Global Company Analysis| March 16, 2021

Xinyi Solar Holdings (968 HK/Buy/Initiate) World's largest solar PV manufacturer

Yongdai Park [email protected]

Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the US PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT. Xinyi Solar (968 HK)

World's largest solar PV glass manufacturer

Investment points Rating (Initiate) Buy • The world’s largest solar PV glass manufacturer - Xinyi Solar stands to benefit from the strength of the global solar PV market. We expect the company to Target price HK$17.60 continue to grow rapidly, backed by capacity ramp-ups. Rise of bifacial modules Current price • HK$14.64 - The popularity of glass-glass (G/G) bifacial modules should provide a boost to solar PV glass demand. With its (3/15/21) competitive thin glass technology, Xinyi Solar is likely to be a major beneficiary.

Country Hong Kong • Industry-leading profitability - Xinyi Solar is likely to maintain healthy margins thanks to: 1) the strength in solar PV glass prices (which should remain high at least through 2021); 2) economies of scale from capacity additions; and 3) cost savings from in- Exchange Hong Kong house sourcing of raw materials.

Valuation Expected return 20.2% • We derived our target price of HK$17.6 by applying a fair P/E of 22x (2021F-22F peer average multiple). Risk factors EPS growth (21F, %) 44.2 • 1) Weaker-than-expected global solar PV demand; 2) capacity additions by rivals; and 3) a fall in solar PV glass P/E (21F, x) 18.3 prices Market P/E (21F, x) 14.9

Dividend yield (%) 1.6 800 Xinyi Solar FY (Dec.) 2018 2019 2020 2021F 2022F 2023F Market cap (HK$bn) 129.0 HIS INDEX Revenue (HK$mn) 7,672 9,096 12,316 18,628 23,424 27,209 Market cap (Wtr) 18.86 600 OP (HK$mn) 2,443 3,314 5,853 8,689 9,774 10,980 Shares outstanding (mn) 4,181.1 OP margin (%) 31.9 36.4 47.5 46.6 41.7 40.4 52-week low (HK$) 3.72 400 NP (HK$mn) 1,863 2,416 4,561 7,036 7,930 8,924 52-week high (HK$) 24.80 200 EPS (HK$) 0.24 0.30 0.55 0.80 0.90 1.01 ROE (%) 15.7 15.8 18.0 20.4 20.0 19.6 (%) 1M 6M 12M 0 P/E (x) 11.3 18.3 36.6 18.3 16.3 14.5 Absolute -30.0 47.9 210.2 P/B (x) 1.7 2.4 5.2 3.5 3.0 2.6 Relative -25.3 26.8 148.1 Source: Company data, Mirae Asset Daewoo Research

2 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Investment point 1: • Xinyi Solar, the world’s largest solar PV glass manufacturer, stands to benefit from the strength of the global solar World’s largest solar PV PV market. glass manufacturer • IHS Markit projects global solar PV installations to grow at a CAGR of 13% from 2019 to 2024. Allied Market Research forecasts the global solar PV glass market to expand at a CAGR of 30% from 2019 to 2026, backed by strong demand. • Against this backdrop, Xinyi Solar is aggressively expanding its daily melting capacity. • We estimate the firm’s aggregate daily melting capacity will expand to 13,800 tonnes in 2021 and 17,800 tonnes in 2022 (vs. 7,800 tonnes in 2019 and 9,800 tonnes in 2020). • Accordingly, we expect the firm’s solar PV glass revenue to grow 61% YoY in 2021 and 28% YoY in 2022.

