公司代码：603260 公司简称：合盛硅业 2020 年半年度报告 合盛硅业股份有限公司 2020 年半年度报告 1 / 196 2020 年半年度报告 重要提示 一、本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、 准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法 律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人罗立国、主管会计工作负责人张雅聪及会计机构负责人（会计主管人 员）张冬梅声明：保证半年度报告中财务报告的真实、准确、完整。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 无 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中所涉及的未来计划发展战略等前瞻性描述不构成公司对投资者的实质 承诺，敬请投资者注意投资风险。 七、 是否存在被控股股东及其关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况？ 否 九、 重大风险提示 公司已在本半年度报告中详细描述可能存在的行业风险、市场风险等，敬请查阅 本半年度报告第四节经营情况讨论与分析中相关内容。 十、 其他 □适用 √不 ...

Group 1: Event Details - The event is a collective online reception day for investors in the Zhejiang region, organized by the Zhejiang Securities Regulatory Bureau and the Zhejiang Listed Companies Association [3] - The event will take place on May 15, 2020, from 15:00 to 17:00 [2][4] - The online platform for the event is available at http://rs.p5w.net [4][7] Group 2: Participation Information - Investors can submit their questions and concerns to the company via email (hsir@hoshinesilicon.com) before May 14, 2020, at 16:00 [2][7] - The company will address common investor concerns during the event [3][7] Group 3: Company Representatives - The event will feature company representatives including Chairman Luo Liguo, Secretary of the Board and Deputy General Manager Gong Jiping, and Financial Director Zhang Yacong [5][6] - Additional staff may participate, subject to changes based on special circumstances [6] Group 4: Contact Information - For inquiries, investors can contact the Board Office at 0573-89179052 or via fax at 0573-85627786 [8] - The company encourages active participation from investors [8]

Definitions [Definitions](index=4&type=section&id=Section%201%20Definitions) This section provides a glossary of terms used throughout the report Company Profile and Key Financial Indicators [Company Information](index=5&type=section&id=I.%20Company%20Information) This chapter provides basic information about Hoshine Silicon Industry Co., Ltd., including company name, legal representative, contact details, registered address, information disclosure media, and engaged accounting firm and sponsor institution - Company's Chinese name is Hoshine Silicon Industry Co., Ltd., and its legal representative is **Luo Liguo**[12](index=12&type=chunk) - The company's designated information disclosure media are "Shanghai Securities News", "China Securities Journal", "Securities Times", "Securities Daily", and the designated website is the Shanghai Stock Exchange website (www.sse.com.cn)[16](index=16&type=chunk) - The accounting firm engaged by the company is Tianjian Certified Public Accountants (Special General Partnership), and the continuous supervision sponsor institution is CITIC Securities Co., Ltd[19](index=19&type=chunk) [Key Accounting Data and Financial Indicators for the Past Three Years](index=6&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators%20for%20the%20Past%20Three%20Years) In 2019, the company's performance significantly declined, with operating revenue decreasing by **19.30%** year-on-year and net profit attributable to parent company shareholders sharply falling by **60.56%**, primarily due to unreleased industrial silicon capacity and lower market prices for industrial and organic silicon products, while net cash flow from operating activities increased by **9.74%** year-on-year Key Accounting Data and Financial Indicators | Key Accounting Data | 2019 (yuan) | 2018 (yuan) | Change from Prior Year (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 8,938,791,735.80 | 11,076,410,224.91 | -19.30 | | Net Profit Attributable to Listed Company Shareholders | 1,106,347,867.27 | 2,805,177,399.57 | -60.56 | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Gains and Losses) | 977,394,645.38 | 2,692,259,798.03 | -63.70 | | Net Cash Flow from Operating Activities | 1,368,813,723.33 | 1,247,285,056.85 | 9.74 | | **Key Financial Indicators** | **2019** | **2018** | **Change from Prior Year (%)** | | Basic Earnings Per Share (yuan/share) | 1.18 | 2.99 | -60.54 | | Weighted Average Return on Net Assets (%) | 13.54 | 42.19 | Decrease of 28.65 percentage points | - The company implemented a capital reserve to share capital transfer plan of 4 shares for every 10 shares in July 2019, increasing its total share capital to **938,000,000 shares**, and adjusted the earnings per share indicator accordingly[21](index=21&type=chunk) [2019 Quarterly Financial Data](index=7&type=section&id=IX.%202019%20Quarterly%20Financial%20Data) In 2019, the company's performance showed a quarter-on-quarter decline, with the highest net profit attributable to parent company shareholders of **402 million yuan** in the first quarter, followed by continuous decreases in the second and third quarters, a slight rebound in the fourth quarter, and operating revenue reaching its lowest point in the third quarter 2019 Quarterly Financial Data | Financial Indicators (yuan) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,441,933,658.58 | 2,218,573,696.23 | 1,882,601,693.87 | 2,395,682,687.12 | | Net Profit Attributable to Listed Company Shareholders | 402,317,325.76 | 251,789,165.71 | 207,166,729.03 | 245,074,646.77 | | Net Cash Flow from Operating Activities | 205,749,953.85 | 437,276,891.29 | 240,131,249.75 | 485,655,628.44 | [Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=X.