晶澳科技(002459) - 2021 Q4 - 年度财报

Important Notes, Table of Contents, and Definitions Company Profile and Key Financial Indicators The company's basic information and key financial indicators for 2021 show significant growth in revenue and net profit Company Information The company's main business shifted to the photovoltaic industry following a major asset restructuring in 2019 - The company completed a major asset restructuring in November 2019, shifting its main business to the R&D, production, and sales of silicon wafers, solar cells, and modules[12] - Following the restructuring, the controlling shareholder changed to Jingtaifu, and the actual controller changed to Mr. Jin Baofang[12] Key Accounting Data and Financial Indicators The company achieved significant growth in core financial metrics, with revenue reaching RMB 41.30 billion | Indicator | 2021 | 2020 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB Yuan) | 41,301,753,627.90 | 25,846,520,912.72 | 59.80% | | Net Profit Attributable to Shareholders (RMB Yuan) | 2,038,628,714.36 | 1,506,583,627.15 | 35.31% | | Net Cash Flow from Operating Activities (RMB Yuan) | 3,750,322,313.58 | 2,264,976,986.47 | 65.58% | | Basic Earnings Per Share (RMB Yuan/Share) | 1.28 | 1.09 | 17.43% | | Total Assets (RMB Yuan) | 56,967,447,397.01 | 37,297,473,419.88 | 52.74% | | Net Assets Attributable to Shareholders (RMB Yuan) | 16,494,261,123.66 | 14,656,177,411.82 | 12.54% | Quarterly Key Financial Indicators The company's performance showed a quarter-over-quarter growth trend in both revenue and net profit throughout 2021 | Indicator | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB Yuan) | 6,956,051,544.30 | 9,236,373,500.29 | 9,904,796,967.09 | 15,204,531,616.22 | | Net Profit Attributable to Shareholders (RMB Yuan) | 156,838,070.95 | 556,549,305.92 | 598,998,922.99 | 726,242,414.50 | Non-recurring Profit and Loss Items and Amounts Non-recurring gains and losses totaled RMB 191.83 million in 2021, mainly from government subsidies and financial instrument gains | Item | 2021 Amount (RMB Yuan) | Description | | :--- | :--- | :--- | | Government subsidies included in current profit and loss | 210,897,386.21 | Mainly due to an increase in government subsidies received in the current period | | Gains/losses from changes in fair value of financial instruments | 226,777,605.31 | Mainly gains from currency hedging | | Gains/losses from disposal of non-current assets | -112,783,397.32 | Mainly due to disposal of obsolete assets from technological advancements | | Other non-operating income and expenses | -131,144,545.36 | Mainly charitable donations, poverty alleviation expenses, pandemic impact, and customer default payments | | Total | 191,829,200.30 | -- | Management Discussion and Analysis This section analyzes the industry landscape, core business, competitive strengths, operating results, and future outlook Industry Overview The global photovoltaic industry is in a high-growth phase driven by carbon neutrality goals and declining costs - Multiple countries have proposed "zero-carbon" or "carbon neutrality" targets, making renewable energy development, led by photovoltaics, a global consensus, with annual global PV installations expected to exceed 220GW during the "14th Five-Year Plan" period[24] - In 2021, China's new PV installations reached 54.88GW, a year-on-year increase of 13.9%, with distributed PV installations at 29.28GW, accounting for 53.4% and exceeding 50% for the first time in history[33] - As photovoltaic power generation achieves "grid parity," the PV market is gradually shifting from "policy-driven" to "demand-driven," ensuring long-term global market growth[34] Principal Business The company operates a vertically integrated model covering the entire photovoltaic industry chain from silicon to power stations - The company operates on a vertically integrated model within the solar photovoltaic industry chain, with its main business covering the R&D, production, and sales of solar PV silicon wafers, cells, and modules, as well as the development, construction, and operation of solar PV power plants[37] - The company's mainstream module product, DeepBlue 3.0, based on 182mm large-size wafers, can achieve a power output of 535-555W for the 72-cell version, offering customers a more cost-effective product[40] - The company adopts a "produce-to-order" production model and combines direct sales with distribution, with its overseas sales teams largely localized[44][45] Core Competitiveness Analysis The company's core strengths lie in its vertical integration, global layout, scale, technology, quality, and management - The company has established a vertically integrated industry chain including silicon rods, wafers, cells, modules, and PV power plants, enhancing its risk resilience and reducing product costs[49] - The company's sales and service network covers 135 countries and regions globally, with overseas factories ensuring a stable supply to international markets, ranking in the top