Global solar PV glass M/S breakdown (based on capacity) Global solar PV glass M/S breakdown by capacity (2020)

2014 2015 2016 2017 2018 2019

Xinyi Solar 29% 28% 33% 32% 32% 27%

Flat Glass 18% 17% 13% 16% 17% 19%

IRICO 4%5%4%7%6%8% 31% 30% CNBM 2%2%5%7%9%7%

Jinxin Energy 9% 9% 11% 9% 8% 7%

Ancai Hi-Tech 6%5%4%4%3%6%

CSG 10% 9% 7% 6% 5% 5% 5% AVIC Sanxin 7% 7% 5% 4% 4% 3% 6% 18% Others in 1%4%7%6%9%11% 10% China total 85% 86% 89% 91% 92% 93%

Others outside China 15% 14% 11% 9% 8% 7% Xinyi Solar Flat Glass IRICO Jinxin Energy CNBM Others Global total 100% 100% 100% 100% 100% 100%

Source: Company data, Mirae Asset Daewoo Research Source: SCI99, Mirae Asset Daewoo Research

3 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Newly installed global solar PV capacity Global solar PV glass market size and outlook

(GW) Asia-Pacific Europe Americas Africa/Middle East (US$mn) 250 40,000 21 2019-2026F CAGR: +30.3% 200 19 2019-24F CAGR: +13% 15 36 30,000 9 39 41 150 39 51 3 44 20,000 6 29 33 40 100 4 23 152 16 22 2 10 12 25 18 122 10,000 50 111 8 103 108 116 9 70 70 72 83 36 51 0 0 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E

Source: SolarEdge, IHS, Mirae Asset Daewoo Research Source: Allied Market Research, Mirae Asset Daewoo Research

Xinyi Solar: Daily melting capacity Xinyi Solar: Solar PV revenue

(tonnes/day) (HK$bn) 20,000 30 70% 60% 25 16,000 50% 20 12,000 40% 15 30% 8,000 20% 10 10% 4,000 5 0% 0 0 -10% 2014 2015 2016 2017 2018 2019 2020 2021F 2022F 2016 2017 2018 2019 2020 2021E 2022E 2023E

Source: Company data, Mirae Asset Daewoo Research Source: Company data, Mirae Asset Daewoo Research

4 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Investment point 2: • Xinyi Solar stands to benefit from the rise of bifacial modules, which are driving up demand for solar PV glass. Rise of bifacial modules • Globally, bifacial solar PV modules are gaining popularity over monofacial modules thanks to their ability to capture both direct (front panel) and indirect (back panel) sunlight. • The China Photovoltaic Industry Association (CPIA) projects bifacial modules’ market share in China to rise from 13% in 2019 to 70% in 2025. Their global market share should also increase, albeit at a slower pace. • G/G bifacial modules display high power generation efficiency, but are heavy and expensive, as they require two pieces of glass (for the front and back). The International Technology Roadmap for Photovoltaics (ITRPV) projects the market share of G/G bifacial modules to rise to 30% by 2030. • We expect weight issues to be gradually addressed by new technologies. As a leader in the thin glass segment (able to produce lighter glass with thickness of 2mm and 2.5mm), Xinyi Solar is competitively positioned.

Mono-facial modules vs. bifacial modules Bifacial modules as % of the Chinese solar PV market

Bifacial Monofacial 100%

30 80%

60% 87

40% 70

20%

13 0% 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F Source: Mirae Asset Global Investments, Mirae Asset Daewoo Research Source: CPIA, Mirae Asset Daewoo Research

5 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Market share of G/G modules to expand on the back of higher power Bifacial modules as % of global solar PV module market generation efficiency Bifacial Monofacial Glass-foil Glass-glass Foil-foil 100% 100%

80% 80% 67 60% 60% 87

40% 40%

20% 20% 33 13 0% 0% 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F 2019 2020 2022 2024 2027 2030 Source: ITRPV, Mirae Asset Daewoo Research Source: ITRPV, Mirae Asset Daewoo Research

Power generation efficiency: G/G modules > glass-foil modules Thinner solar PV glass to gain market share

More than 3mm 2mm to 3mm Less than 2mm 100%

80%

60%

40%

20%

0% 2018 2019 2021F 2023F 2026F 2029F

Source: Solarwatt, Mirae Asset Daewoo Research Source: ITRPV, Mirae Asset Daewoo Research

