JA Solar Technology Co., Ltd.
ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2023 TO 31 DECEMBER 2023
IF THERE IS ANY CONFLICT BETWEEN THE CHINESE
VERSION AND ITS ENGLISH TRANSLATION,
THE CHINESE VERSION WILL PREVAIL
JA Solar Technology Co., Ltd.Notes to the financial statements(Expressed in Renminbi Yuan unless otherwise indicated)
I Basic Information of the Company
JA Solar Technology Co., Ltd. (hereinafter referred to as “the Company”), formerly known asQinhuangdao Tianye Tonglian Heavy Industry Co., Ltd. (hereinafter referred to as “Tian YeTong Lian”), the predecessor of the Company is Qinhuangdao Beidaihe Tonglian Road andBridge Machinery Co., Ltd., which was founded on October 20, 2000, after several capitalincrease and equity transfer, in July 2008, the Company was changed to a joint stock companywith May 31, 2008 as the benchmark date, and the share capital of the Company was RMB120million after the change. The Company went through the formalities for industrial andcommercial registration change at the Qinhuangdao City Administration for Industry andCommerce of Hebei Province on July 18, 2008. On August 10, 2010, Tian Ye Tong Liansuccessfully listed in Shenzhen Stock Exchange. On November 15, 2019, JA Solar Co., Ltd.(hereinafter referred to as "JA Solar") has successfully back door listed in Shenzhen StockExchange through Tian Ye Tong Lian. On December 11, 2019, Tian Ye Tong Lian completedthe industrial and commercial change and officially changed its name to "JA Solar TechnologyCo., Ltd.". On December 13, 2019, the abbreviation of Tian Ye Tong Lian securities wasofficially changed to "JA Technology". As of December 31, 2023, the Company's total sharecapital is RMB 3,316,259,833.00, and par value of each share is RMB 1.
As of 31 December 2023, the registered capital of the Company was RMB 2,356,514,564.00.Registered address: No. 123. Xinxing Road, Ningjin County, Hebei Province. Office address:
Building No. 8, Noble Center, Automobile Museum East Road, Fengtai District, Beijing. Uniformsocial credit code: 91130300601142274F.
The parent company of the Company is Dongtai Jingtaifu Technology Co., Ltd. (formerly knownas Ningjin Jingtaifu Technology Co., Ltd.), and the actual controller is Jin Baofang.
The principal business activities of the Company and its subsidiaries (referred to as “theGroup”) are: production and processing of monocrystalline silicon rods and monocrystallinesilicon wafers; production of solar cells and modules; research and develop solar products;sales of solar cells, modules and related products and raw materials; solar photovoltaic grid-connected power generation, electricity sales; development, construction, operation,management and maintenance of solar photovoltaic power plants; import and export of goodsand technology; engaged in technology development and technology transfer in the field ofsolar cells; workshop lease; space lease; electrical equipment rental (those involvingadministrative licensing shall be operated with permits). (For any item subject to approvalaccording to the law, relevant business activities shall be conducted upon approval by therelevant departments). For information about the subsidiaries of the Company, refer to NoteVIII.
During the reporting period, the information about increases and decreases in the Group’ssubsidiaries is disclosed in Note VII.
II Basis of preparation
1 Basis of preparation
This financial statement is in accordance with the “Accounting Standards for BusinessEnterprises - Basic Standard” and relevant specific standards, application materials,interpretations (together hereinafter referred to as “Accounting Standards for BusinessEnterprises”) issued by the Ministry of Finance, and the disclosure requirements relating tofinancial statements and notes from “Information Disclosure Rules for Companies of securitiesfor public issuance No. 15 - General Regulations for Financial Statements” amended by theChina Securities Regulatory Commission (hereinafter referred to as “CSRC”) in 2023.
2 Going concern
As at 31 December 2023, the Group’s current liabilities exceeded current assets byRMB1,134,042,186.73. After taking into account the Group's expected operating cash flow andavailable bank facilities, the Group will also seek long-term loans and repay current debts bycarrying out financing activities, and considers alternative sources of financing whenappropriate and necessary. It is the opinion of management that the Group will be able to meetits financial commitments as they fall due within the next twelve months. Accordingly, thesefinancial statements have been prepared on a going concern basis.
III Significant accounting policies and accounting estimates
1 Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements present the requirements of the Accounting Standards for BusinessEnterprises promulgated by the Ministry of Finance. It truly and completely reflects theCompany’s merger on December 31, 2023 and the financial position of the parent company,as well as the 2023 merger and the operating results and cash flow of the parent company.
2 Accounting year
The Accounting year is from 1 January to 31 December.
3 Operating period
The operating period is twelve months.
4 Functional currency
The Company and its domestic subsidiaries use RMB as the functional currency. The foreignsubsidiaries of the Company determine their functional currency according to the currency ofthe main economic environment in which they operate and the main currency of businessincome and expenditure.
5 Method used to determine the materiality threshold and the basis for selection
| Item | Materiality threshold |
| Significant receivables for which provisions for bad and doubtful debts are individually assessed | equals to or more than RMB5 million |
| Significant construction in progress | has an ongoing financing project; or its amount incurred for the period/balance exceeds 10% of the total fixed assets. |
| Significant joint arrangements or associates | the carrying amount of the investment in the joint venture or associate is greater than 0.2% of total assets in the consolidated balance sheet; or the profit (loss, expressed in absolute terms) from the investment in the joint venture or associate is greater than 0.2% of operating profit in the consolidated balance sheet. |
| Significant non-wholly-owned subsidiaries | its profit represents 10% of the Group's net profit (loss, expressed in absolute terms). |
| Significant cash flow from investing activities | amount of the individual cash inflow or outflow represents 0.2% of the total assets. |
| Significant contract liabilities with ageing of more than one year | amount of the individual contract liability represents 0.2% of the total assets. |
6 Accounting treatments for business combinations involving entities under common control and
not under common control
Business combinations involving entities under common control
The assets and liabilities that the Group acquired in a business combination shall be measuredon the basis of their carrying amount of aquiree’s assets, liabilities (as well as the goodwillarising from the business combination) in the consolidated financial statement of the ultimatecontroller on the combining date. As for the balance between the carrying amount of the netassets obtained by the Group and the carrying amount of the consideration paid by it (or thetotal par value of the shares issued), capital reserve needs to be adjusted. If the capital reserveis not sufficient, any excess shall be adjusted against retained earnings.
Business combinations involving entities not under common control
The Group shall, on the acquisition date, measure the assets given and liabilities incurred orassumed by an enterprise for a business combination in light of their fair values, and shallrecord the balances between them and their carrying amounts into the profits and losses atthe current period. The Group shall recognize the positive balance between the combinationcosts and the fair value of the identifiable net assets it obtains from the acquiree as goodwill.The Group shall treat the negative balance between the combination costs and the fair valueof the identifiable net assets it obtains from the acquiree into the profits and losses of thecurrent period.
The intermediary costs and relevant fees for the business combination paid by the acquirer,including the expenses for audit, assessment and legal services, shall be recorded into theprofits and losses at the current period. The transaction expenses for the issuance of equitysecurities for the business combination shall be recorded into the initial recognition amount ofequity securities.
7 Criteria of control and preparation of consolidated financial statements
Criteria for control
Control exists when the investor has all of the following: power over the investee; variablereturns from its involvement with the investee; and the ability to affect those returns through itspower over the investee. When assessing whether the Group has power, only substantiverights (held by the Group and other parties) are considered.
Consolidation of Financial Statements
(1) Scope of consolidation
The scope of consolidation of consolidated financial statements is determined based oncontrol. All the subsidies (including separable sections of the investees controlled by theCompany) have been consolidated into the scope of consolidation for this period ended.
(2) Procedure of consolidation
The consolidated financial statements shall be presented by the parent based on the financialstatements of both the parent and its subsidiaries according to the related information. Whenpreparing consolidated financial statements, the parent shall consider the entire group as anaccounting entity, adopt uniform accounting policies and apply the requirements of AccountingStandard for Business Enterprises related to recognition, measurement and presentation. Theconsolidated financial statements shall reflect the overall financial position, operating resultsand cash flows of the Group.
The accounting policy and accounting period of the subsidiaries within the consolidation scopeshall be in accordance with those of the Company. If not, it is necessary to make the adjustmentaccording to the Company’s accounting policies and accounting period when preparing theconsolidated financial statements. For subsidiaries through acquisition that are now undercommon control, the financial statements are adjusted according to fair value of identifiablenet assets on the acquisition date. For subsidiaries through acquisition that are under commoncontrol, the assets, liabilities (as well as the goodwill arising from purchasing the subsidiary bythe ultimate controller) are adjusted according to book value of net assets in the financialstatements of the ultimate controller.
The owners’ interests, profit or loss, and comprehensive income of the subsidiary attributableto the non-controlling shareholders shall be presented separately in the shareholders’ equityof the consolidated balance sheet and under the item of net profit of the consolidated statementof comprehensive income and under the item of total comprehensive income. Where lossesassumed by the minority exceed the minority’s interests in the beginning equity of a subsidiary,the excess shall be charged against the minority’s interests.
(a) Increasing new subsidiaries or businesses
If the Company has a new subsidiary due to business combination under commoncontrol during the reporting period, it shall adjust the beginning amount in theconsolidated statement of financial position when preparing consolidated statement offinancial position. The revenue, expenses and profits of the subsidiaries from theacquisition date to the end of the reporting period are included in the Company’sconsolidated statement of comprehensive income. The cash flow of the subsidiaries fromthe acquisition date to the end of the reporting period is included in the Company’sconsolidated statement of cash flows. And meanwhile the Company shall adjust therelevant items of the comparative financial statements as if the reporting entity for thepurpose of consolidation has been in existence since the date the ultimate controllingparty first obtained control.
When the Company becomes capable of exercising control over an investee undercommon control due to additional investment or other reasons, adjustment shall be madeas if the reporting entity after the combination has been in existence since the date theultimate controlling party first obtained control. The investment income recognizedbetween date of previously obtaining equity investment and the date the acquiree andacquirer are under common control, which is later, and the combining date, othercomprehensive income and other changes of net assets arising from the equityinvestment previously-held before obtaining the control the acquiree shall be adjustedagainst the prior retained earnings of the comparative financial statements and thecurrent profit or loss respectively.
During the reporting period, if a subsidiary or business is added due to a businesscombination not under the same control, the beginning balance of the consolidatedbalance sheet shall not be adjusted. The revenue, expenses and profits of thesubsidiaries from the acquisition date to the end of the reporting period are included inthe parent company’s consolidated statement of comprehensive income. The cash flowof the subsidiaries from the acquisition date to the end of the reporting period is includedin the Company’s consolidated statement of cash flows.
When the Company becomes capable of exercising control over an investee not undercommon control due to additional investment or other reasons, the acquirer shallremeasure its previously held equity interest in the acquiree to its fair value at theacquisition date. The difference between the fair value and the carrying amount shall berecognized as investment income for the period when the acquisition takes place. Whenthe previously-held equity investment is accounted for under the equity method, anyother comprehensive income previously recognized in relation to the acquiree’s equitychanges, and other equity changes rather than changes from net profit, othercomprehensive income and profit distribution shall be transferred to profit or loss for thecurrent period when the acquisition takes place. Other comprehensive income arisingfrom remeasurement of defined benefit plan is excluded.
(b) Disposing subsidiaries or businesses
General treatment
If the Company disposes a subsidiary during the reporting period, the revenue, expensesand profits of the subsidiary from the beginning of the reporting period to disposal dateare included in the Company’s consolidated statement of comprehensive income. Thecash flow of the subsidiaries from the beginning of the reporting period to disposal dateis included in the Company’s consolidated statement of cash flows.
When the Company loses control over an investee due to partial disposal or otherreasons, the acquirer shall re-measure the remaining equity interests in the acquiree toits fair value at the acquisition date. The difference, between sums of considerationreceived for disposal equity shares and fair value of the remaining shares, and sums ofshare of net assets of the subsidiary calculated continuously from the acquisition date orthe combination date based on the previous shareholding proportion and goodwill, shallbe recognized as investment income for the period when the Company loses control overacquiree. When the previously-held equity investment is accounted for under the equitymethod, any other comprehensive income previously recognized in relation to theacquiree’s equity changes, and other equity changes rather than changes from net profit,other comprehensive income and profit distribution, shall be transferred to investmentincome for the current period when the Company loses control over acquiree. Othercomprehensive income arising from re-measurement of defined benefit plan is excluded.
When the Company loses control over a subsidiary due to the increase of capital fromother investors and thus the shareholding ratio of the Company declines, accountingtreatment shall be in accordance with the above-mentioned principles.
Disposing subsidiaries by multiple transactions
Where the Company loses control of a subsidiary in multiple transactions in which itdisposes of its subsidiary in stages, in determining whether to account for the multipletransactions as a single transaction, the Company shall consider all of the terms andconditions of the transactions and their economic effects. One or more of the followingmay indicate that the Company shall account for the multiple arrangements as a singletransaction:
- Arrangements are entered into at the same time or in contemplation of each other;- Arrangements work together to achieve an overall commercial effect;- The occurrence of one arrangement is dependent on the occurrence of at least oneother arrangement; and- One arrangement considered on its own is not economically justified, but it iseconomically justified when considered together with other arrangements.
If each of the multiple transactions forms part of a bundled transaction which eventuallyresults in loss of control of the subsidiary, these multiple transactions shall be accountedfor as a single transaction. In the consolidated financial statements, the differencebetween the consideration received and the corresponding proportion of the subsidiary’snet assets in each transaction prior to the loss of control shall be recognized in othercomprehensive income and transferred to the profit or loss when the Companyeventually loses control of the subsidiary.
If each of the multiple transactions which eventually results in loss of control of thesubsidiary do not form part of a bundled transaction, apply the treatment of disposingpartial long-term equity investments in a subsidiary without loss of control prior to theloss of control. After the loss of control, apply the treatment of disposing the subsidiaryin common cases.
(c) Acquiring the subsidiaries’ equity interest held by non-controlling shareholders
Where the Company has acquired a subsidiary’s equity interest held by non-controllingshareholders, the difference between the increase in the cost of long-term investmentsas a result of acquisition of non-controlling interests and the share of net assets of thesubsidiary calculated continuously from the acquisition date or the combination datebased on the new shareholding proportion shall be adjusted to the capital reserve( capitalpremium or share premium) in the consolidated financial statements. If the balance ofthe capital reserve is not sufficient, any excess shall be adjusted against retainedearnings.
(d) Disposing portion of equity investments in subsidiaries without losing control
When the Company disposes of a portion of the long-term equity investments in asubsidiary without loss of control, the difference between the amount of the considerationreceived and the corresponding portion of the nest assets of the subsidiary calculatedcontinuously from the acquisition date or the combination date related to the disposal ofthe long-term equity investments shall be adjusted to the capital reserve (capital premiumor share premium) in the consolidated financial statements. If the balance of the capitalreserve is not sufficient, any excess shall be adjusted against retained earnings.
8 Cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to the cashon hand and the unrestricted deposit. And the term “cash equivalents” refers to short-term(maturing within three months from acquisition) and highly liquid investments that are readilyconvertible to known amounts of cash and which are subject to an insignificant risk of changein value.
9 Foreign currency transaction and translation of foreign currency financial statements
(1) Foreign currency transaction
Foreign currency transactions are translated into RMB at the current exchange rate andapproximate exchange rate at the day of transactions.
The foreign currency monetary items shall be translated at the spot exchange rate on thebalance sheet date. The balance of exchange arising from the difference between the spotexchange rate on the balance sheet date and the spot exchange rate at the time of initialrecognition or prior to the balance sheet date, except those arising from the raising of specialforeign debt for the purchase or construction of capitalizable assets thus shall be capitalizedaccording to the borrowing costs capitalization principle, shall be recorded into the profits andlosses at the current period.
(2) Translation of foreign currency financial statements
The asset and liability items in the statement of financial position shall be translated at a spotexchange rate on the balance sheet date. Among the owner’s equity items, except the onesas “undistributed profits”, others shall be translated at the spot exchange rate at the time whenthey are incurred. The income and expense items in the income statement are converted usingthe average exchange rate during the transaction period.
When disposing an overseas business, the Company shall shift the balance, which ispresented under the items of the owner’s equities in the statement of financial position andarises from the translation of foreign currency financial statements related to this overseabusiness, into the disposal profits and losses of the current period. If the overseas business isdisposed of partially, the Company shall calculate the balance arising from the translation offoreign currency statements of the part of disposal based on the disposal rate and shall shiftthem into the profits and losses of the current period.
10 Financial instruments
When the Company becomes a party to a financial instrument contract, it recognizes a financialasset, financial liability or equity instrument.
(1) Classification of financial instruments
The Company shall classify financial assets on the basis of both the entity’s business modelfor managing the financial assets and the contractual cash flow characteristics of the financialasset as: financial assets measured at amortised cost, financial assets measured at fair valuethrough other comprehensive income (debt instrument) and financial assets measured at fairvalue through profit or loss at initial measurement.
A financial asset shall be measured at amortised cost if both of the following conditions aremet. The financial asset is held within a business model whose objective is to hold financialassets in order to collect contractual cash flows and the contractual terms of the financial assetgive rise on specified dates to cash flows that are solely payments of principal and interest onthe principal amount outstanding. A financial asset shall be measured at fair value throughother comprehensive income if both of the following conditions are met. The financial asset isheld within a business model whose objective is achieved by both collecting contractual cashflows and selling financial assets and the contractual terms of the financial asset give rise onspecified dates to cash flows that are solely payments of principal and interest on the principalamount outstanding . Other financial assets other than these are classified as financial assetsmeasured at fair value through profit or loss.
The Company may make an election at initial recognition for non-trading equity instrumentinvestments whether it is designated as a financial asset (equity instrument) that is measuredat fair value through other comprehensive income. At the initial recognition, in order to eliminateor significantly reduce accounting mismatches, financial assets can be designated as financialassets measured at fair value through profit or loss.
The Company shall classify financial liabilities as financial liabilities measured at amortisedcost and financial liabilities measured at fair value through profit or loss at initial measurement.
The Company may, at initial recognition, designate a financial liability as measured at fair valuethrough profit or loss because either:
(a) it eliminates or significantly reduces an accounting mismatch;(b) a group of financial liabilities or financial assets and financial liabilities is managed and
its performance is evaluated on a fair value basis, in accordance with a documented riskmanagement or investment strategy, and information about the Group is providedinternally on that basis to the entity’s key management personnel;(c) the financial liability contains embedded derivatives that need to be separated.
(2) Recognition and measurement of financial instruments
(a) Financial assets measured at amortised cost
Financial assets measured at amortized cost include notes receivables, accountsreceivables, other receivables, long-term receivables, debt investments, etc. At initialrecognition, the Company shall measure a financial asset at its fair value plus or minustransaction costs that are directly attributable to the acquisition or issue of the financialasset. The Company shall measure account receivables at their transaction price if theaccount receivables do not contain a significant financing component and accountsreceivables that the Company has decided not to consider for a financing component ofno more than one year.
Interests calculated by using the effective interest method during the holding period shallbe recognized in profit or loss.
When recovering or disposing the receivables, the difference between the price obtainedand the carrying value shall be recognized in current profit or loss.
(b) Financial assets measured at fair value through other comprehensive income (debt
instruments)
Financial assets measured at fair value through other comprehensive income (debtinstruments) include receivables financing, other debt investments, etc. At initialrecognition, the Company shall measure a financial asset at its fair value plus transactioncosts that are directly attributable to the acquisition or issuance of the financial asset.The financial assets are subsequently measured at fair value. Changes in fair value areincluded in other comprehensive income except for interest calculated using the effectiveinterest method, impairment losses or gains and exchange gains and losses.
When the financial assets are derecognized, the accumulated gain or loss previouslyrecognized in other comprehensive income is transferred from other comprehensiveincome and recognized in profit or loss.
(c) Financial assets at fair value through other comprehensive income (equity instruments)
Financial assets at fair value through other comprehensive income (equity instruments).include other equity instrument investments, etc. At initial recognition, the Company shallmeasure a financial asset at its fair value plus transaction costs that are directlyattributable to the acquisition or issue of the financial asset. The financial assets aresubsequently measured at fair value. Changes in fair value are included in othercomprehensive income. The dividends obtained are recognised in profit and loss.
When the financial assets are derecognized, the accumulated gain or loss previouslyrecognised in other comprehensive income is transferred from other comprehensiveincome and recognised in retained earnings.
(d) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include transactional financial assets,derivative financial assets, other non-current financial assets, etc. The Company shallmeasure the financial assets at fair value at initial recognition. Transaction costs arerecognised in profit or loss. Changes in fair value are included in profit or loss.
(e) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include current financial liabilities,derivative financial liabilities, etc. The Company shall measure the financial assets at fairvalue at initial recognition. Transaction costs are recognised in profit or loss. Changes infair value are included in profit or loss.
(f) Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost include short-term borrowings, notespayables, accounts payables, other payables, long-term borrowings, bonds payables,long-term payables. At initial recognition, the Company shall measure a financial liabilityat its fair value plus. transaction costs that are directly attributable to the acquisition orissue of the financial asset.
Interests calculated by using the effective interest method during the holding period shallbe. recognized in profit or loss.
When the financial liabilities are derecognized, the difference between the price obtainedand the carrying value shall be recognised in profit and loss.
(3) Derecognition of financial assets and transfer of financial assets
Where the Company has transferred nearly all of the risks and rewards related to theownership of the financial asset to the transferee, it shall stop recognizing the financial asset.If it retained nearly all of the risks and rewards related to the ownership of the financial asset,it shall not stop recognizing the financial asset.
To judge whether the transfer of a financial asset can satisfy the conditions as prescribed inthese Standards for stopping the recognition of a financial asset, the Company shall follow theprinciple of the substance over form. Transfer of an entire financial asset can be divided intopartial financial assets transfer and entire financial asset transfer. If the transfer of an entirefinancial asset satisfies the conditions for de-recognition, the difference between the amountsof the following two items shall be recorded in the profits and losses of the current period:
- The book value of the transferred financial asset; and- The sum of consideration received from the transfer, and the accumulative amount of thechanges of the fair value originally recorded in the owners’ equities (in the event that thefinancial asset involved in the transfer is available-for-sale financial asset.
If the transfer of partial financial asset satisfies the conditions to derecognize, the entire bookvalue of the transferred financial asset shall, between the portion whose recognition has beenstopped and the portion whose recognition has not been stopped (under such circumstance,the service asset retained shall be deemed as a portion of financial asset whose recognitionhas not been stopped), be apportioned according to their respective relative fair value, and thedifference between the amounts of the following 2 items shall be included into the profits andlosses of the current period :
- The book value of the portion whose recognition has been stopped; and- The sum of consideration of the portion whose recognition has been stopped, and the
portion of the accumulative amount of the changes in the fair value originally recorded inthe owner’s equities which is corresponding to the portion whose recognition has beenstopped (in the event that the financial asset involved in the transfer is a financial assetAvailable-for-sale).
If the transfer of financial assets does not satisfy the conditions to stop the recognition, it shallcontinue to be recognized as financial assets and the consideration received shall berecognized as financial liabilities.
(4) Derecognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may therecognition of the financial liability be terminated in all or partly. Where the Company (debtor)enters into an agreement with a creditor so as to substitute the existing financial liabilities byway of any new financial liability, and if the contractual stipulations regarding the new financialliability is substantially different from that regarding the existing financial liability, it shallterminate the recognition of the existing financial liability, and shall at the same time recognizethe new financial liability.
Where the Company makes substantial revisions to part or all of the contractual stipulations ofthe existing financial liability, it shall terminate the recognition of the existing financial liabilityor part of it, and at the same time recognize the financial liability after revising the contractualstipulations as a new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the Company shallinclude into the profits and losses of the current period the difference between the carryingamount which has been terminated from recognition and the considerations it has paid(including the non-cash assets it has transferred out and the new financial liabilities it hasassumed).
Where the Company buys back part of its financial liabilities, it shall distribute, on the date ofrepurchase, the carrying amount of the whole financial liabilities in light of the comparativelyfair value of the part that continues to be recognized and the part whose recognition hasalready been terminated. The gap between the carrying amount which is distributed to the partwhose recognition has terminated and the considerations it has paid (including the noncashassets it has transferred out and the new financial liabilities it has assumed) shall be recordedinto the profits and losses of the current period.
(5) Determination of the fair value of the financial assets (liabilities)
If active markets for the financial instruments exist, the fair value shall be measured by quotedprices in the active markets. If active markets for the financial instruments do not exist,valuation techniques shall be applied for the measurement. The Company uses valuationtechniques appropriate in the circumstances and for which sufficient data are available tomeasure fair value. The Company chooses relevant observable inputs for identical or similarassets or liabilities. Only when relevant observable inputs are unavailable or should theCompany use unobservable inputs for the asset or liability.
(6) Testing methods and accounting treatment methods for impairment of financial assets
The Company considers all reasonable and relevant information, including forward-lookinginformation, to recognize the expected credit loss on financial assets measured at amortizedcost, and financial assets measured at fair value through other comprehensive income (debtinstruments) on the individual or portfolio basis. The measurement of expected credit lossdepends on whether there is a significant increase in credit risk of financial assets since theinitial recognition.
If the credit risk of the financial instrument has increased significantly since the initialconfirmation, the Company shall measure the loss allowance for a financial instrument at anamount equal to the lifetime expected credit losses. If the credit risk on a financial instrumenthas not increased significantly since initial recognition, the Company shall measure the lossallowance for that financial instrument at an amount equal to 12-month expected credit losses.The increase or reversal amount of loss allowance thus formed shall be included in the currentprofits and losses as impairment losses or gams.
Generally, the Company believes that the credit risk of the financial instrument has significantlyincreased over 30 days after the due date, unless there is solid evidence that the credit risk ofthe financial instrument has not increased significantly since initial recognition.
If the credit risk of a financial instrument at the reporting date is relatively low, the Companyconsiders that the credit risk of the financial instrument has not increased significantly sincethe initial recognition.
If there is objective evidence indicating that a certain financial asset has been impaired, theCompany shall recognize provision for impairment of the financial asset individually.
For account receivables, whether a significant financing component is contained or not, theCompany shall always measure the loss allowance at an amount equal to lifetime expectedcredit losses. For the receivables from Energy Performance Contracting, long-term receivablesformed by the Company through the sale of goods or rendering of services, the Companychooses to measure the expected credit loss at an amount equal to 12-month expected creditlosses (stage one).
When individual financial assets that cannot be used to estimate expected credit losses atreasonable cost, the Company shall divide receivables based on the credit risk characteristicsinto different portfolio and calculate expected credit loss based on portfolios. The criteria forthe portfolio are as follows:
| Bills receivable | The Group classifies bills receivable into bank and commercial acceptance bills based on the credit risk characteristics of the acceptor. |
| Accounts receivable | According to the historical experience of the Group, there are differences in the losses of different customer groups. As a result, the Group classifies accounts receivable into receivables from companies within the scope of consolidation, electricity fees due from Power Grid Companies and accounts receivable due from external customers (excluding power grid companies). |
| Receivables under financing | Receivables under financing held by the Group for dual purpose are bank acceptance bills receivable and accounts receivable. The Group classifies receivables under financing into bank acceptance bill portfolio and commercial acceptance bill portfolio, based on the credit risk characteristics of the acceptor. |
| Other receivables | According to the nature of receivables and the credit risk characteristics of different counterparties, the Group classifies other receivables into amounts due from related parties, deposits and warranties, equity transfer receivable, amounts due from other entities, export rebates receivables and subsidies receivable. |
| Contract assets | According to the historical experience of the Group, this portfolio is based on power bills receivables due from Power Grid Companies. |
| Long-term receivables | The Group’s long-term receivables are composed primarily of receivables from Energy Performance Contracting and Installment sale. According to the credit risk characteristics of different counterparties, the Group classifies long-term receivables as amounts due from companies within the scope of consolidation, and other current accounts. |
For the accounts receivable and contract assets divided into portfolios, the Group shall, basedon past events, current conditions and forecasts of future economic conditions, calculateexpected credit losses using comparison table of the other receivables aging analysis andlifetime expected credit loss ratio.
For the notes receivable and account receivable financing formed by daily business activitiessuch as sales of goods and service, which are divided into portfolios, the Group shall, basedon past events, current conditions and forecasts of future economic conditions, calculateexpected credit losses using the default risk exposure and the expected credit loss rate of thewhole lifetime. Besides, notes receivable, account receivable financing and other receivableswill be divided into portfolios, the Group shall, based on past events, current conditions andforecasts of future economic conditions, calculate expected credit losses using the default riskexposure and the expected credit loss rate within the next 12 months or the whole lifetime.
The Group shall recognize the amount of expected credit losses or reversal in profit or loss.For debt instruments measured at fair value through other comprehensive incomes, the Groupshall recognize the amount of expected credit losses or gains in profit or loss and adjust othercomprehensive income.
(7) Equity instruments
The consideration received from the issuance of equity instruments net of transaction costs isrecognized in shareholders’ equity. Consideration and transaction costs paid by the Group forrepurchasing self-issued equity instruments are deducted from shareholders’ equity.
(8) Convertible instruments
- Convertible instruments containing an equity component
Convertible instruments issued by the Group that can be converted to equity instruments ofthe Group, where a fixed number of equity instruments is issued in exchange for a fixedamount of consideration at the time of conversion, are accounted for as compound financialinstruments containing both liability and equity components.
The initial carrying amount of a compound financial instrument is allocated to its equity andliability components. The Group first determines the fair value of the liability componentwhich includes the fair value of any embedded derivatives other than the equity component.The amount allocated to the equity component is the residual amount after deducting thefair value of the liability component from the fair value of the entire compound instrument.Transaction costs that relate to the issue of a compound financial instrument are allocatedto the liability and equity components of the instrument in proportion to the allocation ofproceeds.
Subsequent to initial recognition, the liability component is measured at amortised costusing the effective interest method, unless it is designated upon recognition as measuredat fair value through profit or loss. The equity components will not be re-measured.
If the convertible instrument is converted, the liability component, together with the equitycomponent, is transferred to equity. If the convertible instrument is redeemed, theconsideration paid for the redemption, together with the transaction costs that relate to theredemption, are allocated to the liability and equity components. The method used toallocate the consideration and transaction costs is the same as that used for issuance. Afterallocating the consideration and transaction costs, the difference between the allocated andcarrying amounts is charged to profit and loss if it relates to the liability component or isdirectly recognised in equity if it relates to the equity component.
- Convertible instruments without equity component
For other convertible instruments issued by the Group which do not contain an equitycomponent, at initial recognition, the derivative component is measured at fair value, andany excess of proceeds over the derivative component is recognised as the liabilitycomponent.
The derivative component is subsequently measured at fair value through profit or loss. Thehost liability component is subsequently carried at amortised cost using the effective interestmethod.
Upon conversion, the carrying amounts of the derivative and host liability components aretransferred to the revalent captions in equity. If the instrument is redeemed, any differencebetween the redemption amount paid and the carrying amounts of both components isrecognised in profit or loss.
11 Contract assets and contract liabilities
(1) Confirmation methods and standards of contract assets and contract liabilities
The Company lists contract assets or contract liabilities on the balance sheet based on therelationship between performance obligations and customer payments. The Company has theright to receive consideration for the transfer of goods or services to customers (and the rightdepends on other factors other than the passage of time) listed as contract assets. Contractassets and contract liabilities under the same contract are presented in net terms. TheCompany’s unconditional (only depends on the passage of time) right to collect considerationfrom customers are separately listed as receivables.
(2) Determination methods and accounting treatment methods of expected credit loss of contract
assets
The methods for determining the expected credit loss of contract assets and the accountingtreatment methods are detailed in this Note III 10(6). Testing methods and accountingtreatment methods for impairment of financial assets.
