifiable net assetsacquired at the time of investment acquisition,which theinvesting entity is entitled to receive1,551,526.45Non-operating revenue and expenses other thanaforementioned items-265,144,269.89-240,774,570.85-1,235,055,137.99Less:Effects of income tax12,260,606.94921,933
62、.88-156,512,227.43Effects of minority interest(after tax)16,456,618.738,504,533.74-12,141,142.59Total18,563,621.05-39,405,397.57-820,926,493.49Where the Company defines an item and the item has a significant amount not listed in the Explanatory Announcement onInformation Disclosure for Companies Off
63、ering Their Securities to the Public No.1-Non-Recurring Gain and Loss Items as arecurring gain and loss item,or defines an item listed in Explanatory Announcement on Information Disclosure for CompaniesOffering Their Securities to the Public No.1-Non-Recurring Gain and Loss Items as a recurring gain
64、 and loss items item,notesshould be provided.。Applicable Not ApplicableXII.OthersApplicable Not ApplicableSection III.Management Discussion and AnalysisI.Operation discussion and analysisIn 2024,the global economy exhibited a continuing yet fragile recovery,characterized by increased growth disparit
65、ies amongmajor economies.Geopolitical tensions persisted,and there was a marked rise in protectionism and unilateralism,leaving globalgrowth momentum lacking.However,Chinas proactive macroeconomic control measures and the swift implementation of targetedpolicy packages ensured the stability of its d
66、omestic economy,which achieved a historic GDP of over 130 trillion yuan,reflecting ayear-on-year growth of 5%.Notably,the country accelerated the transition from traditional to new growth drivers.Policyinterventions focused on advancing dual carbon goals and fostering high-quality development,signif
67、icantly enhanced the green andintelligent transformation of the industrial sector.As a result,green industries,including solar energy and new energy vehicles,exhibited double-digit growth,while the share of clean energy in the energy mix experienced substantial increases,further solidifyingthe“green
68、 element”in Chinas economic development strategy.During the reporting period,the global demand for the photovoltaic industry remained robust;however,a significant imbalancebetween supply and demand emerged,leading to a notable decline in product prices year-over-year.The intensification ofinternatio
69、nal trade barriers further exacerbated operational pressures within the industry.For the first time in five years,the totaloutput of the feed industry declined,with aquatic feed production falling for two consecutive years,resulting in increasingly fiercemarket competition.In the context of these ch
70、allenging industry dynamics,the Company strategically maintained its focus on its twocore business segments:green agriculture and green energy.By executing a steady operational strategy,the Company emphasizedtechnological research and development initiatives,and production actions aimed at reducing
71、production costs and enhancingefficiency.These efforts not only bolstered the core competitive advantages across each business segment but also solidified theCompanys position as an industry leader.The Company recorded an operating revenue of 91.994 billion yuan for the fiscal year.Nevertheless,the
72、photovoltaic sector faced a sharp decline in market prices,which even dropped below the industrys cash cost.Compounding this issue was an impairment and scrapping of long-term assets,totaling 1.065 billion yuan.Consequently,the netprofit attributable to shareholders of the listed company resulted in
73、 a loss of 7.039 billion yuan,although operating cash flowremained positive,with a net inflow of 1.144 billion yuan.Despite the ongoing pressure from mismatched supply and demand andperiodic operational losses,the Company remains firmly optimistic about the long-term prospects of the green energy an
74、d green foodsectors.Demonstrating unwavering confidence in its competitive positioning,the Company has engaged in share repurchases totalingover 2 billion yuan since 2024,acquiring 101,688,812 shares,approximately 2.26%of the total share capital.Furthermore,thecontrolling shareholder has increased i
75、ts stake in the Company by approximately 1.3 billion yuan,resulting in an additional62,511,972 shares acquired,representing about 1.39%of the total share capital.2024 Annual Report of Tongwei Co.,Ltd.9/269(I)Feed and industry chainThe Company stands as a global leader in the production of aquatic fe
76、ed and a significant player in livestock and poultry feedproduction.Notably,aquatic feed,being the Companys core product,has consistently ranked among the top in the industry forseveral consecutive years.During the reporting period,despite facing industry challenges,including a contraction of the do
77、mesticfeed market and a decrease in aquatic feed output,the Company remained steadfast in its commitment to quality.By effectivelyimplementing its Year of Good Products strategy,the Company achieved results that significantly surpassed industry averages,with ayear-on-year increase in aquatic feed sa
78、les.Overall,the Company recorded a total feed sales volume of 6.8686 million tons,markingsubstantial progress in both food and industrialized aquaculture sectors.These accomplishments have unequivocally bolstered theCompanys competitive advantages across its feed and industrial chain businesses.1.To
79、ngwei demonstrated operational resilience amid industry contraction,with multi-category growth driven bystringent quality protocolsIn response to the challenges posed by declining quantity and prices within the feed industry in 2024,the Company remainedsteadfast in its commitment to product quality,
80、diligently implementing its quality policy to achieve differentiation.The focus onaquatic feed involved a strategic realignment toward core markets and key customers while enhancing the promotion of innovativeproducts,including functional and premium feeds.Remarkably,the sales volume of aquatic feed
81、 increased despite ongoingindustry-wide declines for the past two years.Notably,the Companys market share in common freshwater fish feeds and specializedaquatic productssuch as those for crayfish,crab,shrimp,sea bass,and snakehead fishhas established a dominant position withinthe industry.Although t
82、he sales volume of common freshwater fish feeds demonstrated periodic fluctuations during the initial threequarters due to overall industry conditions,the Company capitalized on its competitive advantages,resulting in a robust recovery inthe further quarter and harvesting a stable performance throug
83、hout the whole year.Furthermore,the reporting period saw the salesvolume of the Companys functional feeds reaching unprecedented levels,with seedling feeds exhibiting a year-on-year growth of10%.In the sphere of livestock and poultry feeds,the Company navigated a challenging landscape characterized
84、by a contraction inthe breeding scale among some strategic cooperative customers and individual farmer markets.Despite a corresponding year-on-yeardecline in sales volume,the Company made significant strides in optimizing its customer structure.The proportion of sales fromlarge-scale customers incre
85、ased considerably,particularly within the poultry feed sector,which benefited from establishing industrialclusters around large-scale demonstration bases.This has demonstrated the economies of scale from high-value-added products,andsignificantly higher capacity utilization at benchmark companies.2.
