Annual Report 2020 Ticker Symbol: 601012 Stock Name: LONGi LONGi Green Energy Technology Co., Ltd. Annual Report 2020 Kindly reminder: The annual report 2020 in English is for reference only. The Report in Chinese shall prevail in case of any discrepancy between the two versions. 1 / 312 Annual Report 2020 Important Notes I. The Board of Directors, Board of Supervisors, directors, supervisors and senior management of the Company hereby confirm that there are not any false representations, misleading statements or material omissions in this Annual Report, and are jointly and severally liable for the authenticity, accuracy and completeness of the information therein. II. All directors of the Company are present at the Board meeting. III. PwC Zhongtian Certified Public Accountants (Special General Partnership) has issued a standard and unqualified audit report for the Company. IV. Li Zhenguo, legal representative of the Company, and Liu Xuewen, person in charge of accounting and person in charge of accounting organization (accountant in charge), hereby declare that the Financial Reports contained in this Annual Report are true, accurate and complete. V. Plans for profit distribution or capital reserve into equity during the reporting period deliberated by the Board of Directors The Company's 2020 plan for profit distribution is as follows: the Company plans to pay a cash dividend of RMB 2.5 (tax-inclusive) per 10 shares and transfer capital reserve into 4 shares per 10 shares to all shareholders. Before the record date for the implementation of equity distribution, if the total share capital of the Company changes, the proportion of distribution (transfer) per share will be kept unchanged and the total amount of distribution (transfer) will be adjusted accordingly. The plans for profit distribution and capital reserve into equity have to be submitted to the Shareholders' Meeting for deliberation. VI. Risk disclosure on forward-looking statements √ Applicable □ Not Applicable Forward-looking statements regarding future plans and development planning involved in this Report do not constitute the substantial commitment by the Company to investors, who are hereby reminded to be aware of investment risks. VII. Any non-operating utilization of funds by controlling shareholders and their related parties None VIII. Any violation against prescribed decision-making procedures to provide external guarantee None IX. Any failure of more than half of the directors to warrant the authenticity, accuracy and completeness of this Annual Report disclosed by the Company None X. Warning of significant risks The Company has described the possible risks in detail in this Report. Please refer to "III (IV) Possible risks" in Section IV. XI. Miscellaneous □ Applicable √ Not Applicable 2 / 312 Annual Report 2020 Table of Contents Section I Definitions ....................................................................................................................... 4 Section II Company Profile and Key Financial Indicators .......................................................... 8 Section III Overview of the Company's Business......................................................................... 13 Section IV Discussion and Analysis of Business Operation ........................................................ 16 Section V Important Matters ....................................................................................................... 42 Section VI Changes in Ordinary Shares and Shareholders ........................................................ 86 Section VII Preferred Shares ........................................................................................................... 93 Section VIII Directors, Supervisors, Senior Management and Employees .............................. 94 Section IX Corporate Governance .............................................................................................. 101 Section X Corporate Bonds ........................................................................................................ 105 Section XI Financial Reports ....................................................................................................... 109 Section XII List of Documents for Reference .............................................................................. 