12 Inventories
(1) Classification and cost of inventories
Inventories include material procurement, raw material, low-valued consumables, finishedgoods, work in process, materials for consigned processing, goods in transit, etc.
(2) Valuation method for inventories dispatched
The weighted average method is used to confirm the actual cost of the inventories dispatched.
(3) Inventory count system
The Group uses perpetual inventory system.
(4) Amortisation method for low-value consumables and packaging materials
- Low-valued consumables shall be amortized in full amount on issuance.- Packing materials shall be amortized in full amount on issuance.
(5) Criteria and method for provision for impairment of inventories
At the balance sheet date, inventories are carried at the lower of cost and net realisable value.
The net realizable value of inventories (finished products, stock commodity, material, etc.) heldfor direct selling in the daily business activity shall be calculated by deducting the estimatedsale expense and relevant taxes from the estimated sale price of inventories; The net realizablevalue of inventories for further processing in the daily business activity shall be calculated bydeducting the estimated cost of completion, estimated sale expense and relevant taxes fromthe estimated sale price of inventories; The net realizable value of inventories held for theexecution of sales contracts or labor contracts shall be calculated on the ground of the contractprice. If the Company holds more inventories than the quantities subscribed in the salescontract, the net realizable value of the excessive part of the inventories shall be calculated onthe ground of the general sales price.
The Company shall make provision for loss on decline in value of inventories on the ground ofeach item of inventories at the year end. For inventories with large quantity and relatively lowunit prices, the provision for loss on decline in value of inventories shall be made on the groundof the categories of inventories. For the inventories related to the series of productsmanufactured and sold in the same area, and of which the final use or purpose is identical orsimilar thereto, and if it is difficult to measure them by separating them from other items, theprovision for loss on decline in value of inventories shall be made on a combination basis.
Unless clear evidence shows that the market price is exceptionally fluctuating, the netrealizable value of inventories is based on the market price at the balance sheet date.
The net realizable value of inventories at the year-end is based on the market price at thebalance sheet date.
13 Assets held for sale and discontinued operations
(1) Non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal asset groups when the assets meetthe following criterion into holding categories for sale simultaneously:
- According to the practice of selling such assets or disposal asset groups in similar
transactions, they can be sold immediately under current conditions;
- The sale of assets is highly probable, as the Company has already made a resolution on a
sale plan and obtained a certain purchase commitment, and the transaction is expected tobe completed within one year. The relevant regulations that the assets can be sold havebeen approved by relevant authorities or regulatory authorities of the Company.
Non-current assets or disposal groups held for sale are stated at the lower of carrying amountand fair value less costs to sell (except financial assets (see Note III.10) and deferred taxassets (see Note III.28)) initially and subsequently. Any excess of the carrying amount over thefair value less costs to sell is recognized as an impairment loss in profit or loss.
In case of any subsequent reversals of the above impairment losses of assets, a reversal ofan impairment loss will not result in the asset’s carrying amount exceeding what the carryingamount at the date of impairment reversal would have been had no impairment loss beenrecognized in prior years.
(2) Discontinued operations
Discontinuing operation is a component that has been disposed or classified as held for saleby the Company, and can be distinguished separately in operating and preparing financialstatements when one of the following conditions is met:
- The component stands for an independent main business or a major business area;- The component is a part of disposal plan of an independent main business or a major
business area;- The component is a subsidiary which is acquired only for sale again.
Where an operation is classified as discontinued in the current period, profit or loss fromcontinuing operations and profit or loss from discontinued operations are separately presentedin the income statement for the current period. The comparative information for profit or lossfrom discontinued operations, which used to present as profit or loss from continuingoperations in the prior period, is re-presented as profit or loss from discontinued operations inthe comparative income statement.
14 Long-term equity investment
(1) Criteria of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists onlywhen decisions about the relevant activities require the unanimous consent of the partiessharing control. If the Company and other joint venture have joint control of the investee andhave rights to the net assets of the investee, the investee is a joint venture of the Company.
Significant influence is the power to participate in the financial and operating policy decisionsof the investee but not control or join control of those policies. If the Company could exertsignificant influence over the investee, the investee is the associate of the Company.
(2) The initial cost of long-term equity investment from business acquisition
(a) Long-term equity investment from business acquisition
For a business combination under common control, if the consideration of thecombination is satisfied by paying cash, transfer of non-cash assets or assumption ofliabilities and issue of equity securities,the initial investment cost of the long-tenn equityinvestment shall be the absorbing party’s share of the carrying amount of the owner’sequity of the party being absorbed in the consolidated financial statements of the ultimatecontrolling party at combination date. When an investor becomes capable of exercisingcontrol over an investee under common control due to additional investment or otherreasons, the initial investment cost shall be the absorbing party’ s share of the carryingamount of the owner’s equity of the party being absorbed in the consolidated financialstatements of the ultimate controlling party at combination date. The difference betweenthe initial investment cost and the carrying amount of the previously-held equityinvestment, together with the additional investment cost for new shares at combinationdate, shall be adjusted to the capital reserve. If the balance of capital reserve is notsufficient, any excess shall be adjusted to retained earnings.
For a business combination not under common control, the initial investment cost of thelong-tenn equity investment shall be the acquisition cost at the acquisition date. Whenan investor becomes capable of exercising control over an investee due to additionalinvestment or other reasons, the initial investment cost under the cost method shall bethe carrying amount of previously-held equity investment together with the additionalinvestment cost.
(b) The initial cost of the long-term equity investment other than from business acquisition
The initial cost of a long-tenn equity investment obtained by making payment in cashshall be the purchase cost which is actually paid.
The initial cost of a long-tenn equity investment obtained on the basis of issuing equitysecurities shall be the fair value of the equity securities issued.
If the exchange of non-monetary assets is commercial in nature and the fair values ofboth the assets received and surrendered can be reliably measured, the fair value of theassets surrendered shall be used as the basis for detennining the cost of the assetsreceived, unless there is any exact evidence showing that the fair value of the assetsreceived is more reliable. Where any non-monetary assets transaction does not meetthe conditions as prescribed above, the carrying value and relevant payable taxes of theassets surrendered shall be the initial cost of the assets received.
The initial cost of a long-tenn equity investment obtained by debt restructuring shall beascertained on the basis of fair values.
(3) Subsequent measurement and profit or loss recognition
(a) Cost method
The Company adopts cost method for the long-tenn investment in subsidiary company.Under the cost method, an investing enterprise shall, in accordance with the attributableshare of the net profits or losses of the invested entity, recognize the investment profitsor losses except the dividend declared but unpaid, which is included in the payment whenacquiring the investment.
(b) Equity method
A long-tenn equity investment in an associate or a joint venture shall be accounted forusing the equity method. Where the initial investment cost of a long-tenn equityinvestment exceeds an investor’s interest in the fair values of an investee’s identifiablenet assets at the acquisition date, no adjustment shall be made to the initial investmentcost. Where the initial cost is less than the investor’s interest in the fair values of theinvestee’s identifiable net assets at the acquisition date, the difference shall be creditedto profit or loss for the current period.
The Company shall recognize its share of the investee’s net profits or losses, as well asits share of the investee’s other comprehensive income, as investment income or lossesand other comprehensive income, and adjust the carrying amount of the investmentaccordingly. The carrying amount of the investment shall be reduced by the portion ofany profit distributions or cash dividends declared by the investee that is attributable tothe investor. The investor’s share of the investee’s owners’ equity changes, other thanthose arising from the investee’s net profit or loss, other comprehensive income or profitdistribution, and the carrying amount of the long-tenn equity investment shall be adjustedaccordingly.
The investor shall recognize its share of the investee’s net profits or losses after makingappropriate adjustments according to the Company’s accounting principles andoperating period based on the fair values of the investee’s identifiable net assets at theacquisition date. During the holding period, if the investee makes consolidated financialstatements, the Company shall calculate its share based on the investee’s net profit,other comprehensive income and the amount of other owners’ equity attribute to theinvestee in the consolidated financial statements.
The unrealized profits or losses resulting from transactions between the investor and itsassociate or joint venture shall be eliminated in proportion to the investor’s equity interestin the investee, based on which investment income or losses shall be recognized. Anylosses resulting from transactions between the investor and investee which areattributable to asset impainnent shall be recognized in full. If the transaction ofinvestment or sale of assets among the Company and associate and joint venture andthe assets is a business, it shall apply the treatment mentioned in Note III 5 “Theaccounting treatment for Business combination under/not under common control” andNote III 6 “Consolidation of Financial Statements”.
When the Company recognizes the losses of invested enterprise, it shall follow thefollowing sequence: First of all, offset the book value of long-term equity investment. Ifthe book value of long-tenn equity is insufficient to dilute, the investing enterprise shallrecognize the net losses of the invested enterprise until the book value of the long-termequity investment and other long-term rights and interests which substantially form thenet investment made to the invested entity are reduced to zero. If the Company still hasthe obligation to undertake extra losses per contract, and then estimated liabilities shallbe recognized into current profit and loss accordingly to the estimated obligation.
(c) Disposal of long-term equity investment
When disposing long-term equity investment, the difference between the proceedsactually received and the carrying amount shall be recognized in profit or loss for thecurrent period.
When the previously-held equity investment is accounted for under the equity method,any other comprehensive income previously recognized shall be accounted for on thesame basis as would have been required if the investee had directly disposed of therelated assets or liabilities. Those owner’s equity recognized other than the change ofnet profits or loss, other comprehensive income, profit distribution of the invested entityshall be transferred proportionally into profit or loss of current period, othercomprehensive income arising from the re-measurement of defined benefit plan isexcluded.
When an investor can no longer exercise joint control of or significant influence over aninvestee due to partial disposal of equity investment or other reasons, the remainingequity investment shall be accounted for in accordance with “Accounting Standard forBusiness Enterprises No. 22-Financial instruments: recognition and measurement”. Thedifference between the fair value and the carrying amount at the date of the loss of joincontrol or significant influence shall be charged to profit or loss for the current period.When the previously-held equity investment is accounted for under the equity method,any other comprehensive income previously recognized shall be accounted for on thesame basis as would have been required if the investee had directly disposed of therelated assets or liabilities for the current period upon discontinuation of the equitymethod. Those owner’s equity recognized other than the change of net profits or loss,other comprehensive income, profit distribution of the invested entity shall be transferredinto profit or loss of current period in full when the Company cease to adopt the equitymethod.
When the Company can no longer exercise control over an investee due to partialdisposal of equity investment or due to decrease of shareholding ratio because ofadditional investment by other investors, and with the retained interest, still has jointcontrol of, or significant influence over, the investee, when preparing the individualfinancial statements, the investor shall change to the equity method and adjust theremaining equity investment as if the equity method had been applied from the date ofthe first acquisition. If the investor cannot exercise joint control of or significant influenceover the investee after partial disposal of equity investment, the remaining equityinvestment shall be accounted for in accordance with “Accounting Standard for BusinessEnterprises No.22-Financial instruments: Recognition and Measurement”, and thedifference between the fair value and carrying amount at the date of the loss of controlshall be charged to profit or loss for the current period.
When the equity investment disposed is acquired through business combination due toadditional investment or other reasons, in preparing stand-alone financial statement, theremaining equity investment shall adopt cost method or equity method, any othercomprehensive income and other owner’s interests previously recognized of thepreviously-held equity investment under the equity method shall be transferredproportionally. For those remaining equity investments accounted for in accordance with“Accounting Standard for Business Enterprises No.22-Financial instruments:
Recognition and Measurement” after disposal, other comprehensive income and otherowner’s interests previously recognized shall be transferred to profit or loss in full.
15 Investment property
Investment property refers to real estate held for the purpose of earning rent or capitalappreciation, or both, including leased land use rights, land use rights held and prepared fortransfer after appreciation, and leased buildings (Buildings that are leased after completion ofself-construction or development activities and buildings that are being used for rental in thefuture during construction or development).
Subsequent expenditures related to investment property are included in the cost of investmentproperty when the relevant economic benefits are likely to flow in and their costs can be reliablymeasured. Otherwise, they are included in the current profit and loss when incurred.
The Company uses the cost model to measure the existing investment property. Forinvestment property measured according to the cost model, that is, the rental building adoptsthe same depreciation policy as the fixed assets of the Company, and the land use right forrental is amortized according to the same amortization policy as the intangible assets.
16 Fixed assets
(1) Recognition of Fixed assets
The term “fixed assets” refers to the tangible assets held for the sake of producingcommodities, rendering labor service, renting or business management and of which usefullife is in excess of one fiscal year. No fixed asset may be recognized unless it simultaneouslymeets the conditions as follows:
- The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and- The cost of the fixed asset can be measured reliably.
(2) Fixed assets depreciation
Fixed assets are depreciated under the straight-line method . The depreciation rate isdetermined according to the category of assets, the useful life and the expected residual rate.If the components of the fixed assets have different useful lives or provide the economicbenefits in a different way, then different depreciation rate or method shall be applied and thedepreciation of the components shall be calculated separately.
Details of classification, depreciation period, residual value rate and annual depreciation rateare as follows:
| Category | Depreciation method | Depreciation Period (year) | Residual Value Rate (%) | Depreciation Rate (%) |
| Plants and Buildings | Straight-line method | 20 | 0 - 5 | 4.75 - 5.00 |
| Photovoltaic power station | Straight-line method | 20 | 0 - 10 | 4.50 - 5.00 |
| Machinery | Straight-line method | 5 - 10 | 0 - 5 | 9.50 - 20.00 |
| Transportation | Straight-line method | 4 - 5 | 0 - 5 | 19.00 - 25.00 |
| IT and office equipment | Straight-line method | 3 - 5 | 0 - 5 | 19.00 - 33.33 |
At least at the end of each year, the Company will review the service life, estimated net salvagevalue and depreciation method of fixed assets.
(3) Disposal of fixed assets
When a fixed asset is disposed of, or it is expected that no economic benefits will be generatedthrough use or disposal, the fixed asset should be derecognized. The amount of disposableincome from the sale, transfer, scrap or damage of fixed assets after deducting its book valueand related taxes included in the current profit and loss.
17 Construction in progress
The cost of fixed assets transferred from a construction in progress includes all the necessaryexpenses incurred for bringing the asset to the expected conditions for use. Construction inprogress is transferred to fixed asset when it has reached its working condition for its intendeduse. In case the final project accounts have not been completed or approved, the asset shallbe transferred to fixed assets at an estimated value by considering project budget, cost oractual cost of the project and etc., and the deprecation of the said fixed assets shall be providedin accordance with the Company’s accounting policy since it has reached its working conditionfor its intended use. After the project accounts have been approved, the estimated values shallbe adjusted based on the actual cost, but those provided deprecation shall not be adjusted.
Criteria and timing for reclassification of construction in progress to fixed assets:
| Category | Criteria and timing for reclassification of construction in progress to fixed assets |
| Plant & buildings | When main and supporting constructions are completed substantially, and are ready for their intended uses. |
| Machinery & equipment | When (1) the relevant equipment and its supporting facilities have been installed; (2) the equipment is able to maintain a normal and steady operation for a period of time after tuning and testing; (3) the production equipment can consistently produce good quality products for a certain period of time. |
| Photovoltaic power station | When the performance of the power plant has been verified and accepted after connection to the power grid. |
When an enterprise sells products or by-products produced before a fixed asset is availablefor its intended use, the proceeds and related cost are accounted for in accordance with CAS14 - Revenue and CAS 1 - Inventories respectively, and recognized in profit or loss for thecurrent period.
18 Borrowing costs
(1) Principle of the recognition of capitalized borrowing costs
The borrowing costs shall include interest on borrowings, amortization of discounts orpremiums on borrowings, ancillary expenses, and exchange balance on foreign currencyborrowings.
Where the borrowing costs incurred to an enterprise can be directly attributable to theacquisition and construction or production of assets eligible for capitalization, it shall becapitalized and recorded into the costs of relevant assets. Other borrowing costs shall berecognized as expenses on the basis of the actual amount incurred, and shall be recorded intothe current profits and losses.
Assets eligible for capitalization refer to the fixed assets, investment real estate, inventoriesand other assets, of which the acquisition and construction or production may take quite a longtime to get ready for its intended use or for sale.
The borrowing costs shall not be capitalized unless they simultaneously meet the followingrequirements:
- The asset disbursements have already incurred, which shall include cash, transferred non-cash assets or interest-bearing debts paid for the acquisition and construction or productionactivities for preparing assets eligible for capitalization;- The borrowing costs has already incurred; and- The acquisition and construction or production activities which are necessary to prepare the
asset for its intended use or sale have already started.
(2) The capitalization period of borrowing costs
The capitalization period shall refer to the period from the commencement to the cessation ofcapitalization of the borrowing costs, excluding the period of suspension of capitalization of theborrowing costs.
When the qualified asset under acquisition and construction or production is ready for theintended use or sale, the capitalization of the borrowing costs shall be ceased.
Where each part of a qualified asset under acquisition and construction or production iscompleted separately and is ready for use, the capitalization of the borrowing costs in relationto this part of asset shall be ceased.
Where each part of an asset under acquisition and construction or production is completedseparately and is ready for use or sale during the continuing construction of other parts, but itcannot be used or sold until the asset is entirely completed, the capitalization of the borrowingcosts shall be ceased when the asset is completed entirely.
(3) The suspension of capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interruptedabnormally and the interruption period lasts for more than 3 months, the capitalization of theborrowing costs shall be suspended . If the interruption is a necessary step for making thequalified asset under acquisition and construction or production ready for the intended use orsale, the capitalization of the borrowing costs shall continue. The borrowing costs incurredduring such period shall be recognized as expenses, and shall be recorded into the profits andlosses of the current period, till the acquisition and construction or production of the assetrestarts.
(4) Method of calculating the capitalization rate and capitalized amount of borrowing costs
For interest expense (minus the income of interests earned on the unused borrowing loans asa deposit in the bank or investment income earned on the loan as a temporary investment)and the ancillary expense incurred to a specifically borrowed loan, those incurred before aqualified asset under acquisition, construction or production is ready for the intended use orsale shall be capitalized at the incurred amount when they are incurred, and shall be recordedinto the costs of the asset eligible for capitalization.
The Company shall calculate and determine the to-be-capitalized amount of interests on thegeneral borrowing by multiplying the weighted average asset disbursement of the part of theaccumulative asset disbursements minus the general borrowing by the capitalization rate ofthe general borrowing used. The capitalization rate shall be calculated and determined in lightof the weighted average interest rate of the general borrowing.
19 Intangible Assets
(1) Useful life and the basis for its determination, estimation, amortization methods or review
procedures
(i) Measurement of Intangible Assets
(a) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition include the purchase price, relevant taxesand other necessary disbursements which may be directly attributable to bringing theintangible asset to the conditions for the expected purpose. If the payment for anintangible asset is delayed beyond the normal credit conditions and it is of the financingnature, the cost of the intangible asset shall be determined on the basis of the presentvalue of the purchase price.
For intangible assets obtained from debt restructuring as settlement of liabilities fromdebtors, initial recognition is based on its fair value of the abandoned equity and othercosts such as taxes that can be directly attributable to the asset’s intended use, and thedifference between the fair value and book value of the debt are recognized in the currentprofit and loss.
For intangible assets obtained from non-monetary transactions with commercialsubstance, and the fair value of the assets obtained or surrendered can be reliablymeasured, the initial recognition of the asset obtained is based on the fair value of theasset surrendered, unless there is strong evidence that the fair value of the assetobtained is more reliable. For intangible assets obtained through non-monetarytransactions which do not meet the above criteria, the initial recognition is based on thebook value of the assets surrendered and the relevant taxes payable. No gain or losswill be recognized.
(b) Subsequent measurement
The Company shall analyze and judge the beneficial period of intangible assets uponacquisition.
Intangible assets with finite beneficial period shall be amortized under the straight-linemethod during the period when the intangible asset can bring economic benefits to theenterprise. If it is unable to estimate the beneficial period of the intangible asset, it shallbe regarded as an intangible asset with uncertain service life and shall not be amortized.
(ii) Estimated useful lives of intangible assets with limited useful lives
| Item | Estimated useful life | Criteria |
| Land use right | 40 - 50 years | Estimated useful life |
| Patent right | 5 - 10 years | Estimated useful life |
| Non-patented technology | 5 - 10 years | Estimated useful life |
| Software | 3 - 10 years | Estimated useful life |
| Other intangible assets | 5 - 10 years | Estimated useful life |
The Company shall review the useful lives and amortization methods of intangible assets withlimited useful lives at each year end.
After review, there is no difference between the useful lives and amortization method ofintangible assets at the end of this year and previous estimates .
(iii) Determination of intangible assets with uncertain useful lives
As at the balance sheet date, the useful lives of intangible assets which are uncertained havebeen reviewed. If there is evidence that the period during which the intangible assets bringeconomic benefits to the Company is foreseeable, its useful life will be estimated andamortized according to the amortization policy for intangible assets with limited service life.
(2) The scope of research and development expenditures and the related accounting treatments
(i) The scope of research and development expenditures and the related accounting treatments
The Group classifies research and development expenditures mainly as material expenses,salaries and benefits, fuel expenses, and others according to the research and developmentprojects.
Expenditures on internal research and development projects are classified into expendituresincurred during the research phase and expenditures incurred during the development phase.Expenditures during the research phase are expensed when incurred. Expenditures during thedevelopment phase are recognized as intangible assets when meeting the capitalizationcriteria.
(ii) Classification criteria for internal research phase and development phase
Research phase refers to the phase of creative and planned investigation to acquire and studyto acquire and understand new scientific or technological knowledge.
Development phase refers to the phase during which the result of research phase or otherknowledge is applied into certain projects or designs for the manufacturing of new orsubstantially improved material, device and product.
(iii) Specific conditions for capitalization of expenditure for development phase
Expenditures of internal research and project development phase shall be recognized asintangible assets when the following conditions are met simultaneously:
- It is technically feasible to complete the intangible assets so that they can be used or sold;- Have the intention to complete the intangible assets and use or sell them;- The ways in which intangible assets generate economic benefits, including the ability to
prove that there is a market for the products produced by using the intangible assets orthere is a market for the intangible assets themselves, and that the intangible assets will beused internally, can prove its usefulness;- Have sufficient technical, financial and other resources support to complete thedevelopment of the intangible assets, and have the ability to use or sell the intangibleassets;- The expenditure attributable to the development stage of the intangible assets can be
reliably measured.
20 Impairment of long-term assets
For long-term assets under the cost model such as long-term equity investments, fixed assets,construction in progress, intangible assets with limited useful lives, right-of-use assets, long-term deferred expenses etc., the Company shall perform impairment tests at the period end ifthere is clear indication of impairment. If the recoverable amounts of long-term assets are lessthan their carrying amounts, the carrying amounts of the assets shall be written down to theirrecoverable amounts. The write-downs are recognized as impairment losses and charged tocurrent profit and loss. The recoverable amounts of long-term assets are the higher of their fairvalues less costs to sell and the present values of the future cash flows expected to be derivedfrom the assets. The Company shall estimate its recoverable amount on an individual basis.Where it is difficult to do so, it shall determine the recoverable amount of the Group assets onthe basis of the asset group to which the asset belongs. The term “group assets” refers to aminimum combination of assets by which the cash flows could be generated independently.
The goodwill and the intangible assets with uncertain service life shall be subject to animpairment test at least at the end of each year.
When the Company makes an impairment test of goodwill, it shall, as of the purchasing day,apportion the carrying value of the business reputation formed by merger of enterprises to therelevant asset groups by a reasonable method. Where it is difficult to do so, it shall beapportioned to the relevant combinations of asset groups.
When making an impairment test on the relevant asset groups or combination of asset groupscontaining business goodwill, if any evidence shows that the impairment of asset groups orcombinations of asset groups is possible, the Company shall first make an impairment test onthe asset groups or combinations of asset groups not containing business goodwill, calculatethe recoverable amount, compare it with the relevant carrying value and recognize thecorresponding impairment loss. Then the Company shall make an impairment test of the assetgroups or combinations of asset groups containing business goodwill, and compare thecarrying value of these asset groups or combinations of asset groups (including the carryingvalue of the business reputation apportioned thereto) with the recoverable amount. Where therecoverable amount of the relevant assets or combinations of the asset groups is lower thanthe carrying value thereof, it shall recognize the impairment loss of the business reputation.
Impairment losses on long-term assets shall not be reversed in subsequent accounting periodsonce recognized.
21 Long-term deferred expense
The long-term deferred expense refers to the expenses incurred but shall be borne by currentand subsequent accounting period, which is more than one year. The long-term deferredexpense shall be amortized over its beneficiary period evenly.
22 Employee benefits
(1) Accounting treatment for short-term employee benefits
The Company shall recognised, in the accounting period in which an employee providesservice, actually occurred short-term employee benefits as a liability, with a correspondingcharge to the profit or loss or cost of an asset for the current period.
Payments made by an enterprise of social security contributions for employees, payments ofhousing funds, and union running costs employee education costs provided in accordance withrelevant requirements shall, in the accounting period in which employees provide services, becalculated according to prescribed bases and percentages in determining the amount ofemployee benefits.
The employee benefits which are non-monetary benefits shall be measured at fair value if itcould be measured reliably.
(2) Accounting treatment of post-employment benefits
The Company adopt defined contribution plan for post-employment benefits. The Companyshall recognize, in the accounting period in which an employee provides service, pension fundand unemployment fund for employees as a liability according to the local governmentregulations. The amount shall be calculated according to local prescribed bases andpercentages in determining the amount of employee benefits, with a corresponding charge tothe profit or loss or cost of an asset for the current period.
(3) Accounting treatment of termination benefits
The Company shall recognize an employee benefits liability for termination benefits, with acorresponding charge to the profit or loss for the current period, at the earlier of the followingdates: when the Company cannot unilaterally withdraw the offer of termination benefitsbecause of an employment termination plan or a curtailment proposal; or when the Companyrecognizes costs or expenses related to a restructuring that involves the payment oftermination benefits.
23 Estimated liabilities
(1) Recognition criteria of estimated liabilities
The obligation pertinent to a Contingency (litigation, guarantees, loss contract , restructuring)shall be recognized as an estimated liability when the following conditions are satisfiedsimultaneously:
- That obligation is a current obligation of the enterprise;- It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and- The amount of the obligation can be measured in a reliable way.
(2) Measurement of all kinds of estimated liabilities
The estimated liabilities shall be initially measured in accordance with the best estimate of thenecessary expenses for the performance of the current obligation.
To determine the best estimate, an enterprise shall take into full consideration of the risks,uncertainty, time value of money, and other factors pertinent to the Contingencies. If the timevalue of money is of great significance, the best estimate shall be determined after discountingthe relevant future outflow of cash.
The best estimate shall be conducted in accordance with the following situations, respectively:
If there is a continuous range for the necessary expenses and if all the outcomes within thisrange are equally likely to occur, the best estimate shall be determined in accordance with theaverage estimate within the range, that is, the average of the upper and lower limit.
If there is not a sequent range for the necessary expenses and if the outcomes within thisrange are not equally likely to occur, the best estimate shall be determined as follows:
If the Contingencies concern a single item, it shall be determined in the light of the most likelyoutcome.
If the Contingencies concern two or more items, the best estimate shall be calculated anddetermined in accordance with all possible outcomes and the relevant probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of anenterprise is expected to be compensated by a third party, the compensation shall beseparately recognized as an asset only when it is virtually certain that the reimbursement willbe obtained. The amount recognized for the reimbursement shall not exceed the book valueof the estimated debts.
The details are as follows :
(a) Onerous contract
An onerous contract is a contract in which the inevitable costs of performing contractualobligations exceed the expected economic benefits. If the contract to be executedbecomes an onerous contract, and the obligations arising from the onerous contractmeet the above-mentioned conditions for confirming the estimated liabilities, the portionof the contract losses expected to exceed the confirmed impairment losses (if any) of theunderlying assets of the contract is recognized as estimated liabilities.
(b) Product quality guarantee
Product quality guarantee refers to a commitment to provide services to customers afterselling products or providing services. During the agreed period, if the quality or otherproblems related to the product are in the normal range during the normal use of theproduct or service, the Company is responsible for replacing the product, repairing it freeof charge or only receiving the cost price. If the conditions for the confirmation of theaforementioned estimated liabilities are met , they are recognized as estimated liabilities.
24 Share-based payment
The Company’s share-based payment is a transaction that grants equity instruments orassumes liabilities determined on the basis of equity instruments in order to obtain servicesprovided by employees or other parties. The Company’s share-based payment is an equity-settled share-based payment.
(1) Accounting method of share-based payment
Equity-settled share-based payment in exchange for services provided by employees shall bemeasured at the fair value of the equity instruments granted to employees on the grant date.The fair value amount is calculated on the basis of the best estimate of the number of vestingequity instruments during the waiting period and included in the relevant cost according to thestraight-line method when the service in the waiting period is completed or the specifiedperformance conditions are met. Or expenses. When the right is exercised immediately afterthe grant, the relevant costs or expenses are included on the grant date, and the capital reserveis increased accordingly.
On each balance sheet date during the waiting period, the Company makes the best estimateof the number of vested equity instruments based on the latest obtained changes in the numberof vested employees, whether the specified performance conditions are met, and other follow-up information, and revises the expected number of vested equity instruments. The impact ofthe above estimates is included in the relevant costs or expenses of the current period, andthe capital reserve is adjusted accordingly. However, if the right can be exercised immediatelyafter the grant, it shall be included in the relevant costs or expenses at the fair value on thegrant date, and the capital reserve shall be increased accordingly.
For share-based payments that cannot be exercised, costs or expenses are not recognized,unless the exercise conditions are market conditions or non-exercising conditions. At this time,regardless of whether the market conditions or non-exercising conditions are met, as long asall of the exercise conditions are met Non-market conditions are deemed to be exerciseable.
(2) Relevant accounting method for modification and termination of share-based payment plans
When the Company revises the share-based payment plan, if the revision increases the fairvalue of the equity instruments granted, the increase in the fair value of the equity instrumentsis correspondingly confirmed to obtain an increase in services. The increase in the fair valueof equity instruments refers to the difference between the fair values of the equity instrumentsbefore and after the modification on the modification date. If the modification reduces the totalfair value of the share-based payment or adopts other methods that are not conducive to theemployees, the accounting treatment of the services obtained will continue to be treated as ifthe change has never occurred, unless the Group cancels part or all of the granted rights andinterests tool.
During the waiting period, if the granted equity instruments are cancelled, the Company treatsthe cancellation of the granted equity instruments as an accelerated exercise, and the amountthat should be confirmed during the remaining waiting period is immediately included in thecurrent profit and loss, and the capital reserve is confirmed at the same time. If employees orother parties can choose to meet the non-exercising conditions but have not met within thewaiting period, the Company will treat them as the cancellation of the granted equityinstruments.
25 Revenue
(1) Accounting policies used in revenue recognition and measurement
The Company has fulfilled the performance obligations in the contract, that is, the revenue isrecognized when the customer obtains control of the relevant goods or services . Obtainingcontrol over related goods or services means being able to lead the use of the goods orservices and obtain almost all of the economic benefits from it.
If the contract contains two or more performance obligations, the Company will allocate thetransaction price to each individual performance obligation in accordance with the relativeproportion of the stand-alone selling price of the goods or services promised by each individualperformance obligation on the date of the contract. The Company measures revenue basedon the transaction price allocated to each individual performance obligation.