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) In 2019, the company's total non-recurring gains and losses amounted to **129 million yuan**, primarily composed of government subsidies recognized in current profit and loss of **153 million yuan**, resulting in a net profit attributable to parent company shareholders of **977 million yuan** after deducting non-recurring items Non-recurring Gains and Losses | Non-recurring Gains and Losses Items | 2019 Amount (yuan) | 2018 Amount (yuan) | | :--- | :--- | :--- | | Gains or Losses from Disposal of Non-current Assets | -10,604,788.60 | -4,682,655.20 | | Government Subsidies Recognized in Current Profit and Loss | 153,055,175.16 | 129,833,054.93 | | Other Non-operating Income and Expenses | 10,374,745.74 | 1,776,358.49 | | Income Tax Impact | -23,930,411.93 | -21,594,644.24 | | **Total** | **128,953,221.89** | **112,917,601.54** | Business Overview [Main Business and Operating Model](index=9&type=section&id=I.%20Main%20Business%20and%20Operating%20Model) The company is the largest industrial silicon producer in China, primarily engaged in the R&D, production, and sales of silicon-based new materials such as industrial silicon and organic silicon, adopting an operating model focused on local raw material procurement, continuous production, and direct sales, forming a complete business chain - The company's main products are industrial silicon and organic silicon, which are important raw materials for downstream industries such as photovoltaics, organic silicon materials, construction, and electronics[27](index=27&type=chunk) - Operating model characteristics: - **Procurement**: Raw materials (silica, coal, etc.) are procured around production bases, with long-term agreements signed to control costs - **Production**: Industrial silicon submerged arc furnaces operate 24 hours a day, organic silicon production is planned around synthesis reaction cycles, and dynamically adjusted based on inventory - **Sales**: Primarily direct sales, with a customer structure balancing large and small clients to diversify risks[27](index=27&type=chunk)[28](index=28&type=chunk) [Significant Changes in Major Assets](index=10&type=section&id=II.%20Significant%20Changes%20in%20Major%20Assets) During the reporting period, the company's fixed assets and construction in progress both increased significantly, with fixed assets growing by **10.74%** mainly due to project completion and transfer to fixed assets, and construction in progress increasing by **43.52%** primarily due to increased investment in the Western Hoshine 200,000-ton sealant project Major Asset Changes | Major Assets | Increase from Year-end to Beginning of Year (10,000 yuan) | Growth Rate (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Fixed Assets | 103,212.91 | 10.74 | Increase due to project completion and transfer to fixed assets | | Construction in Progress | 44,856.26 | 43.52 | Increase due to increased investment in Western Hoshine 200,000-ton sealant project | [Core Competitiveness Analysis](index=11&type=section&id=III.%20Core%20Competitiveness%20Analysis) The company's core competitiveness lies in five major aspects: technology, industrial chain, business layout, internal management, and brand quality, possessing complete core technologies for the industrial silicon and organic silicon industrial chains, forming significant synergistic effects and cost advantages, with a rational business layout and refined internal management further solidifying its industry-leading position - **Technological Advantage**: The company masters core technologies across the entire industrial silicon and organic silicon value chain, holding **98 authorized patents** and leading or participating in the formulation of **24 industry standards**[32](index=32&type=chunk) - **Industrial Chain Advantage**: The company is one of the few in the industry capable of producing both industrial silicon and organic silicon, creating synergistic effects in raw material assurance and stable sales, which facilitates production scale expansion and cost reduction[34](index=34&type=chunk) - **Business Layout Advantage**: Industrial silicon operations are concentrated in Xinjiang, where energy costs are low, while organic silicon production bases are located near major consumption markets like East and South China, with further expansion in the west to meet growing demand[35](index=35&type=chunk) - **Internal Management and Brand Advantage**: The company enhances efficiency through refined management and automation, and has established a well-known brand image in the industry with excellent product quality, becoming a key supplier to numerous domestic and international renowned enterprises[36](index=36&type=chunk)[37](index=37&type=chunk) Management Discussion and Analysis [Overview of Operations](index=13&type=section&id=I.%20Overview%20of%20Operations) In 2019, the company's performance significantly declined due to unfavorable market conditions such as weak downstream demand and falling product prices, with total operating revenue decreasing by **19.30%** and net profit attributable to parent company shareholders falling by **60.56%**, yet the company made progress in project construction, informatization, and cost control, and planned a "Hydropower Silicon" circular economy project in Yunnan for future development, intending to consolidate its competitive advantages in 2020 through internal potential, smart manufacturing, and management reforms - In 2019, the company's total operating revenue was **8.939 billion yuan**, a year-on-year decrease of **19.30%**; net profit attributable to parent company shareholders was **1.106 billion yuan**, a year-on-year decrease of **60.56%**[39](index=39&type=chunk) - Significant project progress: Key projects in Shanshan Circular Economy Industrial Park were completed and put into operation, and the IPO-funded 100,000-ton siloxane project entered trial production[38](index=38&type=chunk) - The company planned the Yunnan Zhaotong "Hydropower Silicon" circular economy project, aiming to build an **800,000-ton/year** organic silicon monomer and downstream deep processing project to meet future market demand[38](index=38&type=chunk) [Analysis of Main Business](index=14&type=section&id=II.