Appendices Solar energy

Black silicon dry etching – textured surface on multi cell Black silicon wet etching – textured surface on multi cell

Source: GCL-Poly Source: GCL-Poly

Black silicon texturing Black silicon texturing improve multi cell efficiency by 0.6ppts to 0.7ppts improve multi cell efficiency by 0.6ppts to 0.7ppts

Source: GCL-Poly

17 November 2020 [email protected] 201 Appendices Solar energy

Appendix 14: Solar tech: Round-shaped ribbon Round-shaped ribbon A thinner, round-shape A thinner, and round-shape ribbon for the MBB rather than a flat ribbon could be ribbon reduces shading and used - this reduces shading and increases the photons hitting the surface of the increases the photons semiconductor. With a round-shape wire, incident light gets reflected at various hitting the surface of the angles, and more light hits the cells. At the same time, according to CPIA, the usage semiconductor of silver paste is reduced significantly for MBB (9BB reduces silver paste usage by 25% versus 5BB), at the same time increasing power output by 2% and reducing micro-cracks.

A flat rectangular ribbon blocks light A round-shape ribbon reflects light

Source: LG Source: LG

202 [email protected] 17 November 2020 Appendices Solar energy

Appendix 15: Solar tech: Half-cut solar cells Half cut solar cell modules Another small tweak to the Another small tweak to the cell-module fabrication technique is half cut cells, which cell-module fabrication is done by cutting a full-size solar cell into two half-size cell with an infrared laser. technique is half cut cell The logic is simple, with half-cut cells, the electrical current flowing in each busbar is halved, and for that reason the amount of internal losses in a solar module with half-cut cells is only a quarter of a full-sized cell module.

With half-cut, module With half-cut, module power output is boosted by another 2-3%, a tweak that is power output is boosted by straightforward and logical. CPIA foresees that half-cell will increase its share from another 2-3% 21% in 2019 to over 70% by 2025, of course, with full-size cells seeing diminishing market share.

Half-cell modules will be Half-cell modules will be the mainstream the mainstream (%) Overlapping Half-cut Full-size 100 90 80 70 60 50 40 30 20 10 0 2018 2019 2020F 2021F 2022F 2023F 2025F Source: CPIA

With half-cut, module Modules with half-cut cells versus full-size cells power output is boosted by another 2-3%

Source: Jinko Solar

17 November 2020 [email protected] 203 Appendices Solar energy

Joule’s Law - Power dissipation = I^2 x R

Source: Jinko Solar

Half-cut cells lower the hot spot temperature Half-cut cell enables Hot spot refers to the heating up of a solar cells when the cell is shaded, either by better reliability tress, leafs, bird droppings, or by other solar modules. With half-cut cells, because the current is half of a full-size cell, the hot spot temperature could be substantially reduced (10-20Ԩ, according to Longi), which enables better reliability. Having a hot spot is in no way good, but half-cut is an effective mitigation.

Half-cut cell reduce hot spot temperature

Source: Longi

The long explanation: Recall that solar cells are connected in a series in a solar module (and the fact that a solar cell is essentially a diode). When a particular cell is shaded while other cells in series are unshaded, the illuminated cells are operated in “forward bias” (i.e. electrons following from the P-region to the N-region, which is triggered by photons), and the energy collected by the unshaded cells would be sent to the shaded cell, which is operating as if a diode was in “reverse bias”. This shaded cell will dissipate the energy in the form of heat, which is referred as “hot spot”. If the duration is long enough, the hot spot would bring irreversible degradation of solar modules.

204 [email protected] 17 November 2020 Appendices Solar energy

Half-cut lowers operating temperature The operating temperature For a similar reasons, even if a hot spot does not exist in a module, the operating in the half-cell module is temperature in the half-cell module is going to be lower, simply because the going to be lower working current is 50% of its full-cell counterpart.

Lower operating temperature

Source: Longi

Working temperature is Working temperature is ~2 degrees lower for half-cell modules ~2 degrees lower for half-cell modules

Source: Jinko Solar

Half-cut cells arrangement offers less shading impact Shading causes hot Shading causes hot spot issues, but another serious consequence is that the power spot issues output of other solar cells connected in the same series will be affected. This is because the solar energy captured by the unshaded cells will be dissipated by the shaded cells. A typical standard solar module nowadays consists of 72 cells (6x12 cells), which are usually grouped in 3 x 24 cells, with each group protected by one bypass diode (i.e. 3 bypass diodes in total, at the junction box). If any one of the cells in a group is shaded, the power output from the other 23 cells in the same series will drop to zero, or a 33% power loss. In the most extreme cases, if at each string of cells there is one shaded cell, the power output of the whole module would drop to zero.

17 November 2020 [email protected] 205 Appendices Solar energy

One solution to this is to add one bypass diode to every solar cell (i.e. 72 bypass diodes), which would enable the current from the unshaded cells to flow through the bypass diode instead of the shaded cells. Sunpower and AE Solar (and some others) do offer hot-spot-free modules that have bypass diodes for all the cells. The downside is the additional cost of the bypass diodes.

By doubling the strings of Here is where the half-cut cells come in. The half-cell module would put together cells, the power loss from 144 half-cells (6 x 24 cells), and the cells are connected in 6 groups, instead of 3 shading would be reduced groups. The cells are arranged in the upper half and lower half, with 2 string of cells connected to one bypass diode in parallel, so still using a total of 3 bypass diodes. By doubling the strings of cells, the power loss from shading would be reduced.