The transaction price refers to the amount of consideration that the Company expects to beentitled to receive due to the transfer of goods or services to customers, excluding paymentscollected on behalf of third parties and payments expected to be returned to customers. TheCompany determines the transaction price in accordance with the terms of the contract andcombined with its past customary practices. When determining the transaction price, itconsiders the impact of variable consideration, major financing components in the contract,non-cash consideration, consideration payable to customers and other factors. The Companydetermines trading price at the best estimate of the variable consideration according to theexpected value or the most likely amount, and determines the amount that includes the variableconsideration at an amount that does not exceed the amount that the accumulated recognizedincome is unlikely to be significantly reversed when the relevant uncertainty is eliminated. Ifthere is a major financing component in the contract, the Company will adjust the transactionprice according to the financing component in the contract; if the interval between the transferof control and the payment by the customer is less than one year, the Company will notconsider the financing component.
If one of the following conditions is met, it belongs to the performance obligation within a certainperiod of time, otherwise, it belongs to the performance obligation at a certain point in time:
- The customer obtains and consumes the economic benefits brought by the Company’s
performance at the same time as the Company’s performance.- Customers can control the products under construction in the Company’s performanceprocess.- The goods produced by the Company during the performance of the contract have
irreplaceable uses, and the Company has the right to collect payment for the cumulative
performance part that has been completed so far during the entire contract period.
For performance obligations performed within a certain period of time, the Companyrecognizes revenue in accordance with the performance progress during that period, exceptwhere the performance progress cannot be reasonably determined. The Company considersthe nature of the goods or services and adopts the output method or the input method todetermine the progress of the contract. When the performance progress cannot be reasonablydetermined, and the cost incurred is expected to be compensated, the Company shallrecognize the revenue according to the amount of the cost incurred until the performanceprogress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizesrevenue at the point when the customer obtains control of the relevant goods or services.When judging whether the customer has obtained control of goods or services, the Companyconsiders the following signs:
- The Company has the right to receive payment for the goods or services, that is, the
customer has the current payment obligation for the goods or services- The Company has transferred the legal ownership of the product to the customer, that is,
the customer has the legal ownership of the product.- The Company has transferred the product to the customer, that is, the customer has taken
possession of the product.
- The Company has transferred the main risks and rewards of the ownership of the goods tothe customers, that is, the customers have obtained the main risks and rewards of theownership of the goods.- The customer has accepted the goods or services, etc.- Other signs that the customer has obtained control of the product.
(2) The specific accounting policies related to the main activities of obtaining income are described
as follows:
(a) Photovoltaic power plant operation
The Company supplies electricity to the grid company, and the grid company recognizesrevenue when it obtains control of the power.
(b) Sales of solar modules and relevant products
The Company’s sales of solar module products will recognize revenue when the controlis transferred to the customer in accordance with the contractual agreement.
(c) Sales of monocrystalline furnaces and other photovoltaic equipments
Revenue is recognized based on the above policy for the sale of goods, including PVmodules. When the settlement period between the Group and the customer exceeds oneyear, the financing component in the contract is considered in determining the transactionprice and the transaction price is adjusted accordingly.
(d) Service income
The service provided by the Company recognizes revenue during the period of serviceprovision.
26 Contract cost
Contract costs are divided into contract performance costs and contract acquisition costs.
The cost incurred by the Company to perform the contract is recognized as an asset as thecontract performance cost when the following conditions are met:
- This cost is directly related to a current or expected contract;- This cost increases the Company’s future resources for fulfilling contract performance
obligations;- The cost is expected to be recovered.
The incremental cost incurred by the Company in order to obtain the contract is expected tobe recovered, and it shall be recognized as an asset as the cost of obtaining the contract.
Assets related to contract costs are amortized on the same basis as the revenue recognitionof goods or services related to the asset; however, if the amortization period of contractacquisition costs does not exceed one year, the Company will recognize them in the currentprofits and losses when the cost incurred.
For assets related to contract costs, if the book value is higher than the difference between thefollowing two items, the Company will make provision for impairment for the excess part andrecognize it as an asset impairment loss:
- The remaining consideration expected to be obtained due to the transfer of goods or
services related to the asset;- Estimate the cost that will be incurred for the transfer of the related goods or services.
27 Government Subsidies
(1) Types
A government subsidy means the monetary or non-monetary assets obtained free of chargeby the Company from the government. Government subsidies consist of the governmentsubsidies pertinent to assets and government subsidies pertinent to income.
Government subsidies related to assets are government subsidies whose primary condition isthat an entity qualifying for them should purchase, construct or otherwise acquire long-termassets. The government subsidies related to incomes refers to government subsidies otherthan those related to assets.
The standard of the Company recognizing the government subsidies related to assets is: anentity qualifying for them should purchase, construct or otherwise acquire long-term assets.
The standard of the Company recognizing the government subsidies related to income is: Inaddition to government subsidies related to assets, government subsidies that have beenclearly targeted for subsidies.
(2) Recognition
Government subsidies related to assets shall be recognized by deducting the subsidies at thecaring amount of the assets or recognized as deferred income. Subsidies that recognized asdeferred income shall be recognized in profit or loss over the periods during the useful lives ofthe relevant assets.
The government subsidies related to incomes to compensate future expenses, shall berecognized as deferred income and transferred to current profit or loss. Government subsidiesto compensate expenses or losses already incurred shall be recognized in current profit andloss.
(3) Accounting treatment
Government subsidies related to assets shall be recognized by deducting the subsidies at thecaring amount of the assets or recognized as deferred income. Subsidies that recognized asdeferred income shall be recognized in profit or loss on a systematic basis over the periodsduring the useful lives of the relevant assets (Subsidies related to daily activities should berecorded in Other Income. Subsidies that unrelated to daily activities should be recorded inNon-operating Income).
The government subsidies related to incomes to compensate future expenses, shall berecognized as deferred income and transferred to current profit or loss (Subsidies related todaily activities should be recorded in Other Income. Subsidies that unrelated to daily activitiesshould be recorded in Non-operating Income) in the period during which the expensescompensation is recognized or deduct relevant cost or loss. Government subsidies tocompensate expenses or losses already incurred shall be recognized in current profit and loss(Subsidies related to daily activities should be recorded in Other Income. Subsidies unrelatedto daily activities should be recorded in Non-operating Income) or deduct relevant cost or loss.
The policy-related preferential loan interest discount obtained by the Company shall be dividedinto the following two situations and be accounted for separately:
- The finance allocates interest discount funds to the lending bank, and the lending bank
provides loans to the Company at a preferential policy interest rate. The Company uses theactual loan amount received as the entry value of the loan, based on the loan principal andthe policy preferential interest rate to calculate related borrowing costs.- If the finance directly allocates the interest discount funds to the Company, the Company
will offset the corresponding interest discount to reduce the relevant borrowing costs.
28 Deferred tax assets and deferred tax liabilities
An enterprise shall recognize the deferred income tax assets arising from a deductibletemporary difference to the extent of the amount of the taxable income which it is most likelyto obtain and which can be deducted from the deductible temporary difference. As for anydeductible loss or tax deduction that can be carried forward to the next year, the correspondingdeferred income tax assets shall be determined to the extent that the amount of future taxableincome to be offset by the deductible loss or tax deduction to be likely obtained.
All taxable temporary differences shall be recognized as deferred tax liabilities with certainlimited exceptions.
Deferred tax is not recognised for temporary differences arising from the initial recognition ofassets or liabilities in a single transaction that is not a business combination, affects neitheraccounting profit nor taxable profit (or deductible loss) and does not give rise to equal taxableand deductible temporary differences. Deferred tax is also not recognised for taxabletemporary differences arising from the initial recognition of goodwill.
Where there is a legal right to net settlement and there is an intention to net settlement or toacquire assets and pay off liabilities at the same time, current income tax assets and currentincome tax liabilities shall be presented as the net offset.
An entity shall offset deferred tax assets and deferred tax liabilities if, and only if: (a) the entityhas a legally enforceable right to set off current tax assets against current tax liabilities; and(b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by thesame taxation authority on either:(i) the same taxable entity; or (ii) different taxable entitieswhich intend either to settle current tax liabilities and assets on a net basis, or to realize theassets and settle the liabilities simultaneously, in each future period in which significantamounts of deferred tax liabilities or assets are expected to be settled or recovered.
29 Leases
(1) The Company as lessee
(a) Right-of-use assets
At commencement date, the Company recognizes the right-of-use assets for leasesother than short-term leases and low value asset leases. The right-of-use assets areinitially measured at cost. The cost includes:
- Initial measurement amount of lease liabilities;- For the lease payment paid on or before the commencement date, ifthere is lease
incentive, the relevant amount of lease incentive enjoyed shall be deducted;- Initial direct costs incurred;- The estimated costs incurred for dismantling and removing the underlying assets,restoring the site where the underlying assets are located or restoring the underlyingassets to the state agreed in the lease terms, but it does not include costs incurred inproducing inventory.
Depreciation method of right-of-use assets the Company adopts the straight-line methodfor depreciation. If it can be reasonably determined that the ownership of the underlyingasset will be obtained at the expiration of the lease term, the Company shall accruedepreciation within the remaining useful life of the underlying asset; otherwise, theunderlying asset shall be depreciated within the shorter of the lease term and theremaining useful life of the underlying asset.
For the principles which Company determines whether the right-of-use asset has beenimpaired, please refer to Note III 20 Impairment of long-term assets under “ III .Significantaccounting policies and accounting estimates”.
(b) Lease liabilities
At commencement date, the Company recognizes the present value of the unpaid leasepayments as lease liabilities, except for short-term leases and low value asset leases.The lease liability is initially measured at the present value of outstanding leasepayments. Lease payments include:
- Fixed payments (including in-substance fixed payments), if there is a lease incentive,
deduct the relevant amount of the lease incentive;- Variable lease payments that depend on an index or ratio;- Amounts expected to be payable by the lessee under residual value guarantees;- The exercise price ofa purchase option if the lessee is reasonably certain to exercise
that option;- Payments of penalties for terminating the lease, if the lease term reflects the lessee
exercising an option to terminate the lease.
The Company uses the interest rate implicit in the lease as the discount rate, but if theinterest rate implicit in the lease cannot be reasonably determined, the Company’sincremental borrowing rate is used as the discount rate.
The Company calculates the interest expense of the lease liability in each period of thelease term according to the fixed periodic interest rate, and includes it into the currentprofit and loss or the cost of related assets. Variable lease payments that are not includedin the measurement of lease liabilities are included in the current profit and loss or thecost of related assets when they are actually incurred.
After the commencement date of lease, the Company shall re-measure the leaseliabilities and adjust the corresponding right-of-use assets under the followingcircumstances. If the book value of the right-of-use assets is reduced to zero and thereis a further reduction in the measurement of the lease liability, the difference is includedin the current profit and loss:
- When there is a change in the evaluation results of the purchase option, lease renewaloption or termination option, or the actual exercise of the aforementioned options isinconsistent with the original evaluation result, the Company shall calculate the leasepayment amount after the change and the revised discounted value. Remeasure thelease liability at the present value of the rate calculation;
- When the actual fixed payment changes, the estimated payable amount of the
residual value guarantee changes, or the index or ratio used to determine the leasepayment changes, the Company calculates the present value based on the changedlease payment and the original discount rate Remeasure the lease liability. However,where changes in lease payments result from changes in floating interest rates, arevised discount rate is used to calculate the present value.
(c) Short-term leases and low-value asset leases
The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and low-value asset leases, and includes the relevant lease payments in thecurrent profit and loss or related asset costs on a straight-line basis over each period ofthe lease term. Short-term leases refer to leases with a lease term of not more than 12months and excluding purchase options on the commencement date of the lease term.A low-value asset lease refers to a lease with a lower value when a single leased assetis a brand-new asset. If the Company subleases or expects to sublease the leasedassets, the original lease is not a low-value asset lease.
(d) Lease modification
A lessee shall account for a lease modification as a separate lease if both:
- The modification increases the scope of the lease by adding the right to use one or
more underlying assets;
- The consideration for the lease increases by an amount commensurate with the
stand-alone price for the increase in scope and any appropriate adjustments to thatstand-alone price to reflect the circumstances of the particular contract
If the lease change is not accounted for as a separate lease, on the effective date of thelease change, the Company re-allocates the consideration of the contract after thechange, re-determines the lease term, and calculates the current value based on thelease payment after the change and the revised discount rate. value to remeasure thelease liability.
If the lease change leads to the narrowing of the lease scope or the shortening of thelease term, the Company will reduce the book value of the right-of-use asset accordingly,and include the relevant gains or losses on partial or complete termination of the leaseinto the current profit and loss. If other lease changes result in re-measurement of leaseliabilities, the Company adjusts the book value of the right-of-use asset accordingly.
(e) Sale and leaseback transactions
The Company apply the requirements for determining when a performance obligation issatisfied in Note III 25 Revenue under " III Significant accounting policies and accountingestimates" to determine whether the transfer of an asset is accounted for as a sale ofthat asset.
If the asset transfer in the sale and leaseback transaction is a sale, the Company, as thelessee, measures the right-of-use asset formed by the sale and leaseback according tothe part of the original book value of the asset that is related to the right of use obtainedby leaseback, and only transfers to the leased asset. If the asset transfer in the sale-and-leaseback transaction is not a sale, the Company, as the lessee, continues to recognizethe transferred asset and recognizes a financial liability equal to the transfer income. Forthe accounting treatment of financial liabilities, please refer to Note III 10 Financialinstruments under " III Significant accounting policies and accounting estimates".
(2) The Company as lessor
At commencement date, the Company classifies leases into finance leases and operatingleases. A lease is classified as a finance lease if it transfers substantially all the risks andrewards incidental to ownership of an underlying asset Operating leases refer to leases otherthan finance leases.
(a) Accounting treatment of operating leases
Lease receipts from operating leases are recognized as rental income on a straight-linebasis over each period of the lease term. The Company capitalizes the initial directexpenses incurred in relation to operating leases, and is amortized and included in thecurrent profit and loss on the same basis as the rental income is recognized during thelease term. Variable lease payments not included in lease receipts are included in profitor loss for the period when they are actually incurred. If the operating lease is changed,the Company will account for it as a new lease from the effective date of the change, andthe advance receipts or lease receivables related to the lease before the change areregarded as the receipts of the new lease.
(b) Accounting treatment of financial lease
At lease commencement date, the Company recognizes the finance lease receivablesfor the finance lease and derecognizes the finance lease assets. When the Companyinitially measures the finance lease receivables, the net investment in the lease isregarded as the entry value of the finance lease receivables. The net lease investmentis the sum of the unguaranteed residual value and the present value of the lease receiptsnot yet received at the commencement date of the lease term, discounted at the interestrate implicit in the lease.
The Company calculates and recognizes the interest income in each period of the leaseperiod according to the fixed periodic interest rate. For the derecognition and impairmentof finance lease receivables, please refer to Note III 10 Financial instruments under “IIISignificant accounting policies and accounting estimates
Variable lease payments that are not included in the net lease investment measurementare included in the current profit and loss when they are actually incurred.
(c) Sale and leaseback transactions
If the asset transfer in the sale and leaseback transaction is a sale, the Company, as thelessor, accounts for the purchase of the asset according to the aforementionedaccounting treatments relating to operating leases and financial lease; If the assettransfer in the sale-and-leaseback transaction is not a sale, the Company, as the lessor,does not recognize the transferred asset but recognizes a financial asset equal to thetransfer income. For the accounting treatment of financial assets, please refer to Note III10 Financial instruments under “ III Significant accounting policies and accountingestimates”.
30 Other significant accounting policies and accounting estimates
Segment report
The Company determines the operating segment based on the internal organizationalstructure, management requirements, and internal reporting system, and determines thereporting segment based on the operating segment and discloses segment infonnation.
Operating segment refers to the component of the Company that meets the followingconditions at the same time:
(1) The component can generate income and expenses in daily activities;
(2) The management of the Company can regularly evaluate the operating results of this
component to determine the allocation ofresources to it and evaluate its performance;
(3) The Company can obtain relevant accounting information such as the financial status,
operating results and cash flow of this component. If two or more operating segmentshave similar economic characteristics and meet certain conditions, they can be combinedinto one operating segment.
31 Description and reasons of changes in accounting policies
The Group has adopted “the accounting treatment of deferred tax related to assets andliabilities arising from a single transaction excluded from the scope of the initial recognitionexemption” in CAS Bulletin No.16 (Caikuai [2022] No.31) (“CAS Bulletin No.16”) starting 1January 2023.
According to the provisions, the Group does not apply the initial recognition exemption underCAS 18 Income Taxes to temporary differences arising from the initial recognition of assets orliabilities in a single transaction that is not a business combination, affects neither accountingprofits nor taxable profit (or deductible losses) and gives rise to equal taxable and deductibletemporary differences.
The Group has made retrospective adjustments in accordance with these provisions for singletransactions occurring between 1 January 2022 and the date of initial implementation. For thetaxable and deductible temporary differences arising from the recognition of lease liabilitiesand right-of-use assets on 1 January 2022 as a result of the relevant transactions to which theprovisions apply, the Group has recognised the cumulative effect as an adjustment to theopening balance of retained earnings and other related financial statement items for theearliest period presented in the financial statements in accordance with the above provisionsand the requirements of CAS 18 Income Tax.
(a) The effects on the financial statements
The effects on each of the line items in the consolidated balance sheet and company balancesheet as at 31 December 2023 are as follows:
| Increase in the amount of statement items after the adoption of the changed accounting policies | ||
| The Group | The Company | |
| Assets: | ||
| Deferred tax assets | 1,601,515.73 | - |
| Liabilities: | ||
| Deferred tax liabilities | 53,663.50 | 10,876.21 |
The effects on each of the line items in the consolidated income statement and companyincome statement for the year ended 31 December 2023 are as follows:
| (Decrease)/Increase in the amount of statement items after the adoption of the changed accounting policies | ||
| The Group | The Company | |
| Less: Income tax expenses | (666,598.22) | 10,876.21 |
| Net profit for the yesr | 666,598.22 | (10,876.21) |
(b) The effects on the comparative financial statements
The effects on each of the line items in the consolidated balance sheet as at 1 January 2023are as follows:
| The Group | |||
| Before adjustment | Adjustment amount | After adjustment | |
| Assets: | |||
| Deferred tax assets | 866,051,837.07 | 923,074.61 | 866,974,911.68 |
| Liabilities: | |||
| Deferred tax liabilities | 410,589,595.05 | 41,820.60 | 410,631,415.65 |
The effects on each of the line items in the consolidated balance sheet for the year 2022 areas follows:
| The Group | |||
| Before adjustment | Before adjustment | After adjustment | |
| Income tax expenses | 777,556,748.42 | (1,466,935.83) | 776,089,812.59 |
IV. Taxation
1. Main types of taxes and corresponding tax rates
| Tax type | Tax basis | Tax rate |
| Value-added tax (VAT) | According to tax laws, output VAT is calculated on product sales and taxable services revenue. VAT payable is determined by deducting input VAT from output VAT for the period | 3% - 19% |
| City maintenance and construction tax | Based on VAT paid | 5%, 7% |
| Corporate income tax | Based on taxable profits | 15%、20%、25% etc. |
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The corporate income tax rate of the Company’s domestic subsidiaries is the statutory rate of25% (2022: 25%). The corporate income tax of its overseas subsidiaries should be recognizedin accordance with the local income tax laws and regulations of its registration place, whichare disclosed as follows:
| Name of taxpayer | Income tax rate |
| JA Solar | 15.00% |
| Hefei JA Solar Technology Co., Ltd. | 15.00% |
| JA Solar (Xingtai) Co., Ltd. | 15.00% |
| Jing Hai Yang Semiconductor Material (Donghai) Co., Ltd. | 15.00% |
| JA Solar New Energy Yangzhou Co., Ltd. | 15.00% |
| Shanghai JA Solar Technology Co., Ltd. | 15.00% |
| JA Solar Technology Yangzhou Co., Ltd. | 15.00% |
| Xingtai Jinglong PV Materials Co., Ltd. | 15.00% |
| Yiwu JA Solar Technology Co., Ltd. | 15.00% |
| Hebei Jingle Optoelectronic Technology Co., Ltd. | 15.00% |
| Beijing Jinghong Energy Economization Technology Co., Ltd. | 15.00% |
| Qujing Jinglong Electronic Materials Co., Ltd. | 15.00% |
| Qujing JA Solar PV Technology Co., Ltd. | 15.00% |
| Qujing JA Solar Technology Co., Ltd. | 15.00% |
| Baotou JA Solar Technology Co., Ltd. | 15.00% |
| Baotou Jingxu Carbon-carbon Technology Co., Ltd. | 15.00% |
| Baotou JA Carbon Technology Co., Ltd. | 15.00% |
| Inner Mongolia JA Solar PV Technology Co., Ltd. | 15.00% |
| Baotou JA New Material Co., Ltd. | 15.00% |
| JA Wisdom Energy Technology (Hainan) Co., Ltd. | 15.00% |
| PV Power Station Project companies | 3 - year exemption and 3 - year half payment or 20% or 15% |
| JA Solar Australia PTY Limited | 30.00% |
| JA Solar GmbH | Federal tax rate 15.825%+ state tax |
| JA Solar International Limited | 16.50% |
| JA Solar Investment (Hong Kong) Limited. | 16.50% |
| JA Solar Hong Kong Limited | 16.50% |
| JA Solar Smart Energy (Hong Kong) Limited | 16.50% |
| JA Solar Energy Investment (Hong Kong) Co., Limited | 16.50% |
| JA Solar Renewable Energy Limited | 16.50% |
| JA Solar Malaysia Sdn. Bhd. | 24.00% |
| JA Solar Korea Co., Ltd. | 20.90% |
| JA Solar South Africa (PTY) Ltd. | 27.00% |
| JA Solar Brasil Ltda | 15.00% |
| JA Solar USA Inc. | Federal tax rate 21%+ state tax |
| JA Solar AZ, LLC. | Federal tax rate 21%+ state tax |
| JA Solar Japan Limited | 30.62% |
| JA Solar VietNam Company Limited | 20.00% |
| JA Solar PV VietNam Company Limited | 20.00% |
| JA Solar NE VietNam Company Limited | 20.00% |
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2 Tax preferential treatments
During the reporting period, the major preferential tax treatments entitled by the Group are asfollows:
(1) The subsidiary JA Solar Co., Ltd. (referred to as “JA Solar”) was re-certified by Hebei
Provincial Department of Science and Technology, Hebei Provincial Department ofFinance and Hubei Provincial Office of the State Administration of Taxation on 18 October2022, and obtained a High-tech Enterprise Certificate (No.GR202213000628) with thevalidity period lasting for 3 years. A 15% corporate income tax rate is applicable to high-tech enterprises within the validity period.
(2) The subsidiary Hefei JA Solar Technology Co., Ltd. (referred to as “Hefei JA Solar”) was
re-certified by Anhui Provincial Department of Science and Technology, Anhui ProvincialDepartment of Finance and Anhui Provincial Office of the State Administration of Taxationon 18 October 2022, and obtained a High-tech Enterprise Certificate(No.GR202234000794) with the validity period lasting for 3 years. A 15% corporateincome tax rate is applicable to high-tech enterprises within the validity period.
(3) The subsidiary JA Solar (Xingtai) Solar Co., Ltd. (referred to as “Xingtai Module”) was
certified by Hebei Provincial Department of Science and Technology, Hebei ProvincialDepartment of Finance and Hubei Provincial Office of the State Administration ofTaxation on 6 November 2023, and obtained a High-tech Enterprise Certificate(No.GR202313001646) with the validity period lasting for 3 years. A 15% corporateincome tax rate is applicable to high-tech enterprises within the validity period.
(4) The subsidiary Jing Hai Yang Semiconductor Material (Donghai) Co., Ltd. (referred to as
“Jing Hai Yang”) was certified by Jiangsu Provincial Department of Science andTechnology, Jiangsu Provincial Department of Finance and Jiangsu Provincial Office ofthe State Administration of Taxation on 6 November 2023, and obtained a High-techEnterprise Certificate (No.GR202332006222) with the validity period lasting for 3 years.A 15% corporate income tax rate is applicable to high-tech enterprises within the validityperiod.
(5) The subsidiary JA Solar New Energy Yangzhou Co., Ltd. (referred to as “Yangzhou
Module”) was re-certified by Jiangsu Provincial Department of Science and Technology,Jiangsu Provincial Department of Finance and Jiangsu Provincial Office of the StateAdministration of Taxation on 12 December 2022, and obtained a High-tech EnterpriseCertificate (No.GR202232011093) with the validity period lasting for 3 years. A 15%corporate income tax rate is applicable to high-tech enterprises within the validity period.
(6) The subsidiary Shanghai JA Solar Technology Co., Ltd. (referred to as “Fengxian
Module”) was re-certified by Shanghai Municipal Department of Science and Technology,Shanghai Municipal Department of Finance and Shanghai Municipal Office of the StateAdministration of Taxation on 12 December 2023, and obtained a High-tech EnterpriseCertificate (No.GR202331005925) with the validity period lasting for 3 years. A 15%corporate income tax rate is applicable to high-tech enterprises within the validity period.
(7) The subsidiary JA Solar Technology Yangzhou Co., Ltd. (referred to as “Yangzhou
Battery”) was re-certified by Jiangsu Provincial Department of Science and Technology,Jiangsu Provincial Department of Finance and Jiangsu Provincial Office of the StateAdministration of Taxation on 6 November 2023, and obtained a High-tech EnterpriseCertificate (No.GR202332002014) with the validity period lasting for 3 years. A 15%corporate income tax rate is applicable to high-tech enterprises within the validity period.
(8) The subsidiary Xingtai Jinglong PV Materials Co., Ltd. (referred to as “Jinglong PV”) was
certified by Hebei Provincial Department of Science and Technology, Hebei ProvincialDepartment of Finance and Hebei Provincial Office of the State Administration ofTaxation on 5 December 2023, and obtained a High-tech Enterprise Certificate(No.GR202313003014) with the validity period lasting for 3 years. A 15% corporateincome tax rate is applicable to high-tech enterprises within the validity period.
(9) The subsidiary Yiwu JA Solar Technology Co., Ltd. (referred to as “Yiwu JA”) was certified
by Zhejiang Provincial Department of Science and Technology, Zhejiang ProvincialDepartment of Finance and Zhejiang Provincial Office of the State Administration ofTaxation on 16 December 2021 and obtained a High-tech Enterprise Certificate(No.GR202133000164) with the validity period lasting for 3 years. A 15% corporateincome tax rate is applicable to high-tech enterprises within the validity period.
(10) The subsidiary Hebei Jingle Optoelectronic Technology Co., Ltd.(referred to as “Jingle
Optoelectronic”) was certified by Hebei Provincial Department of Science andTechnology, Hebei Provincial Department of Finance and Hubei Provincial Office of theState Administration of Taxation on 3 November 2021 and obtained a High-techEnterprise Certificate (No.GR202113004394) with the validity period lasting for 3 years.A 15% corporate income tax rate is applicable to high-tech enterprises within the validityperiod.
(11) The subsidiary Beijing Jinghong Energy Economization Technology Co., Ltd. (referred to
as “Jinghong Energy Economization”) was certified by Beijing Municipal Science andTechnology Commission, Beijing Municipal Finance Bureau and Beijing Municipal Officeof the State Administration of Taxation on 30 November 2023 and obtained a High-techEnterprise Certificate (No.GR202311003991) with the validity period lasting for 3 years.A 15% corporate income tax rate is applicable to high-tech enterprises within the validityperiod.
(12) The subsidiary Qujing Jinglong Electronic Materials Co., Ltd. (referred to as “Qujing
Jinglong” ): in accordance with the “Announcement of the Ministry of Finance, the StateAdministration of Taxation and the National Development and Reform Commission onContinuing the Income Tax Policy for Enterprises in the Great Western Development”(No. 23 [2020] ), from 1 January 2021 to 31 December 2030, the enterprises establishedin the western region whose principal businesses are industry projects stipulated in theCatalogue of Encouraged Industries in the Western Region, and whose income fromprincipal businesses constitutes 60% or more of their total income, CIT shall be levied ata reduced tax rate of 15%.
(13) The subsidiary Qujing JA PV Technology Co., Ltd. (referred to as “Qujing JA” ) : in
accordance with the “Announcement of the Ministry of Finance, the State Administrationof Taxation and the National Development and Reform Commission on Continuing theIncome Tax Policy for Enterprises in the Great Western Development” (No. 23 [2020] ),from 1 January 2021 to 31 December 2030, the enterprises established in the westernregion whose principal businesses of the year are industry projects stipulated in theCatalogue of Encouraged Industries in the Western Region, and whose income fromprincipal businesses constitutes 60% or more of their total income, CIT shall be levied ata reduced tax rate of 15%.
(14) The subsidiary Qujing JA Solar Technology Co., Ltd. (referred to as “Qujing
Technology” ) : in accordance with the “Announcement of the Ministry of Finance, theState Administration of Taxation and the National Development and Reform Commissionon Continuing the Income Tax Policy for Enterprises in the Great Western Development”(No. 23 [2020] ), from 1 January 2021 to 31 December 2030, the enterprises establishedin the western region whose principal businesses of the year are industry projectsstipulated in the Catalogue of Encouraged Industries in the Western Region, and whoseincome from principal businesses constitutes 60% or more of their total income, CIT shallbe levied at a reduced tax rate of 15%.
(15) The subsidiary Baotou JA Solar Technology Co., Ltd. (referred to as “Baotou JA Solar” ) :
in accordance with the “Announcement of the Ministry of Finance, the StateAdministration of Taxation and the National Development and Reform Commission onContinuing the Income Tax Policy for Enterprises in the Great Western Development”(No. 23 [2020] ), from 1 January 2021 to 31 December 2030, the enterprises establishedin the western region whose principal businesses of the year are industry projectsstipulated in the Catalogue of Encouraged Industries in the Western Region, and whoseincome from principal businesses constitutes 60% or more of their total income, CIT shallbe levied at a reduced tax rate of 15%.
(16) The subsidiary Baotou Jingxu Carbon-carbon Technology Co., Ltd. (referred to as
“Baotou Jingxu” ) : in accordance with the “Announcement of the Ministry of Finance, theState Administration of Taxation and the National Development and Reform Commissionon Continuing the Income Tax Policy for Enterprises in the Great Western Development”(No. 23 [2020] ), from 1 January 2021 to 31 December 2030, the enterprises establishedin the western region whose principal businesses of the year are industry projectsstipulated in the Catalogue of Encouraged Industries in the Western Region, and whoseincome from principal businesses constitutes 60% or more of their total income, CIT shallbe levied at a reduced tax rate of 15%.
(17) The subsidiary Baotou JA Carbon Technology Co., Ltd. (referred to as “JA Carbon” ) : in
accordance with the “Announcement of the Ministry of Finance, the State Administrationof Taxation and the National Development and Reform Commission on Continuing theIncome Tax Policy for Enterprises in the Great Western Development” (No. 23 [2020] ),from 1 January 2021 to 31 December 2030, the enterprises established in the westernregion whose principal businesses of the year are industry projects stipulated in theCatalogue of Encouraged Industries in the Western Region, and whose income fromprincipal businesses constitutes 60% or more of their total income, CIT shall be levied ata reduced tax rate of 15%.
(18) The subsidiary Inner Mongolia JA Solar PV Technology Co., Ltd. (referred to as “Inner
Mongolia Module” ) : in accordance with the “Announcement of the Ministry of Finance,the State Administration of Taxation and the National Development and ReformCommission on Continuing the Income Tax Policy for Enterprises in the Great WesternDevelopment” (No. 23 [2020] ), from 1 January 2021 to 31 December 2030, theenterprises established in the western region whose principal businesses of the year areindustry projects stipulated in the Catalogue of Encouraged Industries in the WesternRegion, and whose income from principal businesses constitutes 60% or more of theirtotal income, CIT shall be levied at a reduced tax rate of 15%.