86、Tongwei advanced technological innovation and smart manufacturing,establishing benchmark feed productionfacilitiesThe Company has positioned itself as a pioneer in the feed industry by advocating for and implementing the digital andintelligent transformation of feed production.In 2024,building on pr
87、evious standardization efforts,the Company refined 129production business processes.It successfully launched a digital and intelligent manufacturing platform across 50 domesticsubsidiaries and deployed an Internet of Things(IoT)data collection system in 30 subsidiaries.By leveraging five keymodulesp
88、lanning,production,materials,quality,and equipmentthe Company has achieved comprehensive standardization,transparency,and lean production in its feed operations.Moreover,during the reporting period,the Company has actively pursuediterative advancements in feed production technologies,enhancing the p
89、roduction capacities and material management efficiencies ofits subsidiaries.The organization has also completed multiple patent applications for cutting-edge feed production equipment.Theseinitiatives ensure that the Company maintains a leading edge in processing capabilities,superior quality,and c
90、onsistency in productefficacy.3.Tongwei enhanced global raw material supply chain capabilities,achieving industry-leading quality assurance,supplystability,and cost efficiencyThe Company has established a distinguished procurement team specializing in feed raw materials.In 2024,amidst challengingmar
91、ket conditionsincluding declining prices of primary energy raw materials,intensified procurement competition among industryleaders,and volatile prices for key animal proteins such as fish meal and chicken mealthe Company maintained rigorous qualitycontrol measures.These efforts ensured that all purc
92、hased raw materials met stringent internal and market standards,therebysupporting the Companys commitment to high-quality products during its designated Year of Good Products.Simultaneously,theCompany expanded its global procurement channels,enhancing its sourcing capabilities for Peruvian fish meal
93、 and increasingimports of barley from Kazakhstan.This strategic diversification has strengthened the stability and resilience of the raw materialsupply chain,thereby improving both supply assurance and bargaining strength.Moreover,during the reporting period,the Companyleveraged its“digital and inte
94、lligent”procurement decision-making platform to identify favorable procurement opportunities andeffectively manage raw material inventory.As a result,the overall procurement costs for major raw material categories were belowindustry averages.2024 Annual Report of Tongwei Co.,Ltd.10/2694.Tongwei rece
95、ived the fifth National Science and Technology Progress Award recognition,validating technology-marketsynergy in product developmentIn 2024,the Company,adhering to its“quality policy”and the theme of the Year of Good Products,adopted a strategicintegration of technological advancements and market in
96、sights.During the reporting period,the Company realigned its research anddevelopment(R&D)framework to focus on three primary product categories:common freshwater fish feeds,specialized aquaticfeeds,and livestock and poultry feeds.This has enhanced the precision and applicability of R&D initiatives,f
97、acilitating the swifttransformation of innovations into market-ready products and thereby strengthening the Companys competitive edge.Throughoutthe year,the agricultural and animal husbandry segment submitted 88 patent applications,which included 22 inventions,andsuccessfully secured 35 authorized p
98、atents,with 3 classified as inventions.Notably,in June 2024,the Companys initiative,Construction of the Precision Nutrition Technology System for Marine Cultured Fishes and Its Industrial Application,earned theSecond Prize of the National Science and Technology Progress Award.This recognition unders
99、cores the Companys unparalleledachievement as the only agricultural and animal husbandry enterprise in the nation to have received this award five times,reflectingits substantial commitment to and prowess in technological R&D.5.Strategic emerging businesses maintained steady expansion,generating sus
100、tainable growth momentum foragricultural operationsDuring the reporting period,the Company demonstrated stable growth in its feed business while leveraging its extensiveexpertise in the agricultural and animal husbandry sectors.This strategic approach facilitated the robust development of two keyini
101、tiatives:the food business and the industrialized shrimp farming operations,thereby generating innovative business models andnew highlights across the agricultural and animal husbandry industry chain.In response to the increasingly competitive landscapewithin the domestic food industry,Tongwei Food
102、rigorously adhered to its high-quality development strategy,guided by theprinciples of maximizing advantages,concentrating on core areas,and effectively addressing weaknesses.As a result,the total foodsales volume surged by 10.44%year-on-year,with sales revenue witnessing an increase of 22.43%,both
103、reaching unprecedentedlevels.Notably,the Company sustained its leadership position in tilapia imports from the United States,capturing a market share of13%.The industrialized shrimp farming initiative,envisioned as the Companys forward-looking industrial deployment,achieved fullproduction in both Ph
104、ase I and Phase II projects by the conclusion of the reporting period.The breeding water body expanded to25,000 cubic meters,resulting in annual shrimp output exceeding 1.5 million kilograms.This innovative project employed theCompanys self-developed“internal and external dual-cycle water treatment
105、process system”,accomplishing zero sewage dischargeand maintaining a water resource utilization rate of over 95%.The production capacity per unit of water body was three times greaterthan that of traditional farming methods.Furthermore,a comprehensive digital management system was established to ove
106、rsee theentire breeding cycle,utilizing Internet of Things(IoT)devices to collect real-time data on water quality parameters(such as pH,dissolved oxygen,and temperature),shrimp growth status,and equipment operation metrics.This initiative positions the Company asthe first shrimp farming enterprise i
107、n China to simultaneously obtain both the Best Aquaculture Practices(BAP)and Non-Antibiotic(NSF)certifications,establishing it as a flagship project in the domain of industrialized recirculating shrimp farming within China.(II)PVThe Company stands at the forefront of the global photovoltaic integrat
108、ion sector,having established a comprehensive industrialchain that encompasses everything from industrial silicon production to the development of terminal photovoltaic power plants.Itscompetitive advantages are robust,making it a leader in several key areas,including production capacity,technologic
109、al research anddevelopment,cost control,and brand quality.For consecutive years,the Company has retained its top position in global market sharefor high-purity polysilicon and solar cells,while its module shipment volumes consistently rank among the top five worldwide.During the reporting period,des
110、pite a high baseline,the global photovoltaic power generation sector exhibited significant growth innewly installed capacity.According to the China Photovoltaic Industry Association(CPIA),the global newly installed capacityreached 530 GW,representing an approximate year-on-year increase of 35.9%.In
111、China,newly installed capacity was reported at277.6 GW,marking a year-on-year rise of 28.3%.This growth underscores the ongoing momentum of energy transformation.However,challenges emerged due to periodic supply-demand imbalances,intensifying industry competition,and declining productprices that fel
112、l below cash costs,resulting in widespread financial losses for enterprises.In response to this complex marketenvironment,the Company remains long-term optimistic about the photovoltaic industrys potential and confident in its own businesscompetitiveness.It steadfastly pursues the strategic goal of
113、becoming a world-class clean energy operator,prioritizing technologicalinnovation,cost reduction,and efficiency improvements.By intensifying market expansion efforts and strengthening collaborationswith upstream and downstream partners,the Company is enhancing its comprehensive competitiveness and s
114、olidifying its marketposition.1.High-purity polysiliconIn 2024,amidst imbalances in the supply and demand dynamics across the industrial chain,the high-purity polysilicon segment2024 Annual Report of Tongwei Co.,Ltd.11/269encountered persistent challenges.Polysilicon prices consistently fell below p
115、roduction costs,exacerbating the issue of high industryinventory levels.Nevertheless,the Company remained steadfast in its strategic objectives,anchored by the three core principles of“safety and stability,improvement and enhancement,and team building”.Throughout the year,the organization maintained
116、 safe andstable production while enhancing both product quality and operational efficiency,ultimately stabilizing its market share.Notably,the Company achieved a sales figure of 467,600 tons of high-purity polysiliconan increase of 20.76%compared to the previousyear.It accounted about 30%of the nati
117、onal annual production and sales volume,and secured the first position in terms of marketshare worldwide.During the reporting period,the Company prioritized safe production as the cornerstone of its operations,implementing acomprehensive digital and intelligent management platform for dual preventio
118、n.It established a real-time risk monitoring system thatencompassed the entire production process.As a result,the production facilities maintained stable operations throughout the year,providing a robust foundation for enhancing product quality and operational efficiency.In alignment with prevailing
119、 industry demand,the Company achieved an output with N-type products constituting over 90%of total production.Continued efforts to improve thequality and efficiency of N-type silicon materials garnered widespread recognition from customers.Notably,the stable supply ofelectronic-grade polysilicon for
120、 the semiconductor industry was successfully achieved,with four overseas customers recentlyvalidating the quality of the product.This accomplishment underscores the successful implementation of the Tongwei IntelligentManufacturing initiative for electronic-grade polysilicon.Also,the Company aggressi
121、vely pursued cost reduction strategies.Byleveraging continuous process optimization and innovative management practices,key equipment and technologies were introduced,including 60 pairs of rod reduction furnaces,high-boiling pyrolysis systems,and waste silicon powder recycling mechanisms.TheCompany