Modules built with 210mm solar cells with triple cut Triple-cut a 210mm cell, Another twist to the half-cut cell is “triple-cut” cells, by cutting a piece of 210mm half-cut a 166mm cell solar cells into 3 pieces. The logic is similar to the half-cut modules, lowering the power dissipation in the busbar. Trina Solar has already launched new products with that arrangement to provide 500 watt+ solar modules. The reason that a triple cut is selected for 210mm cells is because half-cutting the 210mm cells would result in higher series resistance otherwise (a half-cut 210mm cell would be bigger than a half-cut 166mm cell, as simple as that).

Module power of different cutting forms, versus the number of busbars

Source: Trina Solar

Source: Trina Solar, PV Tech

At the same time, 1/4 cut or even 1/5 cut cells were considered, but the increase in manufacturing complexity outweighs (and higher process risk) the increase in power output. The 1/4 cut would increase open circuit voltage, impacting number of modules per string and increase BOS. Trina also said 1/4 cut or 1/5 cut cells arrangement would require more bypass diodes, but triple cut cells arrangement only requires 3 diodes.

Managing the process risk, at the same time strike for higher output Full cell Half cut 1/3 cell 1/4 cell Power (max) 473 watt 495 Watt 500 Watt 502 Watt Mono-facial current 18.2A 18.2A 12.1A 9.1A Voltage (open circuit) 34.3V 34.3V 51.5V 68.7V Process risk Low Low Normal High Source: Trina Solar

206 [email protected] 17 November 2020 Appendices Solar energy

Appendix 16: Solar tech: Multi-busbar Multi-busbar (MBB) Busbars and fingers are Busbars and fingers are metalised thin strips printed on the front and back of the metalised thin strips printed solar cell. They are responsible for collecting the electrons flowing from the emitter, on the front and back of the and the busbars are ultimately connected to the junction box at the panels. solar cell In 2019, the mainstream cells were wired with 5 busbar (“5BB”), but CPIA expects a rapid migration to 9BB in the next 5 years. Historically, the number of busbars on a single cell has been increasing, initially at 2BB. The latest cell design aims at more busbars, or MBB technology, with the aim to reduce the series resistance in the cells. For a similar argument, more busbars shorten the travel distance of current on the fingers (or the small grid on the cells). That is why, 12BB (e.g. LG Solar) or even more are busbars are being proposed.

More busbars, enabling More busbars, enabling short power collection path, which reduces power loss short power collection path, which reduces power loss

Source: Trina Solar

9 busbars quickly becoming 9 busbars quickly becoming the most popular among cell makers the most popular among cell makers (%) Others >9 BBs 9 BBs 5 BBs 4 BBs 100 90 80 70 60 50 40 30 20 10 0 2018 2019 2020F 2021F 2022F 2023F 2025F

Source: CPIA

17 November 2020 [email protected] 207 Appendices Solar energy

Appendix 17: Solar tech: Encapsulation Encapsulation The cell spacing of a conventional solar panel is 2mm, due to the restriction of ribbon strength. Better encapsulation methods have been developed to increase power output further. Currently, module producers either opted for high-density encapsulation or overlapping. While overlapping would increase efficiency the most, the lower production yield could be a problem.

High-density encapsulation increase power output while managing a high yield rate

Source: Trina Solar

208 [email protected] 17 November 2020 Appendices Solar energy

Appendix 18: Solar tech: Other benefits of bifacial More durable Glass-to-glass bifacial Glass-to-glass bifacial modules offer higher reliability. Compared to conventional modules offer higher glass-to-plastic/glass-to-polymer modules, the double glass design is helpful to reliability reduce the degradation of modules, because both sides are UV-resistant and PID (potential induced degradation) risks are reduced. Degradation refers to the decline in output that all solar panels experience over time. For example, Trina Solar claims that, over the lifetime of its bifacial modules, it can generate 20% more power versus conventional monofacial modules. The module maker also offers 30-years warranty, versus 25-years for conventional monofacial modules.

Trina Solar claims that its Trina Solar claims that its bifacial modules are more durable and efficient, versus monofacial bifacial modules are more durable and efficient, versus monofacial

Source: Trina Solar

Glass-on-glass modules experience less “microcracks” Although they have some One of the reasons that glass-on-glass modules are more reliable, is that it reduces ability to be flexible, the the chance of “microcracks’. Crystalline solar PV cells are made of very thin solar solar cell can suffer from wafers, usually around 0.20mm thick (and this will only become thinner over time). pressure/stress induced Although they have some ability to be flexible, the solar cell can suffer from “microcracks” pressure/stress induced “microcracks”. The cracks could be too small to spot with our naked eye, and can only be found with specific test (Electro Luminescene, or Infra-Red).

Micro cracks can be caused by poor handling of the solar cells during assembly (usually through non automated systems), or transport/ installation damage from vibration or shock if improperly handled or dropped.

17 November 2020 [email protected] 209 Appendices Solar energy

Appendix 19: Solar tech: Product prices history Price of polysilicon: decrease over time due to expansion in China Polysilicon dropped from Because of the expansion of production capacity in China, polysilicon dropped from the peak of above the peak of above US$100/kg in 2010, to only US$7.5/kg in June-July-2020, before US$100/kg in 2010, to only rebounding to US$10.7/kg in Sep-2020. If we add up the capacity of all the US$7.5/kg in June-July- polysilicon production plant globally and if all of them are up-and-running, annual 2020 production capacity could be nearly 700,000 tons in 2019 (IEA PVPS data), up from 446,000 tons in 2015. However, we estimate that production volume of polysilicon n 2019 to be around 500000 – 550000 tons in 2019, meaning that the high cost capacity would not be fully utilized.