6 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Investment point 3: • For Xinyi Solar’s solar PV glass business, we forecast gross margin at 50% in 2021 and 45% in 2022. Industry-leading • The global solar PV glass market is undersupplied as a result of: 1) pandemic-related delays in capacity profitability expansions; and 2) the Chinese government’s capacity control measures. Tight supply combined with growing demand has led to high prices, which are likely to continue through 2021. • Moreover, Xinyi Solar should continue to enjoy cost competitiveness thanks to: 1) economies of scale from capacity expansions; and 2) internal sourcing of raw materials (silica sand). The two biggest cost drivers are raw materials (approximately 30% of total production costs; soda lime and silica sand) and fuel (natural gas: 30%). • Xinyi Solar has a low-iron silica sand mine in Beihai, Guangxi Province. Given that a steady supply of high-purity silica sand is essential to solar PV , Xinyi Solar is more competitively positioned than rivals. • Internal sourcing from the silica sand mine (which began operation in Sep. 2020) helps Xinyi Solar defend margins against a possible increase in raw material prices.

Gross margin by major solar PV glass manufacturer Xinyi Solar: Solar PV glass production cost breakdown

(%) 60 Xinyi Solar Flat Glass Luoyang Glass Almaden Ancai Hi-Tech

50 23% 30%

40

7% 30

20 10% 15%

10 15%

Natural gas Soda ash Silica sand Electricity Labor Other 0 2015 2016 2017 2018 2019 2020 Source: Company data, Mirae Asset Daewoo Research Source: CNESA Global Energy Storage Database, Mirae Asset Daewoo Research

7 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Earnings and forecasts

(HK$mn, %) 2018 2019 2020 2021F 2022F 2023F Revenue 7,672 9,096 12,316 18,628 23,424 27,209 Solar glass 5,562 6,767 9,992 16,072 20,613 24,117 Solar farm business 1,920 2,228 2,324 2,556 2,811 3,093 EPC services 189 101 0 0 0 0 COGS (4,711) (5,185) (5,732) (8,752) (12,124) (14,612) GP 2,960 3,912 6,584 9,876 11,300 12,597 Selling & marketing expenses (271) (282) (317) (559) (703) (816) Admin. & other operating expenses (413) (427) (548) (838) (1,054) (1,054) Other operating income/expenses 167 111 134 210 231 254 EBIT 2,443 3,314 5,853 8,689 9,774 10,980 Non-operating income/expenses (197) (221) (95) (98) (91) (84) PBT 2,246 3,093 5,758 8,591 9,683 10,896 Tax (205) (294) (735) (859) (968) (1,090) PAT 2,042 2,799 5,023 7,732 8,714 9,807 Minority interests 179 382 462 696 784 883 NP 1,863 2,416 4,561 7,036 7,930 8,924

Revenue (YoY) -19% 19% 35% 51% 26% 16% GP (YoY) -13% 32% 68% 50% 14% 11% PBT (YoY) -19% 38% 86% 49% 13% 13% NP (YoY) -20% 30% 89% 54% 13% 13% Gross margin 39% 43% 53% 53% 48% 46% SG&A/revenue 8% 8% 10% 8% 8% 8% EBIT margin 32% 36% 48% 47% 42% 40% Net profit margin 24% 27% 37% 38% 34% 33%

Source: Company data, Mirae Asset Daewoo Research

8 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Valuation • Shares of Xinyi Solar are trading at a 2021F P/E of 18x and a 2022F P/E 16x, a discount to major global solar PV equipment manufacturers (2021F/22F average P/Es of 25x and 19x, respectively). • After surging to HK$24.8 on a broad rally in the renewable energy sector (amid the global shift to a green economy), the stock has pulled back. • We derived our target price of HK$17.6 by applying a fair P/E of 22x (2021F-22F peer average). • Despite a number of premium factors (favorable industry environment, no. 1 position in the global solar PV glass market, cost competitiveness, and differentiated products), we settled on our target multiple in consideration of possible risks (a potential decline in glass prices after the strong rally in 2020; capacity additions by peers).