122、fostered a culture of participation,encouraging all employees to contribute improvement proposals.This engagement led tosignificant advancements in energy consumption reduction,with comprehensive power consumption and silicon consumptionrecently reduced to within 46 kWh and 1.04 kg per unit(kg),resp
123、ectively.These figures are poised to decline further as operationalprocesses are upgraded,thereby enhancing the Companys core competitiveness in a challenging landscape.Despite challenges posedby increased electricity costs at the Sichuan and Yunnan Bases during the dry season,the Company adeptly mo
124、nitored marketdemandanddynamicallyoptimizedproductionconfigurations.Throughtheexecutionofvariouscost-savingandefficiency-enhancing measures,the Companys operational costs remained at the forefront of the industry.Currently,the productioncash cost at the Inner Mongolia Base has been reduced to below
125、27,000 yuan per ton(excluding tax).During the reporting period,the Company successfully completed the construction of its 200,000-ton high-purity polysiliconprojects in both Phase II Baotou and Phase II Yunnan,achieving operational production capacity within the subsequent month.Thisaccomplishment s
126、ignifies a substantial advancement in Chinas silicon material projects,characterized by improvements insingle-unit scale,investment cost efficiency,production line automation,and intelligent operational capabilities.These developmentshighlight the Companys robust expertise in the technology and oper
127、ational management of high-purity polysilicon initiatives.Toenhance the supply chain resilience for raw materials,the Company has strategically initiated green substrate material(industrialsilicon)projects in Inner Mongolia and Sichuan.The combined green substrate project,which encompasses over 300,
128、000 tons ofcapacity from both the Darhan-Muminggan Qi Phase I and Guangyuan Phase I projects,has successfully commenced production.This strategic move facilitates the establishment of a more integrated and efficient industrial chain structure.2.Solar cellsDuring the reporting period,prices in the ce
129、lls segment continued to decline due to an imbalance between supply and demand,occasionally dropping below production costs of leading enterprises.Concurrently,N-type cell technologies,particularly thoseutilizing TOPCon,experienced a significant expansion.Cell manufacturers faced considerable challe
130、nges related to production linetransitions,cost reduction,efficiency enhancements,and product sales.In this context,the Company has effectively solidified itsleading position in the global cell market through a comprehensive strategy.This includes accelerating the upgrade of existing PERCproduction
131、capacity,enhancing the development of its R&D platform,and strengthening lean production management practices.As aresult,the Company achieved sales of 87.68 GW of solar cells(including self-consumption),marking an 8.70%year-on-year increase.According to InfoLink Consulting,the Company has maintained
132、 its status as the top global shipper of solar cells for eightconsecutive years,with a global market share of approximately 14%in 2024.During the reporting period,the Company adeptly adapted to the advancements in N-type technology and rapidly optimized itsproduction capacity structure.Currently,the
133、 production capacity for TNC cells stands at 150 GW.As a pioneer in theindustrialization of TOPCon PECVD technology,the Company has effectively positioned PECVD as the industrys predominantchoice,achieving a market share exceeding 50%.Building on this foundation,the Company has persistently focused
134、on efficiencyenhancement and cost reduction associated with TNC technology.Through strategic initiatives such as optimizing production cycles,upgrading screen printing patterns,recycling chemicals,and utilizing domestic pastes,the organization has established industrybenchmarks in key metrics,includ
135、ing single-line production capacity,grade A product rate,conversion efficiency,and non-silicon2024 Annual Report of Tongwei Co.,Ltd.12/269costs.The Company also continues to innovate within the core processes of TNC technology.It has outlined integrated efficiencyimprovement solutions for both cells
136、 and modules,which encompass TPE edge passivation,steel stencil printing,backsidepolysilicon gates,the proprietary 908 technology(0BB technology-independently developed by Tongwei),and full-screen technology.These advancements are projected to elevate the mainstream power output of mass-produced TNC
137、 modules by over 25 W by 2025,further emphasizing the competitive edge of TNC products in power generation.In 2024,in terms of industry-university-research(IUR)collaboration,the Tongwei Global Innovation R&D Center commencedoperations.This center is dedicated to exploring cutting-edge topics and fos
138、tering collaboration through IUR projects.It aims todevelop transformation bases for research achievements and training centers for engineering talent,thereby delving into the complexand often uncharted realms of technological innovation.The Company has also established the Sichuan Crystalline Silic
139、onPhotovoltaic Industry Innovation Center in partnership with several leading enterprises in the sector.By integrating diverse resources,this initiative has successfully forged an industrial innovation ecosystem.Aligned with national strategic initiatives and internationaltechnological benchmarks,th
140、e center aspires to address critical“bottleneck”challenges in key areas and aims to create acollaborative framework for innovation and R&D that is both multi-track and multi-dimensional.During the reporting period,theCompany employed a parallel R&D strategy across multiple technical routes,yielding
141、significant advancements.Notably,the launchof the 1GW HJT pilot line in June 2024 represents a pioneering achievement,being the industrys first pilot line with a single-lineproduction capacity of 1GW.This facility is pivotal for validating cutting-edge HJT equipment and technical solutions.The pilot
142、initiative has already recorded remarkable successes;the HJT 210-66 format module has broken world power records nine timesconsecutively,achieving a peak output of 790.8W and an efficiency of 25.46%.Furthermore,the Company has established a clearroadmap for the copper interconnect 2.0 technical rout
143、e,introducing an industry-leading silver-free HJT solution.Moreover,theCompanys TBC products have successfully secured TUV Rheinland certification,making them eligible for market shipment.Thebatch power of the pilot lines 210R-66 format has reached 660W,positioning it within the industrys highest ec
144、helon.Efforts toexplore base metals applications are also underway,paving the way for future cost reduction initiatives.In the realm of advancedtechnology,the efficacy of the Companys perovskite tandem cell has achieved 34.17%.The layout planning and equipment selectionfor a megawatt-level test line
145、 have been completed.The Company places a strong emphasis on establishing a robust intellectualproperty system,continuously developing a protective matrix that encompasses core technological processes.Concurrently,efforts toenhance the overseas patent risk response system are underway,reinforcing th
146、e Companys competitive barriers in technology.Overthe past year,authorized inventions for photovoltaic cells and modules(H01L patent classification)surged by 135.59%,domesticpatent applications increased by 49.18%,and overseas patent filings,including international PCT patents,rose by 30.09%.3.Solar
147、 modulesIn 2024,the Companys module business firmly maintained its dual focus on technological innovation and marketadvancements.It rapidly enhanced its high-end production capacity and marketing service network,thereby reinforcing brandcompetitiveness and channel effectiveness.This strategy culmina
148、ted in a substantial market share expansion and an optimizedshipment structure,with annual sales volume reaching 45.71 GWa year-on-year increase of 46.93%.Leveraging the advantages ofa fully integrated industrial chain and advanced intelligent manufacturing capabilities,the Company effectively promo
149、ted theefficient operations at its production bases in Yancheng,Jintang,and Nantong.By upgrading intelligent and eco-friendly productionlines,the organization ensured exceptional product quality and delivery capabilities.Its core products secured prestigiouscertifications,such as Tier 1,EcoVadis Gol
150、d Medal,and PV Tech Bankability A-level,confirming their excellence.Notably,key cost,technical,and reliability metrics consistently positioned the Company at the forefront of the industry.During the reporting period,theCompany concentrated on the N-type TOPCon market while proactively preparing for
151、differentiated technological pathways,including HJT and xBC.An efficient product matrix was developed to accommodate various scenarios,encompassing bothcentralized and distributed applications.Furthermore,the introduction of specialized modules,featuring anti-ash deposition andenhanced weather resis
152、tance,effectively addressed the diverse needs of global customers.The Company has strategically focused on enhancing its stratified-market operation strategy.In the domestic market,theapproach combines both centralized and distributed models,together with strengthening service capabilities across th
153、e entire productlifecycle.In the centralized sector,the Company capitalizes on the surge in new energy investments driven by state-ownedenterprises.This engagement has enabled active participation in the development of large-scale wind and solar power projects withinthe country.Leveraging its robust
154、 collaborative advantages across the entire industrial chain,the Company has successfully securedbids for several key projects at the gigawatt level from state-owned enterprises,while expanding partnerships with provincial energygroups and high-quality private enterprises,thereby achieving comprehen
155、sive coverage of centralized customers.Conversely,in thedistributed market,the Company adeptly aligns with demand rhythms and responds flexibly to customer requirements.Throughinitiatives such as product co-creation,resource integration,and the development of government-enterprise partnerships,theCo
156、mpany has solidified its sales volume and market share,ensuring a position within the industrys top echelon.Internationally,the2024 Annual Report of Tongwei Co.,Ltd.13/269Company has experienced remarkable growth,deepening its presence in core markets,including Europe,Asia-Pacific,the MiddleEast,and