Polysilicon ex-factory prices (2010-2020)

120 (US$/kg) Yongxiang (Tongwei) GCL-Poly Daqo Tier-1 average

100

80

60

40

20

0 Feb 11 Feb Feb 12 Feb Feb 13 Feb Feb 14 Feb Feb 15 Feb Feb 16 Feb Feb 17 Feb Feb 18 Feb Feb 19 Feb Feb 20 Feb Aug 10 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Aug 16 Aug 17 Aug 18 Aug 19 Aug 20 Nov 10 Nov Nov 11 Nov Nov 12 Nov Nov 13 Nov Nov 14 Nov Nov 15 Nov Nov 16 Nov Nov 17 Nov Nov 18 Nov Nov 19 Nov May 11 May 12 May 13 May 14 May 15 May 16 May 17 May 18 May 19 May 20 Source: WIND, CLSA

Zoom in . . . polysilicon price since 2016

25 (US$/kg) Yongxiang (Tongwei) GCL-Poly Daqo Tier-1 average

20

15

10

5

0 Jul 16 Jul 17 Jul 18 Jul 19 Jul 20 Jan 16 Jan 17 Jan 18 Jan 19 Jan 20 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Nov 16 Nov 17 Nov 18 Nov 19 Nov 20 Nov May 16 May 17 May 18 May 19 May 20 Source: WIND, CLSA

210 [email protected] 17 November 2020 Appendices Solar energy

Price of solar wafer Solar wafer prices (2011-2020)

3.0 (US$/piece) Mono wafer 156mm x 156mm Multi wafer 156mm x 156mm

2.5

2.0

1.5

1.0

0.5

0.0 Jul 11 Jul 12 Jul 13 Jul 14 Jul 15 Jul 16 Jul 17 Jul 18 Jul 19 Jul 20 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Jan 19 Jan 20 Apr 12 Apr 13 Apr 14 Apr 15 Apr 16 Apr 17 Apr 18 Apr 19 Apr 20 Oct 11 Oct 12 Oct 13 Oct 14 Oct 15 Oct 16 Oct 17 Oct 18 Oct 19 Oct 20

Source: WIND, CLSA

Zoom in . . . Solar wafer prices since 2016

1.0 (US$/piece) Mono wafer 156mm x 156mm Multi wafer 156mm x 156mm

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0 Jul 16 Jul 17 Jul 18 Jul 19 Jul 20 Jan 16 Jan 17 Jan 18 Jan 19 Jan 20 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Nov 16 Nov Nov 17 Nov Nov 18 Nov Nov 19 Nov Nov 20 Nov May 16 May 17 May 18 May 19 May 20 Source: WIND, CLSA

Price of solar cells and modules: In the same direction Price of solar cells and Price of solar cells and modules were down nearly 90% in the past ten years. Again, modules were down nearly for the reason, cost improvement and at the same time subsidies intensity reduces 90% in the past ten years over time to encourage cost reduction. However, if you had talked to any company in the sector in 2010, nobody wouldn’t have imagined such a dramatic price fall and cost improvement - but it has to happen to make solar competitive. Will solar product price come down significantly in 2021-2030? Certainly there is chance, but the key difference in 2021-2030 is that, solar PV is already competitive in more regions even without government subsidies. That means, in the future, the price of solar modules (and cells) will be less influenced by subsidy policies.

17 November 2020 [email protected] 211 Appendices Solar energy

Solar cell price (2011-now)

0.9 (US$/Watt)

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0 Jul 11 Jul 12 Jul 13 Jul 14 Jul 15 Jul 16 Jul 17 Jul 18 Jul 19 Jul 20 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Jan 19 Jan 20

Source: WIND, CLSA

Solar cell price (2016 to now)

0.40 (US$/Watt)

0.35

0.30

0.25

0.20

0.15

0.10

0.05

0.00 Jul 16 Jul 17 Jul 18 Jul 19 Jul 20 Jan 16 Jan 17 Jan 18 Jan 19 Jan 20 Apr 16 Apr 17 Apr 18 Apr 19 Apr 20 Oct 16 Oct 17 Oct 18 Oct 19 Oct 20

Source: WIND, CLSA

212 [email protected] 17 November 2020 Appendices Solar energy

Solar module price (2011-now)

1.4 (US$/watt) C-Si module Thin film module

1.2

1.0

0.8

0.6

0.4

0.2

0.0 Jul 11 Jul 12 Jul 13 Jul 14 Jul 15 Jul 16 Jul 17 Jul 18 Jul 19 Jul 20 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Jan 19 Jan 20

Source: WIND, CLSA

Solar module price (2016 to now)

0.7 (US$/watt) C-Si module Thin film module

0.6

0.5

0.4

0.3

0.2

0.1

0.0 Jul 20 Jul 19 Jul 18 Jul 17 Jul 16 Jan 20 Jan 19 Jan 18 Jan 17 Jan 16 Apr 20 Apr 19 Apr 18 Apr 17 Apr 16 Oct 20 Oct 19 Oct 18 Oct 17 Oct 16

Source: WIND, CLSA

17 November 2020 [email protected] 213 Appendices Solar energy

Appendix 20: Power generation mix by regions Power generation mix by regions

Oil Natural Gas Coal Nuclear Hydro Others Wind power Solar power Other renewables

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% North America South and Europe CIS Middle East Africa Asia Pac Global Central America

Source: BP

Global breakdown of electricity generation by fuel (2019)

Nuclear 10% Hydro 16% Solar power 3%

Others 1% Other renewables 3%

Other 11% Coal 36%

Oil 3% Wind power 5% Natural Gas 23%

Note: The reader should note the difference between energy mix and power generation mix: energy is a broader concept, while electricity is one form of energy utilisation. Source: BP

214 [email protected] 17 November 2020 Appendices Solar energy

Appendix 21: Cost elements of PV system In 2019, solar module accounts for less than 50% of the total system cost (i.e. capital cost) of a new solar project in 2019. As the selling price of solar panels drop of over time, it is consensus that solar module price will becoming proportionally less significant factors as we go from 2021 to 2030. We expect solar panel price to fall by 5% per annum (on average) from 2021 to 2030.