Xinyi Solar: P/E valuation table

(HK$mn) 2018 2019 2020 2021E 2022E 2023E

Net profit 1,863 2,416 4,561 7,036 7,930 8,924

YoY -20% 30% 89% 54% 13% 13%

EPS 0.24 0.30 0.55 0.80 0.90 1.01

YoY -30% 24% 83% 44.2% 12.7% 13%

P/E (x) 11.3 18.3 36.6 18.3 16.3 14.5

12MF EPS (HK$) 0.80

Target P/E (x) 22

Target price (HK$) 17.6

Source: Company data, Mirae Asset Daewoo Research

9 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Peer valuation table

Price Market cap P/E (x) P/B (x) ROE (%) EPS growth (%) Company Ticker (local currency) (US$mn) 21F 22F 21F 22F 21F 22F 21F 22F Xinyi Solar 968 HK 14.6 16,611 18.3 16.3 3.5 3.0 20.4 20.0 44.2 12.7

Flat Glass Group 6865 HK 24.7 8,555 27.4 16.4 6.3 4.9 26.8 30.7 67.1 31.2

IRICO Group 438 HK 1.6 718 17.4 6.8 2.8 2.1 21.4 34.6 156.6 33.3

CSG Holding 000012 CH 6.3 2,346 21.4 18.0 1.9 1.8 9.2 8.9 18.9 33.5

Changzhou Almaden 002623 CH 33.2 818 44.7 20.3 2.4 2.1 5.5 10.8 119.6 68.5

Average 27.7 15.4 3.3 2.7 15.7 21.2 90.5 41.6

LONGi Green Energy Technology 601012 CH 82.0 47,564 36.5 27.3 8.7 6.7 24.7 25.4 33.8 22.9

Tongwei 600438 CH 31.1 21,538 31.0 24.6 5.5 4.7 19.6 19.9 26.2 25.9

Tianjin Zhonghuan Semi. 002129 CH 26.6 12,393 37.7 28.4 3.9 3.5 10.2 12.1 32.8 33.0

Flat Glass Group 601865 CH 27.3 8,555 36.0 22.5 7.9 6.2 24.8 28.2 59.9 27.6

Wacker Chemie WCH GY 116.4 7,239 19.5 18.2 2.2 2.0 10.7 10.1 7.0 17.8

Hanwha Solutions 009830 KS 44,500.0 6,491 13.2 11.9 1.1 1.0 8.8 9.0 11.4 (4.9)

Daqo New Energy DQ US 88.1 6,119 15.7 14.0 4.5 3.2 34.9 27.3 12.1 12.9

OCI 010060 KS 126,500.0 2,658 20.9 16.0 1.1 1.1 5.7 7.0 30.6 42.4

Canadian Solar CSIQ US 44.8 2,647 27.3 22.5 1.6 1.4 6.8 9.1 21.1 38.0

Jinko Solar JKS US 46.8 2,189 15.1 10.8 1.2 1.0 8.6 10.9 39.0 (0.1)

Risen Energy 300118 CH 15.6 2,163 21.5 11.6 1.6 1.4 7.3 12.1 85.3 36.6

Average 24.9 18.9 3.6 2.9 14.7 15.5 32.7 22.9

Source: Bloomberg, Mirae Asset Daewoo Research

10 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Xinyi Solar: 12-month forward P/E band chart Xinyi Solar: 12-month forward P/B band chart

(HK$) (HK$) 24 24 21 5x 25x 20 18 20x 4x 15 16 3x 12 15x 12 9 2x 10x 8 6 4 1x 3 5x 0 0 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021

Source: Bloomberg, Mirae Asset Daewoo Research Source: Bloomberg, Mirae Asset Daewoo Research

Xinyi Solar: 12-month forward P/E ± 2 SD Xinyi Solar: 12-month forward P/B ± 2 SD

(x) (x) 30 6

25 5

20 4 +2 SD +2 SD 15 +1 SD 3 +1 SD 5yr Avg 10 2 5yr Avg 5 -1 SD 1 -1 SD -2 SD 0 0 -2 SD 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021

