Longi Green Energy Technology Co., Ltd. Annual Report 2018
Total Page:16
File Type:pdf, Size:1020Kb
Annual Report 2018 Ticker Symbol: 601012 Stock Name: LONGi LONGi Green Energy Technology Co., Ltd. Annual Report 2018 Kindly reminder: the Annual Report 2018 in English is for reference only. The Chinese report shall prevail in case of any discrepancy between the two versions. 1 / 331 Annual Report 2018 Important Notes I. The Board of Directors, the Board of Supervisors and the Directors, Supervisors and Senior Managers of the Company shall ensure that the contents of the Annual Report are true, accurate and complete, that there are no false records, misleading statements or major omissions, and shall bear individual and joint legal liabilities. II. All Directors of the Company attend Board Meetings. III. Ruihua Certified Public Accountants (Special General Partnership) has issued a standard audit report for the Company without reservations. IV. Li Zhenguo, the head of the Company, Liu Xuewen, the head of the accounting work, and Liu Xuewen, the head of the accounting institution (the accountant in charge) hereby declared that they should ensure the authenticity, accuracy and completeness of the financial report in the annual report. V. Profit Distribution Plan or Share Capital converted from Capital Reserve Plan for the Reporting Period Considered by the Board of Directors The profit distribution plan for 2018 is as follows: after deducting 576,254 restricted shares from the total share capital on the registration day of the implementation of the profit distribution, which is not involved in the profit distribution, and will be repurchased (based on the restricted stock repurchase shares approved by the shareholders’ meeting), the dividend of 1.00 yuan (including tax) will be paid out to all shareholders for every 10 shares. The remaining undistributed profits are rolled over to the next year. In 2018, there will be no conversion of the capital reserve into share capital and stock dividend. VI. Risk Statement of Forward-looking Statements √ Applicable □Non-Applicable The forward-looking statements of future plans and development plans mentioned in this report do not constitute a substantive commitment of the company to investors. Investors are invited to pay attention to investment risks. VII. Whether there is any non-operational occupancy of funds by the controlling shareholders and their affiliates. No VIII. Whether there are any cases in which guarantees are provided to the outside world in violation of the stipulated decision-making procedures. No IX. Significant Risk Tips The company has described the possible risks in detail in this report. Please refer to section IV, “Discussions and Analysis of Business Conditions” section “Risks that may be faced”. X. Others □ Applicable √Non-Applicable 2 / 331 Annual Report 2018 Contents Section I Interpretation ................................................................................................................................ 4 Section II Company Profile and Main Financial Indicators ........................................................................ 7 Section III Business Overview .................................................................................................................. 12 Section IV Discussion and Analysis of Business Operation ..................................................................... 15 Section V Important Matters ..................................................................................................................... 40 Section VI Changes in Common Shares and Shareholders ....................................................................... 93 Section VII Preferred Stock .................................................................................................................... 108 Section VIII Directors, Supervisors, Senior Management and Employees ............................................. 109 Section IX Corporate Governance .......................................................................................................... 118 Section X Relevant Information about Corporation Bonds .................................................................... 122 Section XI. Financial Report ................................................................................................................... 126 Section XII. Catalogue of Reference Documents ................................................................................... 