In the next decade, we believe the management of operation and maintenance expenses, raising power generation quality with bifacial modules, the use of single-axis trackers, the development of high-efficiency solar products are the keys to achieve lower generation cost (in terms of LCOE) for new solar PV projects in the future.

Solar system cost will fall by Cost elements of PV system worldwide (for systems > 100kW, 2019 = 100%) c.37% from 2019 to 2030 Module Inverter Electrical BOS/wiring Mounting/structural BOS incl labour Land Project cost incl tax and contingencies Grid connection incl fees (%) 100 100 3 95 2 90 90 15 2 84 15 2 80 6 15 6 14 73 2 70 6 17 63 16 6 14 2 60 15 11 14 6 12 50 11 10 7 11 6 6 10 40 6 9 5 8 30 4 7 4 20 41 39 36 33 28 10 23 0 2019 2020 2022 2024 2027 2030 Source: International Technology Roadmap for Photovoltaics (ITRPV), 11th Edition, Apr 2020, published by VDMA, CLSA

Companies are exploring Operators are innovating on the ways to lower O&M expenses the role of robotics and other ways to lower O&M expenses for solar projects

Source: SunPower

17 November 2020 [email protected] 215 Important disclosures Solar energy

Companies mentioned A.L.M.T. Corp. (N-R) ILJIN Diamond (N-R) ABB Ltd (N-R) Ingeteam (N-R) AEV (N-R) Inner Mongolia Dongli (N-R) Aiko Solar (N-R) Inner Mongolia Dun'an (N-R) Aikosolar (600732 CH) (N-R) Irico (N-R) Akcome (N-R) JA Solar (N-R) Alibaba (BABA US - US$295.71 - BUY) Jiangsu Combo (N-R) Almaden (N-R) Jiangsu Xinda (N-R) Ankai (N-R) Jiangxi Sornid Hi-Tech (N-R) Asahi Diamond (6140 JP) (N-R) JinkoSolar (N-R) Asahi Diamond (N-R) Jolywood (N-R) Asia Silicon (N-R) LDK Solar (N-R) AVIC Sanxin (N-R) LG Electronics (066570 KS - ИѶƔķƔƏƏ- BUY) Berkshire Hathaway (N-R) Logomatic GmbH (N-R) Berkshire Hathaway Energy (N-R) LONGi (N-R) Camtech (N-R) Luoyang Glass (N-R) Canadian Solar (N-R) Maddison (N-R) Cgintech (N-R) Maxeon (N-R) Changsha DIALINE New Material (300700 CH) (N-R) Metron (N-R) Chint Group (N-R) Meyer Burger (N-R) Clenergy (N-R) Mitsubishi Electric (6503 JP - ¥1,355 - BUY) CNBM (3323 HK - HK$10.14 - BUY) Motech Industries (N-R) Comtec Solar (N-R) Nakamura (N-R) CPS Energy (N-R) Nakamura Choukou Co., Ltd. (N-R) CSG - A (N-R) Nanjing Sanchao (300554 CH) (N-R) CSG (N-R) Neo Solar (N-R) Cybrid Technologies (N-R) Neo Solar Power Energy (N-R) Daqo New Energy (N-R) Neo Solar Power Energy300316 CH (N-R) Dialine New Material (N-R) Nevada Energy (N-R) Diamond Pauber (N-R) Ningbo Yize (N-R) Diamond Wire Tech (N-R) Noritake (N-R) East Hope (N-R) NRG Energy (N-R) EdTech (N-R) OCI (N-R) Eging (N-R) OCI Solar Power (N-R) Enphase (N-R) Osaka Titanium (N-R) First Solar (N-R) Pacific Gas Electric (N-R) Flat Glass (6865 HK - HK$23.15 - BUY) PANDA GREEN (N-R) GCL System Integration (002506 CH) (N-R) Power Electronics (N-R) GCL-Poly (3800 HK - HK$0.34 - BUY) READ Co.,Ltd (N-R) Gintech Energy (N-R) REC (N-R) GoodWe (N-R) ReneSola (N-R) Green Energy (N-R) Rensola (N-R) Hanwha (000880 KS - ИƑƓķѵƏƏ- O-PF) Risen Energy (300118 CH) (N-R) Hebei Jinxin (N-R) Risen Energy (N-R) Hemlock (N-R) Rocky Mountain Power (N-R) Hemlock Semiconductor (N-R) Sanchao Advanced Materials (N-R) Henan Hengxing Science & Technology (002132 CH) (N-R) SCHMID (N-R) Henan Yicheng New Energy Co Ltd (300080 CH) (N-R) Shenfeng Photovoltaic (N-R) Hengxin Technology (N-R) Siemens Ltd (N-R) Huawei (N-R) Sineng Electric (N-R) IKEA (N-R) Sino-American Silicon (N-R) Iljin Diamond (081000 KS) (N-R) Sino-Crystal Diamond (N-R)