Source: Bloomberg, Mirae Asset Daewoo Research Source: Bloomberg, Mirae Asset Daewoo Research

11 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Company overview • Xinyi Solar is the world’s largest solar PV glass manufacturer. • After being spun off from , Xinyi Solar was listed on the main board of the Hong Kong Stock Exchange in Dec. 2013. • Xinyi Solar engages in: 1) solar PV glass production (revenue mix of 81%); and 2) the development and establishment of solar farms (19%). • In 2020, Xinyi Solar had daily melting capacity of 9,800 tonnes, operating production facilities in four locations: Tianjin (China), Anhui Wuhu (China), Beihai (China), and Melaka (Malaysia).

Xinyi Solar: Company history Xinyi Solar: Revenue and NP

(HK$bn) 14 Revenue Net profit 2008 2013 2016 2020 Became world’s Listed on the main Malaysian factory Silica sand mine in first company to board of the Hong production Guangxi province produce ultra- Kong Stock began production 12 clear PV glass Exchange

10

8

6

2012 2015 2019 Began development Expanded to Spun off Xinyi 4 and construction of the EPC Energy solar farms business 2

0 2015 2016 2017 2018 2019 2020

Source: Company data, Mirae Asset Daewoo Research Source: Company data, Mirae Asset Daewoo Research

12 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research World's largest solar PV glass manufacturer

Xinyi Solar: Revenue by business Xinyi Solar’s solar PV glass revenue mix: Sales in China and exports

(HK$bn) Domestic Overseas 100% 14 Solar glass 18% 15% 21% Solar farm business 25% 27% 23% 12 80% EPC services 10 60% 8 6 40% 82% 85% 79% 75% 73% 77% 4 20% 2 0 0% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

Source: Company data, Mirae Asset Daewoo Research Source: Company data, Mirae Asset Daewoo Research

Xinyi Solar: Production capacity (2020) Xinyi Solar: Ownership structure

Production line Capacity (tpd) Commencement year 58.12% Tianjin 500 2011 Xinyi Glass Wuhu 1 500 2011 Controlling shares of General Holding Ltd. Xinyi Glass investors Wuhu 2 500 2011 (868 HK) Wuhu 3 600 2011 27.7% 24.3% 48.0% Wuhu 4 900 2014 Wuhu 5 900 2014 Wuhu 6 1,000 2016 Xinyi Solar Holding Ltd. Wuhu 7 1,000 2017 (968 HK) Beihai 1 1,000 2020 Beihai 2 1,000 2020 52.7% Domestic 7,900 Malaysia 1 900 2016 Xinyi Energy Malaysia 2 1,000 2018 Holding Ltd. (3868 HK) Total 9,800

Source: Company data, Mirae Asset Daewoo Research Source: Company data, Mirae Asset Daewoo Research

13 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research Financial data

Income statement (summarized) Balance sheet (summarized)

(HK$mn) 2019 2020 2021F 2022F (HK$mn) 2019 2020 2021F 2022F Current assets 9,467 19,878 22,254 25,010 Revenue 9,096 12,316 18,628 23,424 Cash & equivalents 2,221 9,291 9,526 10,489 Cost of revenue -5,185 -5,732 -8,752 -12,124 Accounts & notes receivable 5,437 8,136 9,108 10,237 GP 3,912 6,584 9,876 11,300 Inventories 410 728 992 1,171 Non-current assets Operating expenses -598 -730 -1,187 -1,526 18,930 23,545 26,359 29,624 PP&E 17,960 21,814 24,628 27,893 OP 3,314 5,853 8,689 9,774 LT investments & receivables 190 212 212 212 EBITDA 4,149 6,772 9,700 10,886 Total assets 28,397 43,423 48,613 54,635 Net non-operating income -221 -95 -98 -91 Current liabilities 5,290 7,725 8,057 8,499 Payables & accruals 2,413 4,085 4,348 4,720 PBT 3,093 5,758 8,591 9,683 Tax -294 -735 -859 -968 ST bank & other borrowings 2,845 3,459 3,528 3,598 Non-current liabilities 4,534 3,674 3,728 3,783 PAT 2,799 5,023 7,732 8,714 LT bank & other borrowings 4,465 3,350 3,404 3,459 Minority interests 382 462 696 784 Total liabilities 9,824 11,399 11,785 12,282 NP 2,416 4,561 7,036 7,930 Shareholders’ equity 18,573 32,025 36,828 42,352

