晶澳科技(002459) - 2020 Q4 - 年度财报

Important Notice, Table of Contents and Definitions 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] - 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] - 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] Company Profile and Key Financial Indicators 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 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] - 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] - 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] Key Accounting Data and Financial Indicators 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 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 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 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 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] - 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][26] - 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][29][30][31] - 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] Industry Situation and Competitive Position 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] - 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] - 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] - 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] Analysis of Core Competencies 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] - 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][43] - 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] - 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] - 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] - Management Team and System Advantage: Possesses an experienced management team and a globalized management system, ensuring stable development and efficient operations[47][48] Management Discussion and Analysis 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 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] - Launched the DeepBlue3.0 ultra-high power module based on 182mm silicon wafers, achieving 545W+ power, solidifying technological advantage[52] - Completed a private placement of shares, raising funds for the Yiwu high-efficiency cell and module project, effectively supporting capacity expansion[54][55] - Implemented an equity incentive plan, granting stock options and restricted shares to core management and technical personnel, establishing a long-term incentive mechanism[56] Main Business Analysis 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] 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 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 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] - 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] - 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][91] - 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] Outlook on Company's Future Development 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][104][108][109] - 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] - 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][114] - 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][116][117][118][119][120] Significant Matters 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 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 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][129][130][131][132][133][134][135] Implementation of Equity Incentive Plan 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] - Initially granted 16.55 million stock options to 110 incentive recipients[146] - Initially granted 9.53 million restricted shares to 436 incentive recipients[146] Major Contracts and Their Fulfillment 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][174] - 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][173] Other Significant Matters 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][186] - 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] Share Changes and Shareholder Information 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 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][190] Shareholder and Actual Controller Information 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][201] - The company's actual controller is Mr. Jin Baofang[202] 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 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 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][208] D&S&SM Remuneration 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 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][227] Corporate Governance 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 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] - The company maintains complete separation and independence from its controlling shareholder in terms of business, personnel, assets, organization, and finance[229][232] - The company's information disclosure is timely, accurate, and complete, safeguarding investors' right to know[230] Internal Control Evaluation Report 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] - 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] - No material or significant deficiencies in internal control were identified during the reporting period[242][244] Financial Report 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 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][248] - 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][251] Financial Statements 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 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] 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][374] Notes to Consolidated Financial Statement Items 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 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][566] - 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] - The company deregistered several subsidiaries, including Xilinhot JA Solar New Energy[567] Related Parties and Related Party Transactions 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] - Major related-party sales: Sale of goods to associate company Yugan Jingguan Solar Power Generation Co., Ltd., totaling 126 million yuan[606] - 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] - Related-party guarantees: Jinglong Industry Group, Mr. Jin Baofang, and other related parties provided multiple loan guarantees for the company[609] - Related-party borrowings: At period-end, the outstanding balance of borrowings payable to related party JASO PARENT LIMITED was 665 million yuan[611][485]