(19) The subsidiary Baotou JA New Material Co., Ltd. (referred to as “Baotou New Material” ) :
in accordance with the “Announcement of the Ministry of Finance, the StateAdministration of Taxation and the National Development and Reform Commission onContinuing the Income Tax Policy for Enterprises in the Great Western Development”(No. 23 [2020] ), from 1 January 2021 to 31 December 2030, the enterprises establishedin the western region whose principal businesses of the year are industry projectsstipulated in the Catalogue of Encouraged Industries in the Western Region, and whoseincome from principal businesses constitutes 60% or more of their total income, CIT shallbe levied at a reduced tax rate of 15%.
(20) In accordance with Notice on Preferential CIT Policies for the Hainan Free Trade Port
(Cai Shui [2020] No. 31), enterprises in encouraged industries registered in the HainanFree Trade Port and engaging in substantive operations are entitled to corporate incometax at a reduced tax rate of 15%. Enterprises in encouraged industries are those mainlyengaged in businesses stipulated in the List of Encouraged Industries in the Hainan FreeTrade Port, and the income from their principal activities must account for at least 60%of their total income. JA Wisdom Energy Technology (Hainan) Co., Ltd. (“JA Hainan”) isentitled to the above mentioned preferential tax treatment from 1 January 2023 to 31December 2024.
(21) The Company’s PV Power Station Project companies are eligible for the preferential tax
treatments as follows:
(a) Eligible for the “3-year exemption and 3-year half payment” preferential treatment
According to the provisions of the Article 27 of Corporate Income Tax Law of thePeople’s Republic of China and the Article 87 of the Implementation Rules ofEnterprise Income Tax Law of the People’s Republic of China, income derived byan enterprise investing and operating a key public infrastructure project supportedby the State shall be exempted from Corporate Income Tax for the first year to thethird year with effect from the tax year in which the first sum of production andbusiness revenue is derived from the project and be subject to Corporate IncomeTax at 50% reduction for the fourth year to the sixth year.
According to the “Notice from the Ministry of Finance, the State Administration ofTaxation, and the National Development and Reform Commission on thePromulgation of the Catalogue for Public Infrastructure Projects Eligible for aFavorable Corporate Income Tax” (Cai Shui [2008] No. 116) and the “Notice ofMinistry of Finance and State Administration of Taxation on Issues relating toImplementation of Catalogue of Corporate Income Tax Preferential Incentives forPublic Infrastructure Projects” (Cai Shui [2008] 46), newly established solar powerplant project is within the preferential catelogue. Some of the Group's subsidiariesare photovoltaic power plants and meet the criteria, therefore fall in the scope ofthe above preferential tax treatments.
(b) Eligible for the preferential tax treatments of Catalogue of Encouraged Industries
in the Western Region (15%):
In accordance with the “Announcement of the Ministry of Finance, the StateAdministration of Taxation and the National Development and Reform Commissionon Continuing the Income Tax Policy for Enterprises in the Great WesternDevelopment” (No. 23 [2020] ), from 1 January 2021 to 31 December 2030, theenterprise income tax on an enterprise in an encouraged industry established inwestern China shall still be paid at the reduced rate of 15%. Enterprises inencouraged industries referred to herein shall mean enterprises whose principalbusinesses are industry projects stipulated in the “Catalogue of EncouragedIndustries in the Western Region”, and whose income from principal businessesconstitutes 60% or more of their total income. The following enterprises are eligiblefor the above preferential policies: JA Solar PV Electric (Yanchi) Co., Ltd., AiyouenPower Electric (Yinchuan) Co., Ltd.
(c) Preferential tax treatments for small meagre-profit enterprises (20%):
In accordance with the Notice of Ministry of Finance and State TaxationAdministration on Implementing the Inclusive Tax Deduction and ExemptionPolicies for Small Meagre-profit Enterprises (Caishui No.77 [2018]) and the Noticeof Ministry of Finance and State Taxation Administration on Implementing theInclusive Tax Deduction and Exemption Policies for Small Meagre-profitEnterprises (Caishui No.13 [2019]), for small meagre-profit enterprises, theapplicable rate of corporate income tax is 20%. Some of the Group's subsidiariesare photovoltaic power plants and meet the criteria as small meagre-profitenterprises, therefore fall in the scope of the above preferential tax treatments.
(22) Under Decree 218/2013/ND-CP of 26 December 2013, JA Solar VietNam Company
Limited (“Vietnam JA Solar”), JA Solar PV VietNam Company Limited (“Vietnam JA PV”),JA Solar NE VietNam Company Limited (“Vietnam JA NE”), are entitled to a taxexemption for 2 years and a 50% reduction in corporate income tax for the 4 years thatfollows. Vietnam JA Solar, Vietnam JA PV and Vietnam JA NE have received preferentialtax treatment certificates from the Vietnam Department of Trade and Industry, namelyCertificate No.7224/GXN-BCT dated November 2021, Certificate No.431/GXN-BCTdated January 2023 and Certificate No. 7224/7GXN-BCT dated October 2023. Thesecompanies are entitled to a preferential tax rate of 10% for 15 years and a tax policy of"tax exemption for 4 years and a reduced tax rate of 50% for 9 years" after the applicationof the preferential tax rate.
(23) In accordance with Announcement on the Weighted VAT Deduction Policy for Advanced
Manufacturing Enterprises (Announcement No. 43 [2023] of the Ministry of Finance andthe State Taxation Administration), with effect from 1 January 2023 to 31 December 2027,advanced manufacturing enterprises are allowed to deduct weighted 5% of the currentdeductible input tax amount from the VAT payable (hereinafter referred to as the"Weighted Deduction Policy"). Some of the Group’s subsidiaries meet the criteria and fallin the scope of the Weighted Deduction Policy.
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
| Item | 2023 | 2022 (Restated) |
| Cash on hand | - | 38,680.00 |
| Deposits with banks | 6,763,088,775.67 | 6,120,437,904.90 |
| Other monetary funds | 9,225,344,774.40 | 6,063,162,734.63 |
| Total | 15,988,433,550.07 | 12,183,639,319.53 |
| Including: Total overseas deposits | 2,479,554,046.77 | 1,498,418,929.73 |
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The balance of cash or other monetary funds that are restricted for being pledged as securityor frozen is as follows:
| Item | 2023 | 2022 |
| Deposits for bills | 7,378,106,051.04 | 4,458,656,453.29 |
| Deposits for letter of guarantee | 1,648,619,731.90 | 1,083,536,118.21 |
| Deposits for letter of credit | 40,280,549.46 | 202,522,503.14 |
| Time deposits or demand deposits for guarantee | 150,913,171.16 | 307,619,800.80 |
| Frozen bank deposits | - | 609,428.48 |
| Others | 7,425,270.84 | 10,218,430.71 |
| Total | 9,225,344,774.40 | 6,063,162,734.63 |
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2 Derivative financial assets
| Item | 2023 | 2022 |
| Foreign currency derivatives | 11,847,761.02 | - |
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The Group hedges its exposure to the foreign exchange market by entering into forward foreignexchange contracts with banks. The Group does not apply hedge accounting, and thesecontracts are measured at fair value through profit or loss.
3 Bills receivable
(1) Classification of bills receivable
| Item | 2023 | 2022 |
| Bank acceptance bills | 158,375,167.52 | 56,563,331.86 |
| Commercial acceptance bills | 21,999,672.28 | 92,196,070.55 |
| Sub-total | 180,374,839.80 | 148,759,402.41 |
| Less: Provision for bad and doubtful debts | 219,996.72 | - |
| Total | 180,154,843.08 | 148,759,402.41 |
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All of the above bills are due within one year.
(2) Outstanding endorsed or discounted bills that have not matured at the end of the year:
| Item | Amount derecognized at year end | Amount not derecognized at year end |
| Bank acceptance bills | - | 148,599,819.06 |
| Commercial acceptance bills | - | 6,483,457.88 |
| Total | - | 155,083,276.94 |
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(3) Bills receivable by provisioning method
| Category | 2023 | 2022 | ||||||||
| Book value | Provision for bad and doubtful debts | Carrying amount | Book value | Provision for bad and doubtful debts | Carrying amount | |||||
| Amount | Percentage (%) | Amount | Percentage (%) | Amount | Percentage (%) | Amount | Percentage (%) | |||
| Individual assessment | - | - | - | - | - | - | - | - | - | - |
| Collective assessment | 180,374,839.80 | 100.00 | 219,996.72 | 0.12 | 180,154,843.08 | 148,759,402.41 | 100.00 | - | - | 148,759,402.41 |
| - Bank acceptance bills | 158,375,167.52 | 87.80 | - | - | 158,375,167.52 | 56,563,331.86 | 38.02 | - | - | 56,563,331.86 |
| - Commercial acceptance bills | 21,999,672.28 | 12.20 | 219,996.72 | 1.00 | 21,779,675.56 | 92,196,070.55 | 61.98 | - | - | 92,196,070.55 |
| Total | 180,374,839.80 | 100.00 | 219,996.72 | 0.12 | 180,154,843.08 | 148,759,402.41 | 100.00 | - | - | 148,759,402.41 |
(4) Movements of provisions for bad and doubtful debts
| ? | 2023 | 2022 |
| Balance at the beginning of the year | - | - |
| Additions during the year | 219,996.72 | - |
| Balance at the end of the year | 219,996.72 | - |
4 Accounts receivable
(1) Accounts receivable by customer type are as follows:
| Type | 2023 | 2022 |
| Amounts due from related parties | 75,070,090.31 | 77,112,971.88 |
| Amounts due from third parties | 9,437,561,810.63 | 8,558,203,396.32 |
| Sub-total | 9,512,631,900.94 | 8,635,316,368.20 |
| Less: Provision for bad and doubtful debts | 346,644,227.33 | 288,302,930.23 |
| Total | 9,165,987,673.61 | 8,347,013,437.97 |
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(2) The ageing analysis of accounts receivable is as follows:
| Ageing | 2023 | 2022 |
| Within 6 months (inclusive) | 7,835,543,209.01 | 7,679,012,904.15 |
| Over 6 months but within 1 year (inclusive) | 692,599,666.15 | 282,618,576.12 |
| Over 1 year but within 2 years (inclusive) | 462,557,322.05 | 285,453,994.40 |
| Over 2 years but within 3 years (inclusive) | 185,989,733.72 | 134,286,417.01 |
| Over 3 years but within 4 years (inclusive) | 103,493,625.14 | 63,016,828.15 |
| Over 4 years but within 5 years (inclusive) | 54,199,556.64 | 43,167,351.87 |
| Over 5 years | 178,248,788.23 | 147,760,296.50 |
| Sub-total | 9,512,631,900.94 | 8,635,316,368.20 |
| Less: Provision for bad and doubtful debts | 346,644,227.33 | 288,302,930.23 |
| Total | 9,165,987,673.61 | 8,347,013,437.97 |
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The ageing is counted starting from the date when accounts receivable are recognized.
(3) Accounts receivable by provisioning method
| Category | 2023 | 2022 | ||||||||
| Book value | Provision for bad and doubtful debts | Carrying value | Book value | Provision for bad and doubtful debts | Carrying value | |||||
| Amount | Percentage (%) | Amount | Percentage (%) | Amount | Percentage (%) | Amount | Percentage (%) | |||
| Individual assessment | 150,897,028.45 | 1.59 | 134,539,976.78 | 89.16 | 16,357,051.67 | 139,215,713.58 | 1.61 | 139,215,713.58 | 100.00 | - |
| Collective assessment | 9,361,734,872.49 | 98.41 | 212,104,250.55 | 2.27 | 9,149,630,621.94 | 8,496,100,654.62 | 98.39 | 149,087,216.65 | 1.75 | 8,347,013,437.97 |
| - Accounts receivables due from external customers (except for power grid companies) | 8,697,309,873.02 | 91.43 | 202,137,875.56 | 2.32 | 8,495,171,997.46 | 7,928,640,569.24 | 91.82 | 140,575,315.37 | 1.77 | 7,788,065,253.87 |
| - Electricity fees due from Power Grid Companies | 664,424,999.47 | 6.98 | 9,966,374.99 | 1.50 | 654,458,624.48 | 567,460,085.38 | 6.57 | 8,511,901.28 | 1.50 | 558,948,184.10 |
| Total | 9,512,631,900.94 | 100.00 | 346,644,227.33 | 3.64 | 9,165,987,673.61 | 8,635,316,368.20 | 100.00 | 288,302,930.23 | 3.34 | 8,347,013,437.97 |
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(a) Rationale for individual assessment in 2023:
| Item | Book value | Provision for bad and doubtful debts | Percentage (%) | Rationale for provision |
| Company 1 | 42,280,901.12 | 42,280,901.12 | 100.00% | Amount expected to be unrecoverable |
| Company 2 | 20,430,000.00 | 20,430,000.00 | 100.00% | Amount expected to be unrecoverable |
| Company 3 | 17,789,622.53 | 3,557,924.51 | 20.00% | Full amount expected to be unrecoverable |
| Company 4 | 16,275,837.53 | 16,275,837.53 | 100.00% | Amount expected to be unrecoverable |
| Company 5 | 13,599,402.50 | 13,599,402.50 | 100.00% | Amount expected to be unrecoverable |
| Company 6 | 11,472,198.40 | 11,472,198.40 | 100.00% | Amount expected to be unrecoverable |
| Company 7 | 11,434,086.91 | 11,434,086.91 | 100.00% | Amount expected to be unrecoverable |
| Company 8 | 6,124,160.00 | 6,124,160.00 | 100.00% | Amount expected to be unrecoverable |
| Other (individual amount less than RMB5 million) | 11,490,819.46 | 9,365,465.81 | 81.50% | Full amount expected to be unrecoverable |
| Total | 150,897,028.45 | 134,539,976.78 | ? | ? |
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(b) Criteria for collective assessment in 2023 and details:
Accounts receivables are classified into several portfolios based on their similar creditrisk characteristics and the expected credit loss is calculated on a collective basis. Thebasis of determining the portfolios is as follows:
Portfolio 1: Accounts receivables due from external customers (except for power grid
companies)
Portfolio 2: Electricity fees due from Power Grid Companies
(c) Assessment of ECLs on accounts receivable:
At all times the Group measures the impairment loss for accounts receivable at anamount equal to lifetime ECLs, and the ECLs are based on the number of ageing andthe expected loss rate. According to the historical experience of the Group, the losses ofdifferent customer groups are as follows:
Portfolio 1: Accounts receivables due from external customers (except for power grid
companies)
2023
| ? | Expected credit loss rate | Carrying amount at the end of the year | Impairment loss allowance at the end of the year |
| Within 6 months (inclusive) | 1% | 7,685,312,060.69 | 76,853,120.61 |
| Over 6 months but within 1 year (inclusive) | 5% | 577,178,139.19 | 28,858,906.96 |
| Over 1 year but within 2 years (inclusive) | 10% | 297,676,522.94 | 29,767,652.29 |
| Over 2 years but within 3 years (inclusive) | 30% | 74,772,922.30 | 22,431,876.69 |
| Over 3 years but within 4 years (inclusive) | 50% | 36,287,817.78 | 18,143,908.89 |
| Over 4 years but within 5 years (inclusive) | 100% | 1,812,735.60 | 1,812,735.60 |
| Over 5 years | 100% | 24,269,674.52 | 24,269,674.52 |
| Total | ? | 8,697,309,873.02 | 202,137,875.56 |
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2022
| ? | Expected credit loss rate | Carrying amount at the end of the year | Impairment loss allowance at the end of the year |
| Within 6 months (inclusive) | 1% | 7,518,045,690.47 | 75,180,456.91 |
| Over 6 months but within 1 year (inclusive) | 5% | 184,124,307.51 | 9,206,215.38 |
| Over 1 year but within 2 years (inclusive) | 10% | 146,452,233.65 | 14,645,223.37 |
| Over 2 years but within 3 years (inclusive) | 30% | 53,670,704.73 | 16,101,211.42 |
| Over 3 years but within 4 years (inclusive) | 50% | 1,810,849.18 | 905,424.59 |
| Over 4 years but within 5 years (inclusive) | 100% | 11,405,916.98 | 11,405,916.98 |
| Over 5 years | 100% | 13,130,866.72 | 13,130,866.72 |
| Total | ? | 7,928,640,569.24 | 140,575,315.37 |
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Portfolio 2: Electricity fees due from power grid companies
2023
| Item | Expected credit loss rate | Carrying amount at the end of the year | Impairment loss allowance at the end of the year |
| Electricity fees due from Power Grid Companies | 1.50% | 664,424,999.47 | 9,966,374.99 |
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2022
| Item | Expected credit loss rate | Carrying amount at the end of the year | Impairment loss allowance at the end of the year |
| Electricity fees due from Power Grid Companies | 1.50% | 567,460,085.38 | 8,511,901.28 |
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The expected credit losses is measured based on the actual credit loss experience inthe past period and is adjusted for the differences among the economic conditionsduring the historical period, the current economic conditions and the anticipatedeconomic conditions during the expected lifetime.
(4) Movements of provisions for bad and doubtful debts:
| ? | Note | 2023 | 2022 |
| Balance at the beginning of the year | 288,302,930.23 | 258,912,502.71 | |
| Additions during the year | 66,706,966.56 | 39,041,006.13 | |
| Recoveries or reversals during the year | (a)? | 8,711,579.54 | 13,619,430.95 |
| Written-off during the year | (b) | 2,495,862.36 | - |
| Others | 2,841,772.44 | 3,968,852.34 | |
| Balance at the end of the year | 346,644,227.33 | 288,302,930.23 |
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(a) Significant recoveries or reversals during the year:
| Debtor | Amount of reversals or recoveries | Reason for reversals | Recovery manner | Basis for determining the original provision percentage and its reasonableness |
| TIANWEI SOLUTION (BEIJING) CO., LTD | 7,028,332.43 | Actual recovery | Bank transfer | Considering all reasonable and relevant information for the debtor to recognize the expected credit loss |
| Total | 7,028,332.43 |
(b) Accounts receivable written off during the year
| Item | Written-off amount |
| Accounts receivable written off | 2,495,862.36 |
(5) Five largest accounts receivable and contract assets by debtor at the end of the year:
2023
| Debtor | Balance at the end of the year | ||
| Accounts receivable | Percentage of total accounts receivable and contract assets (%) | Provision for bad and doubtful debts | |
| The First | 403,549,418.03 | 4.21 | 4,035,494.18 |
| The Second | 341,067,606.83 | 3.56 | 3,410,676.07 |
| The Third | 327,506,362.62 | 3.42 | 3,275,063.63 |
| The Fourth | 252,380,788.42 | 2.63 | 2,523,807.88 |
| The Fifth | 247,093,774.20 | 2.58 | 2,470,937.74 |
| Total | 1,571,597,950.10 | 16.40 | 15,715,979.50 |
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2022
| Debtor | Balance at the end of the year | ||
| Accounts receivable | Percentage of total accounts receivable and contract assets (%) | Provision for bad and doubtful debts | |
| The First | 340,088,133.76 | 3.90 | 3,400,881.35 |
| The Second | 323,212,158.91 | 3.70 | 3,232,121.59 |
| The Third | 191,568,291.06 | 2.20 | 1,915,682.91 |
| The Fourth | 180,881,954.49 | 2.07 | 1,808,819.54 |
| The Fifth | 161,301,016.75 | 1.85 | 1,613,010.17 |
| Total | 1,197,051,554.97 | 13.72 | 11,970,515.56 |
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5 Receivables under financing
| Item | 2023 | 2022 | Accumulated impairment losses recognised in other comprehensive income |
| Bills receivable | 831,051,690.24 | 510,733,341.15 | - |
| Accounts receivable | 550,000.00 | 228,062,025.96 | - |
| Total | 831,601,690.24 | 738,795,367.11 | - |
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(a) Receivables under financing that are pledged at the end of the year:
| Category | Pledged amount at the end of the year |
| Bank acceptance bills | 174,350,594.00 |
| Commercial acceptance bills | - |
| Total | 174,350,594.00 |
(b) Receivables under financing that are endorsed or discounted but have not matured at the
end of the year:
| Category | Amount at the end of the year of what has been derecognised | Amount at the end of the year of what has not been derecognised |
| Bank acceptance bills | 17,786,554,455.10 | - |
| Commercial acceptance bills | 246,543,923.68 | - |
| Total | 18,033,098,378.78 | - |
6 Prepayments
(1) Prepayments by category:
| Item | 2023 | 2022 |
| Material and service payment in advance | 1,837,771,374.26 | 2,394,741,788.39 |
| Others | 152,139,599.00 | 156,361,282.00 |
| Total | 1,989,910,973.26 | 2,551,103,070.39 |
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(2) The ageing analysis of prepayments is as follows:
| Ageing | 2023 | 2022 | ||
| Amount | Percentage (%) | Amount | Percentage (%) | |
| Within 1 year (inclusive) | 1,415,027,063.05 | 71.11 | 1,935,044,560.62 | 75.85 |
| Over 1 year but within 2 years (inclusive) | 359,477,369.70 | 18.07 | 614,059,967.06 | 24.07 |
| Over 2 years but within 3 years (inclusive) | 213,412,660.77 | 10.72 | 1,091,564.34 | 0.04 |
| Over 3 years | 1,993,879.74 | 0.10 | 906,978.37 | 0.04 |
| Total | 1,989,910,973.26 | 100.00 | 2,551,103,070.39 | 100.00 |
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The ageing is counted starting from the date when prepayments are recognized.
Prepayments with ageing of over 1 year are mainly for long-term procurement of raw materials.
(3) Five largest prepayments by debtor at the end of the year:
| Debtor | Balance at the end of the year | Percentage of total prepayments (%) |
| The First | 355,587,658.80 | 17.87 |
| The Second | 230,697,562.75 | 11.59 |
| The Third | 170,538,750.00 | 8.57 |
| The Fourth | 141,654,000.00 | 7.12 |
| The Fifth | 134,430,867.21 | 6.76 |
| Total | 1,032,908,838.76 | 51.91 |
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7 Other receivables
| Item | Note | 2023 | 2022 |
| Dividends receivable | (1) | 3,042,037.80 | 2,000,000.00 |
| Others | (2) | 908,004,745.50 | 659,179,286.98 |
| Total | ? | 911,046,783.30 | 661,179,286.98 |
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(1) Dividends receivable
| Investee | 2023 | 2022 |
| Datang Angli (Lingwu) New Energy Co., Ltd. | 3,042,037.80 | - |
| JA Solar PV Electric (Lincheng) Co., Ltd. | - | 2,000,000.00 |
| Total | 3,042,037.80 | 2,000,000.00 |
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(2) Others
(a) Analysis by customer type is as follow:
| Customer type | 2023 | 2022 |
| Amounts due from related parties | 13,000.00 | 13,000.00 |
| Amounts due from third parties | 953,051,865.87 | 680,221,540.13 |
| Sub-total | 953,064,865.87 | 680,234,540.13 |
| Less: Provision for bad and doubtful debts | 45,060,120.37 | 21,055,253.15 |
| Total | 908,004,745.50 | 659,179,286.98 |
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(b) The ageing analysis is as follows:
| Ageing | 2023 | 2022 (Restated) |
| Within 1 year (inclusive) | 565,601,500.51 | 232,333,537.36 |
| Over 1 year but within 2 years (inclusive) | 17,936,300.86 | 124,953,131.61 |
| Over 2 years but within 3 years (inclusive) | 74,529,177.54 | 164,379,430.23 |
| Over 3 years but within 4 years (inclusive) | 154,943,110.61 | 30,304,247.46 |
| Over 4 years but within 5 years (inclusive) | 30,158,625.26 | 109,300,252.55 |
| Over 5 years | 109,896,151.09 | 18,963,940.92 |
| Sub-total | 953,064,865.87 | 680,234,540.13 |
| Less: Provision for bad and doubtful debts | 45,060,120.37 | 21,055,253.15 |
| Total | 908,004,745.50 | 659,179,286.98 |
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The ageing is counted starting from the date when other receivables are recognized.