Cash flow statement (summarized) Key metrics (summarized)

(HK$mn) 2019 2020 2021F 2022F 2019 2020 2021F 2022F NP 2,416 4,561 7,036 7,930 P/E (x) 18.3 36.6 18.3 16.3 Depreciation & amortization 835 919 1,011 1,112 P/B (x) 2.45.23.53.0 Non-cash items 384 299 299 299 EV/EBITDA (x) 13.1 19.4 14.6 13.1 Chg. in working capital -2,004 -2,000 -2,000 -2,000 EPS (HK$) 0.30 0.55 0.80 0.90 Operating cash flow 1,632 3,779 6,346 7,341 BPS (HK$) 2.33 3.89 4.18 4.81 Capex -2,312 -4,000 -4,000 -4,000 DPS (HK$) 0.14 0.17 0.24 0.27 Other 0 0 0 0 Payout ratio 46.2% 30.7% 30.0% 30.0% Cash from investing activities -2,312 -4,000 -4,000 -4,000 Dividend yield 1.0% 1.2% 1.6% 1.8% Dividends -878 -1,374 -2,111 -2,379 ROAA 9.2% 12.7% 15.3% 15.4% Debt raised -2,134 -500 0 0 15.8% 18.0% 20.4% 20.0% Equity raised 1,344 9,165 0 0 ROAE Cash from financing activities 2,127 7,291 -2,111 -2,379 Current ratio (x) 1.8 2.6 2.8 2.9 Net chg. in cash 1,437 7,070 235 962 Quick ratio (x) 1.7 2.5 2.6 2.8 Beginning cash 784 2,221 9,291 9,526 Net debt/equity 27.4% 6.9% 16.3% 13.8% Ending cash 2,221 9,291 9,526 10,489 Net debt/EBITDA (x) 1.20.30.60.5 Source: Company data, Mirae Asset Daewoo Research Source: Company data, Mirae Asset Daewoo Research

14 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research Appendix 1

Important disclosures and disclaimers Two-year rating and TP history

Company Date Rating TP (HK$) Xinyi Solar Holdings (968 HK) 03/16/21 Buy 17.60

Stock ratings Sector ratings Buy Expected 12-month performance: +20% or greater Overweight Expected to outperform the market over 12 months Trading Buy Expected 12-month performance: +10% to +20% Neutral Expected to perform in line with the market over 12 months Hold Expected 12-month performance: -10% to +10% Underweight Expected to underperform the market over 12 months Sell Expected 12-month performance: -10% or worse

Rating and TP history: Share price (─), TP (▬), Not Rated (■), Buy (▲), Trading Buy (■), Hold (●), Sell (◆) * Our investment rating is a guide to the expected return of the stock over the next 12 months. * Outside of the official ratings of Mirae Asset Daewoo Co., Ltd., analysts may call trading opportunities should technical or short-term material developments arise. * The TP was determined by the research analyst through valuation methods discussed in this report, in part based on estimates of future earnings. * TP achievement may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.

Ratings distribution and investment banking services Buy Trading Buy Hold Sell Ratings distribution 78.43% 11.76% 8.50% 1.31% Investment banking services 66.67% 22.22% 11.11% 0.00% * Based on recommendations in the last 12 months (as of December 31, 2020)

15 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research Appendix 1

Disclosures As of the publication date, Mirae Asset Daewoo Co., Ltd. and/or its affiliates do not have any special interest with the subject company and do not own 1% or more of the subject company's shares outstanding.