216 [email protected] 17 November 2020 Important disclosures Solar energy

Sino-si (N-R) United Renewable Energy (N-R) SMA Solar Technology (S92 DE) (N-R) Vina Solar (N-R) SolarCity (N-R) Wacker Chem (N-R) SolarEdge (SEDG US) (N-R) Wuxi DK Electronic (N-R) Solargiga Energy (N-R) Wuxi Shangji Automation (603185 CH) (N-R) Sornid Hi-Tech (N-R) Xinfuxing (N-R) Southern California Edison (N-R) Xinte Energy (N-R) Sungrow (N-R) Xinyi Energy (3868 CH) (N-R) Sunpower (N-R) Xinyi Solar (968 HK - HK$13.74 - BUY) Suntech Power (N-R) Yangling Metron New Material Inc (300861CH) (N-R) Swiss Meyer Burger (N-R) Yicheng New Energy (N-R) TBEA (N-R) Yingli Energy (N-R) Tianjin Zhonghuan (N-R) Zhejiang Jingsheng Mechnical & Electrical (N-R) Tianjin Zhonghuan Semiconductor (002129 CH) (N-R) Zhejiang Ruiyi (N-R) Tokuyama (N-R) ZHEJIANG TONY ELECTRONIC (N-R) Tongwei (N-R) Zhengzhou Sino Crystal Diamond (300064 CH) (N-R) Tony Technology (603595 CH) (N-R) Zhonghuan (N-R) Topraysolar (N-R) Zhongli Talesun (N-R) Trina Solar (N-R)

Analyst certification The analyst(s) of this report hereby certify that the views expressed in this research report accurately reflect my/our own personal views about the securities and/or the issuers and that no part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendation or views contained in this research report.

Important disclosures Recommendation history of Flat Glass Group Co Ltd (6865 HK) Timothy Lee, CFA BUY O-PF Other analysts U-PF SELL No coverage N-R 30

25

Stock price (HK$) 20

15

10

5

Jan 18 May 18 Sep 18 Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20

Date Rec Target Date Rec Target LATEST BUY 31.00 01 Sep 2020 BUY 17.10 28 Oct 2020 BUY 27.00 05 Aug 2020 BUY 15.20 05 Oct 2020 BUY 25.50 20 Jul 2020 BUY 12.90 21 Sep 2020 BUY 20.70 Source: CLSA

17 November 2020 [email protected] 217 Important disclosures Solar energy

Recommendation history of Xinyi Solar Holdings Ltd (968 HK) Timothy Lee, CFA BUY O-PF Other analysts U-PF SELL No coverage N-R

15 Stock price (HK$) 10

5

Jan 18 May 18 Sep 18 Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20

Date Rec Target Date Rec Target LATEST BUY 16.60 06 Sep 2019 BUY 5.70 05 Oct 2020 BUY 14.50 08 Aug 2019 BUY 5.20 21 Sep 2020 BUY 12.30 18 Jun 2019 BUY 4.80 01 Sep 2020 BUY 11.50 26 Feb 2019 BUY 4.60 04 Aug 2020 BUY 10.00 20 Jan 2019 BUY 3.75 20 Jul 2020 BUY 9.50 03 Dec 2018 BUY 3.45 09 Jun 2020 BUY 7.80 09 Oct 2018 BUY 2.75 04 May 2020 BUY 6.00 30 Jul 2018 BUY 2.80 01 Apr 2020 BUY 6.60 27 Jun 2018 BUY 3.10 17 Mar 2020 BUY 7.20 05 Jun 2018 BUY 3.50 13 Feb 2020 BUY 7.70 24 Jan 2018 BUY 4.10 07 Jan 2020 BUY 6.60 04 Jan 2018 BUY 3.80 Source: CLSA

Recommendation history of GCL-Poly Energy Holdings Ltd (3800 HK) Charles Yonts BUY O-PF Other analysts U-PF SELL No coverage N-R 1.5

Stock price (HK$) 1

0.5

Jan 18 May 18 Sep 18 Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20

Date Rec Target Date Rec Target 07 May 2019 BUY 0.72 23 Jan 2018 U-PF 1.47 05 Jun 2018 O-PF 0.90 13 Dec 2017 U-PF 1.28 14 May 2018 O-PF 1.11 Source: CLSA