(c) Others by provisioning method:
2023
| Category | 2023 | ||||
| Book value | Provision for bad and doubtful debts | Carrying amount | |||
| Amount | Percentage (%) | Amount | Percentage (%) | ||
| Individual assessment | 41,193,035.80 | 4.32 | 37,201,149.92 | 90.31 | 3,991,885.88 |
| Collective assessment | 911,871,830.07 | 95.68 | 7,858,970.45 | 0.86 | 904,012,859.62 |
| Total | 953,064,865.87 | 100.00 | 45,060,120.37 | 4.73 | 908,004,745.50 |
2022
| Category | 2022 | ||||
| Book value | Provision for bad and doubtful debts | Carrying amount | |||
| Amount | Percentage (%) | Amount | Percentage (%) | ||
| Individual assessment | 19,536,937.26 | 2.87 | 19,536,937.26 | 100.00 | - |
| Collective assessment | 660,697,602.87 | 97.13 | 1,518,315.89 | 0.23 | 659,179,286.98 |
| Total | 680,234,540.13 | 100.00 | 21,055,253.15 | 3.10 | 659,179,286.98 |
Basis for significant individual assessments in 2023:
| Item | 2022 | 2023 | Basis for provision | |||
| Book value | Provision for bad and doubtful debts | Book value | Provision for bad and doubtful debts | Percentage (%) | ||
| Individual assessment | 19,536,937.26 | 19,536,937.26 | 41,193,035.80 | 37,201,149.92 | 90.31% | Amount expected to be unrecoverable |
| Total | 19,536,937.26 | 19,536,937.26 | 41,193,035.80 | 37,201,149.92 | ||
(d) Movements of provisions for bad and doubtful debts
2023
| Provision for bad and doubtful debts | Stage 1 | Stage 2 | Stage 3 | Total |
| 12 - month ECL | Lifetime ECL - Not credit impaired | Lifetime ECL - Credit impaired | ||
| Balance at 1 January 2023 | 1,143,219.52 | - | 19,912,033.63 | 21,055,253.15 |
| Transfer to stage 3 | (633,553.60) | -? | 633,553.60 | - |
| Additions during the year | 5,733,521.35 | -? | 19,620,803.78 | 25,354,325.13 |
| Written-off during the year | - | -? | 1,267,073.12 | 1,267,073.12 |
| Translation differences arising from translation of foreign currency financial statements | - | - | (82,384.79) | (82,384.79) |
| Balance at the end of the year | 6,243,187.27 | -? | 38,816,933.10 | 45,060,120.37 |
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2022
| Provision for bad and doubtful debts | Stage 1 | Stage 2 | Stage 3 | Total |
| 12 - month ECL | Lifetime ECL - Not credit impaired | Lifetime ECL - Credit impaired | ||
| Balance at 1 January 2022 | 1,926,985.11 | - | 9,827,769.38 | 11,754,754.49 |
| Transfer to stage 3 | (44,100.99) | - | 44,100.99 | - |
| Additions during the year | 1,114,629.43 | - | 10,544,835.67 | 11,659,465.10 |
| Recoveries or reversals during the year | 1,854,294.03 | - | - | 1,854,294.03 |
| Written-off during the year | - | - | 1,117,768.36 | 1,117,768.36 |
| Translation differences arising from translation of foreign currency financial statements | - | - | 613,095.95 | 613,095.95 |
| Balance at the end of the year | 1,143,219.52 | - | 19,912,033.63 | 21,055,253.15 |
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(e) Provisions for bad and doubtful debts
| Category | Balance at the beginning of the year | Movements during the year | Balance at the end of the year | |||
| Provision | Recoveries or reversals | Transfers or write-offs | Translation differences arising from translation of foreign currency financial statements | |||
| Provision for bad and doubtful debts | 21,055,253.15 | 25,354,325.13 | - | 1,267,073.12 | (82,384.79) | 45,060,120.37 |
| Total | 21,055,253.15 | 25,354,325.13 | - | 1,267,073.12 | (82,384.79) | 45,060,120.37 |
(f) Others categorized by nature
| Nature of other receivables | 2023 | 2022 (Restated) |
| Amounts due from related parties | 13,000.00 | 13,000.00 |
| Deposits and warranties | 778,478,246.68 | 558,906,861.77 |
| Equity transfer receivable | 127,489,000.00 | 46,939,000.00 |
| Amounts due from other entities | 22,355,533.25 | 26,294,966.79 |
| Export rebates receivables | 21,315,091.16 | 14,682,360.20 |
| Subsidies receivable | 3,413,994.78 | 3,266,062.09 |
| Others | - | 30,132,289.28 |
| Total | 953,064,865.87 | 680,234,540.13 |
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(g) Five largest others by debtor at the end of the year
2023
| Debtor? | Nature of the receivable? | Balance at the end of the year? | Ageing?? | Percentage of ending balance of others (%) | Ending balance of provision for bad and doubtful debts? |
| The First | Deposits | 331,470,360.00 | 0 - 5 years and over five years | 34.78 | - |
| The Second | Deposits | 306,216,341.55 | 0 - 2 years | 32.13 | - |
| The Third | Equity transfer receivable | 98,400,000.00 | Within 1 year | 10.32 | 4,920,000.00 |
| The Fourth | Equity transfer receivable | 21,494,000.00 | 3 - 4 years | 2.26 | 17,500,000.00 |
| The Fifth | Deposits | 11,830,706.00 | 0 - 2 years | 1.24 | - |
| Total | ? | 769,411,407.55 | 80.73 | 22,420,000.00 |
2022
| Debtor? | Nature of the receivable? | Balance at the end of the year? | Ageing?? | Percentage of ending balance of others (%) | Ending balance of provision for bad and doubtful debts? |
| The First | Deposits | 346,140,620.00 | 0 - 5 years and over five years | 50.89 | - |
| The Second | Deposits and equity transfer receivable | 36,781,000.00 | 1 - 3 years | 5.41 | - |
| The Third | Deposits | 34,606,160.32 | Within 1 year | 5.09 | - |
| The Fourth | Deposits | 30,117,096.39 | Within 1 year | 4.43 | - |
| The Fifth | Equity transfer receivable | 25,445,000.00 | 1 - 2 years | 3.74 | - |
| Total | ? | 473,089,876.71 | - | 69.56 | - |
8 Inventories
(1) Inventories by category:
| Item | 2023 | 2022 | ||||
| Book value | Provision for impairment of inventories | Carrying amount | Book value | Provision for impairment of inventories | Carrying amount | |
| Raw materials | 3,340,999,537.34 | 47,246,587.82 | 3,293,752,949.52 | 3,397,494,668.33 | 66,094,864.24 | 3,331,399,804.09 |
| Materials in transit | 481,573,852.98 | - | 481,573,852.98 | 427,623,292.15 | - | 427,623,292.15 |
| Goods in transit | 1,384,289,217.50 | 10,022,712.44 | 1,374,266,505.06 | 956,446,296.98 | - | 956,446,296.98 |
| Material for consigned processing | 3,628,781.21 | - | 3,628,781.21 | 12,492,071.10 | - | 12,492,071.10 |
| Semi-finished goods | 3,119,086,544.63 | 597,543,569.20 | 2,521,542,975.43 | 2,383,512,768.42 | 164,593,515.25 | 2,218,919,253.17 |
| Finished goods | 7,614,330,848.29 | 817,244,183.21 | 6,797,086,665.08 | 5,213,614,286.35 | 251,188,571.13 | 4,962,425,715.22 |
| Total | 15,943,908,781.95 | 1,472,057,052.67 | 14,471,851,729.28 | 12,391,183,383.33 | 481,876,950.62 | 11,909,306,432.71 |
(2) Provision for impairment of inventories
| Item | Balance at the beginning of the year | Provision or reversals | Written-off | Translation differences arising from translation of foreign currency financial statements | Balance at the end of the year |
| Raw materials | 66,094,864.24 | 18,924,221.24 | (37,778,923.65) | 6,425.99 | 47,246,587.82 |
| Goods in transit | - | 9,970,922.80 | - | 51,789.64 | 10,022,712.44 |
| Semi-finished goods | 164,593,515.25 | 432,711,030.12 | - | 239,023.83 | 597,543,569.20 |
| Finished goods | 251,188,571.13 | 553,002,888.73 | (713,346.91) | 13,766,070.26 | 817,244,183.21 |
| Total | 481,876,950.62 | 1,014,609,062.89 | (38,492,270.56) | 14,063,309.72 | 1,472,057,052.67 |
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(3) The basis for the determination of the net realisable value and the provision for impairment of inventories for the current period
| Items | Basis for the determination of the net realisable value | Basis for the determination of the provision for impairment of inventories |
| Raw materials and semi-finished goods | The net realisable value shall be calculated by deducting the estimated cost of completion, estimated sale expense and relevant taxes from the estimated sale price of inventories. | The sale price of a product is expected to decrease and therefore the net realisable value of the related inventories is lower than the book value. |
| Finished goods and goods in transit | The net realisable value shall be calculated by deducting the estimated sale expense and relevant taxes from the estimated sale price of inventories. | The sale price of a product is expected to decrease and therefore the net realisable value of the related inventories is lower than the book value. |
9 Contract assets
(1) Contract assets analyzed by nature as follows:
| Item | 2023 | 2022 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Electricity fees due from Power Grid Companies | 66,861,106.03 | 1,002,916.60 | 65,858,189.43 | 90,890,772.51 | 1,363,361.60 | 89,527,410.91 |
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(2) Contract assets by provisioning method
| Type | 2023 | 2022 | ||||||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |||||
| Amount | Percentage (%) | Amount | Percentage (%) | Amount | Percentage (%) | Amount | Percentage (%) | |||
| Collective assessment | 66,861,106.03 | 100.00 | 1,002,916.60 | 1.50 | 65,858,189.43 | 90,890,772.51 | 100.00 | 1,363,361.60 | 1.50 | 89,527,410.91 |
| Attributable to: | ? | ? | ? | ? | ? | |||||
| - Electricity fees due from Power Grid Companies | 66,861,106.03 | 100.00 | 1,002,916.60 | 1.50 | 65,858,189.43 | 90,890,772.51 | 100.00 | 1,363,361.60 | 1.50 | 89,527,410.91 |
| Total | 66,861,106.03 | 100.00 | 1,002,916.60 | 1.50? | 65,858,189.43 | 90,890,772.51 | 100.00 | 1,363,361.60 | 1.50 | 89,527,410.91 |
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Collective assessment:
| Item | Balance at the end of the year | ||
| Contract assets | Provision for impairment | Percentage (%) | |
| Electricity fees due from Power Grid Companies | 66,861,106.03 | 1,002,916.60 | 1.50 |
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(3) Provision for impairment of contract assets:
2023
| Item | Balance at the beginning of the year | Additions during the year | Reversals during the year | Transfers out or written-off during the year | Balance at the end of the year |
| Electricity fees due from Power Grid Companies | 1,363,361.60 | 175,705.36 | 536,150.36 | - | 1,002,916.60 |
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2022
| Item | Balance at the beginning of the year | Additions during the year | Reversals during the year | Transfers out or written-off during the year | Balance at the end of the year |
| Electricity fees due from Power Grid Companies | 1,057,359.82 | 306,001.78 | - | - | 1,363,361.60 |
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10 Non-current assets due within one year
| Item | 2023 | 2022 |
| Time deposits due within one year | 2,498,637,840.30 | 268,477,657.97 |
| Long-term receivables due within one year | 169,902,425.13 | - |
| Total | 2,668,540,265.43 | 268,477,657.97 |
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11 Other current assets
| Item | 2023 | 2022 |
| Input VAT to be deducted/certified | 2,481,748,420.90 | 1,105,249,908.66 |
| Prepaid taxes | 283,809,448.75 | 99,468,490.04 |
| Prepaid expenses | 30,802,023.74 | 37,837,898.09 |
| Others | 50,446,396.63 | 16,239,340.21 |
| Total | 2,846,806,290.02 | 1,258,795,637.00 |
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12 Long-term receivables
| Item | Note | 2023 | |||
| Book value | Provision for impairment | Carrying amount | Range of discount rate | ||
| Receivables from Energy Performance Contracting | 12,792,474.02 | 639,623.70 | 12,152,850.32 | 4.57% | |
| Including: Unearned finance income | ? | 3,029,068.24 | -? | 3,029,068.24 | ? |
| Installment sale | 562,422,004.67 | 28,121,100.23 | 534,300,904.44 | 6.00% | |
| Including: Unearned finance income | ? | 46,864,651.33 | -? | 46,864,651.33 | ? |
| Subtotal | ? | 575,214,478.69 | 28,760,723.93 | 546,453,754.76 | ? |
| Less: Due within one year - Receivables from Energy Performance Contracting | V.10 | 1,088,948.40 | 54,447.42 | 1,034,500.98 | 4.57% |
| Less: Due within one year - Installment sale | V.10? | 177,755,709.63 | 8,887,785.48 | 168,867,924.15 | 6.00% |
| Total | ? | 396,369,820.66 | 19,818,491.03 | 376,551,329.63 | ? |
(1) By method of provisioning
| Category | 2023 | ||||
| Book value | Provision for bad and doubtful debts | Carrying amount | |||
| Amount | Percentage (%) | Amount | Percentage (%) | ||
| Individual assessment | 384,666,295.04 | 97.05 | 19,233,314.75 | 5.00 | 365,432,980.29 |
| Collective assessment | 11,703,525.62 | 2.95 | 585,176.28 | 5.00 | 11,118,349.34 |
| - Receivables from companies within the scope of consolidation | - | - | - | - | - |
| - Amounts due from other entities | 11,703,525.62 | 2.95 | 585,176.28 | 5.00 | 11,118,349.34 |
| Total | 396,369,820.66 | 100.00 | 19,818,491.03 | 5.00 | 376,551,329.63 |
(2) Provisions for bad and doubtful debts
| category | Balance at the beginning of the year | Movements during the year | Balance at the end of the year | |||
| Provision | Recoveries or reversals | Transfers or write-offs | Other movements | |||
| Receivables from companies within the scope of consolidation | - | 585,176.28 | - | - | - | 585,176.28 |
| Installment sale | - | 19,233,314.75 | - | - | - | 19,233,314.75 |
| total | - | 19,818,491.03 | - | - | - | 19,818,491.03 |
13 Long-term equity investments
(1) Long-term equity investments by category:
| Item | 2023 | 2022 |
| Investments in associates | 899,155,598.20 | 773,754,028.19 |
| Less: Provision for impairment | - | - |
| Total | 899,155,598.20 | 773,754,028.19 |
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(2) Movements of long-term equity investments during the year are as follows:
| Investee | Balance at the beginning of the year | Movements during the year | Balance at the end of the year | Balance of provision for impairment at the end of the year | |||
| Investment gains or losses recognized under equity method | Other equity movements | Declared distribution of cash profits | Translation differences arising from translation of foreign currency financial statements | ||||
| Associates | ? | ? | ? | ? | ? | ? | ? |
| Luoyang Jiwa Materials Technology Co., Ltd. | 12,987,625.95 | 1,793,717.18 | -? | -? | -? | 14,781,343.13 | - |
| Yuhong JA New Energy Technology Co., Ltd. | 5,187,921.28 | 4,872,689.63 | -? | 222,251.47 | -? | 9,838,359.44 | - |
| Datang Angli (Lingwu) New Energy Co., Ltd. | 43,647,362.14 | (3,125,170.15) | 5,517.55 | 3,042,037.80 | -? | 37,485,671.74 | - |
| JA Solar PV Electric (Lincheng) Co., Ltd. | 54,256,108.90 | 9,117,488.39 | 415,098.57 | ?- | -? | 63,788,695.86 | - |
| Jingguan PV Electric (Yugan Xian) Co., Ltd. (Note 2) | - | -? | - | - | -? | - | - |
| Fukushima Nakamori Power Plant Contract Company (Note 1) | 88,191,785.04 | 5,941,262.25 | -? | 6,503,777.56 | (3,683,507.97) | 83,945,761.76 | - |
| Suzhou JSolar Incorporated | 41,484,649.66 | 9,601,990.70 | 6,114,757.81 | ?- | - | 57,201,398.17 | - |
| Inner Mongolia Xinte Silicon Material Co., Ltd. | 527,998,575.22 | 221,653,400.11 | 766,798.79 | 118,304,406.02 | ?- | 632,114,368.10 | - |
| Total | 773,754,028.19 | 249,855,378.11 | 7,302,172.72 | 128,072,472.85 | (3,683,507.97) | 899,155,598.20 | - |
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Note 1: JA Solar Japan Limited (referred to as “JA Solar Japan”) adopted an investment method of “Contract company - anonymous portfolio”,
which means that the Group does not have control of JA Solar Japan, but the Group has significant influence over it. Therefore, the equityinvestments in JA Solar Japan is accounted for using the equity method and was not incorporated into consolidated scope.
Note 2: In January 2019, Jingneng New Energy Development (Ningjin) Co., Ltd.(referred to as “Ningjin Jingneng”) made a capital contribution of
RMB 9 million to establish the Jingguan PV Electric (Yugan Xian) Co., Ltd.(referred to as “Yugan Power Station”) and held 90% of itsequity. Since the Group does not have control or common control over Yugan Power Station but has significant influence over it, the long-term equity investments in Yugan Power Station should be accounted for as associates based on equity method.
14 Investments in other equity instruments
| Item | 2023 | 2022 |
| Yonz Technology Co., Ltd. | 55,861,000.00 | 27,500,800.00 |
| Nordkette (SuZhou) Intelligent Equipment Co.,Ltd. | 13,803,681.07 | 5,000,000.00 |
| Duowei Union Group Co., Ltd. | 30,000,000.00 | - |
| Total | 99,664,681.07 | 32,500,800.00 |
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(1) Investments in other equity instruments:
| Items | Reason for being designated at fair value through other comprehensive income | Dividend income recognized for the year | Accumulated gains or losses recognized in other comprehensive income (“-” for losses) | Amount transferred from other comprehensive income to retained earnings | Reason for transferring from other comprehensive income to retained earnings |
| Yonz Technology Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | - | 35,851,000.00 | - | - |
| Nordkette (SuZhou) Intelligent Equipment Co.,Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | - | 8,803,681.07 | - | - |
| Duowei Union Group Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | - | - | - | - |
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15 Fixed assets
| Item | 2023 | 2022 (Restated) |
| Fixed assets | 36,859,908,408.98 | 21,445,276,087.21 |
| Disposal of fixed assets | 5,966,385.61 | 3,398,426.88 |
| Total | 36,865,874,794.59 | 21,448,674,514.09 |
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(1) Details of fixed assets
| ? | Plant & buildings | Machinery & equipment | Transportation vehicles | Electronic and office equipments | Photovoltaic power station | Total |
| Cost | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year (Restated) | 7,529,419,932.69 | 16,672,012,701.79 | 70,660,294.54 | 302,544,685.71 | 4,304,833,953.92 | 28,879,471,568.65 |
| Additions during the year | ||||||
| - Purchases | 7,181,302.42 | 89,305,632.98 | 9,312,658.98 | 89,604,456.69 | - | 195,404,051.07 |
| - Transfers from construction in progress | 6,366,554,220.61 | 10,756,412,808.09 | 7,255,147.10 | 35,308,495.41 | 4,641,013,626.73 | 21,806,544,297.94 |
| - Transfers from right-of-use assets | -? | - | - | - | 182,017,806.07 | 182,017,806.07 |
| Disposals or written-offs during the year | (164,624,174.99) | (2,247,978,932.34) | (9,258,793.79) | (41,098,255.44) | (27,118,385.92) | (2,490,078,542.48) |
| Change of consolidation scope | - | - | - | (87,619.46) | (1,605,195,901.28) | (1,605,283,520.74) |
| Translation differences arising from translation of foreign currency financial statements | 14,488,749.09 | 29,877,217.47 | 24,055.73 | 96,184.75 | (854,737.20) | 43,631,469.84 |
| Balance at the end of the year | 13,753,020,029.82 | 25,299,629,427.99 | 77,993,362.56 | 386,367,947.66 | 7,494,696,362.32 | 47,011,707,130.35 |
| Accumulated depreciation | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year (Restated) | 1,429,323,537.31 | 4,366,201,294.98 | 34,778,162.25 | 179,568,808.83 | 459,394,391.76 | 6,469,266,195.13 |
| Additions during the year | ? | ? | ? | ? | ? | ? |
| - Charge for the year | 443,669,038.03 | 2,501,751,996.78 | 11,740,450.54 | 60,757,312.28 | 317,660,324.77 | 3,335,579,122.40 |
| Disposals or written-offs during the year | (69,674,404.60) | (1,180,032,154.21) | (7,462,102.75) | (35,884,758.41) | (20,204,359.20) | (1,313,257,779.17) |
| Change of consolidation scope | - | - | - | (33,795.49) | (54,304,841.97) | (54,338,637.46) |
| Translation differences arising from translation of foreign currency financial statements | 1,249,609.87 | 5,805,039.51 | 10,801.35 | 18,917.72 | (850,715.90) | 6,233,652.55 |
| Balance at the end of the year | 1,804,567,780.61 | 5,693,726,177.06 | 39,067,311.39 | 204,426,484.93 | 701,694,799.46 | 8,443,482,553.45 |
| Provision for impairment | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year (Restated) | 2,428,313.22 | 868,901,379.75 | 183,008.91 | 1,138,851.81 | 92,277,732.62 | 964,929,286.31 |
| Charge for the year | - | 1,291,932,119.05 | - | - | - | 1,291,932,119.05 |
| Disposals or written-offs during the year | (2,428,313.22) | (544,901,494.47) | (113,854.91) | (1,138,851.81) | - | (548,582,514.41) |
| Translation differences arising from translation of foreign currency financial statements | -? | 37,276.97 | - | - | - | 37,276.97 |
| Balance at the end of the year | - | 1,615,969,281.30 | 69,154.00 | - | 92,277,732.62 | 1,708,316,167.92 |
| Carrying amounts | ? | ? | ? | ? | ? | ? |
| At the end of the year | 11,948,452,249.21 | 17,989,933,969.63 | 38,856,897.17 | 181,941,462.73 | 6,700,723,830.24 | 36,859,908,408.98 |
| At the beginning of the year (Restated) | 6,097,668,082.16 | 11,436,910,027.06 | 35,699,123.38 | 121,837,025.07 | 3,753,161,829.54 | 21,445,276,087.21 |
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(2) Impairment loss on fixed assets
The Group perform impairment tests for PERC battery and module production lines which show clear indication of impairment, and the recoverableamounts of long-term assets are determined on their fair values less costs to sell.
| Item | Carrying amount | Recoverable amount | Impairment | Basis for the determination of the fair value and costs to sell | Key parameter and basis of determination |
| Machinery & equipment | 3,594,133,174.88 | 2,325,122,141.00 | 1,291,932,119.05 | Fair value is based on the expected future use of the asset, taking into account recent market prices for similar assets and taking into account residue ratio of the asset as well as the cost of disposal of retired fixed assets. Costs to sell are related to the disposal of assets. | 1）residue ratio is based on the expected future use of the asset and its physical condition, 2) the price of scrapped asset is determined based on the Company's historical disposal recovery value and the comparable market value, and 3) the costs to sell include the costs of disposal and related taxes, and direct costs that are necessary to prepare the asset for sale. |
(3) Temporarily idle fixed assets
| Item | Cost | Accumulated depreciation | Provision for impairment | Carrying amount |
| Plant & buildings | 168,693,813.32 | 113,196,255.55 | - | 55,497,557.77 |
| Machinery & equipment | 616,351,005.21 | 345,340,745.37 | 248,953,700.06 | 22,056,559.78 |
| Electronic and office equipments | 1,014,388.81 | 1,014,388.81 | - | - |
| Total | 786,059,207.34 | 459,551,389.73 | 248,953,700.06 | 77,554,117.55 |
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(4) Fixed assets leased out under operating leases
| Item | Plant & buildings |
| Cost | ? |
| Balance at the beginning of the year | 62,083,057.80 |
| Additions during the year | 23,084,337.23 |
| Disposals or written-offs during the year | (13,509,150.84) |
| Balance at the end of the year | 71,658,244.19 |
| Accumulated depreciation | ? |
| Balance at the beginning of the year | 41,906,063.25 |
| Additions during the year | 18,806,548.25 |
| Disposals or written-offs during the year | (9,118,676.82) |
| Balance at the end of the year | 51,593,934.68 |
| Carrying amounts | ? |
| At the end of the year | 20,064,309.51 |
| At the beginning of the year | 20,176,994.55 |
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(5) Fixed assets pending certificates of ownership
| Item | Carrying amount | Reason why certificates of ownership are pending |
| Plant & buildings | 6,692,645,792.10 | Self-built new buildings which certificates of ownership are being applied and the buildings constructed by the governments agency |
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(6) Disposal of fixed assets
| Item | 2023 | 2022 |
| Disposal of fixed assets | 5,966,385.61 | 3,398,426.88 |
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16 Construction in progress
| ? | Note | 2023 | 2022 (Restated) |
| Construction in progress | (1) | 9,740,436,205.07 | 2,655,480,839.82 |
| Construction materials | (3) | -? | 310,520.34 |
| Total | ? | 9,740,436,205.07 | 2,655,791,360.16 |
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(1) Construction in progress
| Project | 2023 | 2022 (Restated) | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Baotou JA Solar (3th) 20GW pulled crystal and slicing project | 1,515,487,056.22 | - | 1,515,487,056.22 | 513,330,484.07 | - | 513,330,484.07 |
| Shijiazhuang annual output of 10GW slicing and 10GW batteries project | 1,459,815,513.28 | - | 1,459,815,513.28 | - | - | - |
| Yangzhou annual output of 10GW solar batteries project | 1,215,087,279.43 | - | 1,215,087,279.43 | - | - | - |
| Qujing Technology 10GW high-efficiency batteries and 5GW high-efficiency modules project | 1,208,542,355.14 | - | 1,208,542,355.14 | 2,923,180.14 | - | 2,923,180.14 |
| Dongtai annual output of 10GW batteries and 10GW modules project | 855,565,384.64 | - | 855,565,384.64 | - | - | - |
| Photovoltaic power station | 848,002,989.74 | - | 848,002,989.74 | 43,710,167.31 | - | 43,710,167.31 |
| Annual output of 10GW high-efficiency batteries project | 725,360,379.72 | - | 725,360,379.72 | - | - | - |
| Yangzhou annual output of 2GW high-efficiency batteries project | 280,723,609.76 | - | 280,723,609.76 | - | - | - |
| Inner Mongolia annual output of 5GW modules project | 266,024,527.70 | - | 266,024,527.70 | - | - | - |
| High-efficiency solar cells R&D pilot project | 168,821,040.36 | - | 168,821,040.36 | 62,951,218.47 | - | 62,951,218.47 |
| New Energy Technology Institute project phase 1 | 115,248,128.17 | - | 115,248,128.17 | 7,438,460.46 | - | 7,438,460.46 |
| JA Solar NE VietNam (2nd) silicon wafer upgrade project | 114,005,891.82 | - | 114,005,891.82 | 60,628,921.87 | - | 60,628,921.87 |
| Wuxi JA Waylion annual output of 500 monocrystalline furnaces and 100 tons of silver paste project | 108,226,878.63 | - | 108,226,878.63 | - | - | - |
| Ningjin 5GW slice and 6GW high-efficiency batteries project | 77,857,619.24 | - | 77,857,619.24 | 1,190,000.00 | - | 1,190,000.00 |
| Qujing JA Solar 20GW monocrystalline silicon rods and annual 20GW monocrystalline silicon rods and wafers project | 75,085,275.40 | - | 75,085,275.40 | 191,220,340.56 | - | 191,220,340.56 |
| Hefei 11GW high-power module expansion project | 73,150,489.16 | - | 73,150,489.16 | 25,613,605.02 | - | 25,613,605.02 |
| Installing equipment | 57,301,658.09 | - | 57,301,658.09 | 61,954,042.68 | - | 61,954,042.68 |
| Donghai 15GW velum project | 31,081,185.72 | - | 31,081,185.72 | - | - | - |
| Xingtai Module 5GW solar cells and modules project | 20,337,627.51 | - | 20,337,627.51 | 109,157,000.70 | - | 109,157,000.70 |
| Yangzhou Module annual 6GW high-performance solar modules project | 14,893,990.30 | - | 14,893,990.30 | 32,077,861.45 | - | 32,077,861.45 |
| Vietnam annual 3.5GW batteries project | 14,547,680.37 | - | 14,547,680.37 | 80,595,014.58 | - | 80,595,014.58 |
| Xingtai Module workshop renovation | 13,550,354.39 | - | 13,550,354.39 | - | - | - |
| Xuanhua County JA Solar 1GW solar module production project | 62,748,077.44 | 53,211,178.39 | 9,536,899.05 | 62,565,206.33 | 53,211,178.39 | 9,354,027.94 |
| Ningjin 1.3GW high-efficiency battery project | 7,742,386.45 | - | 7,742,386.45 | 31,714,354.19 | - | 31,714,354.19 |
| Kangbao module annual production of 1GW solar module project | 39,011,575.72 | 32,439,027.07 | 6,572,548.65 | 38,973,101.36 | 32,439,027.07 | 6,534,074.29 |
| Yiwu 5GW high-efficiency battery project | 5,679,375.65 | - | 5,679,375.65 | 6,317,859.72 | - | 6,317,859.72 |
| Vietnam JA Solar (1st) silicon wafer upgrade project | 5,493,677.34 | - | 5,493,677.34 | 78,794,345.66 | - | 78,794,345.66 |
| Yiwu Jingcheng 10GW modules and supporting project | 4,269,276.73 | - | 4,269,276.73 | 72,932,287.73 | - | 72,932,287.73 |
| Yiwu annual output of 5GW high-efficiency batteries and 10GW high-efficiency modules and supporting projects | 1,295,575.24 | - | 1,295,575.24 | 43,295,686.94 | - | 43,295,686.94 |
| Vietnam annual 3.5GW high-power module project | 1,265,401.27 | - | 1,265,401.27 | 32,861,186.82 | - | 32,861,186.82 |
| Chaoyang Xinghua photovoltaic power station project | - | - | - | 17,634,483.88 | -? | 17,634,483.88 |
| Tuquan 200MW PV power storage and generation project | - | - | - | 925,992,909.14 | - | 925,992,909.14 |
| Other projects | 460,946,286.60 | 21,082,136.70 | 439,864,149.90 | 258,341,462.90 | 21,082,136.70 | 237,259,326.20 |
| Total | 9,847,168,547.23 | 106,732,342.16 | 9,740,436,205.07 | 2,762,213,181.98 | 106,732,342.16 | 2,655,480,839.82 |
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(2) Movements of major construction projects in progress during the year
| Project | Budget (In RMB10,000) | Balance at the beginning of the year | Additions during the year | Transfers to fixed assets | Other decreases | Balance at the end of the year | Percentage of actual cost to budget (%) | Project progress (%) | Accumulated capitalised interest | Percentage of actual cost to budget (%) | Interest rate for capitalisation in 2023 (%) | Sources of funding |
| Baotou JA Solar (3th) 20GW pulled crystal and slicing project | 440,660.62 | 513,330,484.07 | 2,099,104,908.91 | 1,096,948,336.76 | - | 1,515,487,056.22 | 73.06% | 73.06% | - | - | - | Fund raising and self-financing |
| Shijiazhuang annual output of 10GW slicing and 10GW batteries project | 363,708.97 | - | 3,471,889,257.26 | 2,012,073,743.98 | - | 1,459,815,513.28 | 95.46% | 95.46% | - | - | - | Self-financing |
| Yangzhou annual output of 10GW solar batteries project | 212,829.32 | - | 1,488,431,336.84 | 273,344,057.41 | - | 1,215,087,279.43 | 69.94% | 69.94% | - | - | - | Self-financing |
| Qujing Technology 10GW high-efficiency batteries and 5GW high-efficiency modules project | 400,315.12 | 2,923,180.14 | 3,325,172,963.72 | 2,119,553,788.72 | - | 1,208,542,355.14 | 83.14% | 83.14% | - | - | - | Fund raising and self-financing |
| Dongtai annual output of 10GW batteries and 10GW modules project | 496,571.91 | - | 4,643,784,245.77 | 3,788,218,861.13 | - | 855,565,384.64 | 93.52% | 93.52% | - | - | - | Self-financing |
| Annual output of 10GW high-efficiency batteries project | 204,476.46 | - | 1,749,063,473.63 | 1,023,703,093.91 | - | 725,360,379.72 | 85.54% | 85.54% | - | - | - | Fund raising and self-financing |
| High-efficiency solar cells R&D pilot project | 35,548.00 | 62,951,218.47 | 196,559,839.70 | 75,893,026.66 | 14,796,991.15 | 168,821,040.36 | 95.34% | 95.34% | - | - | - | Fund raising and self-financing |
| Ningjin 5GW slice and 6GW high-efficiency batteries project | 190,085.07 | 1,190,000.00 | 1,722,668,157.74 | 1,646,000,538.50 | - | 77,857,619.24 | 90.69% | 90.69% | - | - | - | Self-financing |
| Qujing JA Solar 20GW monocrystalline silicon rods and annual 20GW monocrystalline silicon rods and wafers project | 425,333.44 | 191,220,340.56 | 89,419,424.72 | 205,554,489.88 | - | 75,085,275.40 | 89.67% | 89.67% | - | - | - | Fund raising and self-financing |
| Total | 771,615,223.24 | 18,786,093,608.29 | 12,241,289,936.95 | 14,796,991.15 | 7,301,621,903.43 | - | - | - | - | - | -? |
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(3) Construction materials
| Item | 2023 | 2022 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Construction materials | - | - | - | 310,520.34 | - | 310,520.34 |
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17 Right-of-use assets
(1) As a lessee
| Item | Plant & buildings | Land use rights | Machinery & equipment | Transportation vehicles | Electronic equipment and others | Photovoltaic power station | Total |
| Cost | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 759,421,705.35 | 471,793,229.66 | - | 40,303,634.54 | 136,406.68 | 399,763,511.24 | 1,671,418,487.47 |
| Additions during the year | 615,143,306.36 | 14,323,502.63 | 46,386,121.09 | 24,267,259.67 | 111,503.35 | 368,907.97 | 700,600,601.07 |
| (1) Leases | 611,943,424.06 | 11,822,808.27 | 46,093,696.20 | 24,253,754.03 | 44,557.36 | 368,907.97 | 694,527,147.89 |
| (2) Others | 3,199,882.30 | 2,500,694.36 | 292,424.89 | 13,505.64 | 66,945.99 | - | 6,073,453.18 |
| Decreases during the year | (260,853,698.74) | (81,551,658.14) | (193,415.40) | (13,648,344.29) | (5,898.33) | (236,711,040.15) | (592,964,055.05) |
| (1) Transferred to fixed assets | - | - | - | - | - | (236,711,040.15) | (236,711,040.15) |
| (2) Disposals | (43,465,302.28) | (74,613,466.33) | - | (2,426,476.26) | - | - | (120,505,244.87) |
| (3) Expiration of lease | (213,978,466.41) | (5,381,630.86) | - | (11,220,966.19) | - | - | (230,581,063.46) |
| (4) Others | (3,409,930.05) | (1,556,560.95) | (193,415.40) | (901.84) | (5,898.33) | - | (5,166,706.57) |
| Balance at the end of the year | 1,113,711,312.97 | 404,565,074.15 | 46,192,705.69 | 50,922,549.92 | 242,011.70 | 163,421,379.06 | 1,779,055,033.49 |
| Accumulated depreciation | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 228,105,996.03 | 24,193,032.80 | - | 19,952,203.36 | 71,724.39 | 67,555,336.87 | 339,878,293.45 |
| Additions during the year | 159,052,310.22 | 23,700,116.45 | 1,892,094.41 | 15,746,235.08 | 47,354.20 | 13,546,205.82 | 213,984,316.18 |
| (1) Provision | 158,712,348.53 | 23,700,116.45 | 1,892,094.41 | 15,694,304.26 | 47,354.20 | 13,546,205.82 | 213,592,423.67 |
| (2) Others | 339,961.69 | - | - | 51,930.82 | - | - | 391,892.51 |
| Decreases during the year | (251,660,306.31) | (9,591,623.71) | - | (12,006,157.01) | (3,045.48) | (55,393,477.87) | (328,654,610.38) |
| (1) Transferred to fixed assets | - | - | - | - | - | (55,393,477.87) | (55,393,477.87) |
| (2) Disposals | (35,076,182.29) | (4,202,309.49) | - | (646,435.48) | - | - | (39,924,927.26) |
| (3) Expiration of lease | (213,978,466.41) | (5,381,630.86) | - | (11,220,966.19) | - | - | (230,581,063.46) |
| (4) Others | (2,605,657.61) | (7,683.36) | - | (138,755.34) | (3,045.48) | - | (2,755,141.79) |
| Balance at the end of the year | 135,497,999.94 | 38,301,525.54 | 1,892,094.41 | 23,692,281.43 | 116,033.11 | 25,708,064.82 | 225,207,999.25 |
| Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 4,561,837.20 | - | - | - | - | - | 4,561,837.20 |
| Additions during the year | - | - | - | - | - | - | - |
| (1) Provision | - | - | - | - | - | - | - |
| Decreases during the year | (4,561,837.20) | - | - | - | - | - | (4,561,837.20) |
| (1) Disposals | (4,561,837.20) | - | - | - | - | - | (4,561,837.20) |
| Balance at the end of the year | - | - | - | - | - | - | - |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 978,213,313.03 | 366,263,548.61 | 44,300,611.28 | 27,230,268.49 | 125,978.59 | 137,713,314.24 | 1,553,847,034.24 |
| At the beginning of the year | 526,753,872.12 | 447,600,196.86 | - | 20,351,431.18 | 64,682.29 | 332,208,174.37 | 1,326,978,356.82 |
For the Group's specific arrangements relating to leasing activities, refer to note V.66.
18 Intangible assets
(1) Intangible assets
| Item | Land use rights | Patent right | Know-how | Software | Ownership of land | Other intangible assets | Total |
| Cost | |||||||
| Balance at the beginning of the year (Restated) | 1,467,851,621.46 | 7,660,254.96 | 12,792,901.16 | 123,728,673.86 | 956,891.14 | 22,120,650.10 | 1,635,110,992.68 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | 794,869,973.32 | 106,415,833.32 | - | 66,442,354.57 | - | 341,704.63 | 968,069,865.84 |
| - Translation differences arising from translation of foreign currency financial statements | 2,378,254.80 | - | - | 77,253.53 | - | (92,715.97) | 2,362,792.36 |
| Decreases during the year | ? | ? | ? | ? | ? | ? | ? |
| - Disposals | - | - | - | (99,056.60) | - | (99,056.61) | (198,113.21) |
| - Change of consolidation scope | (776,201.82) | - | - | - | - | - | (776,201.82) |
| Balance at the end of the year | 2,264,323,647.76 | 114,076,088.28 | 12,792,901.16 | 190,149,225.36 | 956,891.14 | 22,270,582.15 | 2,604,569,335.85 |
| Accumulated amortization | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year (Restated) | 154,904,756.84 | 4,754,749.94 | 12,792,901.16 | 65,842,565.64 | - | 7,355,909.53 | 245,650,883.11 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? |
| - Charge for the year | 42,242,319.12 | 19,948,333.35 | - | 29,973,700.97 | - | 3,857,013.76 | 96,021,367.20 |
| - Translation differences arising from translation of foreign currency financial statements | 219,614.91 | - | - | 24,155.51 | - | (33,916.87) | 209,853.55 |
| Decreases during the year | ? | ? | ? | ? | ? | ? | ? |
| - Disposals | - | - | - | (75,943.24) | - | - | (75,943.24) |
| - Change of consolidation scope | (20,698.72) | - | - | - | - | - | (20,698.72) |
| Balance at the end of the year | 197,345,992.15 | 24,703,083.29 | 12,792,901.16 | 95,764,478.88 | - | 11,179,006.42 | 341,785,461.90 |
| Carrying amounts | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 2,066,977,655.61 | 89,373,004.99 | - | 94,384,746.48 | 956,891.14 | 11,091,575.73 | 2,262,783,873.95 |
| At the beginning of the year | 1,312,946,864.62 | 2,905,505.02 | - | 57,886,108.22 | 956,891.14 | 14,764,740.57 | 1,389,460,109.57 |
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The Group does not have any intangible asset arising from internal development.
