[Important Notice, Table of Contents and Definitions](index=2&type=section&id=Section%201%20Important%20Notice%2C%20Table%20of%20Contents%20and%20Definitions) This section presents the board's assurance of report accuracy, outlines the profit distribution plan, and highlights key risks and forward-looking statement disclaimers - The company's Board of Directors, Supervisory Board, and senior management ensure the annual report's truthfulness, accuracy, and completeness, assuming corresponding legal responsibilities[2](index=2&type=chunk) - The company's 2020 profit distribution plan proposes a cash dividend of **2 yuan (tax inclusive) per 10 shares** to all shareholders, with no bonus shares or capital reserve conversions[3](index=3&type=chunk) - The report details potential operational risks and advises investors that forward-looking statements regarding future plans and operating targets do not constitute substantive commitments[3](index=3&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This chapter presents the company's fundamental information, contact details, and key financial indicators for 2020 and prior years, highlighting steady revenue and profit growth, significant asset expansion, and quarterly performance [Company Basic Information](index=6&type=section&id=I.%20Company%20Information) This section outlines the company's basic registration, stock information, and contact details, noting its 2019 asset restructuring that shifted its core business to PV products and changed its controlling shareholder - The company's stock short name is **'JA Solar'**, stock code **'002459'**, listed on the Shenzhen Stock Exchange[8](index=8&type=chunk) - In November 2019, the company completed a major asset restructuring, changing its main business from railway bridge equipment to R&D, production, and sales of silicon wafers, solar cells, and modules, as well as solar PV power plant development, construction, and operation[11](index=11&type=chunk) - Post-restructuring, the company's controlling shareholder changed from Huajian Yingfu to Jingtaifu, and the actual controller changed from Mr. He Zhiping to **Mr. Jin Baofang**[11](index=11&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2020, operating revenue grew **22.17% to 25.85 billion yuan**, and net profit attributable to shareholders increased **20.34% to 1.51 billion yuan**, while total assets expanded **30.74%** and operating cash flow decreased **38.63%** | Indicator | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (RMB)** | 25,846,520,912.72 | 21,155,479,989.81 | 22.17% | | **Net Profit Attributable to Shareholders (RMB)** | 1,506,583,627.15 | 1,251,958,039.01 | 20.34% | | **Net Cash Flow from Operating Activities (RMB)** | 2,264,976,986.47 | 3,690,528,722.82 | -38.63% | | **Total Assets (RMB)** | 37,297,473,419.88 | 28,527,611,026.45 | 30.74% | | **Net Assets Attributable to Shareholders (RMB)** | 14,656,177,411.82 | 7,989,392,643.02 | 83.45% | | **Basic Earnings Per Share (RMB/share)** | 1.09 | 1.27 | -14.17% | | **Weighted Average Return on Net Assets** | 15.71% | 20.00% | -4.29% | [Key Quarterly Financial Indicators](index=8&type=section&id=VIII.%20Key%20Quarterly%20Financial%20Indicators) The company's 2020 fourth-quarter operating revenue reached **9.15 billion yuan**, while net profit attributable to shareholders peaked in Q3 at **590 million yuan**, and operating cash flow was strongest in Q4 at **1.996 billion yuan** | Financial Indicator (RMB) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 4,590,784,385.87 | 6,293,405,912.04 | 5,810,784,420.91 | 9,151,546,193.90 | | **Net Profit Attributable to Shareholders** | 285,745,686.19 | 415,187,160.49 | 590,494,855.43 | 215,155,925.04 | | **Net Cash Flow from Operating Activities** | -365,208,625.61 | 423,142,431.88 | 211,539,705.36 | 1,995,503,474.84 | [Non-recurring Gains and Losses and Amounts](index=8&type=section&id=IX.%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) In 2020, non-recurring gains and losses totaled **146 million yuan**, primarily from **170 million yuan** in government subsidies and **144 million yuan** from financial instruments, offset by disposal losses and pandemic-related expenses | Major Non-recurring Gain/Loss Item | 2020 Amount (RMB) | Explanation | | :--- | :--- | :--- | | Government subsidies recognized in current profit/loss | 169,691,317.57 | Mainly due to increased government subsidies received by bases this period | | Gains/losses from financial instruments | 144,187,786.92 | Mainly due to a significant increase in gains from the company's forward foreign exchange settlement and sales business compared to the previous period | | Gains/losses from disposal of non-current assets | -81,281,013.60 | Mainly due to disposal of assets eliminated by technological advancements | | Other non-operating income and expenses | -102,060,001.08 | Mainly due to donations and related expenses incurred during the COVID-19 pandemic | | **Total** | **145,772,358.85** | -- | [Business Overview](index=11&type=section&id=Section%203%20Company%20Business%20Overview) This chapter details the company's vertically integrated PV business, covering R&D, production, and sales of silicon wafers, cells, and modules, along with power plant operations, highlighting its competitive advantages in technology, scale, and global market presence [Main Business, Products, and Operating Model](index=11&type=section&id=I.