218 [email protected] 17 November 2020 Important disclosures Solar energy

The policy of CLSA and CL Securities Taiwan Co., Ltd. (“CLST”) is to ending 30 Sep 2020. only publish research that is impartial, independent, clear, fair, and not Overall rating distribution for CLST only Universe: Overall rating misleading. Regulations or market practice of some distribution: BUY / Outperform - CLST: 74.75%, Underperform / SELL jurisdictions/markets prescribe certain disclosures to be made for - CLST: 25.35%, Restricted - CLST: 0.00%. Data as of 30 Sep 2020. certain actual, potential or perceived conflicts of interests relating to Investment banking clients as a % of rating category: BUY / a research report as below. This research disclosure should be read in Outperform - CLST: 0.00%, Underperform / SELL - CLST: 0.00%, conjunction with the research disclaimer as set out at Restricted - CLST: 0.00%. Data for 12-month period ending 30 Sep www.clsa.com/disclaimer.html and the applicable regulation of the 2020. concerned market where the analyst is stationed and hence subject There are no numbers for Hold/Neutral as CLSA/CLST do not to. Investors are strongly encouraged to review this disclaimer before have such investment rankings. For a history of the recommendation, investing. price targets and disclosure information for companies mentioned in Neither analysts nor their household members/associates/may this report please write to: CLSA Group Compliance, 18/F, One Pacific have a financial interest in, or be an officer, director or advisory board Place, 88 Queensway, Hong Kong and/or; (c) CLST Compliance (27/F, member of companies covered by the analyst unless disclosed herein. 95, Section 2 Dun Hua South Road, Taipei 10682, Taiwan, telephone In circumstances where an analyst has a pre-existing holding in any (886) 2 2326 8188). EVA® is a registered trademark of Stern, Stewart securities under coverage, those holdings are grandfathered and the & Co. "CL" in charts and tables stands for CLSA estimates, “CT” stands analyst is prohibited from trading such securities. for CLST estimates, "CRR" stands for CRR Research estimates and Unless specified otherwise, CLSA/CLST or its respective affiliates, “CS” for Citic Securities estimates unless otherwise noted in the did not receive investment banking/non-investment banking income source. from, and did not manage/co-manage a public offering for, the listed This publication/communication is subject to and incorporates company during the past 12 months, and it does not expect to receive the terms and conditions of use set out on the www.clsa.com website investment banking compensation from the listed company within the (https://www.clsa.com/disclaimer.html). Neither the coming three months. Unless mentioned otherwise, CLSA/CLST does publication/communication nor any portion hereof may be reprinted, not own 1% or more of any class of securities of the subject company, sold, resold, copied, reproduced, distributed, redistributed, published, and does not make a market, in the securities. (For full disclosure of republished, displayed, posted or transmitted in any form or media or interest for all companies mention on this report, please refer to by any means without the written consent of CLSA and/or CLST. http://www.clsa.com/member/research_disclosures/ for details.) CLSA and/or CLST has/have produced this The analysts included herein hereby confirm that they have not publication/communication for private circulation to professional, been placed under any undue influence, intervention or pressure by institutional and/or wholesale clients only, and may not be distributed any person/s in compiling this research report. In addition, the to retail investors. The information, opinions and estimates herein are analysts attest that they were not in possession of any material, non- not directed at, or intended for distribution to or use by, any person public information regarding the subject company at the time of or entity in any jurisdiction where doing so would be contrary to law publication of the report. Save from the disclosure below (if any), the or regulation or which would subject CLSA, and/or CLST to any analyst(s) is/are not aware of any material conflict of interest. additional registration or licensing requirement within such As analyst(s) of this report, I/we hereby certify that the views jurisdiction. The information and statistical data herein have been expressed in this research report accurately reflect my/our own obtained from sources we believe to be reliable. Such information has personal views about the securities and/or the issuers and that no not been independently verified and we make no representation or part of my/our compensation was, is, or will be directly or indirectly warranty as to its accuracy, completeness or correctness. Any related to the specific recommendation or views contained in this opinions or estimates herein reflect the judgment of CLSA and/or report or to any investment banking relationship with the subject CLST at the date of this publication/communication and are subject company covered in this report (for the past one year) or otherwise to change at any time without notice. Where any part of the any other relationship with such company which leads to receipt of information, opinions or estimates contained herein reflects the views fees from the company except in ordinary course of business of the and opinions of a sales person or a non-analyst, such views and company. The analyst/s also state/s and confirm/s that he/she/they opinions may not correspond to the published view of CLSA and/or has/have not been placed under any undue influence, intervention or CLST. Any price target given in the report may be projected from one pressure by any person/s in compiling this research report. In or more valuation models and hence any price target may be subject addition, the analysts included herein attest that they were not in to the inherent risk of the selected model as well as other external possession of any material, nonpublic information regarding the risk factors. Where the publication does not contain ratings, the subject company at the time of publication of the report. The analysts material should not be construed as research but is offered as factual further confirm that none of the information used in this report was commentary. It is not intended to, nor should it be used to form an received from CLSA's Corporate Finance department or CLSA's Sales investment opinion about the non-rated companies. and Trading business. Save from the disclosure below (if any), the This publication/communication is for information purposes only analyst(s) is/are not aware of any material conflict of interest. and it does not constitute or contain, and should not be considered as CLSA is financial advisor to China Huangeng Group in relations to an offer or invitation to sell, or any solicitation or invitation of any a possible transaction involving GCL New Energy Holdings and GCL- offer to subscribe for or purchase any securities in any jurisdiction Poly Energy Holdings. and recipient of this publication/communication must make its own Key to CLSA/CLST investment rankings: BUY: Total stock return independent decisions regarding any securities or financial (including dividends) expected to exceed 20%; O-PF: Total expected instruments mentioned herein. This is not intended to provide return below 20% but exceeding market return; U-PF: Total expected professional, investment or any other type of advice or return positive but below market return; SELL: Total return expected recommendation and does not take into account the particular to be negative. For relative performance, we benchmark the 12- investment objectives, financial situation or needs of individual month total forecast return (including dividends) for the stock against recipients. Before acting on any information in this the 12-month forecast return (including dividends) for the market on publication/communication, you should consider whether it is which the stock trades. suitable for your particular circumstances and, if appropriate, seek "High Conviction" Ideas are not necessarily stocks with the most professional advice, including tax advice. Investments involve risks, upside/downside, but those where the Research Head/Strategist and investors should exercise prudence and their own judgment in believes there is the highest likelihood of positive/negative returns. making their investment decisions. The value of any investment or The list for each market is monitored weekly. income my go down as well as up, and investors may not get back the Overall rating distribution for CLSA (exclude CLST) only Universe: full (or any) amount invested. Past performance is not necessarily a Overall rating distribution: BUY / Outperform - CLSA: 69.34%, guide to future performance. CLSA and/or CLST do/does not accept Underperform / SELL - CLSA: 30.57%, Restricted - CLSA: 0.35%; Data any responsibility and cannot be held liable for any person’s use of or as of 30 Sep 2020. Investment banking clients as a % of rating reliance on the information and opinions contained herein. To the category: BUY / Outperform - CLSA: 9.41%, Underperform / SELL - extent permitted by applicable securities laws and regulations, CLSA CLSA: 3.37%; Restricted - CLSA: 0.35%. Data for 12-month period and/or CLST accept(s) no liability whatsoever for any direct or