157、 Africa.Significant project orders,particularly at the gigawatt level in countries such as Saudi Arabia and Poland,have beensuccessfully secured,effectively dismantling collaboration barriers with major European energy groups.To further accelerate itsglobal strategy,the establishment of a German sub
158、sidiary and European marketing center was undertaken.The Company has alsopromoted beneficial trade mechanisms,while implementing a blockchain traceability system and enhancing its ESG brand.As aresult,customer engagement and distribution network density have markedly improved.Notably,16 new regional
159、 productcertifications were achieved,encompassing over 70 countries,and annual overseas sales surged by a 98.76%year-on-year.4.Aquaculture-Photovoltaic Integration powerplantsDuring the reporting period,the Company effectively leveraged the synergistic advantages of its core sectorsgreen energy andg
160、reen agriculture.By implementing the innovative“ecological aquaculture+green energy”model,the Company successfullyadvanced large-scale Aquaculture-Photovoltaic Integration power plant initiatives.Utilizing its systematic cost control capabilities,the Company constructed solar power generation system
161、s over aquaculture water surfaces,significantly enhancing the utilization ofwater resources.This approach facilitated the transformation of traditional aquaculture into a large-scale,intensive,and specializedand modernized industry,yielding a triple benefit in fisheries,electricity generation,and en
162、vironmental protection.Significantly,during the reporting period,new Aquaculture-Photovoltaic Integration projects in locations such as Tangshan,Hebei Province,andLiaocheng,Shandong Province were connected to the grid,contributing a combined capacity of 596.81 MW.As of the end of 2024,the Company op
163、erated 56 photovoltaic power plants primarily based on the Aquaculture-Photovoltaic integration model,with a totalinstalled capacity of 4.67 GW.Additionally,the annual electricity settlement volume reached 5.007 billion kWh,resulting in a carbonemissions reduction of 2.68 million tons.Through sustai
164、ned investment in technological research and design innovation,the applicability and economic efficiency of theCompanys Aquaculture-Photovoltaic integration projects have been significantly enhanced.This initiative represents an organicdevelopment model that seamlessly integrates primary industry aq
165、uaculture,secondary industry photovoltaic power generation,andtertiary industry activities,including scientific research and rural tourism.As a result,it substantially increases industrial added valueand effectively contributes to the ambitious goal of rural revitalization.In June 2024,the Company c
166、ommenced construction of theGuigang Xinhe Smart Fishery Industrial Park project.During the reporting period,the first phase of construction was completed.Upon initiation of operations,this facility is expected to emerge as the largest green bullfrog aquaculture base in Guangxi,encompassing fry culti
167、vation,adult frog farming,processing,and sales on a national scale.This project stands as a prime example ofthe Companys commitment to the“Tongwei Solution”,which harmoniously integrates new fisheries,renewable energy,and ruraldevelopment initiatives.II.Industry overview during the reporting period(
168、I)Feed industryThe feed industry plays a crucial role in connecting various sectors,including agriculture,husbandry,and food processing.Itstands as the most industrialized segment within Chinas agricultural landscape,serving as the foundational element for modernhusbandry development.This industry h
169、as made significant contributions to ensuring that people have access to sufficient andhigh-quality food.Over the past four decades,since the reform and opening-up,Chinas feed industry has evolved into acomprehensive system characterized by a diverse array of products.It is transitioning toward larg
170、e-scale,intensive,and high-qualityoperations.The primary categories of feed include pig feed,poultry feed,aquatic feed,ruminant feed,and pet feed,with the firstthree accounting for approximately 95%of Chinas total annual feed production.Reflecting on the developments in 2024,the feedindustry exhibit
171、ed key trends,including total volume contraction,variety differentiation,stable patterns,and cost reduction.As thedemand for refined operations continues to grow,the drive for innovation and development are deepened within the sector.1.Poultry and pet feed segments demonstrated growth despite overal
172、l production volume declinesIn 2024,the China Feed Industry Association reported a total industrial feed output of 315.031 million tons,representing ayear-on-year decline of approximately 6.6 million tons or 2.1%.This marks the first decrease in total feed output in the latest fiveyears.The pig feed
173、 decrease was significantly influenced by a reduction in pig production capacity,resulting in a decline of pig feedoutput by 5.84 million tons,or 3.9%.Additionally,aquatic feed faced challenges due to decreasing fish stocks in ponds and adverseweather conditions,leading to a year-on-year reduction o
174、f 3.5%.Layer poultry feed and ruminant feed also experienced declines of1.2%and 13.3%,respectively,reflecting sluggish performance in terminal farming.Conversely,broiler poultry feed output increasedby 2.6%,driven by the expansion of downstream farming operations.Notably,pet feed continued its rapid
175、 growth,supported byemerging consumer trends,with a growth rate of 9.3%.2.Industry consolidation remained stable,with top players controlling resource allocationsDuring the reporting period,the competitive landscape of the feed industry maintained a stable profile,with large-scale2024 Annual Report
176、of Tongwei Co.,Ltd.14/269enterprises continuing to dominate.Nationwide,there were 1,032 feed production plants with an output exceeding 100,000 tons,collectively producing 194.683 million tons of feed,which represented 61.8%of the national totalreflecting a 0.7 percentagepoints increase from the pre
177、vious year.Furthermore,there were 34 feed enterprise groups with annual outputs surpassing one milliontons,an increase of one relative to the prior year;however,these groups total output accounted for 55.0%of the national feedproduction,marking a decrease of 1.2 percentage points year-on-year.Notabl
178、y,as competition intensified,the industry witnessed anotable frequency of mergers,acquisitions,and reorganizations.Leading enterprises capitalized on these trends,achieving industrialchain integration that not only consolidated their scale but also significantly enhanced their competitive advantages
179、 throughsynergistic business strategies.3.Fluctuating raw material costs coupled with downstream consumption softening elevated operational precision as thecritical competitive differentiatorIn 2024,the prices of key raw materials for feed productionincluding corn,soybean meal,and fish mealexhibited
180、 adownward trajectory,largely attributable to a well-supplied market.According to WIND data,the spot price of corn fluctuatedsignificantly,declining from over 2,500 yuan per ton at the beginning of the year to a low of approximately 2,100 yuan per ton,equating to a nearly 20%decrease.Similarly,the p
181、rice of soybean meal saw a substantial reduction,falling from a peak of 3,900yuan per ton to around 2,900 yuan per ton,reflecting a decrease of about 25%.Furthermore,the comprehensive price of fish mealdeclined by approximately 3,000 yuan per ton since the fourth quarter of 2023.This reduction in ra
182、w material costs contributed to anoverall year-on-year decrease in feed prices.However,the downstream farming sector encountered considerable operationalchallenges due to sluggish demand in the consumer market.Despite periodic rebounds in live pig prices throughout the year,theseincreases proved ins
183、ufficient,resulting in prices reverting to a narrow profit range by year-end.Additionally,certain specialty aquaticproducts,such as snakehead fish,crayfish,and bullfrogs,underwent significant price adjustments,further dampening feedingenthusiasm.These pressures from declining product prices and weak
184、ening downstream demand compelled feed enterprises toenhance their operational efficiency through multiple strategies,including maximizing the value of raw materials,advancingtechnological research and innovation,and improving production efficiency.4.Government-mandated grain substitution initiative
185、s accelerated adoption of alternative ingredient formulaIn 2024,guided by pivotal industrial policies such as the National Smart Agriculture Action Plan(2024-2028)and theThree-Year Action Plan for Reducing and Replacing Feed Soybean Meal,the feed industry made significant strides in grain reduction,
186、substitution,and innovation.According to the China Feed Industry Association,soybean meal consumption by feed productionenterprises declined by 2.06 million tons,reflecting a year-on-year decrease of 4.7%.Concurrently,the consumption of wheat andrice plummeted by 52.8%and 51.3%,respectively,while co
187、rn consumption rose by 7.93 million tons,marking a 7.6%increase.As aresult,the combined share of feed grains,including soybean meal,decreased to 59.5%,a slight reduction of 0.3 percentage pointsfrom the previous year.Furthermore,the industry successfully introduced 11 new feed additive product certi
188、ficates,incorporatedthree new feed raw materials into the Feed Ingredients Catalogue,added one new variety to the Feed Additive Varieties Catalogue,and broadened the application scope of five existing feed additive varieties.(II)PV industryThe photovoltaic industry,rooted in the photovoltaic effect,
189、plays a crucial role in the transition to sustainable energy solutionsby converting solar energy into electricity.Since its inception in the 1970s,the industry has undergone a transformation from lowefficiency and high costs to high efficiency and decreased costs.According to the International Renew
190、able Energy Agencys(IRENA)report titled Renewable Power Generation Costs in 2023,the global cost of solar photovoltaic power generation has fallen to 4.4 UScents per kilowatt-hour,representing a 56%reduction compared to the lowest weighted average levelized cost of electricity(LCOE)from fossil fuel
191、power generation.By the end of 2024,cumulative global installed photovoltaic capacity reached approximately2,000 gigawatts(GW),establishing it as the leading source of new energy generation.It is anticipated that by 2025,photovoltaiccapacity will surpass that of coal-fired power,becoming the largest