%20Main%20Business%20Activities%20During%20the%20Reporting%20Period) The company operates a vertically integrated model, focusing on solar cell modules, with a 'production-to-order' approach, primarily direct global sales, and a strong emphasis on independent R&D - The company's main business involves R&D, production, and sales of solar silicon wafers, cells, and modules, along with the development, construction, and operation of solar PV power plants, forming a **vertically integrated industrial chain**[23](index=23&type=chunk) - Core products are cell modules, with mainstream high-efficiency **182-11BB monocrystalline silicon cells achieving a mass production conversion efficiency of 23.20%**, and standard 72-cell monocrystalline modules reaching mainstream power of **530-550W**[25](index=25&type=chunk)[26](index=26&type=chunk) - Operationally, the company adopts a **'production-to-order' model**, primarily direct sales supplemented by distribution, and an R&D model focused on independent research complemented by industry-academia collaboration[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - In H2 2020, the company optimized its power plant business model to 'develop-build-operate-sell' by divesting existing power plants to revitalize assets; by year-end, operational power plant projects totaled nearly **440MW** of installed capacity[27](index=27&type=chunk) [Industry Situation and Competitive Position](index=13&type=section&id=III.%20Industry%20Situation) The global PV market is expanding, driven by 'carbon neutrality' and falling costs, shifting from 'policy-driven' to 'demand-driven'; the company, a leading integrated player, has ranked among the **global top three in module shipments** for three consecutive years - The global PV market continues to expand, with **138GW** of new installed capacity in 2020, projected to reach **184GW in 2021**, a **33% year-on-year increase**[33](index=33&type=chunk) - China's goals of carbon peaking by 2030 and carbon neutrality by 2060 will drive total wind and solar power installed capacity to **over 1.2 billion kilowatts**, providing vast growth opportunities for the industry[34](index=34&type=chunk) - With PV power achieving **'grid parity'**, the industry is transitioning from 'policy-driven' to 'demand-driven', indicating a clear long-term growth trend for the global market[36](index=36&type=chunk) - The company is a leading enterprise with a complete and well-coordinated industrial chain; according to PV InfoLink data, its module shipments consistently ranked among the **global top three from 2018 to 2020**[37](index=37&type=chunk) [Analysis of Core Competencies](index=15&type=section&id=III.%20Analysis%20of%20Core%20Competencies) The company's core competencies include its **vertically integrated industrial chain**, **global market presence**, **significant scale**, **leading technology**, **strong brand**, and **experienced management team**, solidifying its industry leadership - **Integrated Industrial Chain Advantage**: Covering the entire value chain from silicon ingots, wafers, cells, and modules to power plants, enhancing risk resistance and cost control capabilities[41](index=41&type=chunk) - **Global Market Layout Advantage**: Sales network spans **135 countries and regions** globally, with nearly **70% of module products exported overseas**, effectively diversifying market risks[42](index=42&type=chunk)[43](index=43&type=chunk) - **Scale Advantage**: As of end-2020, module capacity reached **23GW**, projected to exceed **40GW by end-2021**, with silicon wafer and cell capacities maintaining approximately **80% matching rate**, demonstrating significant economies of scale[44](index=44&type=chunk) - **Technological Advantage**: Mass-produced PERC cells achieve an average conversion efficiency of **23.20%**, with module power leading the industry; actively developing next-generation technologies like N-type cells and heterojunction[45](index=45&type=chunk) - **Quality and Brand Advantage**: Products have obtained multiple international authoritative certifications and received honors such as 'Top PV Brand in Europe', demonstrating strong brand influence[46](index=46&type=chunk) - **Management Team and System Advantage**: Possesses an experienced management team and a globalized management system, ensuring stable development and efficient operations[47](index=47&type=chunk)[48](index=48&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Section%204%20Management%20Discussion%20and%20Analysis) This chapter reviews the company's 2020 performance, highlighting **22.17% revenue growth to 25.85 billion yuan** and **20.34% net profit growth to 1.51 billion yuan**, driven by global expansion, innovation, and strategic financing, with detailed financial analysis and future outlook [Annual Operating Overview](index=18&type=section&id=I.%20Overview) In 2020, the company achieved stable operating performance with **25.85 billion yuan in revenue** (up **22.17%**) and **1.51 billion yuan in net profit** (up **20.34%**), making significant progress in global market expansion, innovation, and capacity building | Indicator | 2020 Amount | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 25.85 billion RMB | 22.17% | | Net Profit Attributable to Shareholders | 1.51 billion RMB | 20.34% | - Cell and module shipments reached **15.88GW**, with overseas shipments accounting for **68.3%**, ranking **third globally**[51](index=51&type=chunk) - Launched the DeepBlue3.0 ultra-high power module based on **182mm silicon wafers**, achieving **545W+ power**, solidifying technological advantage[52](index=52&type=chunk) - Completed a private placement of shares, raising funds for the Yiwu high-efficiency cell and module project, effectively supporting capacity expansion[54](index=54&type=chunk)[55](index=55&type=chunk) - Implemented an equity incentive plan, granting stock options and restricted shares to core management and technical personnel, establishing a long-term incentive mechanism[56](index=56&type=chunk) [Main Business Analysis](index=19&type=section&id=II.