331 3 / 331 Annual Report 2018 Section I Interpretation I. Interpretation Unless otherwise required, the following terms have the following meanings in this Report: Interpretation of frequently-used terms LONGi, LONGi Green Energy Technology Co., Ltd.; the Company name Refers to the Company was “LONGi New Energy Materials Corp.” before February 2017. Wuxi LONGi Silicon Materials Ltd., a wholly-owned subsidiary of Wuxi LONGi Refers to the Company Yinchuan LONGi Silicon Materials Ltd., a wholly-owned Yinchuan LONGi Refers to subsidiary of the Company Ningxia LONGi Silicon Materials Ltd., a wholly-owned subsidiary Ningxia LONGi Refers to of the Company LONGi (H.K.) Refers to LONGi (H.K.) Trading Limited, a wholly-owned subsidiary of the Company LONGi (KUCHING) SDN.BHD., a wholly-owned subsidiary of KUCHING LONGi Refers to LONGi (H.K.) Lijiang LONGi Silicon Materials Ltd., a holding subsidiary of the Lijiang LONGi Refers to Company Baoshan LONGi Silicon Materials Ltd., a wholly-owned subsidiary Baoshan LONGi Refers to of the Company Chuxiong LONGi Silicon Materials Ltd., a wholly-owned Chuxiong LONGi Refers to subsidiary of the Company LONGi Solar, LERRI LONGi Solar Technology Ltd., a wholly-owned subsidiary of the Refers to Solar Company with primitive name of “LERRI Solar Technology Ltd.” Taizhou LONGi Solar Technology Ltd., a wholly-owned subsidiary Taizhou LONGi Refers to of LONGi Solar with primitive name of “Taizhou LERRI Solar Solar Technology Ltd.” Zhejiang LONGi Solar Technology Ltd., a wholly-owned Zhejiang LONGi Refers to subsidiary of LONGi Solar with primitive name of “Zhejiang Solar LERRI Solar Technology Ltd.” Hefei LONGi Solar Technology Ltd., a wholly-owned subsidiary of Hefei LONGi Solar Refers to LONGi Solar with primitive name of “Hefei LERRI Solar Technology Ltd.” Chuzhou LONGi Chuzhou LONGi Solar Technology Ltd., a wholly-owned Refers to Solar subsidiary of the Company. Ningxia LONGi Ningxia LONGi Solar Technology Ltd., a wholly-owned subsidiary Refers to Solar of the Company. Xi’an LONGi Clean Energy Ltd., a wholly-owned subsidiary of the Clean Energy Refers to Company. Xi'an LONGi New Energy Ltd., a wholly-owned subsidiary of the LONGi New Energy Refers to Company with primitive name of “LERRI Solar Energy Ltd.” Cao-County Lezhao Solar Technology Ltd., a wholly-owned Cao-County Lezhao Refers to subsidiary of LONGi New Energy. Xi’an LONGi Anfang Solar Energy Ltd., a wholly-owned LONGi Anfang Refers to subsidiary of LONGi New Energy. Shouguang Jinhe Refers to Shouguang Jinhe Solar Technology Ltd., a wholly-owned 4 / 331 Annual Report 2018 subsidiary of LONGi New Energy. Hami Liurui New Energy Development Ltd., a wholly-owned Hami Liurui Refers to subsidiary of Clean Energy. Hami Liuyang Solar Technology Development Ltd., a Hami Liuyang Refers to wholly-owned subsidiary of Clean Energy. Longxing New Huludao Longxing New Energy Co., Ltd., a wholly-owned Refers to Energy subsidiary of Clean Energy. Huanglong Clean Huanglong Longfu Clean Energy Co., Ltd., a wholly-owned Refers to Energy subsidiary of Clean Energy. Yanchuan Minhao Solar Power Plant Investment Management Co., Yanchuan Solar Refers to Ltd., a wholly-owned subsidiary of Clean Energy. Lingwu Longqiao Solar New Energy Co., Ltd., a wholly-owned Lingwu New Energy Refers to subsidiary of Clean Energy. Guangzhou Longle Solar Technology Co., Ltd., a wholly-owned Longle Solar Refers to subsidiary of LONGi New Energy. Ningde LONGi Solar Energy Co., Ltd., a wholly-owned subsidiary Ningde LONGi Solar Refers to of LONGi New Energy. Xiangcheng Lechang Solar Energy Co., Ltd., a wholly-owned Lechang Solar Refers to subsidiary of LONGi New Energy. Xinyang Jinli New Energy Equipment Co., Jinli New Energy Refers to Ltd., a wholly-owned subsidiary of LONGi New Energy. Zhengzhou Lemou Solar Energy Co., Ltd., a wholly-owned Lemou Solar Refers to subsidiary of LONGi New Energy. Xuzhou Xinwei New Energy Technology Co., Ltd., a Xinwei New Energy Refers to wholly-owned subsidiary of LONGi New Energy. Wuzhong Leheng Solar Energy Technology Co., Ltd., a Leheng Solar Refers to wholly-owned subsidiary of LONGi New Energy. LONGi NEW LONGi NEWENERGY (THAILAND) CO., LTD., a wholly-owned ENERGY Refers to subsidiary of LONGi New Energy. (THAILAND) Tongxin LONGi New Energy Co., Ltd., a Tongxin LONGi Refers to joint-stock company of Wuxi LONGi and Ningxia LONGi Zhongning LONGi Tianhua New Energy Co., Ltd., a LONGi Tianhua Refers to joint-stock company of Ningxia LONGi Daqing Huiqing New Energy Co., Ltd., a joint-stock company of Huiqing New Energy Refers to Clean Energy Zhongning New Zhongning LONGi Solar New Energy Co., Ltd., a joint-stock Refers to Energy company of Clean Energy Zhejiang MTCN Technology Co., Ltd., a joint-stock Zhejiang MTCN Refers to company of the Company Zhaozhou New Zhaozhou Longhui New Energy Co., Ltd., a joint-stock company of Refers to Energy Clean Energy Pingmei LONGi New Energy Technology Co., Ltd., a joint-stock Pingmei LONGi Refers to company of the Company LONGi Solar Technologie GmbH, a wholly-owned subsidiary of Germany LONGi Refers to the Company. LONGi SOLAR TECHNOLOGY (U.S.) INC., a wholly-owned