%20Analysis%20of%20Main%20Business) This chapter details the company's main business operations in 2019, where industrial silicon and organic silicon revenues decreased by **13.38%** and **26.45%** respectively due to falling product prices, leading to an overall decline in gross profit margin, with price factors being the primary cause of performance decline despite stable sales volumes, and R&D investment accounting for **1.77%** of revenue with a relatively stable expense structure [Analysis of Changes in Income Statement and Cash Flow Statement Items](index=14&type=section&id=1.%20Analysis%20of%20Changes%20in%20Income%20Statement%20and%20Cash%20Flow%20Statement%20Items) In 2019, the company's operating revenue and R&D expenses significantly decreased, while financial expenses increased, with operating cash flow maintaining stable growth, but investment cash outflow expanding and financing cash outflow decreasing Income Statement and Cash Flow Statement Items | Item | Current Period (yuan) | Prior Year (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 8,938,791,735.80 | 11,076,410,224.91 | -19.30 | | Operating Cost | 6,453,408,304.90 | 6,552,722,783.10 | -1.52 | | R&D Expenses | 158,515,247.41 | 205,325,387.41 | -22.80 | | Financial Expenses | 228,114,090.50 | 192,890,339.02 | 18.26 | | Net Cash Flow from Operating Activities | 1,368,813,723.33 | 1,247,285,056.85 | 9.74 | | Net Cash Flow from Investing Activities | -1,180,662,136.01 | -850,339,286.57 | -38.85 | [Revenue and Cost Analysis](index=14&type=section&id=2.%20Revenue%20and%20Cost%20Analysis) In 2019, the company's main business revenue decreased by **19.50%** year-on-year, primarily due to falling product prices, with industrial silicon and organic silicon revenues declining by **13.38%** and **26.45%** respectively, leading to corresponding drops in gross profit margins, and overseas sales decreasing by **45.89%** mainly due to a significant drop in export organic silicon product prices, while industrial silicon production and sales slightly decreased, and some organic silicon products (e.g., 110 raw rubber, mixed rubber) saw increased production and sales Revenue and Cost by Product | By Product | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Profit Margin (%) | Change in Operating Revenue from Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | | Industrial Silicon | 5,038,485,956.38 | 3,844,083,432.52 | 23.71 | -13.38 | | Organic Silicon | 3,802,567,553.72 | 2,532,427,903.71 | 33.40 | -26.45 | Revenue by Region | By Region | Operating Revenue (yuan) | Gross Profit Margin (%) | Change in Operating Revenue from Prior Year (%) | | :--- | :--- | :--- | :--- | | Domestic Sales | 8,527,033,433.34 | 27.64 | -17.81 | | International Sales | 359,485,341.94 | 30.65 | -45.89 | Production and Sales Volume of Major Products | Major Products | Production Volume (10,000 tons) | Sales Volume (10,000 tons) | Change in Production Volume from Prior Year (%) | Change in Sales Volume from Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | | Industrial Silicon | 56.46 | 49.43 | -14.39 | -4.00 | | 110 Raw Rubber | 11.91 | 9.14 | 18.74 | 18.70 | | Mixed Rubber | 4.32 | 4.21 | 22.38 | 23.10 | [Expense Analysis](index=16&type=section&id=3.%20Expenses) During the reporting period, the company's various expenses decreased, with selling, administrative, and R&D expenses falling by **9.55%**, **8.51%**, and **22.80%** year-on-year respectively, while financial expenses increased by **18.26%** due to factors such as increased borrowings Expense Details | Item | 2019 (yuan) | 2018 (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Selling Expenses | 442,697,205.97 | 489,432,308.30 | -9.55 | | Administrative Expenses | 186,424,758.85 | 203,766,932.72 | -8.51 | | R&D Expenses | 158,515,247.41 | 205,325,387.41 | -22.80 | | Financial Expenses | 228,114,090.50 | 192,890,339.02 | 18.26 | [R&D Investment](index=16&type=section&id=4.%20R%26D%20Investment) In 2019, the company's total R&D investment was **159 million yuan**, all expensed, accounting for **1.77%** of operating revenue, with R&D focusing on production technology improvement, new product development, and automation, leading to the formulation or participation in **6 standards** and **17 new patent applications** during the reporting period R&D Investment Indicators | Indicator | 2019 | | :--- | :--- | | Total R&D Investment (yuan) | 158,515,247.41 | | Total R&D Investment as % of Operating Revenue | 1.77 | | Capitalized R&D Investment as % of Total R&D Investment | 0.00 | | Number of R&D Personnel | 355 | | R&D Personnel as % of Total Employees | 4.95 | - R&D focuses on key technologies for organic silicon monomer synthesis, byproduct process optimization, new performance silicone rubber, and special rubber development, aiming to enhance product quality, save energy, reduce consumption, and strengthen market competitiveness[52](index=52&type=chunk) [Cash Flow Analysis](index=17&type=section&id=5.