%20Main%20Business%20Analysis) This section analyzes main business revenue, costs, expenses, R&D, and cash flow, noting solar modules as the core revenue source (**92.96% of total**), a decline in gross margin due to higher cost growth, a decrease in sales expenses from accounting changes, and a **31.92% increase in R&D investment** 2020 Operating Revenue Composition | Category | Revenue Amount (RMB) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **By Product** | | | | | Solar Modules | 24,027,703,551.31 | 92.96% | 23.64% | | **By Region** | | | | | Domestic | 8,057,247,653.06 | 31.17% | 34.65% | | Overseas | 17,789,273,259.66 | 68.83% | 17.25% | - The gross margin for solar module business was **16.09%**, a **4.93 percentage point year-on-year decrease**, primarily because the increase in operating costs (**31.35%**) outpaced the increase in operating revenue (**23.64%**)[60](index=60&type=chunk) 2020 Key Expense Overview | Expense Item | 2020 Amount (RMB) | Year-on-Year Change | Main Change Explanation | | :--- | :--- | :--- | :--- | | Selling Expenses | 559,609,271.10 | -53.25% | Due to new revenue standard implementation, freight reclassified to cost of sales | | Administrative Expenses | 812,432,797.85 | 16.18% | New share-based payment expenses and new bases commencing operations | | Financial Expenses | 690,830,047.20 | 21.34% | Increased exchange losses due to exchange rate fluctuations | | R&D Expenses | 339,032,591.91 | 31.92% | Increased R&D investment in the current period | 2020 R&D Investment Overview | Indicator | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | R&D Investment Amount (RMB) | 1,452,855,559.98 | 1,117,667,481.59 | +29.99% | | R&D Investment as % of Operating Revenue | 5.62% | 5.28% | +0.34pp | [Analysis of Assets and Liabilities](index=24&type=section&id=IV.%20Analysis%20of%20Assets%20and%20Liabilities) As of year-end 2020, total assets reached **37.30 billion yuan** (up **30.74%**), with cash increasing due to private placement and inventory growing; the asset-liability ratio decreased from **70.92% to 60.21%**, optimizing the financial structure Major Balance Sheet Item Changes | Item | Amount at Year-End 2020 (RMB) | Explanation of Change from Beginning of Year | | :--- | :--- | :--- | | Cash and Cash Equivalents | 9,492,867,871.01 | Mainly due to increased funds raised from private placement of shares this period | | Inventories | 4,987,873,200.22 | Mainly due to rising material prices and expanded sales scale, leading to increased inventory | | Fixed Assets | 11,634,222,139.47 | Mainly due to completion and transfer of construction in progress and equipment purchases | | Notes Payable | 4,126,712,040.74 | Mainly due to expanded operating scale and increased purchases settled by notes | | Accounts Payable | 4,906,509,283.79 | Mainly due to expanded operating scale and increased payments for purchased materials | [Analysis of Investment Status](index=26&type=section&id=V.%20Analysis%20of%20Investment%20Status) In 2020, total investment increased **68.43% to 5.14 billion yuan**, primarily for capacity expansion, supported by a **5.16 billion yuan** private placement, and the company also used forward foreign exchange to hedge currency risks - Investment during the reporting period totaled **5.14 billion yuan**, a **68.43% year-on-year increase**, primarily for capacity expansion[83](index=83&type=chunk) - Major non-equity investment projects include the **Yiwu 5GW high-efficiency cell and 10GW high-efficiency module project** and the **Ningjin 3.6GW high-efficiency cell upgrade project**, aimed at boosting high-efficiency capacity[86](index=86&type=chunk) - A private placement of shares raised a total of **5.20 billion yuan**, with net proceeds of **5.16 billion yuan**, allocated to the 'Annual 5GW High-Efficiency Cell and 10GW High-Efficiency Module and Supporting Project' and supplementing working capital[90](index=90&type=chunk)[91](index=91&type=chunk) - The company engaged in forward foreign exchange derivative investments, with an investment amount of **1.59 billion yuan** at period-end, accounting for **10.84% of net assets**, generating **144 million yuan in gains** during the reporting period, aimed at hedging exchange rate fluctuation risks[88](index=88&type=chunk) [Outlook on Company's Future Development](index=38&type=section&id=IX.