three globally for module shipments for five consecutive years from 2017 to 2021[50] - By the end of 2021, the company's module capacity was nearly 40GW, with silicon wafer and cell capacity at about 80% of module capacity, planning to exceed 50GW in module capacity by the end of 2022[51] - The company's mass-produced Percium cells achieve an average conversion efficiency of 23.60%, and its Bycium N-type cells reach 24.60% in pilot production, demonstrating industry-leading technology[52] Analysis of Main Business Operations The company's revenue grew 59.80% to RMB 41.30 billion, with cell and module shipments ranking second globally Analysis of Assets and Liabilities Total assets grew 52.74% to RMB 56.97 billion, driven by investments in capacity expansion and business growth | Asset Item | Year-end 2021 Amount (RMB Yuan) | Change from Beginning of Year | Main Reason | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 13,219,130,963.54 | +39.25% | Increased net cash inflow from operating and financing activities | | Inventories | 7,956,989,804.91 | +59.53% | Increased material prices and inventory stocking for expanded sales | | Fixed Assets | 14,225,434,622.06 | +22.21% | Completion and transfer of crystal pulling, cell, and PV power plant projects | | Construction in Progress | 4,185,859,140.41 | +161.92% | Increased investment in production line construction | | Total Assets | 56,967,447,397.01 | +52.74% | | | Liability Item | Year-end 2021 Amount (RMB Yuan) | Change from Beginning of Year | Main Reason | | :--- | :--- | :--- | :--- | | Short-term Borrowings | 7,592,291,960.20 | +63.94% | Increased financing needs due to expanded production and sales | | Notes Payable | 8,052,871,794.57 | +95.14% | Increased procurement settled with notes due to business expansion | | Contract Liabilities | 3,771,964,452.27 | +233.93% | Increased customer prepayments due to a rise in outstanding orders | Analysis of Investment Total investment reached RMB 10.71 billion, a 108.43% increase, focusing on capacity expansion and raw material supply - Total investment during the reporting period was RMB 10.71 billion, an increase of 108.43% from RMB 5.14 billion in the previous year[84] - Major equity investments include a RMB 1.70 billion capital increase in Yiwu JA Solar, a RMB 315 million investment for a 9% stake in Inner Mongolia Xinte Silicon Materials, and a RMB 2.00 billion capital increase in JA Solar Investment (China)[86] - Major construction projects continued to advance, including the Yiwu cell and module project and the Qujing crystal pulling and wafer slicing project, with a total investment of RMB 5.78 billion during the reporting period[88][89][90] - To mitigate currency risks, the company engaged in derivative investments such as forward foreign exchange contracts, with a year-end investment value of RMB 2.57 billion and realized gains of RMB 227 million during the period[92] Future Outlook The company will pursue its 'One Body, Two Wings' strategy, targeting 35-40GW in shipments for 2022 while managing key risks - The company will advance its "One Body, Two Wings" strategy: strengthening its core PV smart manufacturing business, refining its PV auxiliary materials and equipment industry, and optimizing downstream PV application solutions[108] | Outlook Item | 2022 Target | | :--- | :--- | | Cell and Module Shipments | 35-40GW | | Module Capacity (Year-end) | Over 50GW | | Silicon Wafer and Cell Capacity (Year-end) | Approximately 80% of module capacity | - The company faces key risks including: global industrial policy changes, international trade protectionism, supply chain stability, force majeure events, and currency exchange rate fluctuations[111][112][113][114][115] Corporate Governance This section details the company's governance structure, board operations, executive compensation, and internal control systems Basic Situation of Corporate Governance The company maintains a sound corporate governance structure and operates independently from its controlling shareholder - The company has established a corporate governance structure centered on the Shareholders' Meeting, Board of Directors, Board of Supervisors, and senior management, with four specialized committees: Strategy, Audit, Nomination, and Remuneration and Appraisal[119] - The company is completely separate from its controlling shareholder in terms of business, personnel, assets, organization, and finance, possessing independent and complete business operations and self-management capabilities[119] Directors, Supervisors, and Senior Management This section details the profiles, shareholdings, and remuneration of directors, supervisors, and senior management | Name | Position | Total Pre-tax Remuneration from the Company (RMB 10,000) | Receives Remuneration from Affiliated Parties | | :--- | :--- | :--- | :--- | | Jin Baofang | Chairman, General Manager | 370.64 | No | | He Zhiping | Vice Chairman | 0 | Yes | | Xinwei Niu | Director, Deputy General Manager | 355.08 | No | | Tao Ran | Director, Deputy General Manager | 197.64 | No | | Wu Tingdong | Deputy General Manager, Board Secretary | 278.54 | No | | Li Shaohui | Chief Financial Officer | 278.54 | No | - During the reporting period, Mr. Huang Xinming, Director and Deputy General Manager, retired upon reaching the statutory retirement age[129] Implementation of Equity Incentive Plan The company continued to implement its 2020 stock option and restricted stock incentive plan during the reporting period - On February 26, 2021, the company granted 1.4477 million reserved stock options to 49 incentive recipients and 454,300 reserved restricted shares to 36 incentive recipients[160][161] - On May 17, 2021, the Board of Directors confirmed that the conditions for the first exercise period of the initial stock option grant and the first vesting period of the initial restricted stock grant under the 2020 incentive plan had been met[161] - Due to the implementation of the 2020 profit distribution plan, the company adjusted the exercise price of stock options and the repurchase price of restricted stocks accordingly[162] Internal Control Evaluation The company's self-assessment concluded that its internal controls were effective in all material respects with no major deficiencies - The Board of Directors' self-assessment concluded that as of December 31, 2021, the company maintained effective internal control over financial reporting in all material respects, with no material weaknesses in financial or non-financial reporting internal controls[166] | Deficiency Classification Standard | Financial Reporting | Non-Financial Reporting | | :--- | :--- | :--- | | Qualitative Standard | Material weaknesses include lack of decision-making procedures, decisions leading to major errors, and violations of national laws and regulations resulting in penalties | Material weaknesses include unscientific decision-making processes, violations of national laws and regulations, loss of key management and technical personnel, and lack of control over important business areas | | Quantitative Standard | Linked to indicators such as total profit, operating revenue, total assets, and total shareholders' equity; for example, a misstatement exceeding RMB 5 million of total profit or 3% of total assets is considered a material weakness | Similar to financial reporting quantitative standards, using total profit, operating revenue, total assets, and total shareholders' equity as measurement indicators | Environmental and Social Responsibility This section outlines the company's practices regarding environmental protection, social welfare, and stakeholder engagement Major Environmental Issues Several subsidiaries are listed as key pollutant-discharging units, with all emissions meeting regulatory standards - The listed company and several of its subsidiaries, including JA Solar Co., Ltd., Ningjin Songgong Electronic Materials Co., Ltd., and Hefei JA Solar Technology Co., Ltd., are designated as key pollutant-discharging units by environmental protection authorities[174] - The company has established comprehensive pollution prevention facilities and management systems for waste gas, wastewater, and solid waste, and has installed online monitoring devices connected to environmental authorities to ensure compliance[177] - During the reporting period, the company did not receive any administrative penalties for environmental issues[179] Social Responsibility The company actively fulfills its social responsibilities through stakeholder protection, safe production, and charitable activities - The company strictly adheres to labor laws, protects employee rights, insists on equal pay for equal work, and prohibits forced labor and child labor[181] - In 2021, the company joined the United Nations Global Compact and the China Green Supply Chain Alliance PV Professional Committee, and received multiple ESG and social responsibility awards[183] - The company is actively involved in philanthropy, donating RMB 10 million to flood relief in Henan and RMB 1 million to support pandemic control in Yangzhou Economic Development Zone in 2021, while continuing to promote public welfare projects[184] Significant Events This section covers the fulfillment of performance commitments, major transactions, and other significant corporate actions Fulfillment of Commitments All commitments were strictly fulfilled, including the successful achievement of performance targets from the major asset restructuring - The performance commitment for the major asset restructuring, which required JA Solar's net profit after deducting non-recurring items to be no less than RMB 600 million, RMB 650 million, and RMB 700 million for 2019, 2020, and 2021 respectively, has been fully met[187][197][198][199] - In 2021, JA Solar achieved a net profit after deducting non-recurring items of RMB 1.40 billion, reaching 200.16% of the committed performance target[199] - Long-term commitments regarding share lock-ups, reduction of related-party