%20Cash%20Flow) In 2019, the company's net cash flow from operating activities was **1.369 billion yuan**, a **9.74%** year-on-year increase, remaining stable, while net cash outflow from investing activities expanded to **1.181 billion yuan**, a **38.85%** year-on-year increase, mainly due to a decrease in net cash inflow from investing activities, and net cash outflow from financing activities narrowed Cash Flow Summary | Item | Current Period (yuan) | Prior Period (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,368,813,723.33 | 1,247,285,056.85 | 9.74 | | Net Cash Flow from Investing Activities | -1,180,662,136.01 | -850,339,286.57 | -38.85 | | Net Cash Flow from Financing Activities | -379,893,975.97 | -527,215,242.14 | 27.94 | [Analysis of Assets and Liabilities](index=18&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) As of the end of 2019, the company's total assets were **17.387 billion yuan**, an **8.25%** year-on-year increase, with major asset changes including increases in construction in progress and intangible assets, and significant decreases in monetary funds and notes receivable, while on the liability side, short-term borrowings increased sharply by **86.25%**, and notes payable and long-term payables significantly decreased, with **2.755 billion yuan** of assets restricted at year-end, primarily pledged for bank loans and finance leases Major Changes in Assets and Liabilities | Item | Current Period End (yuan) | Change from Prior Period End (%) | Explanation | | :--- | :--- | :--- | :--- | | Monetary Funds | 300,044,143.59 | -58.19 | Primarily due to initial raised funds used for IPO projects | | Construction in Progress | 1,479,240,042.07 | 43.52 | Primarily due to increased project investment | | Intangible Assets | 624,605,731.07 | 30.81 | Primarily due to increased land acquisition | | Short-term Borrowings | 2,784,919,611.11 | 86.25 | Primarily due to increased bank borrowings | | Notes Payable | 79,835,407.53 | -79.17 | Primarily due to maturity and repayment of notes | | Long-term Payables | 307,674,035.30 | -50.62 | Primarily due to maturity payment of finance leases | - As of the end of the reporting period, the company's total restricted assets amounted to **2.755 billion yuan**, including monetary funds, fixed assets, construction in progress, and intangible assets, primarily pledged or mortgaged for bank loans and finance leases[57](index=57&type=chunk) [Industry Operating Information Analysis](index=19&type=section&id=(IV)%20Industry%20Operating%20Information%20Analysis) In 2019, the silicon industry operated weakly, facing dual pressures of slowing consumption and falling prices, while the state introduced multiple policies aimed at strengthening environmental governance, encouraging technological upgrades, and eliminating backward capacity, and against this backdrop, the company, as China's largest industrial silicon producer (market share approximately **25%**) and a major organic silicon monomer producer (market share approximately **15%**), continued to consolidate its industry position through its complete industrial chain and technological advantages [Industry Overview](index=19&type=section&id=1%20Industry%20Overview) In 2019, the state issued multiple policies targeting the chemical industry, focusing on strengthening environmental supervision, encouraging foreign investment in high-tech fields, and eliminating backward capacity through industrial structure adjustment, while the silicon industry as a whole was weak, with industrial silicon market supply experiencing negative growth for the first time and prices continuously falling, and the company maintained its position as the largest industrial silicon producer in China for seven consecutive years with a market share of approximately **25%**, and an organic silicon monomer market share of approximately **15%** domestically - 2019 industry policy orientation: - **Stricter Environmental Protection**: Strengthening atmospheric pollution control in industrial parks and implementing classified safety risk management for chemical industrial parks - **Encouraging Upgrades**: Encouraging foreign investment in new organic silicon downstream products, special rubber, etc - **Eliminating Backward Capacity**: The "Guidance Catalogue for Industrial Structure Adjustment (2019 Edition)" restricts new inefficient methyl chlorosilane monomer production facilities and eliminates backward white carbon black capacity[59](index=59&type=chunk)[60](index=60&type=chunk) - Company's industry position: - **Industrial Silicon**: Production ranked first nationwide for **7 consecutive years**, with a domestic market share of approximately **25%** - **Organic Silicon**: Domestic market share of approximately **15%**[62](index=62&type=chunk) [Products and Production](index=21&type=section&id=2%20Products%20and%20Production) The company's main products are industrial silicon and organic silicon, with upstream raw materials including coal and quartz stone, and wide downstream applications, possessing strong R&D and innovation capabilities with multiple provincial-level R&D platforms and mastery of core production processes, and during the reporting period, industrial silicon and organic silicon capacity utilization rates were **77.34%** and **93.45%** respectively, with capacity increasing due to new project commissioning - The company has an R&D team of over **400 people** led by doctors and senior engineers, collaborates with multiple renowned universities for industry-university-research cooperation, and has obtained **98 authorized patents**[65](index=65&type=chunk)[66](index=66&type=chunk) Production Capacity and Utilization | Major Plant or Project | Design Capacity | Capacity Utilization Rate (%) | Under Construction Capacity and Investment | | :--- | :--- | :--- | :--- | | Industrial Silicon | 730,000 tons | 77.34 | - | | Organic Silicon | 530,000 tons | 93.45 | 200,000-ton/year sealant project, 713 million yuan invested by end of 2019, 35% completion | - Capacity increase during the reporting period mainly came from the commissioning of the Eastern Hoshine **400,000-ton/year** industrial silicon project and the IPO-funded **100,000-ton/year** siloxane and downstream deep processing project[73](index=73&type=chunk) [Raw Material Procurement](index=24&type=section&id=3%20Raw%20Material%20Procurement) The company's primary raw material procurement model involves signing long-term agreements with suppliers to ensure supply and cost advantages, and in 2019, major raw material prices fluctuated significantly, with ore and silicon plant coal procurement prices increasing year-on-year, while