(2) Land use rights pending certificates of ownership
| Project | Carrying amount | Reason why certificates of ownership are pending |
| Land use rights | 406,998,076.10 | Mainly are the land use rights newly added in the current period and being purchased and delivered by the government |
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19 Long-term deferred expenses
| Item | Balance at the beginning of the year (Restated) | Additions during the year | Amortization for the year | Balance at the end of the year |
| Installing expense | 4,093,790.44 | 53,397.19 | 2,084,330.19 | 2,062,857.44 |
| Reconstruction expense | 183,929,584.04 | 36,711,929.07 | 111,844,676.00 | 108,796,837.11 |
| Decoration expense | 21,238,338.69 | 7,709,741.05 | 6,111,877.79 | 22,836,201.95 |
| Graphite pieces, thermal field and other expense | 167,329,362.91 | 369,151,436.21 | 246,740,719.87 | 289,740,079.25 |
| Total | 376,591,076.08 | 413,626,503.52 | 366,781,603.85 | 423,435,975.75 |
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20 Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets and deferred tax liabilities
| Item | 2023 | 2022 (Restated) | ||
| Temporary differences | Deferred tax | Temporary differences | Deferred tax | |
| Deferred tax assets: | ? | ? | ||
| Asset depreciation and amortization | 616,722,651.27 | 94,454,204.39 | 338,441,617.56 | 50,766,242.63 |
| Provision for impairment of assets | 2,149,682,987.21 | 328,283,337.59 | 1,062,205,243.11 | 159,439,412.41 |
| Provisions | 1,215,086,352.32 | 187,317,043.48 | 843,525,760.57 | 126,528,864.08 |
| Accrued expenses | 20,856,044.35 | 3,128,406.65 | 54,291,572.43 | 8,143,735.86 |
| Unrealized profits of intra-group transactions | 3,825,527,352.33 | 512,591,208.00 | 2,928,730,389.11 | 470,759,959.02 |
| Deferred income | 458,514,947.44 | 68,956,734.17 | 395,065,585.32 | 60,319,666.87 |
| Deductible tax losses | 498,415,392.07 | 76,214,077.10 | 1,205,081,702.15 | 181,870,431.53 |
| Lease liabilities | 1,243,728,176.84 | 213,028,366.34 | 982,984,180.18 | 155,652,861.20 |
| Share-based payment | 8,971,787.66 | 1,822,795.46 | 364,003,590.13 | 59,963,805.42 |
| Changes in fair value of derivative financial liabilities | - | - | 36,411,244.43 | 5,461,686.66 |
| Sub-total | 10,037,505,691.49 | 1,485,796,173.18 | 8,210,740,884.99 | 1,278,906,665.68 |
| Amount offset | 3,460,182,599.23 | 553,014,372.51 | 2,687,373,630.32 | 411,931,754.00 |
| Balance after offsetting | 6,577,323,092.26 | 932,781,800.67 | 5,523,367,254.67 | 866,974,911.68 |
| Deferred tax liabilities | ? | ? | ? | ? |
| Capitalization of interest | 78,043,862.92 | 11,918,451.00 | 99,560,017.73 | 15,174,063.48 |
| Right-of-use assets | 1,235,044,161.06 | 211,480,514.11 | 977,218,650.59 | 154,771,607.19 |
| Asset depreciation and amortization | 5,760,273,955.28 | 868,809,505.05 | 4,313,973,352.93 | 650,744,798.98 |
| Changes in fair value of investments in other equity instruments | 44,654,681.07 | 11,163,670.27 | 7,490,800.00 | 1,872,700.00 |
| Changes in fair value of derivative financial assets | 7,389,914.40 | 1,108,487.16 | - | - |
| Convertible bonds | 600,567,739.20 | 150,141,934.80 | - | - |
| Installment sale | 92,818,697.71 | 23,204,674.43 | -? | -? |
| Sub-total | 7,818,793,011.64 | 1,277,827,236.82 | 5,398,242,821.25 | 822,563,169.65 |
| Amount offset | 3,460,182,599.23 | 553,014,372.51 | 2,687,373,630.32 | 411,931,754.00 |
| Balance after offsetting | 4,358,610,412.41 | 724,812,864.31 | 2,710,869,190.93 | 410,631,415.65 |
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(2) Details of unrecognized deferred tax assets
| Item | 2023 | 2022 (Restated) |
| Deductible temporary differences | 2,685,533,684.78? | 3,995,681,810.24 |
| Deductible tax losses | 3,603,443,193.26? | 1,318,325,294.74 |
| Total | 6,288,976,878.04? | 5,314,007,104.98 |
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(3) Expiration of deductible tax losses for unrecognized deferred tax assets
| Year | 2023 | 2022 (Restated) |
| 2023 | -? | 7,566,560.67 |
| 2024 | 34,227,497.33? | 253,156,155.66 |
| 2025 | 13,978,340.39 | 10,082,909.63 |
| 2026 | 29,176,196.80? | 29,874,858.72 |
| 2027 | 73,854,415.23 | 91,859,521.91 |
| 2028 | 998,734,927.00 | - |
| Years afterwards | 2,453,471,816.51? | 925,785,288.15 |
| Total | 3,603,443,193.26? | 1,318,325,294.74 |
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21 Other non-current assets
| Item | 2023 | 2022 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Prepayments for equity investments | 165,000,000.00 | - | 165,000,000.00 | 165,000,000.00 | - | 165,000,000.00 |
| Prepayments for long-term assets and raw materials | 1,304,517,312.54 | - | 1,304,517,312.54 | 646,409,190.30 | - | 646,409,190.30 |
| Input VAT to be deducted/certified | 62,806,986.34 | - | 62,806,986.34 | - | - | - |
| Pledge time deposits of more than 1 year | 5,269,208,573.03 | - | 5,269,208,573.03 | 4,865,582,109.95 | - | 4,865,582,109.95 |
| Less: Time deposits due within one year | 2,498,637,840.30 | - | 2,498,637,840.30 | 268,477,657.97 | - | 268,477,657.97 |
| Total | 4,302,895,031.61 | - | 4,302,895,031.61 | 5,408,513,642.28 | - | 5,408,513,642.28 |
?
22 Assets with restrictive ownership titles or right-of-use
| Item | 2023 | 2022 | ||||||
| Book value | Carrying amount | Restriction types | Reason for restriction | Book value | Carrying amount | Restriction types | Reason for restriction | |
| Cash at bank and on hand | 9,225,344,774.40 | 9,225,344,774.40 | Pledge | Deposits, etc | 6,063,162,734.63 | 6,063,162,734.63 | Pledge | Deposits, etc |
| Fixed assets | 5,373,103,863.73 | 4,254,272,062.52 | Mortgage | Loan secured by mortgages, finance leases and government agency construction, etc | 4,702,460,039.51 | 3,734,756,759.28 | Mortgage | Loan secured by mortgages, finance leases and government agency construction, etc |
| Intangible assets | 453,873,160.38 | 392,438,094.97 | Mortgage | Loan secured by mortgages and government agency construction, etc | 397,613,403.05 | 333,554,927.60 | Mortgage | Loan secured by mortgages and government agency construction, etc |
| Bills receivable | 155,083,276.94 | 155,018,442.36 | Pledge | Outstanding endorsed or discounted bills that have not matured at the end of the year | 91,248,544.62 | 91,248,544.62 | Pledge | Outstanding endorsed or discounted bills that have not matured at the end of the year |
| Accounts receivable | 406,188,266.96 | 400,095,442.96 | Pledge | Loan secured by pledges and finance leases | 459,772,534.13 | 452,875,946.12 | Pledge | Loan secured by pledges and finance leases |
| Receivables under financing | 174,350,594.00 | 174,350,594.00 | Pledge | Bills pledge | - | - | - | - |
| Non-current assets due within one year | 2,498,637,840.30 | 2,498,637,840.30 | Pledge | Deposits, etc | 268,477,657.97 | 268,477,657.97 | Pledge | Deposits, etc |
| Other non-current assets | 2,770,570,732.73 | 2,770,570,732.73 | Pledge | Deposits, etc | 4,597,104,451.98 | 4,597,104,451.98 | Pledge | Deposits, etc |
| total | 21,057,152,509.44 | 19,870,727,984.24 | 16,579,839,365.89 | 15,541,181,022.20 | ||||
23 Short-term loans
(1) Short-term loans by category:
| Category | 2023 | 2022 |
| Credit loans | 706,735,733.19 | - |
| Guaranteed loans | 260,827,484.01 | 602,297,060.70 |
| Pledged loans | 6,483,457.88 | 1,137,939,376.85 |
| Guarantees and mortgages | - | 38,270,682.77 |
| Guaranteed and pledged loans | 4,544,400.00 | 4,069,945.00 |
| Guaranteed, mortgaged and pledged loans | - | 4,565,000.00 |
| Total | 978,591,075.08 | 1,787,142,065.32 |
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Guaranteed loans are obtained by the Company and the Group's subsidiaries as guaranteesfor their subsidiaries.
24 Derivative financial liabilities
| Item | 2023 | 2022 |
| Foreign currency derivatives | - | 113,064,066.74 |
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25 Bills payable
| Item | 2023 | 2022 |
| Bank acceptance bills | 18,480,904,576.50 | 13,418,146,649.03 |
| Commercial acceptance bills | 128,392,037.35 | - |
| Total | 18,609,296,613.85 | 13,418,146,649.03 |
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There is no due but unpaid bill payable at the end of the year. The bills above are all due withinone year.
26 Accounts payable
| Item | 2023 | 2022 (Restated) |
| Payable for materials and service fees | 8,816,378,706.33 | 5,155,050,686.52 |
?
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27 Contract liabilities
| Item | 2023 | 2022 |
| Advances for goods | 4,872,292,085.69 | 5,388,228,068.95 |
?
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28 Employee benefits payable
(1) Employee benefits payable
| Items | Balance at the beginning of the year (Restated) | Accrued during the year | Decreased during the year | Balance at the end of the year | |
| Short-term employee benefits | (2) | 804,743,478.30 | 5,457,167,118.18 | 5,197,763,595.68 | 1,064,147,000.80 |
| Post-employment benefits - defined contribution plans | (3) | 7,602,948.06 | 371,147,729.42 | 367,425,492.45 | 11,325,185.03 |
| Termination benefits | 3,657,113.42 | 4,029,524.53 | 7,401,945.42 | 284,692.53 | |
| Total | 816,003,539.78 | 5,832,344,372.13 | 5,572,591,033.55 | 1,075,756,878.36 |
?
?
(2) Short-term employee benefits
| Items | Balance at the beginning of the year (Restated) | Accrued during the year | Decreased during the year | Balance at the end of the year |
| Salaries, bonuses, allowances and subsidies | 716,748,029.95 | 4,834,388,871.85 | 4,523,726,978.56 | 1,027,409,923.24 |
| Staff welfare | 56,284,197.34 | 196,478,879.17 | 247,775,861.40 | 4,987,215.11 |
| Social insurance | ? | ? | ? | ? |
| - Medical insurance | 5,786,505.61 | 187,653,582.79 | 187,707,863.72 | 5,732,224.68 |
| - Work-related injury insurance | 143,735.25 | 11,811,929.81 | 11,751,544.35 | 204,120.71 |
| - Maternity insurance | 8,924.82 | 9,714,481.21 | 9,669,544.10 | 53,861.93 |
| Housing fund | 5,421,525.11 | 165,458,412.55 | 162,746,833.75 | 8,133,103.91 |
| Labour union fee, staff and workers’ education fee | 20,350,560.22 | 51,660,960.80 | 54,384,969.80 | 17,626,551.22 |
| Total | 804,743,478.30 | 5,457,167,118.18 | 5,197,763,595.68 | 1,064,147,000.80 |
?
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(3) Post-employment benefits - defined contribution plans
| Item | Balance at the beginning of the year | Accrued during the year | Decreased during the year | Balance at the end of the year |
| Basic pension insurance | 7,294,294.20 | 358,307,226.20 | 354,730,582.71 | 10,870,937.69 |
| Unemployment insurance | 308,653.86 | 12,840,503.22 | 12,694,909.74 | 454,247.34 |
| Total | 7,602,948.06 | 371,147,729.42 | 367,425,492.45 | 11,325,185.03 |
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29 Taxes payable
| Item | 2023 | 2022 (Restated) |
| Corporate income tax | 231,234,915.34 | 305,156,253.20 |
| Value-added tax (VAT) | 159,901,779.55 | 68,058,637.75 |
| Stamp duty | 35,611,976.45 | 37,241,414.45 |
| Individual income tax | 22,327,570.80 | 19,699,732.09 |
| Property tax | 18,897,603.63 | 5,410,147.32 |
| Land use tax | 10,145,004.02 | 2,334,168.16 |
| Urban maintenance and construction tax | 5,405,270.64 | 3,319,668.81 |
| Education surcharges | 4,009,137.16 | 2,537,355.90 |
| River management fees | 1,502,546.47 | 1,459,626.33 |
| Consumption tax | 1,122,080.53 | 1,654,400.54 |
| Others | 1,082,022.59 | 98,161.72 |
| Total | 491,239,907.18 | 446,969,566.27 |
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30 Other payables
| ? | Note | 2023 | 2022 (Restated) |
| Dividends payable | (1) | 252,599,002.24 | 15,490,934.75 |
| Others | (2) | 14,117,124,052.24 | 5,643,758,787.26 |
| Total | ? | 14,369,723,054.48 | 5,659,249,722.01 |
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(1) Dividends payable
| Item | 2023 | 2022 |
| KEI CHEONG(HK) Co., Ltd. | 89,261,071.50 | 15,147,553.25 |
| China Orient Asset Management Co., Ltd. | 121,666,399.00 | - |
| ABC Financial Asset Investment Co., Ltd. | 30,416,599.75 | -? |
| Hong Kong Jinhua Semiconductor Materials Corporation | 11,254,931.99 | 343,381.50 |
| Total | 252,599,002.24 | 15,490,934.75 |
(2) Others
Details of others by nature are as follows:
| Items | 2023 | 2022 (Restated) |
| Equipment and construction fee | 11,650,444,216.92 | 3,851,675,178.24 |
| Freight, customs declaration service fees | 1,776,829,893.14 | 1,204,556,027.26 |
| Amounts due to other entities | 40,007,182.45 | 123,428,658.06 |
| Deposits, security deposit | 513,682,964.24 | 304,786,138.70 |
| Repurchase obligation of restricted shares | 136,159,795.49 | 154,494,371.80 |
| Others | - | 4,818,413.20 |
| Total | 14,117,124,052.24 | 5,643,758,787.26 |
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31 Non-current liabilities due within one year
Non-current liabilities due within one year by category are as follows:
| Item | 2023 | 2022 |
| Long-term loans due within one year | 228,796,034.14 | 480,815,951.32 |
| Debentures payable due within one year | 8,150,197.69 | - |
| Long-term payables due within one year | 364,871,521.03 | 469,000,450.08 |
| Lease liabilities due within one year | 222,489,413.91 | 304,171,449.74 |
| Other long-term liabilities due within one year (Notes) | - | 651,054,794.56 |
| Total | 824,307,166.77 | 1,905,042,645.70 |
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?
Note 1: Yangzhou Battery signed a construction assignment agreement with Yangzhou
Lingang Construction and Development Co., Ltd. in October 2017. According to theagreement, as the consignee of “JA No.11 High-efficiency Battery Workshop andAuxiliary Building Project”, Yangzhou Lingang construction and development Co., Ltd.should assist the management committee in fund raising, payment and supervision,and assist in construction site management. Five years after the first payment ofYangzhou Lingang Construction and Development Co., Ltd.,and Yangzhou Batteryshall have a bullet repay without interest. As of 31 December 2023, “JA No.11 High-efficiency Battery Workshop and Auxiliary Building Project” has been completed.Yangzhou Lingang Construction and Development Co., Ltd. has raised a total ofRMB150,000,000.00 for the project, which was settled by Yangzhou Battery in April2023.
Note 2: On 29 June 2021, ICBC Financial Asset Investment Co., Ltd. signed a capital increase
agreement with Hefei JA Solar Technology Co., Ltd. ICBC Financial Asset InvestmentCo., Ltd. increased the capital of Hefei JA Solar by RMB1,000,000,000.00. After thecapital increase, the registered capital of Hefei JA Solar is changed from RMB1.822billion to RMB2.167 billion. The equity proportion of ICBC Financial Asset InvestmentCo., Ltd. is 15.93%, and the investment income of ICBC Financial Asset InvestmentCo., Ltd. is limited to the dividend target agreed herein (the expected annual returnrate is 7%). Equity withdrawal: Upon mutual agreement, JA Solar Technology Co.,Ltd. can acquire Hefei JA Solar’s equity held by ICBC Financial Asset Investment Co.,Ltd. through a private placement, and ICBC Financial Asset Investment Co., Ltd. willwithdraw its equity through the secondary market in the future. ICBC Financial AssetInvestment Co., Ltd. will increase its stake after implement exit in transfer way whichinvolving the rights and obligations of the Company and the actual controller, to thisagreement and ICBC Financial Asset Investment Co., Ltd., JA Solar Co., Ltd., JinBaofang, Jin Junmiao and JA Solar Technology Yangzhou Co., Ltd. shall be signedby the Shareholders’ Agreement shall prevail. On 18 February 2022, the Group paidICBC Financial Asset Investment Co., Ltd. RMB500,000,000.00 to repurchase 7.97%equities of Hefei JA Solar it held. After the repurchase, ICBC Financial AssetInvestment Co., Ltd. held 7.97% equities. On 30 June 2023, the Group paid ICBCFinancial Asset Investment Co., Ltd. RMB500,000,000.00 to repurchase 7.97%equities of Hefei JA Solar it held. After that, ICBC Financial Asset Investment Co., Ltd.will no longer hold the equity interest in Hefei JA Solar.
32 Other current liabilities
| Item | 2023 | 2022 |
| Pending output VAT | 228,496,447.73 | 365,369,574.18 |
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33 Long-term loans
| Item | Note | 2023 | 2022 |
| Credit loans | 50,000,000.00 | - | |
| Guaranteed loans | 543,352,351.74 | 627,854,370.82 | |
| Guarantees and mortgages | - | 243,985,740.14 | |
| Guaranteed and pledged loans | 1,069,255,555.11 | 936,917,430.43 | |
| Guaranteed, mortgaged and pledged loans | 43,040,000.00 | 448,646,056.17 | |
| Less: Long-term loans due within one year | V.31 | 228,796,034.14 | 480,815,951.32 |
| Including: Guaranteed loans due within one year | 191,624,178.73 | 299,697,035.14 | |
| Guarantees and mortgages due within one year | - | 32,216,882.81 | |
| Guaranteed and pledged loans due within one year | 37,171,855.41 | 44,471,589.00 | |
| Guaranteed, mortgaged and pledged loans due within one year | - | 104,430,444.37 | |
| Total | 1,476,851,872.71 | 1,776,587,646.24 |
?
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Guaranteed loans are obtained by the Company and the Group's subsidiaries as guaranteesfor their subsidiaries.
34 Debentures payable
(1) Debentures payable
| Item | 2023 | 2022 |
| Convertible bonds | 8,359,739,960.81 | - |
(2) Details of debentures payable
| Debenture | Face value | Issuance date | Maturity period | Issuance amount | Balance at the beginning of the year | Issuance during the year | Interest at face value | Amortisation of discounts or premium | Repayment during the year | Balance at the end of the year | Default (Y/N) |
| JA Convertible Bonds | 100.00 | 18 July 2023 | Six years | 8,960,307,700.00 | - | 8,237,817,094.54 | 8,150,197.69 | 130,073,063.96 | 8,150,197.69 | 8,359,739,960.81 | N? |
(3) Description of Conditions for conversion and timing of convertible bonds
In accordance with the resolutions of the 36th Meeting of the 5th Board of Directors of JA SolarTechnology held on 25 August 2022 and the 24th Meeting of the 5th Supervisory Committeeheld on the same date, and the resolution of its 1st Extraordinary General Meeting ofShareholders of 2022 held on 13 September 2022, as well as the resolution of the 28th Meetingof the Listing Committee of Shenzhen Stock Exchange held on 27 April 2023, plus the Approvalof the Registration of the Issuance of Convertible Bonds to Public by JA Solar Technology Co.,Ltd. By the CSRC (Zheng Jian Xu Ke No.1164 [2023]), JA Solar Technology Co., Ltd. haspublicly issued RMB8.96 billion convertible bonds. Fund raised amounted to RMB8.93 billionafter costs of issuance (RMB26.46 million). The convertible bonds have been listed and tradedon the Shenzhen Stock Exchange since 4 August 2023, with the abbreviation of "JAConvertible Bonds" and the bond code of "127089".
According to the Prospectus of JA Solar Technology Co., Ltd. on Issuance of ConvertibleBonds to the Public, the initial conversion price of the convertible bonds is RMB38.78 per share.The coupon rate of the convertible bonds is 0.20% for the first year, 0.40% for the second year,
0.60% for the third year, 1.50% for the fourth year, 1.80% for the fifth year and 2.00% for thesixth year.
The issuance ended on 24 July 2023. The conversion period starts from 24 January 2024 (thefirst trading day six months after 24 July 2023) to 17 July 2029 (the maturity date of theconvertible bond).
In 2023, the Company recognised other equity instruments of RMB515,408,280.06 relating tothe issuance of convertible bonds.
35 Lease liabilities
| Item | Note | 2023 | 2022 |
| Long-term lease liabilities | ? | 1,375,781,457.39 | 1,031,646,335.92 |
| Less: Lease liabilities due within one year | V.31 | 222,489,413.91 | 304,171,449.74 |
| Total | ? | 1,153,292,043.48 | 727,474,886.18 |
See Note V 66 for specific arrangements regarding the Group’s leases.
36 Long-term payables
| Item | Note | 2023 | 2022 |
| Long-term payables | 4,359,874,503.93 | 2,612,101,405.39 | |
| Less: Long-term payables due within one year | V.31 | 364,871,521.03 | 469,000,450.08 |
| Total | 3,995,002,982.90 | 2,143,100,955.31 |
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37 Provisions
| Item | Balance at the beginning of the year | Additions during the year | Reductions during the year | Translation differences arising from translation of foreign currency financial statements | Balance at the end of the year | Reasons for the provision |
| Warranties for product quality | 1,139,398,304.79 | 390,873,089.52 | 13,983,449.67 | 2,685,747.06 | 1,518,973,691.70 | ? |
| Outstanding litigation | 90,739,769.78 | - | 95,184,259.21 | 4,444,489.43 | - | Note? |
| Total | 1,230,138,074.57 | 390,873,089.52 | 109,167,708.88 | 7,130,236.49 | 1,518,973,691.70 | ? |
?
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Note: As at 31 December 2023, the Group has no provisions arising from outstanding
litigation. JA Solar GmbH was in dispute with its customer over a module supplycontract signed between the two parties on 26 October 2020. The customer has appliedto International Chamber of Commerce (hereinafter referred to as “ICC”) for arbitration.The Company received a notice of acceptance from ICC on 10 January 2022 and asof reporting date, JA Solar GmbH has won the arbitration. JA Solar International Limitedwas in dispute with its customer over a module supply contract signed between the twoparties on 17 September 2021. The customer has applied to Singapore InternationalArbitration Centre (hereinafter referred to as “SIAC”) for arbitration. The Companyreceived a notice of acceptance from SIAC on 1 July 2022 and as of 31 December2023, the case has settled.
38 Deferred income
| Item | Balance at the beginning of the year | Additions during the year | Reductions during the year | Balance at the end of the year |
| Government grant | 611,231,908.32 | 768,880,895.00 | 479,206,198.83 | 900,906,604.49 |
| Unrealized profit from long-term investment under equity method | 104,857,809.09 | 939,410.62 | - | 105,797,219.71 |
| Total | 716,089,717.41 | 769,820,305.62 | 479,206,198.83 | 1,006,703,824.20 |
?
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39 Other non-current liabilities
| Item | 2023 | 2022 |
| Other non-current liabilities | 83,875,914.00 | 183,875,914.00 |
?
?
Note 1: Yangzhou Battery signed a repurchase agreement for project construction with
Yangzhou Lingang Construction and Development Co., Ltd. in March 2020. Accordingto the agreement, Yangzhou Lingang Construction and Development Co., Ltd. isresponsible for “JA Solar (Yangzhou) Solar Technology Co., Ltd. annual 4GW High-performance solar photovoltaic module project” agency construction fund raising anduse supervision, and timely payment of agency construction funds according to thecontract and the actual progress of the project, the total amount of project funds raisedis not more than RMB250 million. The use period of Yangzhou Battery’scommissioned construction funds for the project is 5 years. It will be calculated inbatches from the date when the funds arrive in the jointly managed account of bothparties. After each commissioned construction fund expires, it will be paid in one lumpsum without any interest. Yangzhou Lingang construction and development Co., Ltd.has raised funds of RMB183,875,914.00 for the project. As of 31 December 2023,Yangzhou Battery has repayed RMB100 million.
40 Share capital
| Item | Balance at the beginning of the year | Changes during the year: Increase / (Decrease) | Balance at the end of the year | ||||
| Issuance of new shares | Bonus shares | Transfer from reserves | Others | Sub-total | |||
| Total shares | 2,356,345,036.00 | 17,215,966.00 | - | 942,715,373.00 | (16,542.00) | 959,914,797.00 | 3,316,259,833.00 |
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?
1. As at 31 December 2023, the number of stock options exercised under the first grant
and the reserved grant of the 2020 Stock Option and Restricted Stock Incentive Planand the 2022 Stock Option Incentive Plan of the Company was 13,815,966.00, and theshare capital has accordingly increased by RMB13,815,966.00. As at 31 December2023, under the Restricted Stock Incentive Plan issued to the employees of the Group,3,400,000.00 shares have been subscribed and the share capital has accordinglyincreased by RMB3,400,000.00;
2. The 2022 Proposal on the Distribution of Profit and Conversion of Capital Reserve into
Share Capital (“Proposal 2022”) was approved in the 4h Meeting of the 6th Board ofDirectors of the Company held on 22 March 2023. In accordance with Proposal 2022,based on the total share capital as at the date of share registration at the time ofimplementation of the distribution plan, RMB2.4 (before tax) of cash dividend for every10 shares will be distributed to all shareholders; 4 shares for every 10 shares will betransferred to all shareholders by transferring the share premium in the capital reservewith no bonus shares, and the remaining undistributed profits will be carried forward fordistribution in subsequent years. The Proposal 2022 was approved by the 2022 AnnualGeneral Meeting of Shareholders held on 13 April 2023. After the implementation of theequity distribution plan, the share capital was increased by RMB942,715,373.00;
3. Pursuant to the Proposal on the Repurchase and Cancellation of Certain Restricted
Shares that Have Been Granted But Not Released approved by the 4th Meeting of the6th Board of Directors and the the 6th Supervisory Committee held on 22 March 2023,the Announcement of Resolutions of the 2022 General Meeting of Shareholdersapproved by the 2022 General Meeting of Shareholders held on 13 April 2023, as wellas the Proposal on the Adjustment of the Number and Price of Interests Related to the2020 Stock Option and Restricted Stock Incentive Plan approved by the 5th Meeting ofthe 6th Board of Directors and the 5th Meeting of the 6th Supervisory Committee heldon 26 April 2023, the Company completed the corresponding restricted sharecancellation plan on 12 June 2023 by repurchasing 3,920.00 restricted shares that havenot been released from resigning employees at a price of RMB3.76 per share, and theshare capital decreased by RMB3,920.00;
4. Pursuant to the Proposal on the Repurchase and Cancellation of Certain Restricted
Shares that Have Been Granted But Not Released approved by the 11th Meeting of the6th Board of Directors and the 9th meeting of the 6th Supervisory Committee held on 30August 2023, and the Announcement of Resolutions of the 3rd Extraordinary GeneralMeeting of Shareholders of 2023 approved by the 2023 Extraordinary General Meetingof Shareholders held on 18 September 2023, the Company completed the correspondingrestricted share cancellation plan on 22 December 2023 by repurchasing 12,622.00restricted shares that have not been released from resigning employees at a price ofRMB3.76 per share, and the share capital decreased by RMB12,622.00.
41 Other equity instruments
(1) Financial instruments (including preference shares and perpetual bonds) that remain
outstanding at the end of the year are set out as follows:
| Outstanding financial instruments | Issuance date | Accounting classification | Dividend or interest rate | Issuance price | Quantity | Amount | Maturity date or renewal status | Conditions for conversion | Conversion status |
| JA Convertible Bonds | 18 July 2023 | Other equity instruments | 0.20%-2.00% | 100.00 | 89,603,077.00 | 515,408,280.06 | 17 July 2029 | The conversion period starts from 24 January 2024 (the first trading day six months after 24 July 2023) | Conversion not started |
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?
(2) Movement of the financial instruments (including preference shares and perpetual bonds)
that remain outstanding at the end of the year:
| Outstanding financial instruments | At the beginning of the year | Additions during the year | Reductions during the year | At the end of the year | ||||
| Quantity | Carrying value | Quantity | Carrying value | Quantity | Carrying value | Quantity | Carrying value | |
| JA Convertible Bonds | - | - | 89,603,077.00 | 515,408,280.06 | - | - | 89,603,077.00 | 515,408,280.06 |
?
?
42 Capital reserve
| Item | Balance at the beginning of the year (Restated) | Additions during the year | Reductions during the year | Balance at the end of the year |
| Share premium | 13,695,660,891.90 | 631,861,872.81 | 1,033,862,190.34 | 13,293,660,574.37 |
| Other capital reserves | 303,627,620.36 | 270,380,734.51 | 117,050,776.86 | 456,957,578.01 |
| Total | 13,999,288,512.26 | 902,242,607.32 | 1,150,912,967.20 | 13,750,618,152.38 |
?
?
As of 31 December 2023, the reason for changes in the Group’s capital reserves are asfollows:
1. Since the exercise conditions of the 2020 Stock Options and Restricted Share Incentive
Plan are met, the number of the exercised stock options during the year was13,815,966.00 shares as of 31 December 2023, resulting an increase ofRMB121,138,786.40 in the share premium under the capital reserve.
2. The Company issued an equity incentive plan to motivate employees of the Company
and its subsidiaries to settle with its own equity instruments, resulting an increase ofRMB263,078,561.80 in the other capital reserves under the capital reserve.
3. Due to the resignation of the incentive objects, the Company has repurchased and
cancelled 16,542.00 restricted shares granted but not released, resulting a decrease ofRMB45,655.92 in the share premium under the capital reserve.
4. As of 31 December 2023, since the exercise and release conditions of the Company’s
2020 Stock Options and Restricted Shares Incentive Plan are met in 2022, the othercapital reserves under the capital reserve has been decreased by RMB117,050,776.86and the other share premium under the capital reserve has been increased byRMB117,050,776.86.