transactions, avoidance of horizontal competition, and maintaining the independence of the listed company are all being duly fulfilled[188][189][190][191][192] Material Guarantees The company's total guarantees, provided solely for its subsidiaries, amounted to RMB 31.55 billion at year-end | Guarantee Situation (RMB 10,000) | Approved Guarantee Limit at Period End | Actual Guarantee Balance at Period End | | :--- | :--- | :--- | | External Guarantees | 0 | 0 | | Guarantees for Subsidiaries | 3,338,857.59 | 2,655,308.24 | | Guarantees between Subsidiaries | 1,309,416.89 | 500,106.61 | | Total | 4,648,274.48 | 3,155,414.85 | - The total actual guarantee balance at the end of the reporting period represented 191.30% of the company's net assets[246] - The debt guarantee balance for guaranteed parties with an asset-liability ratio exceeding 70% was RMB 13.37 billion[246] Material Related-Party Transactions Major related-party transactions involved raw material procurement from and co-investment with Xinte Energy - The company purchased raw materials from the related party Xinte Energy Co., Ltd., with the transaction amount for the period being RMB 2.23 billion, accounting for 7.53% of similar transactions[206] - The company jointly invested with the related party Xinte Energy Co., Ltd. in Inner Mongolia Xinte Silicon Materials Co., Ltd., with the company contributing RMB 315 million for a 9.00% stake[86][209] - The company has a non-operating receivable from Huajian Xingye Investment Co., Ltd., an entity controlled by the former actual controller, related to the consideration for a major asset restructuring, with a year-end balance of RMB 366 million[210][211] Explanation of Other Significant Events Key events include the release of the actual controller from investigation and the successful non-public offering of shares - On April 16, 2021, Mr. Jin Baofang, the company's actual controller, Chairman, and General Manager, was released from detention by the supervisory authority and resumed normal work[252] - To facilitate the non-public offering of shares, the company decided to terminate its share repurchase plan on December 9, 2021[252] - The company's 2021 non-public offering application was approved by the China Securities Regulatory Commission on March 7, 2022, and the proceeds have been received, intended for projects such as the "20GW Monocrystalline Silicon Ingot and 20GW Monocrystalline Silicon Wafer Project"[252][253] Changes in Share Capital and Shareholders This section details changes in the company's share capital due to equity incentives and provides an overview of its shareholder structure Changes in Share Capital Total share capital increased slightly to 1.60 billion shares due to the exercise and grant of equity incentives | Item | Beginning of Period Shares | Change during Period | End of Period Shares | | :--- | :--- | :--- | :--- | | Shares Subject to Trading Restrictions | 1,206,643,174 | -367,210,869 | 839,432,305 | | Shares Not Subject to Trading Restrictions | 388,689,351 | +371,270,450 | 759,959,801 | | Total Share Capital | 1,595,332,525 | +4,059,581 | 1,599,392,106 | - The increase in total shares was mainly due to the exercise and grant of shares under the equity incentive plan[257] Shareholders and Actual Controller The company's controlling shareholder is Jingtaifu Technology, with Mr. Jin Baofang as the actual controller - The company's controlling shareholder is Ningjin County Jingtaifu Technology Co., Ltd., with a shareholding of 50.09%; the actual controller is Mr. Jin Baofang[264][269][270] | Shareholder Name | Shareholding Ratio | Shares Held at Period End | Pledged, Marked, or Frozen Status | | :--- | :--- | :--- | :--- | | Ningjin County Jingtaifu Technology Co., Ltd. | 50.09% | 801,177,333 | None | | Shenzhen Huajian Yingfu Investment Enterprise (LP) | 8.84% | 141,431,000 | Pledged 94,161,114 shares | | Dongtai Qichang Electronic Technology Co., Ltd. | 3.71% | 59,316,700 | None | | Shenzhen Boyuan Enterprise Management Center (LP) | 2.61% | 41,708,554 | Pledged 25,820,127 shares | | Hong Kong Securities Clearing Company Ltd. | 1.99% | 31,834,841 | None | Financial Report This section contains the 2021 audited financial statements, which received a standard unqualified audit opinion Audit Report Lixin Certified Public Accountants issued a standard unqualified opinion, identifying revenue recognition and accounts receivable impairment as key audit matters - The audit firm, Lixin Certified Public Accountants (Special General Partnership), issued a standard unqualified audit report (Xin Kuai Shi Bao Zi [2022] No. ZB10396)[277] - Key audit matters were revenue recognition and impairment of accounts receivable, for which the auditors performed sufficient procedures including evaluating internal controls, examining contracts, and executing confirmation and analytical procedures[281][282] Financial Statements This section presents the detailed consolidated and parent company financial statements for the fiscal year 2021