%20Outlook%20on%20Company%27s%20Future%20Development) The company foresees a bright future for global PV, entering the 'grid parity' era with accelerating industry concentration; its strategy involves global market penetration, capacity expansion, and R&D, targeting **25-30GW shipments in 2021** and **over 40GW module capacity**, while acknowledging policy, trade, supply chain, and currency risks - **Industry Trends**: Global carbon neutrality goals drive bright prospects for PV applications, with the industry entering the **'grid parity' era**, accelerating industrial concentration, and active product technology innovation[102](index=102&type=chunk)[104](index=104&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - **Company Strategy**: Committed to becoming a leading global solar PV solutions platform enterprise, adhering to principles of 'stable growth, sustained profitability', strengthening the main industrial chain, and increasing R&D and power plant investments[112](index=112&type=chunk) - **2021 Operating Plan**: Cell and module shipment target of **25-30GW**; by end-2021, module capacity is expected to exceed **40GW**, with silicon wafer and cell capacities reaching approximately **80% of module capacity**[113](index=113&type=chunk)[114](index=114&type=chunk) - **Major Risks**: The company faces risks from global industrial policy changes, international trade protectionism, supply chain stability, force majeure (such as pandemics), and exchange rate fluctuations[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [Significant Matters](index=45&type=section&id=Section%205%20Significant%20Matters) This chapter discloses the company's 2020 significant matters, including a proposed **2 yuan per 10 shares** dividend, completed performance commitments, equity incentives, major procurement contracts, subsidiary guarantees, asset optimization via power plant sales, and the actual controller's investigation [Profit Distribution and Capital Reserve Conversion to Share Capital](index=45&type=section&id=I.%20Company%27s%20Ordinary%20Share%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital) The company proposed a 2020 profit distribution plan to pay a cash dividend of **2 yuan (tax inclusive) per 10 shares** to all shareholders, with no bonus shares or capital reserve conversions, pending approval | Item | Content | | :--- | :--- | | Dividend per 10 shares (RMB) (tax inclusive) | 2 | | Bonus shares per 10 shares (shares) | 0 | | Capital reserve conversion to share capital | No conversion | | Estimated cash dividend to be distributed (RMB) | 319,066,505.00 (calculated based on total share capital as of March 29, 2021) | [Fulfillment of Commitments](index=47&type=section&id=III.%20Fulfillment%20of%20Commitments) The company and related parties fulfilled all commitments, with the major asset restructuring performance commitment for JA Solar's 2020 non-recurring net profit exceeding its **650 million yuan target by 213.59%**, and other commitments also being fulfilled 2020 Performance Commitment Fulfillment | Promisor | Committed Net Profit (RMB 10k) | Actual Net Profit (RMB 10k) | Fulfillment Rate | | :--- | :--- | :--- | :--- | | Jingtaifu, Qichang Electronics, Jin Junmiao | 65,000 | 138,831.76 | 213.59% | - Commitments by the controlling shareholder, actual controller, and other transaction parties regarding share lock-up, avoidance of horizontal competition, regulation of related-party transactions, and maintaining the listed company's independence are all being fulfilled as planned[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) [Implementation of Equity Incentive Plan](index=59&type=section&id=XV.%20Implementation%20of%20Company%27s%20Equity%20Incentive%20Plan%2C%20Employee%20Stock%20Ownership%20Plan%2C%20or%20Other%20Employee%20Incentive%20Measures) In 2020, the company implemented its '2020 Stock Option and Restricted Stock Incentive Plan' to attract talent, granting **16.55 million stock options to 110 grantees** and **9.53 million restricted shares to 436 grantees** - The company implemented an equity incentive plan in 2020, aiming to establish a long-term incentive mechanism to attract and retain core talent[146](index=146&type=chunk) - Initially granted **16.55 million stock options** to **110 incentive recipients**[146](index=146&type=chunk) - Initially granted **9.53 million restricted shares** to **436 incentive recipients**[146](index=146&type=chunk) [Major Contracts and Their Fulfillment](index=63&type=section&id=XVII.%20Major%20Contracts%20and%20Their%20Fulfillment) During the reporting period, the company signed major long-term procurement contracts for key raw materials, ensuring future supply, and provided substantial guarantees for subsidiaries totaling **19.32 billion yuan** to support their financing and business development - Signed long-term strategic procurement agreements for PV glass, polysilicon, and monocrystalline silicon wafers with suppliers including Rainbow Group New Energy, Xinte Energy, Xinjiang Daqo, Jingyuntong, and Almaden, ensuring the supply of critical raw materials[173](index=173&type=chunk)[174](index=174&type=chunk) - The company provided substantial guarantees for its subsidiaries, with the total actual guarantee amount at period-end being **19.32 billion yuan**, accounting for **131.85% of the company's net assets**, primarily to support subsidiary financing and daily operations[170](index=170&type=chunk)[173](index=173&type=chunk) [Other Significant Matters](index=78&type=section&id=XIX.%20Explanation%20of%20Other%20Significant%20Matters) This section discloses two significant matters: the successful private placement of shares in October 2020, supporting capacity expansion, and the ongoing investigation and detention of the actual controller, chairman, and general manager since November 2020 - The company completed a private placement of shares in October 2020, with new shares listed on October 30, providing financial support for the company's development[185](index=185&type=chunk)[186](index=186&type=chunk) - In November 2020, the company's actual controller, chairman, and general manager, **Mr. Jin Baofang**, was placed under investigation and detention by the Pingdu City Supervision Commission; as of the report disclosure date, the investigation is ongoing[186](index=186&type=chunk) [Share Changes and Shareholder Information](index=80&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) This chapter details the company's share capital changes and shareholder information, noting an increase in total share capital from **1.342 billion to 1.595 billion shares** due to equity incentives and private placement, with **Jingtaifu holding 50.22%** and **Mr. Jin Baofang as actual controller** [Share Change Situation](index=80&type=section&id=I.