192、 power source globally.Over the past decade,Chinese enterpriseshave emerged as leaders in this sector,capturing over 80%of the global market share in photovoltaic products by the end of 2024,effectively delivering“a great gift from China to all mankind”.However,the rapid expansion of production capa
193、city over the pastyears has led to a temporary imbalance in supply and demand,resulting in a significant decline in product prices and placingconsiderable operational pressure on companies within the industry.In response,stakeholders in the photovoltaic sector are keenlyfocused on addressing these c
194、hallenges.By implementing policy guidance and fostering technological innovation,they arecommitted to steering the industry back towards a trajectory of sustainable and healthy development.1.Global end-user installation demand maintained expansion,while Chinese manufacturers dominated.According to d
195、ata from the China Photovoltaic Industry Association(CPIA),global photovoltaic power generation capacity sawan increase in 2024 that reached 530 GWa year-on-year growth of 35.9%,signifying a sustained medium to high growth trajectory.The Chinese market,driven by a significant decline in module price
196、s and supportive policies such as the reduction in the upper limitfor new energy consumption and the“adjustable and controllable”framework for distributed photovoltaics,contributed substantially,adding 277.6 GW of new capacityan increase of 28.3%compared to the previous year.This growth accounted fo
197、r more than 50%of the global total expansion.Furthermore,the overseas market experienced widespread expansion,particularly in emerging markets.Approval processes for photovoltaic projects in the Middle East and Africa accelerated,with countries like Pakistan and Trkiyeannouncing clear capacity targe
198、ts for 2030.On the manufacturing front,Chinese enterprises retained their dominant global position,boasting production capacity and market share in key segmentsfrom polysilicon to modulesexceeding 80%.Annual moduleexports reached 235.93 GW,reflecting a year-on-year increase of 13%,thereby continuing
199、 to lead in the global industrysdevelopment.2024 Annual Report of Tongwei Co.,Ltd.15/2692.The cyclical imbalance between supply and demand prompted an increase in product availability alongside a decreasein prices,and industry reshuffling enhanced market concentration.The rapid expansion of demand o
200、ver consecutive years has propelled Chinas photovoltaic industry to achieve a nominalproduction capacity exceeding 1,000 GW across all segments.This surge in production capacity has continuously stimulated outputgrowth throughout the supply chain.According to data from the Electronic Information Dep
201、artment of the Ministry of Industry andInformation Technology,the output of the polysilicon segment surpassed 1.82 million tons in 2024,reflecting a year-on-year increaseof 23.6%.Similarly,the output of silicon wafers reached 753 GW,representing a 12.7%growth;cell production amounted to 654GW,markin
202、g a 10.6%increase;and module output achieved 588 GW,with a year-on-year rise of 13.5%.Consequently,theindustrys total output value has maintained a scale in the trillions of yuan.However,the cyclical imbalance between supply anddemand has resulted in significant price declines across key photovoltai
203、c products.Data from InfoLink Consulting indicates thatannual price reductions for polysilicon,silicon wafers,cells,and modules stood at 39%,50%,40%,and 29%,respectively.As aresult,many segments are experiencing sustained losses,exerting considerable operational pressure on the industry in the short
204、 term.Moreover,intensified competition has compelled less resilient firms to gradually exit the market,further consolidating resourceswithin leading enterprises characterized by advanced technology and solid financial structures.During the reporting period,thecombined market share of the top five po
205、lysilicon manufacturers approached 80%,while leading module producers also recordednotable growth in both shipment volume and market share.3.The N-type era is evident across all domains.This shift has intensified competition in intellectual property rightsthrough technological innovation and develop
206、ment.During the reporting period,thanks to its cost efficiency,TOPCon technology emerged as the dominant force in the photovoltaicmarket,achieving the product market share exceeding 70%year-on-year.This technology has established itself as the leadingnext-generation solution,driving the phasing out
207、of P-type production capacity throughout the industry.Concurrently,high-efficiencyphotovoltaic pathways,represented by BC and HJT technologies,have displayed differentiated developmental trajectories.HJTtechnology has benefited from the widespread adoption of the double-sided microcrystalline proces
208、s and advancements inmetallization techniques,such as silver-coated copper.These innovations have led to a rapid increase in production efficiency duringmass manufacturing.Furthermore,HJTs attributes,including reduced degradation rates and enhanced bifacial capabilities,havesubstantially improved it
209、s cost-effectiveness,resulting in a more than threefold increase in bid-winning volumes year-on-year(Solarzoom data).BC technology,known for its high front-side efficiency and aesthetic appeal,has rapidly expanded into distributedand high-end applications,with successful commercialization cases emer
210、ging.Both technologies have exhibited notable growthduring this period,prompting leading enterprises to strategically enhance their investments across various dimensions,includingpatents,production capacity,and distribution channels.While these technological advancements create robust competitive ba
211、rriers,they also intensify the competition surrounding intellectual property.The number of photovoltaic patent litigation cases has surgedglobally,with firms increasingly prioritizing and investing in intellectual property protection.Prominent companies have engaged instrategic patent“offensive and
212、defensive battles”to secure control over technological definitions and market narratives.This shifttransforms the industry focus from being solely cost-driven to fostering a more vibrant innovation-driven landscape.4.The rise in trade barriers hampered overseas growth,while the impetus for global ex
213、pansion continued to intensify.The international trade environment has further complicated.A series of policies aimed at“de-Chinaization”in internationalmarkets has been rolled out.The United States has enacted anti-dumping and countervailing duties targeting four Southeast Asiannations,while the Eu
214、ropean Unions Net Zero Industry Act mandates that 40%of manufacturing be sourced locally.Additionally,Indias Approved List of Manufacturers(ALMM)imposes strict restrictions.Consequently,the export costs for Chinese photovoltaicenterprises have risen,elevating installation costs in local markets and
215、stunting the growth of newly installed photovoltaic capacityworldwide.In response to these international trade barriers,and securing more incremental markets,Chinese firms are adapting theirstrategies to include exporting production capacity overseas,technology licensing,and co-developing local ecos
216、ystems,therebyaccelerating their global footprint.During the reporting period,numerous leading enterprises have demonstrated significantadvancements in their overseas production capacity initiatives.The industrial chain is expanding internationally,with diversegeographical destinations and varied fo
217、rms of capital contribution.5.Industrial policies regulated market dynamics and promoted the sustainable development of the industry.In response to the prevailing supply-demand imbalance and intense profit pressures within the photovoltaic industry,stakeholders have sought to regulate market order a
218、nd promote sustainable development.In May 2024,the China PhotovoltaicIndustry Association,under the guide of the Electronic Information Department of the Ministry of Industry and InformationTechnology,convened a Symposium on the High-Quality Development of the Photovoltaic Industry.This event unders
219、cored thenecessity of regulating local governments in their investment policies,establishing robust intellectual property protections,andencouraging industry mergers and reorganizations.Subsequently,in June,the National Energy Administration underscored theimportance of consolidating the newly added
220、 photovoltaic power generation market.It emphasized the need to rationally guide theconstruction and release of upstream photovoltaic production capacity,averting the proliferation of low-end production capabilities.In July,the Central Committee of the CPC held a Political Bureau meeting that highli
221、ghted the importance of preventing destructivecompetition.The discussion focused on enhancing the destructive competition within the market and facilitating the exit ofinefficient and outdated production capacity,thus charting a clear path for the photovoltaic industry to attain high-qualitydevelopm
222、ent.Further reinforcing these commitments,the Energy Law of the Peoples Republic of China was officially passed inNovember,delineating explicit goals and responsibilities for renewable energy development.This legislation encourages the diverseutilization of renewable resourcesincluding hydropower,wi
223、nd energy,and solar energyand fortifies the technical and2024 Annual Report of Tongwei Co.,Ltd.16/269institutional frameworks necessary for a green energy transition.In tandem,the Ministry of Industry and Information Technologyreleased the revised Standards for the Photovoltaic Manufacturing Industr
224、y(2024 Edition),which elevates the standards required fornew production capacity.With these continuous regulatory measures and strategic guidance,the photovoltaic industry is poised toemerge from its current challenges,paving the way for sustainable and high-quality development.III.Businesses in the
225、 reporting periodAdhering to the vision of For Better Life and the corporate purpose of Striving for Excellence,Contributing to Society,theCompany mainly focuses on agriculture and new energy,thus forming a business model of Agriculture(fishery)+PV integration andsynergy.Its main businesses and thei
226、r positions in the industrial chain are shown in the figure below:Note:Core businesses of the Company are in the dashed boxes(I)Main businesses and the operation modelsIn agriculture,the Company is specialized in the research and development,production and sales of aquatic feed,livestock feedand oth
227、er products to meet the needs of aquatic animals and livestock for growth.Aquatic feed has always been the core product andthe main profit source of the Company in agriculture and animal husbandry business group.As of the end of the reporting period,theCompany owned more than 80 subsidiaries and bra