petroleum coke, methanol, and chloromethane prices decreased significantly year-on-year Raw Material Procurement and Price Changes | Raw Material | Procurement Model | Average Procurement Price Year-on-Year Change | | :--- | :--- | :--- | | Ore | Long-term agreements | Increased by 26.87% | | Petroleum Coke | Long-term agreements | Decreased by 29.88% | | Silicon Plant Coal | Long-term agreements | Increased by 9.71% | | Methanol | Direct procurement/Trader procurement | Decreased by 32.47% | | Chloromethane | Direct procurement/Trader procurement | Decreased by 45.67% | [Product Sales Performance](index=25&type=section&id=4%20Product%20Sales%20Performance) The company primarily uses a direct sales model for product sales, adjusting prices promptly based on market conditions, and in 2019, domestic sales revenue decreased by **17.81%** year-on-year, while overseas sales revenue fell by **45.89%** year-on-year due to a significant drop in organic silicon product prices Sales Performance by Channel | Sales Channel | Operating Revenue (10,000 yuan) | Change in Operating Revenue from Prior Year (%) | | :--- | :--- | :--- | | Domestic Sales | 852,703.34 | -17.81 | | International Sales | 35,948.53 | -45.89 | [Environmental Protection and Safety](index=26&type=section&id=5%20Environmental%20Protection%20and%20Safety) During the reporting period, the company did not experience any major safety production accidents or significant environmental violations, with environmental protection investment totaling **203.67 million yuan**, accounting for **2.28%** of operating revenue Environmental Protection Investment | Indicator | Amount | | :--- | :--- | | Environmental Protection Investment (10,000 yuan) | 20,367.16 | | Investment as % of Operating Revenue | 2.28 | [Investment Analysis](index=26&type=section&id=(V)%20Investment%20Analysis) In 2019, the company's external equity investment increased by **39.38%** year-on-year, mainly due to capital injections into subsidiaries like Eastern Hoshine and Shanshan Silicon Industry, while two significant non-equity investment projects, the "100,000-ton/year Siloxane and Downstream Deep Processing Project" and the "200,000-ton/year Sealant Project," were under construction with substantial cumulative investments - During the reporting period, the company made new external equity investments of approximately **1.485 billion yuan**, primarily for capital contributions to subsidiaries[81](index=81&type=chunk) Major Non-Equity Investment Projects | Project Name | Project Amount (yuan) | Project Progress (%) | Current Year Investment (yuan) | Cumulative Investment (yuan) | | :--- | :--- | :--- | :--- | :--- | | Shanshan Silicon Industry 100,000-ton/year Siloxane and Downstream Deep Processing Project | 1,590,540,300.00 | 95 | 1,063,272,216.47 | 1,493,411,036.25 | | Western Hoshine 200,000-ton/year Sealant Project | 3,696,086,000.00 | 35 | 712,978,567.45 | 712,978,567.45 | [Analysis of Major Holding and Participating Companies](index=27&type=section&id=(VII)%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This chapter lists the business scope and key financial data for 2019 of the company's major holding and participating companies, showing that subsidiaries such as Shanshan Silicon Industry, Western Hoshine, Luzhou Hoshine, Shanshan Energy Management, and Ningxin Carbon all achieved profitability during the reporting period, while Heihe Hoshine and Hejing Energy incurred losses Key Financial Data of Major Subsidiaries | Company Name | Total Assets (10,000 yuan) | Net Assets (10,000 yuan) | Net Profit (10,000 yuan) | | :--- | :--- | :--- | :--- | | Shanshan Silicon Industry | 188,212.33 | 120,161.88 | 5,794.21 | | Hoshine Thermal Power | 310,191.82 | 182,273.84 | 624.67 | | Western Hoshine | 477,964.34 | 101,089.60 | 6,139.17 | | Shanshan Electric Power | 284,073.25 | 52,078.34 | 4,809.30 | | Eastern Hoshine | 323,318.47 | 120,940.32 | 4,859.60 | | Luzhou Hoshine | 117,318.58 | 103,806.87 | 7,492.54 | | Shanshan Energy Management | 113,844.81 | 34,966.71 | 12,825.10 | | Ningxin Carbon | 68,379.18 | 66,546.81 | 10,292.26 | [Company's Future Development and Risk Analysis](index=32&type=section&id=III.%20Discussion%20and%20Analysis%20of%20the%20Company%27s%20Future%20Development) The company anticipates that industrial silicon and organic silicon market demand in 2020 will be affected by the pandemic, leading to weak price fluctuations, and its development strategy will continue to focus on silicon-based new materials, expanding capacity through the Yunnan "Hydropower Silicon" project, aiming to achieve global leadership in organic silicon monomer capacity and output by 2021, with operating plans centered on "stabilizing production and strengthening management," promoting smart manufacturing and management reforms, while facing major risks including safety and environmental protection, intensified market competition, raw material price fluctuations, and the impact of the COVID-19 pandemic - **Development Strategy**: Continuously focusing on silicon-based new materials, expanding market share based on the Yunnan "Hydropower Silicon" project, striving to achieve global leadership in organic silicon monomer capacity and output by **2021**[90](index=90&type=chunk) - **2020 Operating Plan**: The core is "stabilizing production and strengthening management," with key tasks including ensuring production, promoting smart manufacturing, management reform, cost reduction and efficiency improvement, talent reserve, increasing R&D, extending the industrial chain, and advancing the Yunnan project construction[91](index=91&type=chunk)[92](index=92&type=chunk) - **Major Risks**: - **Safety and Environmental Protection Risks**: Inherent safety and environmental risks in chemical and metallurgical production - **Increased Market Competition Risks**: Industry consolidation and capacity expansion may lead to significant fluctuations in product prices - **Raw Material Price Fluctuation Risks**: Prices of major raw materials are influenced by macroeconomic conditions and market supply and demand, posing volatility - **COVID-19 Pandemic Impact Risks**: Overseas pandemic may affect product exports and downstream demand[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) Significant Matters [Profit Distribution Plan](index=34&type=section&id=I.