%20Share%20Change%20Situation) During the reporting period, total share capital increased from **1.342 billion to 1.595 billion shares** due to equity incentives and a private placement of **244 million shares**, with restricted shares rising from **71.20% to 75.64%** | Item | Quantity Before Change (shares) | Increase/Decrease in This Change (shares) | Quantity After Change (shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 955,260,947 | +251,382,227 | 1,206,643,174 | | Unrestricted Shares | 386,414,423 | +2,274,928 | 388,689,351 | | **Total Shares** | **1,341,675,370** | **+253,657,155** | **1,595,332,525** | - The increase in shares primarily stemmed from two parts: the grant of **9.53 million restricted shares** to incentive recipients, and the private placement of **244 million shares**[189](index=189&type=chunk)[190](index=190&type=chunk) [Shareholder and Actual Controller Information](index=84&type=section&id=III.%20Shareholder%20and%20Actual%20Controller%20Information) As of the reporting period end, the company had **47,091 ordinary shareholders**, with **Jingtaifu as controlling shareholder (50.22%)** and **Mr. Jin Baofang as actual controller**, and institutional investors among the top ten - The controlling shareholder is Ningjin Jingtaifu Technology Co., Ltd., with a **50.22% stake**[197](index=197&type=chunk)[201](index=201&type=chunk) - The company's actual controller is **Mr. Jin Baofang**[202](index=202&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Shares Held at Period-End | | :--- | :--- | :--- | | Ningjin Jingtaifu Technology Co., Ltd. | 50.22% | 801,177,333 | | Shenzhen Huajian Yingfu Investment Enterprise (Limited Partnership) | 8.87% | 141,431,000 | | Ningjin Qichang Electronics Technology Co., Ltd. | 4.35% | 69,329,807 | | Shenzhen Boyuan Enterprise Management Center (Limited Partnership) | 3.24% | 51,640,254 | | Beixin Ruifeng Fund related asset management plan | 1.47% | 23,474,178 | [Directors, Supervisors, Senior Management, and Employees](index=90&type=section&id=Section%209%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This chapter details the company's directors, supervisors, senior management, and employees, noting stable personnel, some executive share increases via equity incentives, an experienced management team, and over **25,000 employees** primarily in production and technology [D&S&SM Shareholding Changes](index=90&type=section&id=I.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, some of the company's directors and senior management increased their shareholdings through the 2020 equity incentive plan, all in the form of restricted shares, while Chairman Jin Baofang did not directly hold company shares - Several directors and senior executives acquired restricted shares through the equity incentive plan, including Director and Deputy General Manager **Xinwei Niu**, holding **353,100 shares** at period-end, and Director and Deputy General Manager **Huang Xinming**, holding **258,400 shares**[207](index=207&type=chunk)[208](index=208&type=chunk) [D&S&SM Remuneration](index=95&type=section&id=IV.%20Remuneration%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The company's D&S&SM remuneration is performance-linked, with total pre-tax remuneration in 2020 amounting to **19.48 million yuan**, including **3.43 million yuan for Chairman Jin Baofang** and **3.78 million yuan for Director Xinwei Niu** 2020 Remuneration for Selected D&S&SM | Name | Position | Total Pre-tax Remuneration from Company (RMB 10k) | | :--- | :--- | :--- | | Jin Baofang | Chairman, General Manager | 342.56 | | Xinwei Niu | Director, Deputy General Manager | 378.12 | | Huang Xinming | Director, Deputy General Manager | 304.22 | | Wu Tingdong | Deputy General Manager, Board Secretary | 267.42 | | Li Shaohui | CFO | 267.42 | | **Total** | **--** | **1,947.89** | [Company Employee Information](index=96&type=section&id=V.%20Company%20Employee%20Information) As of the reporting period end, the company had **25,183 employees**, primarily production (**21,167**) and technical staff (**1,899**), with over **8,000 holding college degrees or higher**, supported by competitive compensation and the JA Solar Academy | Category | Number of Employees (persons) | | :--- | :--- | | **Total Number of Employees** | **25,183** | | **Professional Composition** | | | Production Personnel | 21,167 | | Technical Personnel | 1,899 | | Sales Personnel | 358 | | **Education Level** | | | Master's Degree or Above | 313 | | Bachelor's Degree | 2,684 | | Associate Degree | 5,190 | - The company has established a performance-linked compensation system and implemented equity incentives, while also setting up JA Solar Academy to integrate internal and external resources for employee training, supporting international talent development[226](index=226&type=chunk)[227](index=227&type=chunk) [Corporate Governance](index=98&type=section&id=Section%2010%20Corporate%20Governance) This chapter outlines the company's governance structure and internal controls, confirming compliance with laws, independence from the controlling shareholder, effective board committees, and no material weaknesses in financial reporting internal controls for 2020 [Basic Corporate Governance Status](index=98&type=section&id=I.