5. In February 2023, the Company's subsidiary Shijiazhuang JA Solar Technology Co., Ltd.
merged with Shijiazhuang JA PV Technology Co., Ltd. (a company under commoncontrol) for a consideration of RMB56 million, resulting in an decrease of RMB56 millionin the share premium under the capital reserve.
6. On 13 April 2023, the Company conversed capital reserve into share capital, resulting a
decrease of RMB942,715,373.00 in the share premium under the capital reserve.
7. In June 2023, the subsidiary of the Group, Yiwu JA Solar Technology Co., Ltd., introduced
non-controlling shareholders, resulting in an increase of RMB341,828,500.26 in theshare premium under the capital reserve.
8. The Company issued the Restricted Share Incentive Plan to motivate employees of the
Company and 3,400,000.00 shares were purchased, resulting an increase of RMB45,900,000.00 in the share premium under the capital reserve as of 31 December 2023.
9. In October 2023, the Company acquired non-controlling interests in JA Solar Technology
Yangzhou Co., Ltd. (a subsidiary), resulting in a decrease of RMB35,059,717.40 in theshare premium under the capital reserve.
10. In November 2023, the Company acquired non-controlling interests in Xingtai Jinglong
PV Materials Co., Ltd. (a subsidiary), resulting in an increase of RMB5,943,809.29 in theshare premium under the capital reserve.
11. In October 2023, the Company adopted a share repurchase plan. As of 31 December
2023, the Company repurchased 12,483,600.00 shares of the Company in accordancewith the above plan, and the related cost amounted to RMB41,444.02, resulting in adecrease of RMB41,444.02 in the share premium under the capital reserve.
12. Due to other equity changes of associates, the other capital reserves under the capital
reserve has been increased by RMB1,187,414.90.
13. The Company's equity interest in Suzhou JSolar Incorporated was subject to a passive
dilution due to the financing activities of the associate, resulting in an increase in capitalreserve - other capital surplus by RMB6,114,757.81.
43 Treasury shares
| Item | Balance at the beginning of the year | Additions during the year | Reductions during the year | Balance at the end of the year |
| Treasury shares | 154,494,371.80 | 309,228,728.62 | 67,634,576.31 | 396,088,524.11 |
?
?
44 Other comprehensive income
| Item | Balance at the beginning of the year attributable to shareholders of the Company | Movements during the year | Balance at the end of the year attributable to shareholders of the Company | ||||
| Before-tax amount | Less: Previously recognized amount transferred to profit or loss | Less: Income tax expenses | Net-of-tax amount attributable to shareholders of the Company | Net-of-tax amount attributable to non-controlling interests | |||
| Item that will not be reclassified to profit or loss | 5,618,100.00 | 37,163,881.07 | - | 9,290,970.27 | 27,872,910.80 | - | 33,491,010.80 |
| - Changes in fair value of investments in other equity instruments | 5,618,100.00 | 37,163,881.07 | - | 9,290,970.27 | 27,872,910.80 | - | 33,491,010.80 |
| Item that may be reclassified to profit or loss | (19,008,468.67) | 33,961,286.93 | - | - | 33,961,286.93 | - | 14,952,818.26 |
| - Translation differences arising from translation of foreign currency financial statements | (19,008,468.67) | 33,961,286.93 | - | - | 33,961,286.93 | - | 14,952,818.26 |
| Total other comprehensive income | (13,390,368.67) | 71,125,168.00 | - | 9,290,970.27 | 61,834,197.73 | - | 48,443,829.06 |
?
?
45 Specific reserve
| Item | Balance at the beginning of the year | Additions during the year | Reductions during the year | Balance at the end of the year |
| Safety fund | 19,144,079.90 | 12,469,623.46 | 5,678,020.98 | 25,935,682.38 |
?
?
46 Surplus reserve
| Item | Balance at the beginning of the year | Additions during the year | Reductions during the year | Balance at the end of the year |
| Statutory surplus reserve | 531,983,909.75 | 251,500,356.12 | - | 783,484,265.87 |
?
?
47 Retained earnings
| Item | Note | 2023 | 2022 (Restated) |
| Retained earnings at the beginning of the year | ? | 10,815,830,846.99 | 5,581,219,747.20 |
| Add: Business combination under common control | ? | (20,883,103.49) | (20,342,020.39) |
| Changes in accounting policies | 881,254.01 | (585,681.82) | |
| Add: Net profits for the year attributable to shareholders of the Company | 7,039,490,537.23 | 5,533,792,625.25 | |
| Less: Appropriation for statutory surplus reserve | ? | 251,500,356.12 | 46,688,504.33 |
| Dividends to ordinary shares | (1) | 565,629,224.16 | 251,567,168.40 |
| Others | (2) | (53,931,871.27) | - |
| Retained earnings at the end of the year | 17,072,121,825.73 | 10,795,828,997.51 |
?
?
(1) Dividends in respect of ordinary shares declared during the year
Pursuant to the shareholders’ approval at the shareholders’ general meeting on 13 April2023, a cash dividend of RMB2.4 per share (2022: RMB1.5 per share), totallingRMB565,629,224.16 (2022: RMB251,567,168.40), was declared and paid to the Company’sordinary shareholders on 25 April 2023.
(2) In 2023, the Group’s subsidiary, Solar Silicon Valley Electronic Science and Technology Co.,
Ltd. reverted the non-payable welfare fund of RMB53,931,871.27 accrued in previous years.
48 Operating income and operating costs
(1) Operating income and operating costs
| Item | 2023 | 2022 | ||
| Income | Cost | Income | Cost | |
| Principal activities | 80,747,270,951.15 | 66,509,517,967.97 | 72,343,858,918.47 | 62,025,003,520.37 |
| Other operating activities | 808,906,285.83 | 263,557,591.70 | 645,541,656.71 | 179,701,212.09 |
| Total | 81,556,177,236.98 | 66,773,075,559.67 | 72,989,400,575.18 | 62,204,704,732.46 |
?
?
(2) Disaggregation of income and cost from contracts with customers
| Type of contract | 2023 | 2022 | ||
| Income | Cost | Income | Cost | |
| By type of products | ? | ? | ? | ? |
| Solar module | 78,174,617,903.22 | 63,885,045,710.26 | 70,344,583,284.97 | 60,277,554,933.83 |
| Operation of photovoltaic power station | 843,274,457.51 | 481,624,584.51 | 423,039,306.76 | 199,330,285.56 |
| Others | 2,538,284,876.25 | 2,406,405,264.90 | 2,221,777,983.45 | 1,727,819,513.07 |
| Total | 81,556,177,236.98 | 66,773,075,559.67 | 72,989,400,575.18 | 62,204,704,732.46 |
| By geographical regions | ? | ? | ? | ? |
| Mainland | 37,128,416,721.90 | 32,460,466,110.37 | 29,172,365,952.89 | 24,510,197,884.22 |
| Europe | 17,619,601,271.02 | 15,124,106,633.72 | 22,909,868,158.71 | 19,867,621,885.40 |
| Asia and Oceania | 11,142,627,268.22 | 8,791,550,994.05 | 9,529,350,477.05 | 8,352,754,323.03 |
| America | 13,571,634,350.71 | 8,609,719,184.86 | 9,943,697,219.05 | 8,272,284,551.39 |
| Africa and others | 2,093,897,625.13 | 1,787,232,636.67 | 1,434,118,767.48 | 1,201,846,088.42 |
| Total | 81,556,177,236.98 | 66,773,075,559.67 | 72,989,400,575.18 | 62,204,704,732.46 |
49 Taxes and surcharges
| Item | 2023 | 2022 |
| Stamp duty | 130,031,410.97 | 107,136,185.47 |
| City maintenance and construction tax | 101,217,305.48 | 44,854,202.14 |
| Education and local education surcharges | 80,761,979.88 | 34,793,589.87 |
| Property tax | 53,820,023.55 | 26,989,999.31 |
| Land use tax | 34,876,948.51 | 15,982,351.14 |
| River management fees | 14,350,447.99 | 11,266,096.11 |
| Others | 6,568,753.91 | 1,426,861.38 |
| Total | 421,626,870.29 | 242,449,285.42 |
?
?
50 Selling and distribution expenses
| Item | 2023 | 2022 |
| Salaries and benefits | 438,061,901.51 | 264,900,747.95 |
| Warranties for product quality | 390,873,089.52 | 351,722,916.42 |
| Commission for agent | 47,783,142.71 | 30,266,729.23 |
| Service fee | 54,638,306.90 | 87,354,499.22 |
| Storage and rental charge | 180,201,906.44 | 162,137,156.19 |
| Sample expenses | 58,748,646.37 | 41,601,742.51 |
| Promotion and exhibition fees | 53,778,096.85 | 32,848,217.28 |
| Expenses for advisory, auditing and evaluating | 11,446,832.26 | 10,189,015.97 |
| Bidding expenses | 49,032,712.86 | 20,679,797.48 |
| Travel expenses | 41,368,278.75 | 12,779,922.14 |
| Customs clearance expenses | 750,320.93 | 4,959,459.81 |
| Others | 53,372,050.44 | 30,567,942.81 |
| Total | 1,380,055,285.54 | 1,050,008,147.01 |
?
?
51 General and administrative expenses
| Item | 2023 | 2022 (Restated) |
| Salaries and benefits | 1,294,727,383.96 | 883,803,023.60 |
| Depreciation and amortization | 185,345,343.28 | 190,353,234.50 |
| Expenses for advisory, auditing and evaluating | 96,743,257.53 | 45,692,041.43 |
| Rental charge | 25,897,726.49 | 40,106,304.94 |
| Administrative expense | 78,352,590.34 | 51,245,817.36 |
| Property management fee | 50,507,097.91 | 39,915,636.92 |
| Travelling expenses | 37,159,389.00 | 25,671,492.57 |
| Pre-operating expenses | 141,047,599.04 | 76,562,906.45 |
| Entertainment expenses | 16,458,254.93 | 17,357,521.37 |
| Share-based payment | 306,762,489.43 | 232,545,033.24 |
| Others | 112,293,263.00 | 104,651,475.49 |
| Total | 2,345,294,394.91 | 1,707,904,487.87 |
?
?
52 Research and development expenses
| Item | 2023 | 2022 |
| Material expenses | 560,820,993.93 | 521,370,985.66 |
| Salaries and benefits | 332,035,406.26 | 261,558,773.10 |
| Fuel expenses | 130,805,057.41 | 113,609,335.47 |
| Others | 118,417,984.26 | 110,192,023.98 |
| Total | 1,142,079,441.86 | 1,006,731,118.21 |
?
?
53 Financial expenses
| Item | 2023 | 2022 |
| Interest expenses from loans and payables | 442,265,199.29 | 405,178,836.68 |
| Interest expenses from lease liabilities | 66,568,480.62 | 88,817,112.23 |
| Less: Borrowing costs capitalised | 2,549,244.74 | 52,588,358.87 |
| Interest income from deposits and receivables | (364,837,863.67) | (354,629,082.95) |
| Net foreign exchange gains | (585,237,913.56) | (716,240,973.71) |
| Other financial expenses | 83,920,969.31 | 100,090,260.37 |
| Total | (359,870,372.75) | (529,372,206.25) |
?
?
In the year 2023, the interest rate per annum, at which the borrowing costs were capitalisedby the Group, was 3.75% - 4.15% (2022: 3.48% - 5.67%).
54 Other income
| Item | 2023 | 2022 |
| Government grants | 724,034,368.08 | 339,786,161.13 |
| Additional deduction of input VAT | 3,476,473.45 | 102,719.72 |
| Refund of handling fee for individual income tax | 5,860,426.67 | 3,197,358.78 |
| Total | 733,371,268.20 | 343,086,239.63 |
?
?
55 Investment income
Investment income by item
| Item | 2023 | 2022 |
| Income from long-term equity investments accounted for using equity method | 277,063,417.49 | 186,717,689.89 |
| Investment income from disposal of long-term equity investments (Note) | 203,384,130.79 | 17,327,398.34 |
| Investment (losses) / income from disposal of derivative financial instruments | (550,954,146.01) | 113,178,881.69 |
| Total | (70,506,597.73) | 317,223,969.92 |
?
?
Note: Refer to Note VII.2
56 Gains from changes in fair value
| Item | 2023 | 2022 |
| Gains / (losses) on fair value changes of derivative financial instruments proceeds | 125,640,705.84 | (198,899,064.91) |
?
?
57 Credit losses
| Item | 2023 | 2022 |
| Losses of bad and doubtful debts on bills receivable | (219,996.72) | - |
| Losses of bad and doubtful debts on accounts receivable | (57,995,387.02) | (25,421,575.18) |
| Losses of bad and doubtful debts on other receivables | (25,354,325.13) | (9,805,171.07) |
| Losses of bad and doubtful debts on long-term receivables | (28,760,723.93) | - |
| Total | (112,330,432.80) | (35,226,746.25) |
?
?
58 Impairment losses
| Item | 2023 | 2022 |
| Inventories | (1,014,609,062.89) | (261,409,211.86) |
| Contract assets | 360,445.00 | (306,001.78) |
| Fixed assets | (1,291,932,119.05) | (842,562,373.23) |
| Right-of-use assets | - | (4,421,276.56) |
| Intangible assets | - | (130,081.05) |
| Total | (2,306,180,736.94) | (1,108,828,944.48) |
?
?
59 Gains from asset disposals
| Item | 2023 | 2022 |
| Losses from disposal of fixed assets | (110,683,232.83) | (161,178,181.77) |
| Losses from disposal of long-term deferred expenses | - | (1,777,777.80) |
| Gains from disposal of right-of-use assets | 985,946.27 | 5,433,552.61 |
| Total | (109,697,286.56) | (157,522,406.96) |
60 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
| Item | 2023 | 2022 (Restated) | Amount recognized in extraordinary gain and loss in 2023 |
| Gains from damage or scrapping of non-current assets | 2,967,661.14 | 17,482,304.10 | 2,967,661.14 |
| Insurance claim | 3,087,162.50 | 5,881,180.62 | 3,087,162.50 |
| Written-off on payables | 2,985,501.11 | 3,639,659.66 | 2,985,501.11 |
| Income from default fine and penalties | 8,265,241.90 | 19,479,771.61 | 8,265,241.90 |
| Others | 3,318,588.38 | 3,442,862.60 | 3,318,588.38 |
| Total | 20,624,155.03 | 49,925,778.59 | 20,624,155.03 |
?
?
(2) Non-operating expenses
| Item | 2023 | 2022 | Amount recognized in extraordinary gain and loss in 2023 |
| Losses on damage or scrapping of fixed assets | 106,753,912.71 | 34,861,377.11 | 106,753,912.71 |
| Donations provided | 35,408,894.39 | 24,673,750.00 | 35,408,894.39 |
| Expenses for contract settlement fees, fines and late payment penalty | 2,640,325.42 | 44,256,876.61 | 2,640,325.42 |
| Outstanding litigation | (57,447,283.15) | 40,356,456.00 | (57,447,283.15) |
| Others | 4,662,434.22 | 56,038,465.50 | 4,662,434.22 |
| Total | 92,018,283.59 | 200,186,925.22 | 92,018,283.59 |
?
?
61 Income tax expenses
| Item | Note | 2023 | 2022 (Restated) |
| Current tax expense for the year based on tax law and regulations | 849,577,280.03 | 714,767,444.23 | |
| Changes in deferred tax assets/liabilities | (1) | 882,015.15 | 61,322,368.36 |
| Total | 850,459,295.18 | 776,089,812.59 |
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
| Item | 2023 | 2022 (Restated) |
| Origination and reversal of temporary differences | 882,015.15 | 61,322,368.36 |
?
?
(2) Reconciliation between income tax expenses and accounting profit:
| Item | 2023 | 2022 (Restated) |
| Profit before taxation | 8,042,818,848.91 | 6,316,546,910.78 |
| Expected income tax expense at tax rate of 25% | 2,010,704,712.23 | 1,579,136,727.70 |
| Effect of different tax rates applied by subsidiaries | (1,745,013,904.56) | (896,179,681.49) |
| Adjustments to income tax of previous years | (5,210,135.02)? | 6,430,389.69 |
| Effect of non-taxable income | (63,418,570.05) | (46,679,422.47) |
| Effect of non-deductible costs, expense and losses | 51,169,794.54 | 18,553,250.70 |
| Effect of using the deductible losses for which no deferred tax asset was recognized in previous periods | (49,602,676.62) | (90,103,939.32) |
| Effect of deductible temporary differences or deductible losses for which no deferred tax asset was recognized at the end of this year | 797,438,542.59 | 362,606,666.46 |
| Others | (145,608,467.93) | (157,674,178.68) |
| Income tax expenses | 850,459,295.18? | 776,089,812.59 |
?
?
62 Basic earnings per share and diluted earnings per share
(1) Basic earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable to ordinaryshareholders of the Company by the weighted average number of ordinary shares outstanding:
| ? | 2023 | 2022 (Restated) |
| Consolidated net profit attributable to ordinary shareholders of the Company | 7,039,490,537.23 | 5,533,792,625.25 |
| Less: Net profits distributed to the shareholders of restricted shares during the period | 2,363,286.24 | 832,353.90 |
| Weighted average number of ordinary shares outstanding | 3,295,316,958.40 | 3,227,048,327.33 |
| Basic earnings per share (RMB/share) | 2.14 | 1.71 |
?
?
Weighted average number of ordinary shares is calculated as follows:
| ? | Note | 2023 | 2022 (Restated) |
| Issued ordinary shares at the beginning of the year | ? | 3,285,097,214.00 | 3,120,980,139.76 |
| Effect of non-directional issuance of new shares | - | 97,193,295.36 | |
| Effect of repurchase of equity interest | V.42 | (1,040,300.00) | - |
| Effect of the release of restricted shares | V.42? | 4,665,298.17 | 3,468,850.46 |
| Effect of share options exercised | V.42 | 6,594,746.23 | 5,406,041.75 |
| Weighted average number of ordinary shares at the end of the year | ? | 3,295,316,958.40 | 3,227,048,327.33 |
?
?
The Company has issued the Implementation Report on the 2022 Annual Equity Distributionin April 2023, and increased 4 shares for every 10 shares to all shareholders by transferringthe share premium in the capital reserve. The calculation of the weighted average number ofordinary shares has considered the effect of transferring capital reserves into shares.
(2) Diluted earnings per share
Diluted earnings per share is calculated as dividing consolidated net profit attributable toordinary shareholders of the Company (diluted) by the weighted average number of ordinaryshares outstanding (diluted):
| ? | Note | 2023 | 2022 (Restated) |
| Consolidated net profit attributable to ordinary shareholders of the Company (diluted) | (a) | 7,137,045,335.19 | 5,533,792,625.25 |
| Weighted average number of ordinary shares outstanding (diluted) | (b) | 3,406,373,769.25 | 3,254,952,713.45 |
| Diluted earnings per share (RMB/share) | ? | 2.10 | 1.70 |
?
?
(a) Consolidated net profit attributable to ordinary shareholders of the Company (diluted) is
calculated as follows:
| ? | 2023 | 2022 (Restated) |
| Consolidated net profit attributable to ordinary shareholders of the Company | 7,039,490,537.23 | 5,533,792,625.25 |
| Diluted adjustments: | ||
| After-tax effect of effective interest on the liability component of convertible bonds | 97,554,797.96 | - |
| Consolidated net profit attributable to ordinary shareholders of the Company (diluted) | 7,137,045,335.19 | 5,533,792,625.25 |
?
?
(b) Weighted average number of the Company’s ordinary shares (diluted) is calculated as
follows:
| ? | Note | 2023 | 2022 (Restated) |
| Weighted average number of ordinary shares at the end of the year | ? | 3,295,316,958.40 | 3,227,048,327.33 |
| Diluted adjustments: | ? | ||
| Effect of convertible bonds | 96,372,264.89 | - | |
| Effect of granting restricted shares | ? | 186,983.63 | 8,931,418.78 |
| Effect of share options | ? | 14,497,562.33 | 18,972,967.34 |
| Weighted average number of ordinary shares (diluted) at the end of the year | ? | 3,406,373,769.25 | 3,254,952,713.45 |
?
?
63 Cash flow statement
(1) Proceeds from other operating activities:
| Item | 2023 | 2022 (Restated) |
| Deposits | 5,888,178,587.56 | 4,646,803,373.18 |
| Government grant | 1,087,057,686.64 | 484,678,170.48 |
| Interest income | 168,584,938.67 | 230,479,113.39 |
| Capital flows and others | 542,921,972.60 | 373,727,337.43 |
| Total | 7,686,743,185.47 | 5,735,687,994.48 |
?
?
(2) Payments for other operating activities:
| Item | 2023 | 2022 (Restated) |
| Deposits | 5,806,147,592.59 | 4,740,949,283.38 |
| Cash paid expenses and others | 1,419,051,212.99 | 1,264,556,229.14 |
| Service charges | 59,778,306.30 | 37,843,074.58 |
| Non-operating expenses | 57,481,565.22 | 47,664,418.54 |
| Total | 7,342,458,677.10 | 6,091,013,005.64 |
?
?
(3) Proceeds from other investing activities:
| Item | 2023 | 2022 (Restated) |
| Proceeds from asset placement for restructuring and listing | - | 372,000,000.00 |
| Recovery of forward foreign exchange contracts, foreign currency option income and others | 125,569,344.43 | 163,548,580.32 |
| Recover the amounts due from disposed subsidiaries | 336,255,681.49 | - |
| Recovery of time deposits and interest | - | 4,545,000.00 |
| Total | 461,825,025.92 | 540,093,580.32 |
?
?
(4) Payments for other investing activities:
| Item | 2023 | 2022 (Restated) |
| Payment for forward foreign exchange contracts, foreign currency option loss and others | 672,534,465.27 | 65,146,302.03 |
| Payment for deposits | 158,818,599.05 | - |
| Total | 831,353,064.32 | 65,146,302.03 |
?
?
(5) Proceeds from other financing activities:
| Item | 2023 | 2022 (Restated) |
| Recovery of financing deposits and pledged time deposits | - | 256,628,831.93 |
| Payment for financing lease | - | 11,994,880.80 |
| Borrowing funds | - | 90,000,000.00 |
| Total | - | 358,623,712.73 |
?
?
(6) Payments for other financing activities:
| Item | 2023 | 2022 (Restated) |
| Lease and installment purchase of assets | 1,004,809,027.24 | 2,010,984,144.39 |
| Business combination under common control | 56,000,000.00 | - |
| Repayment of the principal and interest of the borrowing funds | 807,000,000.00 | 1,075,656,792.73 |
| Financing deposits and pledged time deposits | - | 1,038,425,031.29 |
| Purchase of non-controlling interests | 218,450,000.00 | - |
| Repurchase of equity interest | 259,928,728.62 | - |
| Other expenses relating to financing | 15,624,158.01 | 66,270,116.79 |
| Total | 2,361,811,913.87 | 4,191,336,085.20 |
?
?