17 November 2020 [email protected] 219 Important disclosures Solar energy

consequential loss arising from the use of this Korea by CLSA Securities Korea Ltd.; in Malaysia by CLSA Securities publication/communication or its contents. Malaysia Sdn. Bhd.; in the Philippines by CLSA Philippines Inc (a To maintain the independence and integrity of our research, our member of Philippine Stock Exchange and Securities Investors Corporate Finance, Sales Trading, Asset Management and Research Protection Fund); in Singapore by CLSA Singapore Pte Ltd and solely business lines are distinct from one another. This means that CLSA’s to persons who qualify as an "Institutional Investor", "Accredited Research department is not part of and does not report to CLSA Investor" or "Expert Investor" MCI (P) 086/12/2019; in Thailand by Corporate Finance department or CLSA’s Sales and Trading business. CLSA Securities (Thailand) Limited; in Taiwan by CLST and in the EU Accordingly, neither the Corporate Finance nor the Sales and Trading and United Kingdom by CLSA Europe BV or CLSA (UK). department supervises or controls the activities of CLSA’s research Australia: CLSA Australia Pty Ltd (“CAPL”) (ABN 53 139 992 analysts. CLSA’s research analysts report to the management of the 331/AFS License No: 350159) is regulated by ASIC and is a Market Research department, who in turn report to CLSA’s senior Participant of ASX Limited and CHI-X. This material is issued and management. CLSA has put in place a number of internal controls distributed by CAPL in Australia to "wholesale clients" only. This designed to manage conflicts of interest that may arise as a result of material does not take into account the specific investment CLSA engaging in Corporate Finance, Sales and Trading, Asset objectives, financial situation or particular needs of the recipient. The Management and Research activities. Some examples of these recipient of this material must not distribute it to any third party controls include: the use of information barriers and other controls without the prior written consent of CAPL. For the purposes of this designed to ensure that confidential information is only shared on a paragraph the term "wholesale client" has the meaning given in “need to know” basis and in compliance with CLSA’s Chinese Wall section 761G of the Corporations Act 2001. CAPL’s research policies and procedures; measures designed to ensure that coverage universe spans listed securities across the ASX All interactions that may occur among CLSA’s Research personnel, Ordinaries index, securities listed on offshore markets, unlisted Corporate Finance, Asset Management, and Sales and Trading issuers and investment products which Research management deem personnel, CLSA’s financial product issuers and CLSA’s research to be relevant to the investor base from time to time. CAPL seeks to analysts do not compromise the integrity and independence of CLSA’s cover companies of relevance to its domestic and international research. investor base across a variety of sectors. Subject to any applicable laws and regulations at any given time, United States of America: Where any section is compiled by non- CLSA, CLST, their respective affiliates, officers, directors or US analyst(s), it is distributed into the United States by CLSA solely to employees may have used the information contained herein before persons who qualify as "Major US Institutional Investors" as defined publication and may have positions in, or may from time to time in Rule 15a-6 under the Securities and Exchange Act of 1934 and who purchase or sell or have a material interest in any of the securities deal with CLSA Americas. However, the delivery of this research mentioned or related securities, or may currently or in future have or report to any person in the United States shall not be deemed a have had a business or financial relationship with, or may provide or recommendation to effect any transactions in the securities discussed have provided corporate finance/capital markets and/or other herein or an endorsement of any opinion expressed herein. Any services to, the entities referred to herein, their advisors and/or any recipient of this research in the United States wishing to effect a other connected parties. As a result, you should be aware that CLSA transaction in any security mentioned herein should do so by and/or CLST and/or their respective affiliates, officers, directors or contacting CLSA Americas. employees may have one or more conflicts of interest. Regulations or The European Union (“EU”) and the United Kingdom: In these market practice of some jurisdictions/markets prescribe certain jurisdictions, this research is a marketing communication. It has not disclosures to be made for certain actual, potential or perceived been prepared in accordance with the legal requirements designed to conflicts of interests relating to research reports. Details of the promote the independence of investment research, and is not subject disclosable interest can be found in certain reports as required by the to any prohibition on dealing ahead of the dissemination of relevant rules and regulation and the full details are available at investment research. The research is disseminated in these countries http://www.clsa.com/member/research_disclosures/. Disclosures by either CLSA (UK) or CLSA Europe BV. CLSA (UK) is authorised and therein include the position of CLSA and CLST only. Unless specified regulated by the Financial Conduct Authority. CLSA Europe BV is otherwise, CLSA did not receive any compensation or other benefits authorised and regulated by the Authority for Financial Markets in the from the subject company, covered in this Netherlands. This document is directed at persons having publication/communication, or from any third party. If investors have professional experience in matters relating to investments as defined any difficulty accessing this website, please contact in the relevant applicable local regulations. Any investment activity to [email protected] on +852 2600 8111. If you require disclosure which it relates is only available to such persons. If you do not have information on previous dates, please contact professional experience in matters relating to investments you should [email protected]. not rely on this document. Where the research material is compiled This publication/communication is distributed for and on behalf by the UK analyst(s), it is produced and disseminated by CLSA (UK) of CLSA (for research compiled by non-US and non-Taiwan analyst(s)), and CLSA Europe BV. For the purposes of the Financial Conduct Rules and/or CLST (for research compiled by Taiwan analyst(s)) in Australia in the United Kingdom and MIFID II in other European jurisdictions by CLSA Australia Pty Ltd (ABN 53 139 992 331/AFSL License No: this research is prepared and intended as substantive research 350159); in Hong Kong by CLSA Limited (Incorporated in Hong Kong material. with limited liability); in India by CLSA India Private Limited, (Address: For all other jurisdiction-specific disclaimers please refer to 8/F, Dalamal House, Nariman Point, Mumbai 400021. Tel No: +91- https://www.clsa.com/disclaimer.html. The analysts/contributors to 22-66505050. Fax No: +91-22-22840271; CIN: this publication/communication may be employed by any relevant U67120MH1994PLC083118; SEBI Registration No: INZ000001735 CLSA entity or CLST, which is different from the entity that as Stock Broker, INM000010619 as Merchant Banker and distributes the publication/communication in the respective INH000001113 as Research Analyst,; in Indonesia by PT CLSA jurisdictions.© 2020 CLSA and/or CL Securities Taiwan Co., Ltd. Sekuritas Indonesia; in Japan by CLSA Securities Japan Co., Ltd.; in (“CLST”).