%20Ordinary%20Share%20Profit%20Distribution%20or%20Capital%20Reserve%20to%20Share%20Capital%20Transfer%20Plan) The company announced its 2019 profit distribution plan, proposing to distribute a cash dividend of **2.30 yuan** (tax inclusive) for every 10 shares, totaling **216 million yuan**, accounting for **19.50%** of the net profit attributable to parent company shareholders for the year, with the company's cash dividend ratio remaining stable at around **19.5%** over the past three years Profit Distribution Plan | Dividend Year | Cash Dividend Per 10 Shares (yuan, tax incl.) | Shares Transferred Per 10 Shares | Cash Dividend Amount (yuan, tax incl.) | Ratio to Net Profit Attributable to Parent Company Shareholders (%) | | :--- | :--- | :--- | :--- | :--- | | 2019 | 2.30 | 0 | 215,740,000.00 | 19.50 | | 2018 | 8.20 | 4 | 549,400,000.00 | 19.59 | | 2017 | 4.41 | 0 | 295,470,000.00 | 19.48 | [Fulfillment of Commitments](index=35&type=section&id=II.%20Fulfillment%20of%20Commitments) During and continuing into the reporting period, all commitments made by relevant parties, including those in the acquisition report and related to the initial public offering, were strictly and timely fulfilled - The company's controlling shareholder Hoshine Group, actual controller Mr. Luo Liguo and his concerted parties, other shareholders, and directors, supervisors, and senior management personnel strictly adhered to their commitments regarding share lock-up, avoidance of horizontal competition, and standardization of related-party transactions during the reporting period[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) [Changes in Accounting Policies and Estimates](index=39&type=section&id=V.%20Analysis%20of%20Reasons%20and%20Impact%20of%20Changes%20in%20Accounting%20Policies%2C%20Accounting%20Estimates%2C%20or%20Correction%20of%20Major%20Accounting%20Errors) During the reporting period, the company changed its accounting policies in accordance with new regulations issued by the Ministry of Finance, primarily implementing newly revised financial statement formats and new financial instrument standards, which led to the reclassification of some "notes receivable" to "financial assets held for collection" and a shift from the "incurred loss model" to the "expected credit loss model" for financial asset impairment measurement, with relevant adjustments retrospectively applied to the opening financial statements - The company implemented new financial instrument standards from January 1, 2019, adjusting the classification and measurement of financial assets and adopting the "expected credit loss model" for impairment provisions[105](index=105&type=chunk)[106](index=106&type=chunk) - The change in accounting policy resulted in a **129 million yuan** decrease in "notes receivable" and a **129 million yuan** increase in "financial assets held for collection" in the opening consolidated balance sheet[107](index=107&type=chunk) [Major Litigation and Arbitration](index=43&type=section&id=X.%20Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company and its subsidiaries were involved in multiple major lawsuits, primarily purchase and sales contract disputes with equipment suppliers, with the company acting as both plaintiff and defendant in various ongoing cases - Major lawsuits where the company is the plaintiff primarily involve equipment procurement contract disputes, demanding the return of goods payments and compensation for losses, with significant amounts involved, such as Shanshan Energy Management vs. Qingdao Jieneng case (**96.86 million yuan**) and Shanshan Electric Power vs. Hangzhou Zhongneng case (**71.05 million yuan**)[117](index=117&type=chunk)[118](index=118&type=chunk) - Major lawsuits where the company is the defendant are also mostly purchase and sales contract disputes, being sued for payment of equipment costs and liquidated damages, such as Shanghai Electric vs. Hoshine Thermal Power case (**68.13 million yuan**)[118](index=118&type=chunk)[119](index=119&type=chunk) Share Changes and Shareholder Information [Changes in Ordinary Share Capital](index=58&type=section&id=I.%20Changes%20in%20Ordinary%20Share%20Capital) In 2019, the company implemented a capital reserve to share capital transfer plan, transferring **4 shares** for every **10 shares** to all shareholders based on a total share capital of **670 million shares**, resulting in a total transfer of **268 million shares**, increasing the company's total share capital from **670 million shares** to **938 million shares** Ordinary Share Capital Changes | Share Class | Before This Change (shares) | Change (increase/decrease) (shares) | After This Change (shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 409,158,195 | +163,663,278 | 572,821,473 | | Unrestricted Tradable Shares | 260,841,805 | +104,336,722 | 365,178,527 | | **Total Ordinary Shares** | **670,000,000** | **+268,000,000** | **938,000,000** | [Shareholders and Actual Controller](index=59&type=section&id=III.