312 3 / 312 Annual Report 2020 Section I Definitions I. Definitions For the purpose of this Report, the following terms shall have the meanings given thereto below unless the context otherwise requires: Definitions of frequently used terms LONGi or the LONGi Green Energy Technology Co., Ltd., renamed from Xi’an LONGi refers to Company Silicon Materials Corp. in February 2017 Wuxi LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary of Wuxi LONGi refers to the Company Yinchuan LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary Yinchuan LONGi refers to of the Company Ningxia LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary Ningxia LONGi refers to of the Company LONGi (H.K.) Trading Limited, a wholly-owned subsidiary of the LONGi (H.K.) refers to Company LONGi (Kuching) Sdn. Bhd., a wholly-owned subsidiary of LONGi LONGi (Kuching) refers to (H.K.) Lijiang LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary of Lijiang LONGi refers to the Company Baoshan LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary Baoshan LONGi refers to of the Company Chuxiong LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary Chuxiong LONGi refers to of the Company Huaping LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary Huaping LONGi refers to of the Company Tengchong LONGi Silicon Materials Co., Ltd., a wholly-owned Tengchong LONGi refers to subsidiary of the Company Qujing LONGi Silicon Materials Co., Ltd., a wholly-owned subsidiary of Qujing LONGi refers to the Company LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary of the LONGi Solar refers to Company Taizhou LONGi Taizhou LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary refers to Solar of LONGi Solar Zhejiang LONGi Zhejiang LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary refers to Solar of LONGi Solar Chuzhou LONGi Chuzhou LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary refers to Solar of LONGi Solar Ningxia LONGi Ningxia LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary refers to Solar of LONGi Solar Yinchuan LONGi Yinchuan LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary refers to Solar of LONGi Solar LONGi Technology LONGi Technology (Kuching) Sdn. Bhd., a wholly-owned subsidiary of refers to (Kuching) LONGi Solar LONGi Solar Technologie GmbH, a wholly-owned subsidiary of the Germany LONGi refers to Company LONGi Solar Technology (U.S.) Inc., a wholly-owned subsidiary of the LONGi (U.S.) refers to Company 4 / 312 Annual Report 2020 Jiangsu LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary Jiangsu LONGi Solar refers to of LONGi Solar Xianyang LONGi Xianyang LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary refers to Solar of LONGi Solar Shaanxi LONGi Shaanxi LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary refers to Solar of LONGi Solar Jiaxing LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary Jiaxing LONGi Solar refers to of LONGi Solar Xi’an LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary of Xi’an LONGi Solar refers to LONGi Solar Yinchuan LONGi PV Technology Co., Ltd., a wholly-owned subsidiary Yinchuan LONGi PV refers to of the Company Ningbo Jiangbei EZ New Energy Technology Co., Ltd., a wholly-owned Ningbo EZ refers to subsidiary acquired by the Company in July 2020 Vina Cell Technology Company Limited, a wholly-owned subsidiary Vina Cell refers to acquired by the Company in July 2020 Vina Solar Technology Company Limited, a wholly-owned subsidiary Vina Solar refers to acquired by the Company in July 2020 Datong LONGi Solar Technology Co., Ltd., a wholly-owned subsidiary Datong LONGi Solar refers to of LONGi Solar Xi’an LONGi Clean Energy Co., Ltd., a wholly-owned subsidiary of the Clean Energy refers to Company Xi’an LONGi New Energy Co., Ltd., a wholly-owned subsidiary of the LONGi New Energy refers to Company Longxing New Huludao Longxing New Energy Co., Ltd., a wholly-owned subsidiary of refers to Energy 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 of Ningde LONGi Solar refers to LONGi New Energy Xiangcheng Lechang Solar Energy Co., Ltd., a wholly-owned subsidiary Lechang Solar refers to of LONGi New Energy Xinyang Jinli New Energy Equipment Co., Ltd., a wholly-owned Jinli New Energy refers to subsidiary of LONGi New Energy Xuzhou Xinwei New Energy Technology Co., Ltd., a wholly-owned Xinwei New Energy refers to subsidiary of LONGi New Energy LONGi Green & Clean Energy Co., Ltd. in Yunzhou District, Datong City, Datong Clean Energy refers to a wholly-owned subsidiary of Clean Energy Guangling Clean Guangling Longxing Green & Clean Energy Co., Ltd., a wholly-owned refers to Energy subsidiary of Clean Energy Hami Liushuquan Xuanli Solar Power Generation Co., Ltd., a wholly- Xuanli Solar refers to owned subsidiary of Clean Energy Tongxin LONGi New Energy Co., Ltd., a joint stock company of Wuxi Tongxin LONGi refers to LONGi and Ningxia LONGi Zhongning LONGi Tianhua New Energy Co., Ltd., a joint stock company LONGi Tianhua refers to of Ningxia LONGi Daqing Huiqing New