220 [email protected] 17 November 2020 Research & sales offices www.clsa.com

Australia - Melbourne India Pakistan Thailand CLSA Australia Pty Ltd CLSA India Private Limited Alfalah CLSA Securities (Private) Ltd CLSA Securities (Thailand) Ltd Level 30 8/F, Dalamal House 8th Floor, Bahria Complex III 16/F, M. Thai Tower 35 Collins Street Nariman Point M.T. Khan Road, Karachi All Seasons Place Melbourne VIC 3000 Mumbai 400021 Pakistan 87 Wireless Road, Tel: +61 2 8571 4200 Tel: +91 22 6650 5050 Tel: +92 (21) 35645090-95 Pathumwan, Bangkok 10330 Fax: +61 2 9221 1188 Fax: +91 22 2284 0271 Fax: +92 (21) 3564 5096 Tel: +66 2 257 4600 Fax: +66 2 253 0532

Australia - Sydney Indonesia Philippines The Netherlands CLSA Australia Pty Ltd PT CLSA Sekuritas Indonesia CLSA Philippines, Inc CLSA Europe B.V. Level 35 Sequis Tower, Suite 16-01 19/F, Tower 2 World Trade Center Grosvenor Place Jl. Jend. Sudirman No. 71 The Enterprise Center Tower B, Level 7 225 George Street Jakarta 12190 6766 Ayala corner Paseo de Roxas Strawinskylaan 729 Sydney NSW 2000 Tel: +62 21 5088 7888 Makati City 1077XX Amsterdam Tel: +61 2 8571 4200 Fax: +62 21 724 7795 Tel: +63 2 860 4000 Tel: +31 20 2048300 Fax: +61 2 9221 1188 Fax: +63 2 860 4051

China - Beijing Japan Singapore United Kingdom CLSA Limited - Beijing Rep Office CLSA Securities Japan Co. Ltd CLSA Singapore Pte Ltd CLSA (UK) 26/F, CITIC Securities Tower 16/F, Shiodome Sumitomo Building 80 Raffles Place, No.18-01 12/F, Moor House No.48 Liangmaqiao Road 1-9-2, Higashi-Shimbashi UOB Plaza 1 120 London Wall Chaoyang District Minato-ku, Tokyo 105-0021 Singapore 048624 London EC2Y 5ET Beijing 100026 Tel: +81 3 4578 8000 Tel: +65 6416 7888 Tel: +44 20 7614 7000 Tel: +86 10 5965 2088 Fax: +81 3 4578 8080 Fax: +65 6533 8922 Fax: +44 20 7614 7070 Fax: +86 10 5965 2018

China - Shanghai Korea Sri Lanka USA - New York CLSA Limited - Shanghai Rep Office CLSA Securities Korea Ltd CT CLSA Securities (PVT) Ltd CLSA Americas, LLC Room 910, 9/F 30/F, One IFC 4-14 Majestic City, 1301 Avenue of The Americas 100 Century Avenue 10 Gukjegeumyung-ro 10 Station Road, 15th Floor, Pudong New Area Yeongdeungpo-gu Colombo 4, Sri Lanka New York 10019 Shanghai 200120 Seoul, 07326 Tel: +94 11 255 2290 to 2294 Tel: +1 212 408 5888 Tel: +86 21 2020 5888 Tel: +82 2 397 8400 Fax: +94 11 255 2289 Fax: +1 212 261 2502 Fax: +86 21 2020 5777 Fax: +82 2 771 8583

Hong Kong Malaysia Taiwan * CLST is an exclusive Taiwan CLSA Limited CLSA Securities Malaysia Sdn Bhd CL Securities Taiwan research provider to CLSA 18/F, One Pacific Place Suite 20-01, Level 20 Company Limited* 88 Queensway Menara Dion 27/F, 95, Section 2 Hong Kong 27 Jalan Sultan Ismail Dun Hua South Road Tel: +852 2600 8888 50250 Kuala Lumpur Taipei 10682 Fax: +852 2868 0189 Tel: +60 3 2056 7888 Tel: +886 2 2326 8188 Fax: +60 3 2056 7988 Fax: +886 2 2326 8166

CLSA Sales Trading Team Australia +61 2 8571 4201 Malaysia +60 3 2056 7852 China (Shanghai) +86 21 2020 5810 Philippines +63 2 860 4030 Hong Kong +852 2600 7003 Singapore +65 6416 7878 India +91 22 6622 5000 Taiwan* +886 2 2326 8124 Indonesia +62 21 5088 7777 Thailand +66 2 257 4611 Japan +81 3 4580 5169 UK +44 207 614 7260 Korea +82 2 397 8512 US +1 212 408 5800 CLSA is certified ISO14001

Research subscriptions To change your report distribution requirements, please contact your CLSA sales representative or email us at [email protected]. You can also fine-tune your Research Alert email preferences at https://www.clsa.com/member/tools/email_alert/.

© 2020 CLSA Limited (“CLSA”) and/or CL Securities Taiwan Co. Ltd (“CLST”). Key to CLSA/CLST investment rankings: BUY: Total stock return (including dividends) expected to exceed 20%; O-PF: Total expected return below 20% but exceeding market return; U-PF: Total expected return positive but below market return; SELL: Total expected return to be negative. For relative performance, we benchmark the 12-month total forecast return (including dividends) for the stock against the 12-month forecast return (including dividends) for the market on which the stock trades. • "High Conviction" Ideas are not necessarily stocks with the most upside/downside but those where the Research Head/Strategist believes there is the highest likelihood of positive/negative returns. The list for each market is monitored weekly. 05/08/2020