228、nches involved in feed business with a business model of adopting on-siteproduction and establishing a peripheral sales coverage,while providing effective technical,financial and other supporting servicesto farmers.Around the feed business,the Company was also actively engaged in seed breeding,husba
229、ndry,animal healthcare,foodprocessing and trade which further completed the industry chain and enhanced its comprehensive strength.In new energy,the Company focuses on the research,production,and sales of high-purity polysilicon and solar cells.As of theend of the reporting period,the Company had an
230、 annual capacity of over 900,000 tons for high-purity polysilicon,an annual capacityof over 150 GW for solar cells,and an annual capacity of over 90 GW for modules.The Company has manufacturing sites in Leshan,Baotou and Baoshan for producing high-purity polysilicon products with locally sourced raw
231、 materials which are delivered todownstream manufacturers of silicon wafers.In recent years,the Company has signed long-term sale contracts with silicon wafermanufacturers.Regarding solar cells,the manufacturing sites in cities such as Shuangliu,Jintang,Meishan and Hefei have theirproduction plans a
232、rranged directly according to the market demand with the products used for manufacturing of solar modules withinthe Company and also sold to the both domestic and international manufacturers of modules.Leading technologies,quality and costcontrol have allowed the Company to serve top ten PV module m
233、anufacturers across the world and secure a long-term leadingposition in the industry.In terms of modules,relying on years of accumulation in technology and market,and combined with thesynergy benefit from high-purity polysilicon and solar cells,it has established a competitive and large-scale module
234、 business systemto provide high-quality Tongwei module products for centralized and distributed PV systems across the globe.Customers covermajor domestic central state-owned power generation groups and more than 70 countries and regions overseas.Onthecomprehensiveapplication,theCompanyfocusesonthede
235、velopmentandconstructionoflarge-scaleAquaculture-Photovoltaic Integration bases,strives to create a model of ecological farming coupled with green energy andstrengthens the coordinated development of industries.By screening high-quality water surfaces and for ensuring electricityconsumption,the Comp
236、any explores novel aquaculture ways with on-going advancements of the Aquaculture-PhotovoltaicIntegration bases in terms of scale,professionalism and intelligence,which are expected to bring new profit sources for the Company,farmers and other partners.(II)Market positioningPolysiliconMonocrystallin
237、esilicon rodsMonocrystallinesilicon wafersMonocrystallinesilicon cellsMonocrystallinesilicon modulesPV powergenerationAquaculture-PhotovoltaicIntegration powerplantsLivestock and poultry babiesAquatic seedlingsAquatic feedLivestock andpoultry feedLivestock andpoultry husbandryAquatic husbandryLivest
238、ock andpoultry processingAquatic processingAquatic husbandry2024 Annual Report of Tongwei Co.,Ltd.17/269In terms of agriculture and husbandry,the Company focuses on the scale-based professional development of the feed business,with an annual feed capacity of over 10 million tons,and its sales networ
239、k covering most parts of the country and Southeast Asiancountries such as Vietnam,Bangladesh,and Indonesia.These make it a leading aquatic feed producer and an important livestock feedproducer in the world.Specifically,the Company has been holding a leading position in the sale volume of aquatic fee
240、d,i.e.,its coreproduct.As a Key Leader in Agricultural Commercialization and a National Enterprise Technology Center,the Company hasreceived honors like the Second Prize of National Scientific and Technological Progress Award,China Well-Known Trademark andChina Quality Award Nomination Prize and oth
241、ers for five times successively.With high-quality products and efficient services foryears,the Company is well recognized in the industry.In the field of photovoltaics,the Company has a production capacity of over 900,000 tons of high-purity polysilicon,over 150GW of solar cell capacity,and over 90G
242、W of module capacity,with world-leading product cost,quality,and efficiency.It is animportant participant and driver in the global photovoltaic industry.As of now,the Companys high-purity polysilicon production hasranked first in the world for several consecutive years.As a specialized solar cell pr
243、oducer,the Companys cell shipments have beenthe worlds number one for 8 consecutive years since 2017(according to InfoLink Consulting),and became the first company in theindustry to accumulate over 300GW of cell shipments.In terms of modules,the Companys shipment volume ranked the global topfive,ser
244、ving clients that include major domestic state-owned power generation groups and numerous countries abroad.Thecoordinated development and progress of all businesses will continue boosting the Companys industrial chain advantages and itscore competitiveness will be further enhanced,contributing to th
245、e global effort into carbon neutrality.IV.Analysis of the core competitiveness in the reporting periodApplicable Not Applicable(I)Clear strategic planning and positioningThe Company focuses on technological innovation and intelligent manufacturing in the main segments of PV industry,advancesthe larg
246、e-scale application of clean energy with zero emission and zero pollution.It is also committed to creating a green and healthyaquatic industrial chain to meet consumer demand for safe food,as well as makes every effort to provide the public with high-qualityproducts in all industries closely related
247、 to human life and continuously improve the quality of human life.Based on the abovestrategic positioning,the long-term development goal of the Company is a world-class safe food supplier and a world-class cleanenergy operator,and the short and medium-term development plan is to build and consolidat
248、e the leading position of globalhigh-purity polysilicon,solar cells and aquatic feed.(II)Leading capabilities of technical research and developmentRegarding science and technology as the primary productive force,the Company attaches great importance to technologyresearch and development.For each bus
249、iness group,it has built a R&D team led by experts receiving State Council SpecialAllowance and supported by increased investments,i.e.,over 11 billion yuan over the latest three years,with plenty of achievementsapplied in the market.This has helped the Company create value.The Companys technology c
250、enter in the agriculture and animal husbandry has a National Enterprise Technology Centerapproved by five ministries and commissions including the National Development and Reform Commission and the Ministry ofScience and Technology.After years of development and operation,the Center has established
251、a complete organizational structureand operating mechanism for technological research and innovation,with specialization in animal nutrition and feed,animal breedingand cultivation,animal health care,automated farming facility project,aquatic and livestock product processing,and other researchand te
252、chnology integration related to biotechnology.By transforming innovative research results into actual productivity,the Centerprovides a critical support for the Companys development.The aquatic product research institute,special aquatic product researchinstitute,livestock and poultry research instit
253、ute,animal health care research institute,facility fishery engineering research institute,microalgae R&D department,aquatic engineering center and testing center under the Center provide effective guide on innovationswith clear goals and detailed tasks and ensure the innovation results.As of the end
254、 of the reporting period,the Companysagricultural and animal husbandry business group held a total of 762 valid patents,comprising 138 inventions and three overseaspatents.It has taken a role in the formulation and revision of 33 standards,including 16 national and eight industry standards.Furthermo
255、re,it has been recognized with the Second Prize of the National Science and Technology Progress Award on fiveconsecutive occasions.The Company established a Photovoltaic Technology Center based on its research system in various photovoltaic sectors.Thecenter includes the branches of national technol
256、ogy centers at subsidiaries such as Tongwei Solar(Chengdu)Co.,Ltd.and YongxiangCo.,Ltd.It is supported by a research team primarily consisting of industry experts.The center coordinates the joint R&D andintegration of technologies in various parts of the industry chain,having made technological achi
257、evements that rank the top level inthe industry.As of the end of the reporting period,the Company held a total of 2,675 authorized patents in its photovoltaic segment.In the domain of high-purity crystalline silicon,the Company has made significant advancements over the years,establishing a robustpo
258、rtfolio of independent intellectual property rights in critical technical areas.These include cold hydrogenation,large-scaleenergy-saving distillation,high-efficiency reduction,exhaust gas recovery,trichlorosilane synthesis,and disproportionation processes.Notably,all single consumption metrics are
259、positioned at the industrys leading levels,with the shipment proportion and market shareof N-type materials setting the benchmark in the sector.In terms of solar cells,the Company has achieved a number of proprietarybreakthroughs in key photovoltaic architectures including TNC and THC cells.Our inde
260、pendently developed cell technologiesconsistently deliver industry-leading power conversion efficiencies across TNC,THC and TBC platforms.Furthermore,thephotovoltaic module sector witnessed the successful technical development and mass production launch of the original 908 module2024 Annual Report o
261、f Tongwei Co.,Ltd.18/269interconnection technology platform.By integrating innovative processes,advanced equipment,and cutting-edge materials,theCompany has enhanced both the power output and reliability of its modules.The continuous research and development effortscentered on TNC and THC products h
262、ave yielded a result that the average power outputs of THC modules surpassing 740W duringthis reporting period.During the reporting period,the Tongwei Global Innovation R&D Center has been fully operational,strategically aligning itsfocus with the Tongweis long-term development objectives.The center