%20Basic%20Corporate%20Governance%20Status) During the reporting period, the company continuously improved its corporate governance structure and internal control systems in strict accordance with laws and regulations, ensuring compliance with CSRC requirements for listed company governance - The company's governance structure is sound, with the Shareholders' Meeting, Board of Directors, Supervisory Board, and senior management each performing their duties and operating in a standardized manner[229](index=229&type=chunk) - The company maintains complete separation and independence from its controlling shareholder in terms of business, personnel, assets, organization, and finance[229](index=229&type=chunk)[232](index=232&type=chunk) - The company's information disclosure is timely, accurate, and complete, safeguarding investors' right to know[230](index=230&type=chunk) [Internal Control Evaluation Report](index=102&type=section&id=IX.%20Internal%20Control%20Evaluation%20Report) Both the company's self-assessment and the auditor's report confirmed effective internal controls related to financial reporting in all material aspects as of December 31, 2020, with no material or significant deficiencies found - Board of Directors' self-assessment conclusion: The company has maintained effective internal controls over financial reporting in all material aspects in accordance with the enterprise internal control standards system and relevant regulations[242](index=242&type=chunk) - The accounting firm issued a standard unqualified internal control assurance report, concluding that the company maintained effective internal controls related to financial statements in all material aspects as of December 31, 2020[245](index=245&type=chunk) - No material or significant deficiencies in internal control were identified during the reporting period[242](index=242&type=chunk)[244](index=244&type=chunk) [Financial Report](index=106&type=section&id=Section%2012%20Financial%20Report) This core section of the company's 2020 financial report, audited with an unqualified opinion, includes consolidated and parent company financial statements and detailed notes, highlighting revenue recognition and accounts receivable impairment as key audit matters, and showing stable operations with improved assets and profitability [Audit Report](index=106&type=section&id=I.%20Audit%20Report) Lixin Certified Public Accountants issued a standard unqualified audit opinion on the company's 2020 financial statements, confirming fair presentation in accordance with accounting standards, with 'revenue recognition' and 'accounts receivable impairment' as key audit matters - The audit opinion type is a **standard unqualified opinion**[247](index=247&type=chunk)[248](index=248&type=chunk) - Key audit matters are: - **Revenue Recognition**: Due to the significant amount of operating revenue and its status as a key performance indicator, there is an inherent risk of management manipulating the timing of revenue recognition - **Impairment of Accounts Receivable**: The calculation of expected credit losses for accounts receivable requires significant judgment and estimation by management[250](index=250&type=chunk)[251](index=251&type=chunk) [Financial Statements](index=108&type=section&id=II.%20Financial%20Statements) This section presents the company's 2020 consolidated and parent company financial statements, showing total assets of **37.30 billion yuan**, total liabilities of **22.46 billion yuan**, net assets attributable to parent company of **14.66 billion yuan**, operating revenue of **25.85 billion yuan**, and net profit of **1.51 billion yuan** Consolidated Balance Sheet Summary (December 31, 2020) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 37,297,473,419.88 | | Total Liabilities | 22,457,784,835.62 | | Total Equity Attributable to Parent Company Owners | 14,656,177,411.82 | Consolidated Income Statement Summary (2020) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 25,846,520,912.72 | | Total Operating Costs | 24,148,751,260.64 | | Total Profit | 1,813,795,450.76 | | Net Profit Attributable to Parent Company Shareholders | 1,506,583,627.15 | Consolidated Cash Flow Statement Summary (2020) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 2,264,976,986.47 | | Net Cash Flow from Investing Activities | -2,495,411,992.90 | | Net Cash Flow from Financing Activities | 1,162,666,203.43 | | Net Increase in Cash and Cash Equivalents | 869,202,108.67 | [Significant Accounting Policies and Estimates Changes](index=148&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates%20Changes) During the reporting period, the company adopted the new revenue standard from January 1, 2020, adjusting opening balances by reclassifying accounts receivable to contract assets and prepayments to contract liabilities, and also changed the accounting estimate for bad debt provision on accounts receivable from grid companies - The company adopted the new revenue standard from **January 1, 2020**, adjusting the opening retained earnings and related financial statement items for the cumulative effect of contracts not yet completed at the date of initial application, with no adjustments to comparative financial statements[367](index=367&type=chunk) Impact of New Revenue Standard Adoption on Opening Consolidated Financial Statements | Statement Item | Adjustment Amount (RMB) | | :--- | :--- | | Accounts Receivable | -974,535,831.87 | | Contract Assets | +974,535,831.87 | | Contract Liabilities (Prepayments) | -1,804,174,970.46 | | Contract Liabilities | +1,779,305,432.24 | | Other Current Liabilities | +24,869,538.22 | - The company changed its accounting estimate for bad debt provision on accounts receivable from grid companies, shifting from no provision to providing for bad debts based on the aging portfolio of electricity sales receivables[373](index=373&type=chunk)[374](index=374&type=chunk) [Notes to Consolidated Financial Statement Items](index=160&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on major consolidated financial statement items, showing ample cash (partially restricted), growth in accounts receivable and inventory, significant fixed asset and construction in progress investments, and liabilities primarily composed of operating liabilities and short-term borrowings Notes to Major Balance Sheet Items (Year-End 2020) | Item | Balance at Period-End (RMB) | Note Explanation | | :--- | :--- | :--- | | Cash and Cash Equivalents | 9,492,867,871.01 | Of which 4.763 billion RMB are restricted funds like deposits | | Accounts Receivable | 3,511,811,345.49 | Bad debt provision of 235 million RMB | | Inventories | 4,987,873,200.22 | Raw materials and merchandise inventory account for a higher proportion | | Fixed Assets | 11,634,222,139.47 | Machinery and equipment, and buildings are the main components | | Construction in Progress | 1,598,160,824.95 | Mainly cell and module projects in Yiwu, Shanghai, etc | | Short-term Borrowings | 4,631,170,200.95 | Primarily guaranteed and mortgaged borrowings | | Notes Payable | 4,126,712,040.74 | Mostly bank acceptance bills | | Accounts Payable | 4,906,509,283.79 | Mainly for material purchases and service fees | [Changes in Consolidation Scope](index=214&type=section&id=VIII.%20Changes%20in%20Consolidation%20Scope) In 2020, the company's consolidation scope changed due to the disposal of five power plant subsidiaries to optimize assets, while also establishing new subsidiaries and deregistering non-operational companies to adapt to business development - The company lost control over **five subsidiaries** through single disposals, including Zhaluteqi JA Solar PV, Chifeng JA Solar PV, and Dunhuang JA Solar PV, all of which were power plant project companies[565](index=565&type=chunk)[566](index=566&type=chunk) - To support capacity expansion and business development, the company established several new subsidiaries during the reporting period, including Yiwu JA Solar and Qujing JA Solar PV Technology[567](index=567&type=chunk) - The company deregistered several subsidiaries, including Xilinhot JA Solar New Energy[567](index=567&type=chunk) [Related Parties and Related Party Transactions](index=230&type=section&id=XII.%20Related%20Parties%20and%20Related%20Party%20Transactions) This section discloses the company's main related parties and 2020 related-party transactions, with **Mr. Jin Baofang as ultimate controller**; transactions include raw material purchases, sales to associated power plants, leases, guarantees, and intercompany borrowings, all on market terms - Major related-party purchases: Procurement of raw materials from Xinte Energy Co., Ltd., totaling **595 million yuan**[603](index=603&type=chunk) - Major related-party sales: Sale of goods to associate company Yugan Jingguan Solar Power Generation Co., Ltd., totaling **126 million yuan**[606](index=606&type=chunk) - Related-party leases: Leasing of properties, land, and equipment from related parties including Jinglong Industry Group Co., Ltd. and Sunshine Silicon Peak Electronics Technology Co., Ltd., with total lease payments of approximately **127 million yuan**[607](index=607&type=chunk) - Related-party guarantees: Jinglong Industry Group, **Mr. Jin Baofang**, and other related parties provided multiple loan guarantees for the company[609](index=609&type=chunk) - Related-party borrowings: At period-end, the outstanding balance of borrowings payable to related party JASO PARENT LIMITED was **665 million yuan**[611](index=611&type=chunk)[485](index=485&type=chunk)

Financial Performance - In 2019, the net profit attributable to the parent company after deducting non-recurring gains and losses was CNY 1,283.44 million, exceeding the performance commitment of CNY 600 million, achieving a completion rate of 213.91%[6]. - JA Solar's revenue for 2019 was approximately 10.5 billion RMB, reflecting a 15% increase compared to the previous year[12]. - The company's operating revenue for 2019 was ¥21,155,479,989.81, representing a 7.67% increase compared to ¥19,648,949,042.76 in 2018[18]. - Net profit attributable to shareholders for 2019 reached ¥1,251,958,039.01, a significant increase of 74.09% from ¥719,138,789.10 in 2018[18]. - The company reported a basic earnings per share of ¥1.27 for 2019, which is a 69.33% increase compared to ¥0.75 in 2018[18]. - The weighted average return on equity for 2019 was 20.00%, up from 11.61% in 2018, indicating improved profitability[18]. - The company reported a total revenue of 1.5 billion RMB for the year 2019, representing a year-over-year growth of 20%[107]. - The company anticipates a net profit of no less than 65,000 million CNY for 2020, as part of its performance commitments[129]. Major Asset Restructuring - The company completed a major asset restructuring, acquiring 100% equity of JA Solar Technology Co., Ltd. by issuing 952,986,019 shares, increasing the total share capital to 1,341,675,370 shares[4]. - The restructuring was approved by