%20Shareholders%20and%20Actual%20Controller%20Information) As of the end of 2019, the company had **27,366** ordinary shareholders, with Ningbo Hoshine Group Co., Ltd. as the controlling shareholder holding **58.28%** of shares, and Mr. Luo Liguo as the actual controller, and the top ten shareholders, including the controlling shareholder and its concerted parties, held a relatively high combined stake, indicating a concentrated equity structure Top Shareholders | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | | :--- | :--- | :--- | | Ningbo Hoshine Group Co., Ltd. | 546,647,073 | 58.28 | | Fidelity Industrial Company | 113,413,472 | 12.09 | | Luo Yi | 57,302,631 | 6.11 | | Luo Yedong | 57,302,631 | 6.11 | | Linyi Zhiqin Equity Investment Co., Ltd. | 26,174,400 | 2.79 | - Controlling shareholder Ningbo Hoshine Group Co., Ltd. is a concerted party with Linyi Zhiqin Equity Investment Co., Ltd., Luo Yi, and Luo Yedong[159](index=159&type=chunk) - The company's actual controller is **Mr. Luo Liguo**[163](index=163&type=chunk) Preferred Share Information [Preferred Share Information](index=64&type=section&id=Preferred%20Share%20Information) During the reporting period, the company had no preferred share-related information Directors, Supervisors, Senior Management, and Employees [Changes in Shareholdings and Remuneration of Directors, Supervisors, and Senior Management](index=65&type=section&id=I.%20Changes%20in%20Shareholdings%20and%20Remuneration) This chapter discloses the changes in shareholdings and remuneration of the company's directors, supervisors, and senior management, where Vice Chairman Luo Yi and Director Luo Yedong both increased their year-end shareholdings to **57.30 million shares** due to agreement transfers and capital reserve to share capital transfers, and the total pre-tax remuneration received by all directors, supervisors, and senior management from the company was **4.7675 million yuan** Shareholdings and Remuneration of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Year-end (shares) | Total Pre-tax Remuneration from Company During Reporting Period (10,000 yuan) | | :--- | :--- | :--- | :--- | | Luo Liguo | Chairman | - | 53.06 | | Luo Yi | Vice Chairman | 57,302,631 | 48.72 | | Luo Yedong | Director | 57,302,631 | 46.14 | | **Total** | **/** | **114,605,262** | **476.75** | [Employee Information](index=71&type=section&id=VI.%20Employee%20Information%20of%20Parent%20Company%20and%20Major%20Subsidiaries) As of the end of the reporting period, the company had a total of **7,167 employees**, with production personnel accounting for the highest proportion at **74%** by professional composition, and employees with college degrees or below accounting for the vast majority, totaling over **91%** by education level, and the company has established standardized compensation and training systems Employee Structure | Professional Composition | Number of Employees | Educational Background | Number of Employees | | :--- | :--- | :--- | :--- | | Production Personnel | 5,305 | Doctorate | 2 | | Technical Personnel | 946 | Master's | 23 | | Administrative Personnel | 735 | Bachelor's | 604 | | Sales Personnel | 90 | Associate Degree | 2,013 | | Financial Personnel | 91 | High School and Below | 4,525 | | **Total** | **7,167** | **Total** | **7,167** | Corporate Governance [Overview of Corporate Governance](index=72&type=section&id=I.%20Explanation%20of%20Corporate%20Governance%20Related%20Matters) During the reporting period, the company strictly adhered to the "Company Law," "Securities Law," and other relevant laws and regulations, continuously improving its corporate governance structure and standardizing company operations, with its general meeting of shareholders, board of directors, and supervisory board operating in compliance with relevant regulations, and no significant discrepancies found in its relationship with the controlling shareholder or information disclosure - The company's governance structure is sound, with the general meeting of shareholders, board of directors, supervisory board, and their respective special committees operating in a standardized manner, and independent directors fulfilling their duties independently[184](index=184&type=chunk) - The company strictly fulfills its information disclosure obligations, ensuring that information disclosure is true, accurate, complete, and timely, and treats all investors fairly[185](index=185&type=chunk) Corporate Bonds Information [Basic Information on Corporate Bonds](index=75&type=section&id=I.%20Basic%20Information%20on%20Corporate%20Bonds) As of the end of the reporting period, the company had three outstanding corporate bonds with a total balance of approximately **607 million yuan**, and during the reporting period, the company timely completed interest payments for all bond issues and the put option for "16 Hoshine 01" bonds, with a put amount of **198 million yuan** Corporate Bonds Overview | Bond Abbreviation | Code | Maturity Date | Bond Balance (yuan) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | | 16 Hoshine 01 | 136877 | 2021-12-14 | 2,029,046.41 | 5.55 | | 17 Hoshine 01 | 143210 | 2022-9-22 | 424,372,113.36 | 6.8 | | 17 Hoshine 02 | 143379 | 2022-11-3 | 180,271,063.59 | 6.8 | - The company's **1.2 billion yuan** corporate bond issuance plan approved in 2018 was not implemented within its validity period due to high costs resulting from market interest rate changes, and the approval has automatically expired[197](index=197&type=chunk) [Debt Repayment Capacity Financial Indicators](index=77&type=section&id=VIII.%20Company%27s%20Accounting%20Data%20and%20Financial%20Indicators%20for%20the%20Past%202%20Years%20as%20of%20the%20End%20of%20the%20Reporting%20Period) Affected by a significant decline in profit in 2019, the company's debt repayment capacity indicators deteriorated, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) decreasing by **41.70%** year-on-year, causing the interest coverage ratio to plummet from **15.37 times** to **6.59 times**, and the current ratio and quick ratio also decreased, but the asset-liability ratio remained relatively stable Debt Repayment Capacity Indicators | Major Indicators | 2019 | 2018 | Change from Prior Year (%) | | :--- | :--- | :--- | :--- | | EBITDA (yuan) | 2,515,767,515.54 | 4,314,967,553.68 | -41.70 | | Current Ratio | 0.60 | 0.81 | -25.93 | | Quick Ratio | 0.27 | 0.39 | -30.77 | | Asset-Liability Ratio (%) | 50.53 | 50.01 | Increase of 0.52 percentage points | | Interest Coverage Ratio | 6.59 | 15.37 | -57.12 | [Bank Credit Facilities](index=78&type=section&id=X.