263、 is dedicated to advancing high-efficiency crystalline siliconcells and producing highly reliable module products.Its research initiatives encompass pivotal future photovoltaic technologies,including TNC,THC,and TBC cells and modules,perovskite/silicon tandem solar cells/modules,and innovative coppe
264、r interconnectmetallization techniques.Such efforts provide critical technical support and impetus for the Companys industrial advancement overthe next five years and beyond.Additionally,the establishment of the Sichuan Crystalline Silicon Photovoltaic Industry InnovationCenter,in collaboration with
265、 several leading firms across the industrial chain,marks a significant move.This initiative has fosteredan industrial innovation ecosystem aimed at the high-quality development of the crystalline silicon photovoltaic sector.Aligning withnational strategic objectives and benchmarking against global t
266、echnological advancements,the center adeptly constructs acollaborative innovation framework integrating government,industry,academia,research institutions,capital,and practicalapplications.This approach accelerates the transition of scientific research outcomes from prototypes to market-ready produc
267、ts,addressing critical challenges such as the“bottlenecks”in core technologies and the limitations within the industrial ecosystem.Byenhancing institutional frameworks to keep pace with industrial evolution,Tongwei is poised to lead in the implementation of R&Dbreakthroughs,facilitating the healthy
268、growth of the entire supply chain.Moving forward,Tongwei will leverage technologicalresearch and development as its driving force,navigating the complex landscape of the photovoltaic industry.The Company iscommitted to injecting dynamic momentum into both industry advancement and the global energy t
269、ransition.(III)Scale and cost advantageThe Company is a national key leading enterprise in agricultural industrialization,with presence across China and SoutheastAsia.With an annual feed capacity of more than 10 million tons,the Company stands as a leading aquatic feed producer and animportant lives
270、tock feed manufacturer in the world.It has intensive advantages in raw material purchasing,production organizationand market expansion.In the photovoltaic business group,the Company has established an annual production capacity of over900,000 tons for high-purity polysilicon.The investment cost per
271、ten thousand tons has decreased to around 500 million yuan,andconsumption indicators have shown consistent reductions.In terms of solar cells,through the upgrading of existing projects and theintroduction of new production capacities,the production capacity of N-type solar cells has reached over 150
272、GW,which will bolsterthe scale effect,with further optimization of product technology and dimensional structure,thereby fortifying the competitiveadvantage in costs.In terms of solar modules,the Company maintains a production capacity of over 90GW,with all qualityindicators consistently leading the
273、industry.Thanks to the dual drivers of comprehensive industrial support and technologicalinnovation,our production costs remain at the forefront.(IV)Quality and brand advantagesSince its inception,the Company has developed a series of formula feeds that can meet the needs of various aquatic animals
274、throughcontinuous R&D and improvement.After years of tests in the market,the feed quality and market services of the Company have beenhighly recognized by farmers,which has created one of the iconic brands in the domestic aquatic feed industry.At the same time,theCompany has made great efforts to bu
275、ild a well-known fresh fish brand Tongwei Fish,and established aquatic and livestock foodprocessing bases in Hainan and Sichuan for processing food in strict accordance with the requirements of the HACCP qualitymanagement system.As a result,the full-cycle quality monitoring from source to dinner tab
276、le has been realized,which haseffectively enhanced the value and competitiveness of the industrial chain.The Company has improved the quality of its polysiliconproducts by developing technologies for self-control of reduction processes,multiphase flow,cascaded utilization of reductionthermal energy,
277、and boron/phosphorus/carbon impurity removal.Its product quality is top-notch in the industry.The conversionefficiency,yield rate,chip rate,CTM value,and other indicators of solar cells from the Company are leading in the industry and havebeen widely recognized by customers,demonstrated by multiple
278、professional certifications at home and abroad.In terms of the solarmodules,Tongweis modules consistently maintain Tier 1 status in Bloombergs New Energy Finance Global PV ModuleManufacturers list.Our products have obtained certifications across Europe,South America,the Middle East,and the Asia-Paci
279、ficregion,totaling 50 system/product certificates from authorities like TUV and CQC.Honored with the Platinum Award at the firstTaihu Awards for Green Excellence,Tongwei is recognized as a leader in the photovoltaic module field for its Low CarbonContribution and Outstanding Quality.With our product
280、s reaching over 70 countries and regions worldwide,including majordomestic state-owned power generation groups,our brand value continues to shine.(V)UniqueAquaculture-Photovoltaic Integration modelSupported by the unique advantage of resource integration at the end customers,the Company has created
281、an innovativedevelopment model where solar electricity is generated above the water and fish farmed under the water,which allows the greencombination of intelligent fishery and clean energy generation.In terms of fishery,the Company guides the intensive,intelligent andefficient development of aquacu
282、lture through effective water surface modification,rational application of fishery facilities,andoptimization and innovation of aquaculture models.In terms of PV power generation,the Company adheres to the cost strategicplanning,and continuously reduces the installed cost of PV systems through desig
283、n optimization and technological innovation.TheAquaculture-Photovoltaic Integration development model can promote the coordinated development of primary,secondary andtertiary sectors,integrate and create a modern industrial park integrating new fishery,new energy,and new rural area,advanceindustrial
284、 transformation and upgrading,and provide an effective way for the construction of new rural areas,which has helped form2024 Annual Report of Tongwei Co.,Ltd.19/269a unique competitive model for the Company.(VI)Corporate cultureAn effective culture is an important support for the cohesion and creati
285、vity of the Company,and an important part of the corecompetitiveness of the Company.The Company has a powerful culture where Striving for Excellence Contributing to Society is thepurpose;For Better Life the vision,which indicates the value and goals of the Company;Honesty,Trust,Fairness and Excellen
286、ce themanagement philosophy,that is,being sincere and candid,winning trust by credibility,running business with fairness and legitimacy,taking the lead with guaranteed excellence;Three Determines the important management principle of the Company,that is,efficiencydetermines profit,detail determines
287、success,speed determines life and death;Work hard;Work with intelligence;Work with the spiritof seizing the day the code of conduct for employees.After years of development,the spirit advocated by the culture,closelyintegrated with our business targets and daily work,guides the benchmarking of all b
288、usiness groups,branches and subsidiaries,continuously and deeply advances the fine-tuning of management and constantly boosts the high-quality development of variousbusiness activities.V.Operations in the reporting periodRefer to“operation discussion and analysis”for details.(I)Analysis of main busi
289、nesses1.Analysis of changes in related items of the income statement and cash flow statementUnit:YuanCurrency:CNYItemCurrent period amountLast period amountChange(%)Operating revenue91,994,404,333.54139,104,062,084.52-33.87Operating cost86,117,213,124.73102,714,182,767.86-16.16Sales expense1,854,765
290、,489.151,743,802,178.326.36Management expense4,147,411,701.714,727,505,222.51-12.27Financial expense2,002,478,504.24580,850,749.32244.75R&D cost1,510,114,124.231,189,482,199.8826.96Net cash flow generated from operating activities1,143,735,923.3730,679,303,971.17-96.27Net cash flow generated from in
291、vesting activities-28,520,423,571.27-45,039,017,153.9136.68Net cash flow generated from financing activities27,479,977,751.00-6,465,142,047.56525.05Note on the reasons for operating revenue change:mainly attributed to the expansion of the photovoltaic segments operational scale,which,however,fell sh
292、ort of compensating for the significant decline in product prices.Note on the reasons for operating cost change:mainly attributed to a substantial decrease in prices within the photovoltaic industrychain.Note on the reasons for change in sales expense:mainly attributed to the business expansion of t
293、he solar modules.Note on the reasons for change in management expense:mainly attributed to decrease in employee payrolls.Note on the reasons for change in financial expense:mainly attributed to increase in the financing scale.Note on the reasons for change in the R&D cost:mainly attributed to the Co
294、mpanys heightened investment in research anddevelopment within the photovoltaic sector.Note on the reasons for change in the net cash flow generated from operating activities:mainly attributed to the reduction of netprofit.Note on the reasons for change in net cash flow generated from investing acti
295、vities:mainly attributed to reduced investments intoprojects within the PV segment.Note on the reasons for change in net cash flow generated from financing activities:mainly attributed to expanded financing andreduced profit distribution.Detailed note on any significant change in the business type,p
296、rofit structure or profit source of the CompanyApplicable Not Applicable2024Annual Report of Tongwei Co.,Ltd.20/2692.Revenue and cost analysisApplicable Not Applicable(1).Main businesses by industry,product,region and sale modelUnit:YuanCurrency:CNYMain businesses by industryIndustryOperating revenu
297、eOperating costGross profit margin(%)YoY change ofoperating revenue(%)YoY change ofoperating cost(%)YoY change of gross profitmargin(%)Agriculture and animal husbandry31,740,209,174.5628,762,433,736.049.38-10.56-12.08+1.57pptsPV59,791,868,785.6657,000,315,539.294.67-41.85-17.42-28.20 pptsMain busine
298、sses by productProductOperating revenueOperating costGross profit margin(%)YoY change ofoperating revenue(%)YoY change ofoperating cost(%)YoY change of gross profitmargin(%)Feed,food and relevant activities31,740,209,174.5628,762,433,736.049.38-10.56-12.08+1.57 pptsSolar cells,modules and relevant a