Analyst certification The research analysts who prepared this report (the “Analysts”) are registered with the Korea Financial Investment Association and are subject to Korean securities regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws or regulations thereof. Each Analyst responsible for the preparation of this report certifies that (i) all views expressed in this report accurately reflect the personal views of the Analyst about any and all of the issuers and securities named in this report and (ii) no part of the compensation of the Analyst was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report. Mirae Asset Daewoo Co., Ltd. (“Mirae Asset Daewoo”) policy prohibits its Analysts and members of their households from owning securities of any company in the Analyst’s area of coverage, and the Analysts do not serve as an officer, director, or advisory board member of the subject companies. Except as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report. Like all employees of Mirae Asset Daewoo, the Analysts receive compensation that is determined by overall firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading, and private client divisions. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or Mirae Asset Daewoo except as otherwise stated herein.

Disclaimers This report was prepared by Mirae Asset Daewoo, a broker-dealer registered in the Republic of Korea and a member of the Korea Exchange. Information and opinions contained herein have been compiled in good faith and from sources believed to be reliable, but such information has not been independently verified and Mirae Asset Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein or of any translation into English from the Korean language. In case of an English translation of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this report. The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws, and accounting principles, and no person whose receipt or use of this report would violate any laws or regulations or subject Mirae Asset Daewoo or any of its affiliates to registration or licensing requirements in any jurisdiction shall receive or make any use hereof. This report is for general information purposes only and is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The report does not constitute investment advice to any person, and such person shall not be treated as a client of Mirae Asset Daewoo by virtue of receiving this report. This report does not take into account the particular investment objectives, financial situations, or needs of individual clients. The report is not to be relied upon in substitution for the exercise of independent judgment. Information and opinions contained herein are as of the date hereof and are subject to change without notice. The price and value of the investments referred to in this report and the income from them may depreciate or appreciate, and investors may incur losses on investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. Mirae Asset Daewoo, its affiliates, and their directors, officers, employees, and agents do not accept any liability for any loss arising out of the use hereof. Mirae Asset Daewoo may have issued other reports that are inconsistent with, and reach different conclusions from, the opinions presented in this report. The reports may reflect different assumptions, views, and analytical methods of the analysts who prepared them. Mirae Asset Daewoo may make investment decisions that are inconsistent with the opinions and views expressed in this research report. Mirae Asset Daewoo, its affiliates, and their directors, officers, employees, and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or agents. Mirae Asset Daewoo and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making, or other financial services as are permitted under applicable laws and regulations. No part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset Daewoo. For further information regarding company-specific information as it pertains to the representations and disclosures in this Appendix 1, please contact [email protected] or +1 (212) 407-1000.

16 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research Appendix 1

Distribution United Kingdom: This report is being distributed by Mirae Asset Securities (UK) Ltd. in the United Kingdom only to (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth companies and other persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the Order (all such persons together being referred to as “Relevant Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or any of its contents. United States: Mirae Asset Daewoo is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This report is distributed in the U.S. by Mirae Asset Securities (USA) Inc., a member of FINRA/SIPC, to “major U.S. institutional investors” in reliance on the exemption from registration provided by Rule 15a-6(b)(4) under the U.S. Securities Exchange Act of 1934, as amended. All U.S. persons that receive this document by their acceptance hereof represent and warrant that they are a major U.S. institutional investor and have not received this report under any express or implied understanding that they will direct commission income to Mirae Asset Daewoo or its affiliates. Any U.S. recipient of this document wishing to effect a transaction in any securities discussed herein should contact and place orders with Mirae Asset Securities (USA) Inc. Mirae Asset Securities (USA) Inc. accepts responsibility for the contents of this report in the U.S., subject to the terms hereof, to the extent that it is delivered to a U.S. person other than a major U.S. institutional investor. Under no circumstances should any recipient of this research report effect any transaction to buy or sell securities or related financial instruments through Mirae Asset Daewoo. The securities described in this report may not have been registered under the U.S. Securities Act of 1933, as amended, and, in such case, may not be offered or sold in the U.S. or to U.S. persons absent registration or an applicable exemption from the registration requirements. Hong Kong: This report is distributed in Hong Kong by Mirae Asset Securities (HK) Limited, which is regulated by the Hong Kong Securities and Futures Commission. The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This report is for distribution only to professional investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance of Hong Kong (Cap. 571, Laws of Hong Kong) and any rules made thereunder and may not be redistributed in whole or in part in Hong Kong to any person. All other jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Mirae Asset Daewoo or its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject Mirae Asset Daewoo and its affiliates to any registration or licensing requirement within such jurisdiction.