%20Company%27s%20Bank%20Credit%20Facilities%20During%20the%20Reporting%20Period) The company maintains good credit standing and long-term cooperative relationships with major domestic banks, having obtained **4.812 billion yuan** in credit facilities from financial institutions as of the end of 2019, with **3.455 billion yuan** utilized, indicating strong financing capabilities - As of December 31, 2019, the company obtained **4.812 billion yuan** in credit facilities from financial institutions, with **3.455 billion yuan** utilized[207](index=207&type=chunk) Financial Report [Audit Report](index=79&type=section&id=I.%20Audit%20Report) Tianjian Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2019 financial statements, concluding that the financial statements fairly presented the company's financial position and operating results in all material respects, with key audit matters being "transfer and depreciation of significant construction in progress projects" and "revenue recognition" - The auditing firm is Tianjian Certified Public Accountants (Special General Partnership), and the audit opinion type is **standard unqualified opinion**[211](index=211&type=chunk) - Key audit matters include: - **Transfer and Depreciation of Significant Construction in Progress Projects**: Focusing on the accuracy of the transfer timing of construction in progress to fixed assets and the reasonableness of related depreciation accrual - **Revenue Recognition**: Focusing on whether operating revenue is recognized in the appropriate period and in compliance with accounting standards[213](index=213&type=chunk)[214](index=214&type=chunk) [Financial Statements](index=83&type=section&id=II.%20Financial%20Statements) This chapter provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for 2019, showing steady growth in total assets but a significant decline in profitability, with net profit decreasing by more than half compared to the previous year, while operating cash flow remained stable and investing cash outflow increased Consolidated Income Statement Key Items | **Consolidated Income Statement Key Items** | **2019 (yuan)** | **2018 (yuan)** | | :--- | :--- | :--- | | Total Operating Revenue | 8,938,791,735.80 | 11,076,410,224.91 | | Operating Profit | 1,289,443,886.21 | 3,304,036,483.61 | | Total Profit | 1,288,964,673.18 | 3,305,906,185.43 | | Net Profit | 1,113,840,405.65 | 2,851,596,774.18 | | Net Profit Attributable to Parent Company Shareholders | 1,106,347,867.27 | 2,805,177,399.57 | Consolidated Balance Sheet Key Items | **Consolidated Balance Sheet Key Items** | **2019 Year-end (yuan)** | **2018 Year-end (yuan)** | | :--- | :--- | :--- | | Total Assets | 17,387,078,713.51 | 16,061,443,670.01 | | Total Liabilities | 8,785,149,614.44 | 8,033,105,254.04 | | Total Equity Attributable to Parent Company Owners | 8,498,105,964.23 | 7,932,007,819.51 | Consolidated Cash Flow Statement Key Items | **Consolidated Cash Flow Statement Key Items** | **2019 (yuan)** | **2018 (yuan)** | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,368,813,723.33 | 1,247,285,056.85 | | Net Cash Flow from Investing Activities | -1,180,662,136.01 | -850,339,286.57 | | Net Cash Flow from Financing Activities | -379,893,975.97 | -527,215,242.14 | | Net Increase in Cash and Cash Equivalents | -189,701,990.40 | -125,796,905.14 | Catalogue of Reference Documents [Catalogue of Reference Documents](index=201&type=section&id=Section%2012%20Catalogue%20of%20Reference%20Documents) This section lists all supporting documents available for review

Group 1: Event Details - The company will participate in an online collective reception day for investors on November 5, 2019, from 15:30 to 17:00 [2] - The event is organized by the Zhejiang Securities Regulatory Bureau, Zhejiang Listed Companies Association, and Shenzhen Panorama Network Co., Ltd. [2] Group 2: Participation and Communication - Investors can engage through the interactive platform at http://rs.p5w.net [2] - Company representatives, including the Secretary of the Board and the CFO, will address investor concerns regarding corporate governance, development strategy, and operational status [2] Group 3: Commitment to Transparency - The Board of Directors guarantees the announcement's content is free from false records, misleading statements, or significant omissions [2] - The company assumes individual and joint responsibility for the accuracy and completeness of the announcement [2]

2019 年半年度报告 公司代码：603260 公司简称：合盛硅业 合盛硅业股份有限公司 2019 年半年度报告 1 / 167 2019 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人罗立国、主管会计工作负责人张雅聪及会计机构负责人（会计主管人员）张冬梅 声明：保证半年度报告中财务报告的真实、准确、完整。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 无 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中所涉及的未来计划发展战略等前瞻性描述不构成公司对投资者的实质承诺，敬请投 资者注意投资风险。 七、 是否存在被控股股东及其关联方非经营性占用资金情况 | --- | |---------------------------------------------------| | | | 否 | | 八、 是否存在违反规定决策程序对外提供担保的情况？ | | 否 | | 九、 ...

2018 年年度报告 公司代码：603260 公司简称：合盛硅业 合盛硅业股份有限公司 2018 年年度报告 1 / 197 2018 年年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 天健会计师事务所（特殊普通合伙）为本公司出具了标准无保留意见的审计报告。 四、 公司负责人罗立国、主管会计工作负责人张雅聪及会计机构负责人（会计主管人员）张冬梅 声明：保证年度报告中财务报告的真实、准确、完整。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 经第二届第十一次董事会决议，2018 年度利润分配预案为：以总股本 670,000,000.00 股为基 数，向全体股东每 10 股派发现金红利 8.2 元（含税），共计派发现金红利 549,400,000.00 元；以 母公司的总股本 670,000,000 股为基数，向全体股东每 10 股转增 4 股,共计转增 268,000,000 股； 本次利润分配后，公司的总股本将增加至 938, ...