299、ctivities41,423,237,939.9040,918,721,867.001.22-40.29-32.38-11.55 pptsHigh-purity polysilicon,chemicalengineering and associated businessactivities19,896,991,451.1619,498,674,397.022.00-55.59-6.87-1.26 pptsPV power and related businesses2,043,182,220.251,016,243,294.0450.263.7412.05-3.69 pptsOffset
300、from consolidation-3,571,542,825.65-4,433,324,018.77Total91,532,077,960.2285,762,749,275.336.30-33.82-15.71-20.14 pptsMain businesses by regionRegionOperating revenueOperating costGross profit margin(%)YoY change ofoperating revenue(%)YoY change ofoperating cost(%)YoY change of gross profitmargin(%)
301、East China40,323,284,374.2339,116,562,651.602.99-43.63-40.60-4.95 pptsSouth China14,510,302,951.4013,796,595,154.774.92-19.67-15.06-5.16 pptsWest China39,645,016,819.5938,205,433,077.313.63-48.46-29.29-26.12 pptsNorth China15,214,905,311.6714,294,399,742.006.05-8.1014.32-18.43 pptsMiddle China8,721,
302、259,339.708,294,618,998.194.89-22.33-21.73-0.72 pptsOverseas9,450,681,810.229,012,156,495.904.64-16.72-12.15-4.97 pptsOffset from consolidation-36,333,372,646.59-36,957,016,844.44Total after offset91,532,077,960.2285,762,749,275.336.30-33.82-15.71-20.14 pptsMain businesses by sale modelSale modelOpe
303、rating revenueOperating costGross profit margin(%)YoY change ofoperating revenue(%)YoY change ofoperating cost(%)YoY change of gross profitmargin(%)Direct sale66,624,039,516.9863,193,652,202.735.15-41.53-20.72-24.89pptsFranchised dealership24,908,038,443.2422,569,097,072.609.392.202.45-0.22pptsNote
304、on main businesses by industry,product,region and sale modelNone2024 Annual Report of Tongwei Co.,Ltd.21/269(2).Production and sale analysisApplicable Not ApplicableMain productsUnitProductionSaleInventoryYoY change ofproduction(%)YoY change ofsale(%)YoY change ofinventory(%)Feed10,000 tons688.43686
305、.869.92-7.10-7.350.92High-puritypolysilicon10,000 tons59.4846.7613.0752.9020.763,634.29Solar cellsGW89.0687.683.2110.188.7071.66Solar modulesGW45.9545.712.1247.8946.932.91PV Generation100 millionkilowatt-hours50.1850.07/11.0712.97/Note on production and sale volumesThe Companys high-purity polysilic
306、on and solar cell inventories have periodically risen due to significant fluctuations in supply anddemand within the industry.(3).Fulfillment of major purchase contracts and sales contractsApplicable Not ApplicableFulfillment of major existing sales contracts as of the end of the reporting periodApp
307、licable Not ApplicableUnit:100 million yuanCurrency:CNYSubject matterCounterpartyTotalamountAmountfulfilledAmountfulfilled inthereportingperiodAmount tobe fulfilledFulfillment ornotNote onnon-fulfillmentHigh-purity polysiliconCustomer A/462.8059.15/YesHigh-purity polysiliconCustomer B/86.2413.15/Yes
308、High-purity polysiliconCustomer C/21.120.79/YesHigh-purity polysiliconCustomer D/107.8214.26/YesHigh-purity polysiliconCustomer E/35.755.83/YesHigh-purity polysiliconCustomer F/180.2720.04/YesHigh-purity polysiliconCustomer G/66.8815.66/YesNote:quantities are agreed in the above major sales contract
309、s where prices are determined according to the market prices;above amounts include taxes.Fulfillment of major existing purchase contracts as of the end of the reporting periodApplicable Not Applicable2024Annual Report of Tongwei Co.,Ltd.22/269(4).Cost analysisUnit:YuanCost by industryIndustryCost it
310、emCurrent amountCurrent periodamount to totalcost(%)Last period amountLast period amountto total cost(%)YoY amount change(%)RemarksAgriculture and animal husbandryRaw materials26,906,449,760.7593.5531,000,483,199.7894.75-13.21Labour cost524,835,991.131.82404,637,640.511.2429.71Manufacturingexpense1,
311、331,147,984.164.631,310,922,642.404.011.54PV industryRaw materials35,143,923,933.4761.6649,435,269,058.4171.62-28.91Labour cost2,663,851,934.424.672,770,949,010.314.01-3.86Manufacturingexpense19,192,539,671.4033.6716,819,513,017.5424.3714.11Cost by productProductCost itemCurrent amountCurrent period
312、amount to totalcost(%)Last period amountLast period amountto total cost(%)YoY amount change(%)RemarksFeed,food and relevant activitiesRaw materials26,906,449,760.7593.5531,000,483,199.7894.75-13.21Labour cost524,835,991.131.82404,637,640.511.2429.71Manufacturingexpense1,331,147,984.164.631,310,922,6
313、42.404.011.54High-purity polysilicon,chemicalengineering and associated businessactivitiesRaw materials7,668,828,640.3539.339,340,510,249.5344.61-17.90Labour cost622,007,713.263.19592,549,742.352.834.97Manufacturingexpense11,207,838,043.4157.4811,005,093,448.0052.561.84Solar cells,modules and releva
314、ntactivitiesRaw materials31,908,419,311.8977.9853,425,242,046.8488.29-40.27Labour cost2,041,844,221.164.992,178,399,267.973.60-6.27Manufacturingexpense6,968,458,333.9517.034,907,449,462.008.1142.00PV power and relevant activitiesManufacturingexpense1,016,243,294.04100.00906,970,107.54100.0012.05Othe
315、r notes on cost analysisThe cost variations across industries and products represent the cost offsets in the consolidated financial statements.2024 Annual Report of Tongwei Co.,Ltd.23/269(5).Changes in the scope of consolidation due to shareholding changes of main subsidiaries in the reporting perio
316、dApplicable Not Applicable(6).Significant changes or adjustments in businesses,products or services of the Company in the reporting periodApplicable Not Applicable(7).Major customers and suppliersA.Main customersApplicable Not ApplicableThe sales amount from top five customers was 15,577,243.1 thous
317、and yuan,accounting for 16.93%of the total sale amount;the salesamount from related parties(in the sales amount from top five customers)was 0.00,accounting for 0.00%of the total sale amount.The sale amount from a single customer was over 50%of the total sale amount and/or the top five customers incl
318、ude new customersor the Company was heavily dependent on a small number of customers.Applicable Not ApplicableB.Major suppliersApplicable Not ApplicableThe purchase amount to top five suppliers was 17,074,452.7 thousand yuan,accounting for 17.92%of the total purchase amount;the purchase amount to re
319、lated parties(in the purchase amount to top five suppliers)was 0.00,accounting for 0.00%of the totalpurchase amount.The purchase amount to a single supplier was over 50%of the total purchase amount and/or the top five suppliers include newsuppliers or the Company was heavily dependent on a small num
320、ber of suppliers.Applicable Not ApplicableOther notes:The above-mentioned sales amount to customers exclude tax,whereas purchase amount from suppliers include tax.3.ExpensesApplicable Not Applicable4.R&D cost(1).R&D costApplicableNot ApplicableUnit:YuanR&D cost expensed in current period2,672,542,08
321、4.02R&D cost capitalized in current periodTotal R&D cost2,672,542,084.02Total R&D cost to operating revenue(%)2.91Percent of capitalized R&D cost(%)Note:The R&D cost mentioned above includes R&D expense and the cost formed by R&D activities corresponding to the products.Specifically,R&D cost to oper
322、ating revenue in terms of PV business is 4.13%.(2).R&D personnelApplicable Not ApplicableR&D employees5,277R&D employees to total employees(%)9.47Education background of R&D employeesEducation backgroundNumber of employeesDoctor degree29Master degree516Bachelors degree2,474Others2,258Age groups of R
323、&D employeesAge groupNumber of employeesUnder 30 years old2,6662024 Annual Report of Tongwei Co.,Ltd.24/26930-40 years old1,96540-50 years old51150-60 years old12860 years old or above7(3).NoteApplicable Not ApplicableThe Company has established a distinguished technology research team,comprising ex
324、perts who receive special allowances from theState Council alongside other prominent figures.This team is dedicated to spearheading technological innovation and extensiveresearch and development,with a commitment to continually augmenting investment in these areas.Over the years,the Company hasamass
325、ed numerous significant scientific achievements,effectively bolstering its core competitive advantages.By the close of thereporting period,the workforce included 5,277 R&D personnel,representing 9.47%of the total 55,724 employees.(4).Reasons for material changes in R&D staff structure and the impact
326、 on the Companys future developmentApplicable Not ApplicableAs the end of the reporting period,the Company had 5,227 R&D employees,marking an increase of 1,120 individuals compared tothe previous years 4,157.As technical talent introduction and cultivation is important for the Company to keep core c
327、ompetitiveness,and in line with its development requirements,in 2024,the Company further intensified the recruitment of outstanding R&D talentsin the photovoltaic industry,both domestically and internationally,with a significant increase in the number of R&D personnelfocused on cells and modules.The
328、 increase in R&D personnel helps with the advancement of R&D projects,has boosted its R&Dcapability and level for improving its sustainability on a long-term basis.5.Cash flowApplicable Not ApplicableRefer to the analysis of changes in related items of the income statement and cash flow statement in
329、 this Section.(II)Note on material change in profit caused by non-main operating activitiesApplicable Not Applicable2024Annual Report of Tongwei Co.,Ltd.25/269(III)Analysis of assets and liabilitiesApplicableNot Applicable1.Assets and liabilitiesUnit:YuanItem nameClosing balance ofcurrent periodClos
330、ing balanceto the total assets(%)Closing balance oflast periodClosing balanceto the totalassets(%)YoY(%)NoteNotes receivable1,465,325,121.180.75847,559,026.340.5272.89 Primarily due to increased letters of credit.Receivablesfinancing7,704,206,516.603.9313,328,061,144.728.11-42.20Primarily due to con
331、trolled bill pool size and reduced bank acceptancedrafts.Inventories12,633,286,216.026.457,788,385,427.124.7462.21 Primarily due to business expansion and increased inventory goods.Other current assets5,882,511,042.813.002,411,612,696.981.47143.92 Primarily due to growth in retained input VAT credit
332、s.Long-term equityinvestments2,306,695,375.101.18377,318,071.060.23511.34 Primarily due to investment in Scigene Biotechnology Co.,Ltd.Fixed assets100,025,332,497.5451.0568,269,964,227.9641.5446.51Primarily due to completion and transfer of new high-puritypolysilicon/module/cell projects.Constructio
333、n inprogress7,251,108,008.253.7014,816,515,872.969.01-51.06Primarily due to completion and transfer of new high-puritypolysilicon/module/cell projects.Right-of-use assets7,048,441,533.593.603,990,842,907.292.4376.62 Primarily due to business scale expansion and increased finance leases.Other non-currentassets2,956,730,320.491.515,085,435,306.613.09-41.86 Primarily due to decreased prepayments for