the China Securities Regulatory Commission on November 6, 2019[4]. - The asset transfer obligations were deemed fulfilled as of November 15, 2019, transferring all rights, obligations, and risks to Huajian Xingye[5]. - The company completed a major asset restructuring on November 15, 2019, changing its main business to the research, production, and sales of silicon wafers, solar cells, and solar modules[126]. - The restructuring is expected to enhance the company's net asset per share and earnings per share without diluting current earnings[168]. - The company completed a major asset restructuring, selling all assets and liabilities to Huajian Xingye and acquiring 100% equity of JA Solar from multiple entities[164]. Business Operations and Strategy - JA Solar's main business has shifted to the research, production, and sales of silicon wafers, solar cells, and solar modules, as well as the development, construction, and operation of solar photovoltaic power plants following a major asset restructuring completed in November 2019[15]. - The company plans to expand its market presence in Europe and North America, targeting a 25% increase in international sales by 2021[12]. - The company is exploring potential mergers and acquisitions to strengthen its supply chain and expand its product offerings in the renewable energy sector[12]. - The company has established a complete photovoltaic industry chain production capability, including monocrystalline and polycrystalline silicon wafers, solar cells, and solar modules, with production bases located in Hebei, Jiangsu, Shanghai, Anhui, Inner Mongolia, Vietnam, and Malaysia[32]. - The company is actively pursuing strategic partnerships with key raw material suppliers to ensure stable supply chains and enhance product quality and reliability[96]. Research and Development - JA Solar's R&D expenditure for 2019 was approximately 500 million RMB, representing 5% of total revenue, focusing on advanced solar technologies and product innovation[12]. - The company is investing in new technologies, including PERC (Passivated Emitter Rear Cell) technology, which is expected to enhance cell efficiency by 1-2%[11]. - The company plans to enhance its R&D investment, particularly in PERC and N-type battery technologies, to improve conversion efficiency and meet the high-end market demand for high-power products[96]. - The company has authorized 779 patents, including 107 invention patents, reflecting its commitment to R&D and innovation[52]. Market Expansion and Sales - The company has established a global sales and service network covering over 120 countries, enhancing its brand influence and market presence[49]. - The company aims to achieve a shipment target of 15 GW for battery modules in 2020, focusing on expanding its market share in mature markets such as Europe, the US, and Japan while also increasing its presence in emerging markets[96]. - The company is actively pursuing international market expansion, particularly in Europe and North America, to diversify its revenue streams[140]. - The company has allocated 200 million RMB for research and development in 2020, focusing on innovative solar technologies[194]. Financial Health and Investments - The company’s total assets reached 30 billion RMB by the end of 2019, with a debt-to-equity ratio of 60%, indicating a stable financial position[12]. - The company has increased its long-term equity investments, primarily in the joint venture Fukushima Nakason Power Plant[42]. - The company has secured financing agreements totaling 30,000 million for various solar energy projects, indicating strong financial backing for future expansions[140]. - The company has completed major asset restructuring, shifting its main business focus to the R&D, production, and sales of silicon wafers, solar cells, and solar modules[62]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report[3]. - The company has highlighted potential risks in its future development outlook section[3]. - The company faces risks from domestic industrial policy changes that may affect operational stability and market conditions[98]. - International trade protection risks have increased due to tariffs imposed by the US and other countries on Chinese solar products, creating uncertainty for the company's operations[98]. - The company acknowledges potential risks from natural disasters and social unrest that could affect its operations globally[99]. Corporate Governance and Compliance - The company maintains an independent financial department and accounting system, ensuring financial independence from controlling entities[112]. - The company has committed to reducing related party transactions and ensuring fair pricing in unavoidable transactions[112]. - The company has established a comprehensive corporate governance structure to protect the rights of shareholders and creditors[148]. - The company has committed to ensuring that all assets remain under the control of the listed company, maintaining asset independence[110]. Sustainability and Social Responsibility - The company is committed to sustainability, with plans to achieve carbon neutrality in its operations by 2025[194]. - The company invested CNY 9.702 million in poverty alleviation projects, benefiting 3,388 impoverished households in 2019[158]. - The company has implemented the ISO14001 environmental management system to promote orderly environmental protection efforts[154]. - The company emphasizes social responsibility, aiming to develop solar energy for the benefit of humanity[147].