17 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research Mirae Asset Daewoo International Network

Mirae Asset Daewoo International Network

Mirae Asset Daewoo Co., Ltd. (Seoul) Mirae Asset Securities (HK) Ltd. Mirae Asset Securities (UK) Ltd. One-Asia Equity Sales Team Units 8501, 8507-8508, 85/F 41st Floor, Tower 42 Mirae Asset Center 1 Building International Commerce Centre 25 Old Broad Street, 26 Eulji-ro 5-gil, Jung-gu, Seoul 04539 1 Austin Road West London EC2N 1HQ Korea Kowloon United Kingdom Hong Kong Tel: 82-2-3774-2124 Tel: 852-2845-6332 Tel: 44-20-7982-8000

Mirae Asset Securities (USA) Inc. Mirae Asset Wealth Management (USA) Inc. Mirae Asset Wealth Management (Brazil) CCTVM 810 Seventh Avenue, 37th Floor 555 S. Flower Street, Suite 4410, Rua Funchal, 418, 18th Floor, E-Tower Building New York, NY 10019 Los Angeles, California 90071 Vila Olimpia USA USA Sao Paulo - SP 04551-060 Brazil Tel: 1-212-407-1000 Tel: 1-213-262-3807 Tel: 55-11-2789-2100

PT. Mirae Asset Sekuritas Indonesia Mirae Asset Securities (Singapore) Pte. Ltd. Mirae Asset Securities (Vietnam) LLC Equity Tower Building Lt. 50 6 Battery Road, #11-01 7F, Saigon Royal Building Sudirman Central Business District Singapore 049909 91 Pasteur St. Jl. Jend. Sudirman, Kav. 52-53 Republic of Singapore District 1, Ben Nghe Ward, Ho Chi Minh City Jakarta Selatan 12190 Vietnam Indonesia Tel: 62-21-515-3281 Tel: 65-6671-9845 Tel: 84-8-3911-0633 (ext.110) Mirae Asset Securities Mongolia UTsK LLC Mirae Asset Investment Advisory (Beijing) Co., Ltd Beijing Representative Office #406, Blue Sky Tower, Peace Avenue 17 2401B, 24th Floor, East Tower, Twin Towers 2401A, 24th Floor, East Tower, Twin Towers 1 Khoroo, Sukhbaatar District B12 Jianguomenwai Avenue, Chaoyang District Beijing 100022 B12 Jianguomenwai Avenue, Chaoyang District Beijing 100022 Ulaanbaatar 14240 China China Mongolia

Tel: 976-7011-0806 Tel: 86-10-6567-9699 Tel: 86-10-6567-9699 (ext. 3300) Shanghai Representative Office Ho Chi Minh Representative Office Mirae Asset Capital Markets (India) Private Limited 38T31, 38F, Shanghai World Financial Center 7F, Saigon Royal Building Unit No. 506, 5th Floor, Windsor Bldg., Off CST Road, Kalina, 100 Century Avenue, Pudong New Area 91 Pasteur St. Santacruz (East), Mumbai – 400098 Shanghai 200120 District 1, Ben Nghe Ward, Ho Chi Minh City India China Vietnam

Tel: 86-21-5013-6392 Tel: 84-8-3910-7715 Tel: 91-22-62661336

18 | Xinyi Solar (968 HK) Mirae Asset Daewoo Research