(7) Changes in liabilities relating to financing activities:
| Balance at the beginning of the year | Additions during the year | Decreases during the year | Balance at the end of the year | |||
| Change in cash | Change in non cash | Change in cash | Change in non cash | |||
| Dividends payable | 15,490,934.75 | - | 951,483,007.40 | 714,374,939.91 | - | 252,599,002.24 |
| Short-term and long-term loans (including loans due within one year) | 4,044,545,662.88 | 6,514,967,134.26 | - | 7,607,397,165.95 | 267,876,649.26 | 2,684,238,981.93 |
| Lease liabilities (including lease liabilities due within one year) | 1,031,646,335.92 | - | 765,288,978.59 | 421,153,857.12 | - | 1,375,781,457.39 |
| Long-term payables (including long-term payables due within one year) | 2,612,101,405.39 | - | 2,331,428,268.66 | 583,655,170.12 | - | 4,359,874,503.93 |
| Debentures payable (including debentures payable due within one year) | - | 8,237,817,094.54 | 130,073,063.96 | - | - | 8,367,890,158.50 |
| Other non-current liabilities (including other non-current liabilities due within one year) | 834,930,708.56 | - | - | 750,000,000.00 | 1,054,794.56 | 83,875,914.00 |
| Other payables | 57,000,000.00 | - | - | 57,000,000.00 | - | - |
| total | 8,595,715,047.50 | 14,752,784,228.80 | 4,178,273,318.61 | 10,133,581,133.10 | 268,931,443.82 | 17,124,260,017.99 |
64 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
a. Reconciliation of net profit to cash flows from operating activities:
| Item | 2023 | 2022 (Restated) |
| Net profit | 7,192,359,553.73 | 5,540,457,098.19 |
| Add: Credit losses | 112,330,432.80 | 35,226,746.25 |
| Impairment losses | 2,306,180,736.94 | 1,108,828,944.48 |
| Depreciation of fixed assets | 3,335,579,122.40 | 2,227,986,502.76 |
| Depreciation of right-of-use assets | 213,592,423.67 | 267,373,293.12 |
| Amortization of intangible assets | 96,021,367.20 | 52,434,063.24 |
| Amortization of long-term deferred expenses | 366,781,603.85 | 511,482,598.31 |
| Losses from disposal of fixed assets, intangible assets, and other long-term assets | 109,697,286.56 | 157,522,406.96 |
| Losses from scrapping of fixed assets | 103,786,251.57 | 17,379,073.01 |
| (Gains)/ Losses from changes in fair value | (125,640,705.84) | 198,899,064.91 |
| Net financial (income)/expenses | (82,953,378.39) | (224,952,593.13) |
| Investment income/(loss) | 70,506,597.73 | (317,223,969.92) |
| Depreciation of deferred income | (97,593,097.61) | (72,177,758.28) |
| (Increase)/ Decrease in deferred tax assets | (123,385,811.88) | 95,390,264.33 |
| Increase/(Decrease) in deferred tax liabilities | 124,267,827.03 | (1,404,123.33) |
| Increase in inventories | (3,552,725,398.62) | (4,276,304,992.62) |
| Share-based payment | 306,762,489.43 | 232,545,033.24 |
| Provision of safety fund | 12,469,623.46 | 7,800,187.05 |
| Utilization of safety fund | (5,678,020.98) | (3,357,392.60) |
| Increase in operating receivables | (5,042,117,656.50) | (5,723,352,110.04) |
| Increase in operating payables | 7,093,904,139.20 | 8,347,724,939.19 |
| Net cash inflows from operating activities | 12,414,145,385.75 | 8,182,277,275.12 |
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b. Change in cash and cash equivalents:
| Item | 2023 | 2022 (Restated) |
| Cash at the end of the year | 6,763,088,775.67 | 6,120,476,584.90 |
| Less: Cash at the beginning of the year | 6,120,476,584.90 | 6,531,701,654.96 |
| Net increase/(decrease) in cash and cash equivalents | 642,612,190.77 | (411,225,070.06) |
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(2) Information on disposals of subsidiaries during the year:
| ? | 2023 | 2022 |
| Cash or cash equivalents received during the year for disposing subsidiaries during the year | 257,875,200.00 | - |
| Including: Kunshan Jinghai Energy Technology Co., Ltd. | 476,000.00 | - |
| Xinsheng PV Electric (Tuquan) Co., Ltd. | 195,000,000.00 | - |
| Inner Mongolia YiAo PV Technology Co., Ltd. | 16,603,200.00 | - |
| Inner Mongolia ChengAo PV Technology Co., Ltd. | 21,249,700.00 | - |
| Inner Mongolia Huijia PV Technology Co., Ltd. | 24,546,300.00 | - |
| Less: Cash and cash equivalents held by the Company at the date when control is lost | 25,187,094.26 | - |
| Including: Kunshan Jinghai Energy Technology Co., Ltd. | 179,419.00 | - |
| Xinsheng PV Electric (Tuquan) Co., Ltd. | 1,901,822.00 | - |
| Inner Mongolia YiAo PV Technology Co., Ltd. | 9,142,649.56 | - |
| Inner Mongolia ChengAo PV Technology Co., Ltd. | 7,115,160.13 | - |
| Inner Mongolia Huijia PV Technology Co., Ltd. | 6,848,043.57 | - |
| Add: Cash or cash equivalents received during the period for disposing subsidiaries in previous years | 23,850,000.00 | 128,082,398.34 |
| Including: Jiuzhou Fangyuan New Energy (Xinjiang) Co., Ltd. | - | 100,452,784.29 |
| Hai Tian Da PV Electric (Beitun) Co., Ltd. | - | 13,907,700.00 |
| Hai Tian Da PV Electric (Hoboksar) Co., Ltd. | 23,850,000.00 | 13,721,914.05 |
| Net cash received from disposal of subsidiaries | 256,538,105.74 | 128,082,398.34 |
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(3) Details of cash and cash equivalents
| Item | 2023 | 2022 (Restated) |
| Cash | 6,763,088,775.67 | 6,120,476,584.90 |
| Including: Cash on hand | - | 38,680.00 |
| Bank deposits available on demand | 6,763,088,775.67 | 6,120,437,904.90 |
| Closing balance of cash and cash equivalents | 6,763,088,775.67 | 6,120,476,584.90 |
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65 Foreign-currency monetary items
(1) Foreign-currency monetary items
| Item | Balance at foreign currency at the end of the year | Exchange rate | Balance at RMB equivalent at the end of the year |
| Cash at bank and on hand | ? | ? | ? |
| Including: AUD | 16,184,799.32 | 4.8484 | 78,470,381.02 |
| BRL | 2,870,734.94 | 1.4596 | 4,190,124.72 |
| EUR | 23,344,459.80 | 7.8592 | 183,468,778.44 |
| HKD | 4,930,134.28 | 0.9062 | 4,467,786.29 |
| JPY | 793,466,920.69 | 0.0502 | 39,842,354.49 |
| KRW | 7,401,317,081.03 | 0.0055 | 40,810,862.38 |
| MYR | 45,154.53 | 1.5415 | 69,607.74 |
| TRY | 89,411,920.26 | 0.2405 | 21,504,371.53 |
| USD | 408,181,587.14 | 7.0827 | 2,891,027,727.22 |
| VND | 99,660,033,310.58 | 0.0003 | 29,200,389.76 |
| ZAR | 343,773.31 | 0.3819 | 131,296.31 |
| GBP | 0.19 | 9.0411 | 1.70 |
| AED | 505.00 | 1.9326 | 975.94 |
| Accounts receivable | |||
| Including: AUD | 25,108,091.60 | 4.8484 | 121,734,071.31 |
| EUR | 176,640,804.34 | 7.8592 | 1,388,255,409.44 |
| JPY | 1,521,549,281.26 | 0.0502 | 76,401,554.06 |
| KRW | 16,342,772,555.31 | 0.0055 | 90,114,047.87 |
| USD | 649,998,749.76 | 7.0827 | 4,603,746,144.90 |
| VND | 4,681,478,327.65 | 0.0003 | 1,371,673.15 |
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| Item | Balance at foreign currency at the end of the year | Exchange rate | Balance at RMB equivalent at the end of the year |
| Other receivables | ? | ? | ? |
| Including: AED | 1,000.00 | 1.9326 | 1,932.55 |
| AUD | 9,600.00 | 4.8484 | 46,544.64 |
| BRL | 40,600.00 | 1.4596 | 59,259.76 |
| EUR | 2,296,123.53 | 7.8592 | 18,045,694.05 |
| GBP | 17,655.66 | 9.0411 | 159,626.63 |
| JPY | 24,611,469.94 | 0.0502 | 1,235,815.74 |
| KRW | 74,730,000.00 | 0.0055 | 412,061.22 |
| MYR | 2,854,364.97 | 1.5415 | 4,400,132.05 |
| USD | 92,129,104.83 | 7.0827 | 652,522,810.79 |
| VND | 7,457,596,518.77 | 0.0003 | 2,185,075.78 |
| Short-term loans | |||
| Including: EUR | 1,800,582.75 | 7.8592 | 14,151,139.95 |
| Accounts payable | |||
| Including: BRL | 155,462.52 | 1.4596 | 226,913.09 |
| EUR | 2,356,668.40 | 7.8592 | 18,521,528.25 |
| JPY | 239,383.82 | 0.0502 | 12,020.18 |
| USD | 76,566,780.61 | 7.0827 | 542,299,537.00 |
| VND | 80,827,196,757.68 | 0.0003 | 23,682,368.65 |
| Other payables | |||
| Including: AED | 68,985.00 | 1.9326 | 133,317.24 |
| AUD | 842,435.11 | 4.8484 | 4,084,462.40 |
| BRL | 95,099.41 | 1.4596 | 138,807.10 |
| EUR | 6,686,211.00 | 7.8592 | 52,548,269.52 |
| JPY | 62,625,154.04 | 0.0502 | 3,144,596.86 |
| KRW | 1,077,581,131.66 | 0.0055 | 5,941,782.36 |
| MYR | 181,519.27 | 1.5415 | 279,820.12 |
| TRY | 167,876.30 | 0.2405 | 40,375.76 |
| USD | 153,987,232.21 | 7.0827 | 1,090,645,369.57 |
| VND | 415,510,167,576.79 | 0.0003 | 121,744,479.10 |
| ZAR | 8,731,877.22 | 0.3819 | 3,334,939.67 |
| GBP | 16,570.00 | 9.0411 | 149,811.03 |
| Long-term loans ( including loans due within one year) | |||
| Including: JPY | 600,000,000.00 | 0.0502 | 30,127,800.00 |
| VND | 19,274,370,989.76 | 0.0003 | 5,647,390.70 |
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(2) Details of foreign operations
| Name of the Subsidiary | Native name | Principal place of business | Functional currency | Reasons for funcational currency |
| JA Solar USA Inc. | JA Solar USA Inc. | U.S.A. | USD | Settlement currency for operating activities |
| JA Solar Hong Kong Limited | JA Solar Hong Kong Limited | Hong Kong | USD | Settlement currency for operating activities |
| JA Solar GmbH | JA Solar GmbH | Germany | EUR | Settlement currency for operating activities |
| JA Solar Japan Limited | JAソーラー?ジャパン株式会社 (JA Solar Japan Limited) | Japan | JPY | Settlement currency for operating activities |
| JA Solar Investment (Hong Kong) Limited. | JA Solar Investment (Hong Kong) Limited | Hong Kong | USD | Settlement currency for operating activities |
| JA Solar Australia PTY Limited | JA Solar Australia PTY Limited | Austrilia | AUD | Settlement currency for operating activities |
| JA Solar South Africa (PTY) Ltd. | JA Solar South Africa (PTY) Ltd. | South Africa | ZAR | Settlement currency for operating activities |
| JA Solar Malaysia Sdn. Bhd. | JA Solar Malaysia Sdn. Bhd. | Malaysia | MYR | Settlement currency for operating activities |
| Ecoplexus Shiojiri Project LLC | エコプレクサス塩尻プロジェクト合同会社 (Ecoplexus Shiojiri Project Limited Liability Company) | Japan | JPY | Settlement currency for operating activities |
| JA Solar Brasil Ltda | JA Solar Brasil Ltda | Brazil | BRL | Settlement currency for operating activities |
| JA Solar Korea Co., Ltd. | ????????????? (JA Solar Korea Co., Ltd.) | Korea | KRW | Settlement currency for operating activities |
| JA Solar International Limited | JA Solar International Limited | Hong Kong | USD | Settlement currency for operating activities |
| JA Solar Viet Nam Company Limited | JA Solar VietNam Company Limited | Vietnam | USD | Settlement currency for operating activities |
| JA Solar Enerji Yatirim Ticaret Limited Sirketi | JA Solar Enerji Yatirim Ticaret Limited Sirketi | Turkey | TRY | Settlement currency for operating activities |
| Fukushimanakamori Real Estate LLC | 福島中森土地合同会社 (Fukushimanakamori Real Estate LLC) | Japan | JPY | Settlement currency for operating activities |
| JA Solar Japan Asset Management LLC | JAソーラー?ジャパン?アセットマネジメント合同会社 (JA Solar Japan Asset Management LLC) | Japan | JPY | Settlement currency for operating activities |
| JA Solar Mexico Energy | JA Solar Mexico Energy | Mexico | MXN | Settlement currency for operating activities |
| JA Solar Trading Limited | JA Solar Trading Limited | Hong Kong | USD | Settlement currency for operating activities |
| JA Solar Middle East DMCC | JA Solar Middle East DMCC | Dubai | AED | Settlement currency for operating activities |
| JA Solar PV VietNam Company Limited | JA Solar PV VietNam Company Limited | Vietnam | USD | Settlement currency for operating activities |
| JA Solar NE VietNam Company Limited | JA Solar NE VietNam Company Limited | Vietnam | USD | Settlement currency for operating activities |
| JA Solar Smart Energy (Hong Kong) Limited | JA Solar Smart Energy (Hong Kong) Limited | Hong Kong | USD | Settlement currency for operating activities |
| JA Solar Energy Investment (Hong Kong) Co., Ltd. | JA Solar Energy Investment (Hong Kong) Co.,Limited | Hong Kong | USD | Settlement currency for operating activities |
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66 Leases
(1) As a lessee
| Item | 2023 | 2022 |
| Short-term lease expenses for which the practical expedient has been applied | 61,476,672.79 | 30,026,287.53 |
| Expenses relating to leases of low-value assets for which the practical expedient has been applied, excluding short-term leases of low-value assets | 40,631,888.26 | 850,239.36 |
| Total cash outflow for leases | 525,622,493.45 | 621,786,382.24 |
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(2) As a lessor
Operating lease
| Item | 2023 | 2022 |
| Lease income | 10,320,544.16 | 6,626,312.19 |
| Including: Income relating to variable lease payments not included in lease receipts | - | - |
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The undiscounted lease receipts to be received after the balance sheet date are as follows:
| Item | 2023 | 2022 |
| Within 1 year (inclusive) | 7,232,129.45 | 5,061,194.00 |
| Over 1 year but within 2 years (inclusive) | 5,068,959.06 | 3,712,569.05 |
| Over 2 years but within 3 years (inclusive) | 3,229,026.32 | 1,806,767.96 |
| Over 3 years but within 4 years (inclusive) | 2,181,953.82 | 518,218.18 |
| Over 4 years but within 5 years (inclusive) | 544,609.25 | 17,000.00 |
| Over 5 years | - | 238,000.00 |
| Total | 18,256,677.90 | 11,353,749.19 |
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VI. Research and development expenses
Presentation by nature
| Item | 2023 | 2022 |
| Material expenses | 560,820,993.93 | 521,370,985.66 |
| Salaries and benefits | 332,035,406.26 | 261,558,773.10 |
| Fuel expenses | 130,805,057.41 | 113,609,335.47 |
| Others | 118,417,984.26 | 110,192,023.98 |
| Total | 1,142,079,441.86 | 1,006,731,118.21 |
| Including: research and development expenditures that are expensed | 1,142,079,441.86 | 1,006,731,118.21 |
VII. Change of consolidation scope
1 Business combinations involving entities under common control
(1) Business combinations involving entities under common control during the year
| Name of acquiree | Proportion of equity interests acquired in business combination | Basis for business combination under common control | Combination date | Basis for determination of acquisition date | From the beginning of the period to the combination date | 2022 | |||
| Income | Net losses | Net xash outflow | Income | Net losses | |||||
| Shijiazhuang JA PV Technology Co., Ltd. (formerly known as Shijiazhuang Jinglong Electronic Materials Co., Ltd.) | 100% | It’s under the control of Jin Baofang both before and after the business combination, and the control was and is not temporary | February 2023 | Obtained control | - | (64,717.16) | (98,569.26) | - | (541,083.10) |
Shijiazhuang JA PV Technology Co., Ltd. (formerly known as Shijiazhuang Jinglong ElectronicMaterials Co., Ltd.) was established in Shijiazhuang, Hunan on 26 October 2007. TheCompany is principally engaged in the provision of technical services, technologydevelopment, technology consulting, technology exchange, technology transfer andtechnology promotion; production of photovoltaic equipment and components; sales ofphotovoltaic equipment and components; production of batteries; sales of batteries; researchand development of special electronic materials; production of special electronic materials;sales of mechanical and electrical equipment; sales of special electronic equipment; technicalservices for solar power generation; sales of mechanical parts and components; machining ofmechanical parts and components; import and export of goods; Sales of special electronicmaterials; Sales of mechanical and electrical equipment; Sales of special electronicequipment; Technical services for solar power generation; Sales of mechanical parts andcomponents; Machining of mechanical parts and components; Import and export of goods;Import and export of technology; Leasing of land use rights; Leasing of housing; Leasing ofmechanical equipment.
(2) Acquisition cost
| Acquisition cost | Shijiazhuang JA PV Technology Co., Ltd. |
| Cash | 56,000,000.00 |
(3) The carrying amounts of assets and liabilities of the acquiree at the combination date
| Shijiazhuang JA PV Technology Co., Ltd. | ||
| Combination Date | December 31, 2022 | |
| Assets | ? | ? |
| Cash at bank and on hand | 144,748.44 | 243,317.70 |
| Other Receivables | 714,188.00 | 714,188.00 |
| Inventories | - | - |
| Fixed assets | 18,829.48 | 19,158.90 |
| Construction in progress | 51,417,535.88 | 51,338,863.83 |
| Intangible assets | 33,592,965.83 | 33,671,637.88 |
| Long-term deferred expenses | 300,000.00 | 300,000.00 |
| Liabilities | ? | ? |
| Accounts payable | 129,450.50 | 129,450.50 |
| Employee benefits payable | 4,774.00 | 8,956.00 |
| Taxes payable | 3.78 | 3.30 |
| Other payables | 57,001,860.00 | 57,031,860.00 |
| Net assets | 29,052,179.35 | 29,116,896.51 |
| Less: Non-controlling interests | - | - |
| Net assets acquired | 29,052,179.35 | 29,116,896.51 |
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2 Disposal of subsidiaries
Disposal of investments in subsidiaries through a single transaction resulting in loss of control
| Entity name | Consideration on the date of losing control | Shareholding being disposed on the date of losing control (%) | Disposal method on the date of losing control | Date of losing control | Basis for determining date of losing control | Difference between consideration received and the related share of net assets in consolidated financial statements |
| Kunshan Jinghai Energy Technology Co., Ltd. | 476,000.00 | 100.00 | Transfer | May 6 2023 | Equity transfer completed | 298,282.05 |
| Xinsheng PV Electric (Tuquan) Co., Ltd. | 325,000,000.00 | 100.00 | Transfer | November 30 2023 | Equity transfer completed | 34,434,623.35 |
| Inner Mongolia YiAo PV Technology Co., Ltd. | 18,603,200.00 | 100.00 | Transfer | December 26 2023 | Equity transfer completed | 69,311,292.02 |
| Inner Mongolia ChengAo PV Technology Co., Ltd. | 23,249,700.00 | 100.00 | Transfer | December 26 2023 | Equity transfer completed | 69,025,566.52 |
| Inner Mongolia Huijia PV Technology Co., Ltd. | 26,546,300.00 | 100.00 | Transfer | December 26 2023 | Equity transfer completed | 30,314,364.85 |
3 Other reasons for change of consolidation scope
In January 2023, the Group newly established Shijiazhuang JA Solar Technology Co., Ltd.,Inner Mongolia JA Solar PV Technology Co., Ltd. , Anhui Chengjia New Energy TechnologyCo., Ltd. , Guangdong Xingjia New Energy Technology Co., Ltd. , Langfang Fujing New EnergyTechnology Co., Ltd. , Xingtai Jingyi Energy Technology Co., Ltd. , Gaotai Jingguan NewEnergy Development Co., Ltd. , Shanghai Jingzhihui New Energy Co., Ltd. and cancelledHainan Changjiang Jingyao New Energy Co., Ltd.;
In February 2023, the Group newly established Weinan Aofeng Solar New Energy TechnologyCo., Ltd. , Linzhou Mengxing New Energy Technology Co., Ltd. , Rongcheng Hejing NewEnergy Technology Co., Ltd. , Dongtai Jingdong New Energy Technology Co., Ltd. andcancelled Jingguan New Energy Development (Ningjin) Co., Ltd. , Inner Mongolia Chengjia PVTechnology Co., Ltd. , Inner Mongolia Chengxing PV Technology Co., Ltd. , Inner MongoliaPuAo PV Technology Co., Ltd. , Inner Mongolia FuAo PV Technology Co., Ltd. , Inner MongoliaLixing PV Technology Co., Ltd. , Inner Mongolia Pujing PV Technology Co., Ltd. , InnerMongolia Anxing PV Technology Co., Ltd. , Inner Mongolia Hejing PV Technology Co., Ltd. ,Inner Mongolia Fuijing PV Technology Co., Ltd. , Inner Mongolia Mengjing PV Technology Co.,Ltd. , Inner Mongolia MengAo PV Technology Co., Ltd. , Inner Mongolia Mengxing PVTechnology Co., Ltd.;
In March 2023, the Group newly established Wuxi JA Waylion New Energy Technology Co.,Ltd. , Zhengyang Anxing New Energy Technology Co., Ltd. , Meizhou Fuao New EnergyTechnology Co., Ltd. , Dongtai Jingzhihui New Energy Co., Ltd. , JA Solar Renewable EnergyLimited and cancelled Jingsheng PV Electric (Huhhot) Co., Ltd. , Gaotai Jingsheng NewEnergy Electric Power Co., Ltd. , Gaotai Jingguan New Energy Co., Ltd.;
In April 2023, the Group newly established Dongtai JA Distributed Energy Co., Ltd. , JA SolarInvestment (Inner Mongolia) Co., Ltd. , Ordos JA Solar Technology Co., Ltd. , Shanghai JAWaylion New Energy Technology Co., Ltd. , Hengyang Shuojing New Energy Technology Co.,Ltd. , Tangshan Youjing New Energy Technology Co., Ltd. , Donghai Jinghang New EnergyTechnology Co., Ltd. , Zhengzhou Jingkun New Energy Technology Co., Ltd. , NanningJingcheng New Energy Technology Co., Ltd. , LuAn HuiAo New Energy Technology Co., Ltd. ,Suqian Xujing New Energy Technology Co., Ltd. , TaiAn Aosheng New Energy Technology Co.,Ltd. , Bozhou Yijing New Energy Technology Co., Ltd. , Putian Aoshuo New Energy TechnologyCo., Ltd. , Yangzhou Crystal Storage New Energy Co., Ltd. , Jingzhou Jingyao New EnergyTechnology Co., Ltd. and cancelled Jingneng New Energy (Baotou) Co., Ltd.；
In May 2023, the Group newly established Yiyang Jingnuo New Energy Co., Ltd. , TianjinDingAo New Energy Technology Co., Ltd. , Chongqing Hongjing PV Technology Co., Ltd. ,Beihai Jinghai New Energy Technology Co., Ltd. , Ordos Jingyang New Energy Co., Ltd. andcancelled Dalian Jingsheng New Energy Co., Ltd.;
In June 2023, the Group newly established Jiangsu JA International Investment Co., Ltd. ,Chengdu Jingxin Mingneng PV Technology Co., Ltd. , Suzhou Jinghui New Energy TechnologyCo.,Ltd. , Dongfang Shuojing New Energy Technology Co.,Ltd. , Jingxingbao(Guangxi) NewEnergy Technology Co.,Ltd. , Suzhou Yuanao PV Technology Co.,Ltd. , Jingxing Shuke(Beijing)Energy Co., Ltd. , Jinping Jingjian(Shantou) Technology Co., Ltd. , Shanghai Jinglianghui NewEnergy Co., Ltd. , Donghai Jinglu New Energy Co., Ltd. , Baotou Jingyun New Energy Co.,Ltd. , Chongqing Jingyonghai New Energy Technology Co., Ltd.;
In July 2023, the Group newly established Yichun Jingming New Energy Co.,Ltd. , MaanshanAoxiong New Energy Technology Co.,Ltd. , Anhui Aokang New Energy Technology Co.,Ltd. ,Datong Jingxing New Energy Co.,Ltd. , Zhumadian Xingao New Energy Technology Co.,Ltd. ,Xunxian Lijing New Energy Technology Co.,Ltd. , Wenxian Fuao New Energy Co.,Ltd. ,Pingdingshan Jingming New Energy Technology Co.,Ltd. , Taikang Jingsheng New EnergyCo.,Ltd. , Suixian Jingfeng New Energy Technology Co.,Ltd. , Shenqiu Aofeng New EnergyTechnology Co.,Ltd. , Dongtai JA New Energy Technology Co., Ltd. , Xinxiang Jingshun NewEnergy Co., Ltd. , Xuzhou Aozhi New Energy Technology Co.,Ltd. , Xiangcheng JingshengNew Energy Technology Co.,Ltd. , Sihong Huayi New Energy Co., Ltd. and cancelled JA SolarPV Electric (Anyang) Co., Ltd. , Anyang Jingguan Technology Co., Ltd. and purchased JinzhouRuineng New Energy Technology Co., Ltd. , Zhumadian Fengda New Energy Co., Ltd. at cashconsideration of RMB1;
In August 2023, the Group newly established Changde Jingde New Energy TechnologyCo.,Ltd. , Shaoyang Jingju New Energy Technology Co.,Ltd. , Shaoyang Jingshao New EnergyTechnology Co.,Ltd. , Shanxi Jingyu New Energy Technology Co.,Ltd. , Chenzhou YongjingNew Energy Technology Co.,Ltd. , Guangxi Jingyang New Energy Technology Co.,Ltd. , AnhuiAosbang New Energy Technology Co.,Ltd. , Anhui Aosheng New Energy Technology Co.,Ltd. ,Xuchang Jinghao New Energy Technology Co.,Ltd. , Xinyang Aoxing New Energy TechnologyCo.,Ltd. , Fuyang Jingfeng Energy Technology Co.,Ltd. , Zhoukou Jinghui New EnergyTechnology Co.,Ltd. , Wushe Ruijing New Energy Technology Co.,Ltd. , Baotou JA NewMaterial Co., Ltd. , Suzhou Jinghong New Energy Technology Co.,Ltd. , Hubei Aoyu NewEnergy Co.,Ltd. , Boao Energy (Jiangsu) Co., Ltd. , Heze Aosheng New Energy TechnologyCo.,Ltd.;
In September 2023, the Group newly established Guangxi Jingrui New Energy TechnologyCo.,Ltd. , Zhengzhou Qianao New Energy Technology Co.,Ltd. , Qujing Jinghao New EnergyCo.,Ltd. , Haerbin Jingguan New Energy Technology Co., Ltd. , Xiangxi Jinghong New EnergyTechnology Co.,Ltd. , Chizhou Jingxing Energy Technology Co.,Ltd. , Huainan Jinghong NewEnergy Technology Co.,Ltd. , Xinyang Aoan New Energy Technology Co.,Ltd. , Xinyang JinganNew Energy Technology Co.,Ltd. , Anhui Aoteng New Energy Technology Co.,Ltd. , NanyangJingling New Energy Technology Co., Ltd. , Hefei Jingyue New Energy Technology Co.,Ltd. ,Huangshan Jingbao New Energy Technology Co.,Ltd. , Anhui Aoqing New Energy TechnologyCo.,Ltd. , Guangxi Jingyu New Energy Technology Co.,Ltd. , Anhui Chenao New EnergyTechnology Co.,Ltd. , Fuyang Haotai New Energy Technology Co.,Ltd. , Hefei Jingwanjia NewEnergy Co.,Ltd. , Fengqiu Lichuang New Energy Technology Co.,Ltd. , Yuanyang MingchangNew Energy Technology Co.,Ltd. , Yanjin Yunche New Energy Technology Co.,Ltd. , HubeiChujing New Energy Co.,Ltd. , Yicheng Jingyu New Energy Co.,Ltd. , Hubei Jingran NewEnergy Co.,Ltd. , Zhangjiakou Jingxing New Energy Technology Co.,Ltd. , Suiping Siao NewEnergy Co., Ltd. , Qinzhou Jingyang New Energy Technology Co., Ltd. , Guangdong JinghuoNew Energy Technology Co.,Ltd. , Jiujiang Jingming New Energy Co.,Ltd. and cancelledJingjie PV Electric (Taizhou) Co., Ltd.;
In October 2023, the Group newly established Shijiazhuang JA Electronic Technology Co.,Ltd. , JA SOLAR DMCC , Haerbin Aohai New Energy Co., Ltd. , Jinzhou Jingshun New EnergyCo., Ltd. , Shenyang Jingshun New Energy Co., Ltd. , Suzhou Yaoka New Energy TechnologyCo., Ltd. , Wuhan Aohai New Energy Co., Ltd. , Hube Chuangguang New Energy TechnologyCo.,Ltd. , Hubei Aofan New Energy Technology Co.,Ltd. , Dongguan Jingshun New EnergyTechnology Co.,Ltd. , Heyuan Jinghuo New Energy Technology Co.,Ltd. , Hubei Aoyu NewEnergy Technology Co.,Ltd. , Mingguang Aosheng New Energy Technology Co.,Ltd. ,Yangquan Aoya New Energy Technology Co.,Ltd. , Yuzhou Longao New Energy Co.,Ltd. ,Quanzhou Jinxin New Energy Technology Co.,Ltd. , Beijing Jingchuang New Energy Co., Ltd. ,Tianchang Jingyong New Energy Technology Co.,Ltd. , Zhejiang Suao New EnergyTechnology Co.,Ltd. , Qingxu Aojie New Energy Technology Co.,Ltd. , Yangxin Yuzhiyuan NewEnergy Co.,Ltd. , Luotian Jingxing New Energy Co.,Ltd. , Chuzhou Aofeng New EnergyTechnology Co.,Ltd. , Qujing Jingfeng New Energy Co.,Ltd. , Xinyi JA PV Technology Co., Ltd. ,Shenze Jingsheng New Energy Technology Co., Ltd. , Jingzhou Jingsheng New EnergyTechnology Co., Ltd. , Xinbaerhu Jingyao New EnergyCo., Ltd. , Yiyang Jingzhen New EnergyCo.,Ltd. , Hubei Aobo New Energy Co.,Ltd. , Hubei Jingxu New Energy Co.,Ltd. and purchasedEzhou Kasilaite New Energy Co., Ltd. at cash consideration of RMB1;
In November 2023, the Group newly established Zhangzhou Aolong New Energy TechnologyCo.,Ltd. , Erdos Jingfei PV Co., Ltd. , Puyang Jingzhong New Energy Co., Ltd. , Anhui JingranNew Energy Technology Co.,Ltd. , Zhengzhou Aohai New Energy Co., Ltd. , Anhui JingtengNew Energy Technology Co.,Ltd. , Hubei Yichang New Energy Co.,Ltd. , Hubei Aohong NewEnergy Co.,Ltd. , Gongan Jingle New Energy Co.,Ltd. , Daye Jingyu New Energy TechnologyCo.,Ltd. , Hubei Jingxing New Energy Co.,Ltd. , Shiyan Aoshun New Energy TechnologyCo.,Ltd. , Shiyan Baojing New Energy Technology Co.,Ltd. , Shiyan Aosheng New EnergyTechnology Co.,Ltd. , Anhui Aoning New Energy Technology Co.,Ltd. , Hubei Jingyang NewEnergy Co.,Ltd. , Hubei Jingfeng New Energy Technology Co.,Ltd. , Fuzhou Jingding NewEnergy Technology Co.,Ltd. , JA Energy Storage Technology(Shanghai) Co., Ltd. , HongheJingfeng New Energy Co.,Ltd. , Anlu Aoliang New Energy Co.,Ltd. , Zaoyang Jingying NewEnergy Development Co.,Ltd. , Yunnan Fengjing New Energy Technology Co.,Ltd. , YunnanFengjia New Energy Technology Co.,Ltd. , Kunming Jingsheng New Energy Co.,Ltd. , GuangxiJingan New Energy Technology Co.,Ltd. , Yangchun Xingjia New Energy Technology Co.,Ltd.and cancelled Gaotai Jingguan New Energy Development Co., Ltd. , Aksai Kazak AutonomousCounty Jingxin New Energy Co., Ltd. , Chengdu Jingxin Yucheng PV Technology Co., Ltd. andXingtai Jinglong New Energy Co., Ltd. , Xingtai Jinglong Electronic Materials Co., Ltd.weremerged by absorption by JA Solar (Xingtai) Co., Ltd. and have completed the deregistrationprocedures on November and purchased Qingdao Jingshun New Energy Co., Ltd. , LinyiAoshun New Energy Co., Ltd. at cash consideration of RMB1;
In December 2023, the Group newly established Henan Yaojing New Energy Co.,Ltd. , LuyiAofeng PV Technology Co., Ltd. , Qujing Jingsheng New Energy Co.,Ltd. , Xingtang JingshengNew Energy Technology Co., Ltd. , Shanxi Anjing New Energy Technology Co.,Ltd. , HubeiJinghao New Energy Co.,Ltd. , Yuncheng Anjing New Energy Technology Co.,Ltd. , MeishanAoshun New Energy Co., Ltd. , Shanghai Jiahe Energy Co.,Ltd. , Shijiazhuang Jingming PVTechnology Co., Ltd. , Hubei Jingmian New Energy Co.,Ltd. , Ningde Jinghui New EnergyTechnology Co.,Ltd. , Qujing Fengjing New Energy Co.,Ltd. , Shanghai Xingzheng EnergyCo.,Ltd. , Shanghai Xingyao New Energy Co.,Ltd. , Gejiu Jingsheng New Energy Co.,Ltd. ,Yichang Jingyan New Energy Co.,Ltd. , Puer Jingfeng New Energy Co.,Ltd. , Hubei Aowei NewEnergy Co.,Ltd. , Yuanshi Jingsheng Energy Co., Ltd. , Guangxi Jingzuo New EnergyTechnology Co.,Ltd. , Jieyang Ruijing New Energy Co.,Ltd. , Binzhou Jingyan New EnergyCo.,Ltd. , Zhanjiang Yuanjia New Energy Co.,Ltd. , Hubei Weifeng New Energy Co.,Ltd. ,Shanxi Yuanao New Energy Technology Co.,Ltd. , Anhui Yeteng New Energy TechnologyCo.,Ltd. , Shanghai Xingfeng New Energy Co.,Ltd. , Shanghai Xingjing Energy Co.,Ltd. ,Shayang Jingaoda New Energy Technology Co.,Ltd. , Shanghai Mingjia Energy Co.,Ltd. ,Shanghai Jiaming Energy Co.,Ltd. , Shanghai Xinjia Energy Co.,Ltd. , JA SOLAR SA (PTY)LTD. , Jingzhou Jingrui New Energy Co., Ltd. and cancelled Dali JA Solar PV Technology Co.,Ltd. , Youyu Jingsheng PV Electric Co., Ltd.
VIII. Interests in other entities
1 Interests in subsidiaries
(1) Composition of the Group
| Name of the Subsidiary | Principal place of business | Registration place | Business nature | Registered capital | Shareholding percentage (%) | Acquisition method | |
| Direct | Indirect | ||||||
| JA Solar | Hebei Province | Hebei Province | Production base | RMB21,271,975,746.37 | 100.00 | - | Reverse acquisition |
| Ningjin Jingxing Electronic Material Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB323,090,000.00 | - | 70.00 | Purchase |
| Qujing Jinglong Electronic Materials Co., Ltd. | Yunnan Province | Yunnan Province | Production base | RMB520,000,000.00 | - | 100.00 | Purchase |
| Hebei Jinglong Sun Equipment Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB248,100,000.00 | - | 100.00 | Purchase |
| Beijing Jinghong Energy Economization Technology Co., Ltd. | Beijing | Beijing | Energy economizing company | RMB100,000,000.00 | - | 100.00 | Purchase |
| Hebei Jingle Optoelectronic Technology Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB30,000,000.00 | - | 80.00 | Purchase |
| Xingtai Jinglong PV Materials Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB25,710,000.00 | - | 100.00 | Purchase |
| JA Solar Hong Kong Limited | Hong Kong | Hong Kong | Investment company | HKD10,000.00 | - | 100.00 | Purchase |
| JA Solar Mexico Energy | Mexico | Mexico | Trading company | MXN50,000.00 | - | 100.00 | Set up |
| JA Solar USA Inc. | USA | USA | Trading company | USD50,000.00 | - | 100.00 | Purchase |
| JA Solar International Limited | Hong Kong | Hong Kong | Investment company | HKD100,000.00 | - | 100.00 | Set up |
| JA Solar Investment (Hong Kong) Limited. | Hong Kong | Hong Kong | Investment company | USD100,000.00 | - | 100.00 | Purchase |
| JA Solar Korea Co., Ltd. | South Korea | South Korea | Trading company | KRW100,000,000.00 | - | 100.00 | Set up |
| JA Solar Australia PTY Limited | Australia | Australia | Trading company | AUD1,000.00 | - | 100.00 | Set up |
| JA Solar Brasil Ltda | Brazil | Brazil | Trading company | BRL10,000.00 | - | 100.00 | Set up |
| JA Solar GmbH | Germany | Germany | Trading company | EUR25,000.00 | - | 100.00 | Purchase |
| JA Solar South Africa (PTY) Ltd. | South Africa | South Africa | Trading company | ZAR100.00 | - | 100.00 | Purchase |
| JA Solar Japan Limited | Japan | Japan | Trading company | JPY99,990,000.00 | - | 100.00 | Purchase |
| JA Solar Malaysia Sdn. Bhd. | Malaysia | Malaysia | Production base | MYR2,500,000.00 | - | 100.00 | Set up |
| JA Solar VietNam Company Limited | Vietnam | Vietnam | Production base | USD90,000,000.00 | - | 100.00 | Set up |
| JA Solar PV Electric (Hefei) Co., Ltd. | Anhui Province | Anhui Province | Distributed project companies | RMB18,000,000.00 | - | 100.00 | Purchase |
| JA Solar PV Electric (Datong) Co., Ltd. | Shanxi Province | Shanxi Province | Centralized project companies | RMB100,000,000.00 | - | 100.00 | Purchase |
| Jingsheng Agricultural Technology (Renxian) Co., Ltd. | Hebei Province | Hebei Province | Agriculture | RMB10,000,000.00 | - | 100.00 | Purchase |
| JA Solar Enerji Yatirim Ticaret Limited Sirketi | Turkey | Turkey | Trading company | TL10,000.00 | - | 100.00 | Set up |
| Jiuzhou Fangyuan New Energy (Yichang) Co., Ltd. | Hubei Province | Hubei Province | Investment company | RMB120,000,000.00 | - | 100.00 | Purchase |
| Jingkong PV Electric (Foshan) Co., Ltd. | Guangdong Province | Guangdong Province | Distributed project companies | RMB10,000,000.00 | - | 100.00 | Set up |
| JA Solar (Chaoyang) Electric Co., Ltd. | Liaoning province | Liaoning province | Centralized project companies | RMB120,000,000.00 | - | 100.00 | Set up |
| JA Solar PV Electric (Yangzhou) Co., Ltd. | Jiangsu Province | Jiangsu Province | Distributed project companies | RMB10,000,000.00 | - | 100.00 | Set up |
| JA Solar PV Electric (Xingtai) Co., Ltd. | Hebei Province | Hebei Province | Distributed project companies | RMB10,000,000.00 | - | 100.00 | Set up |
| Jingneng Solar PV Electric (Daqing) Co., Ltd. | Heilongjiang Province | Heilongjiang Province | Centralized project companies | RMB120,000,000.00 | - | 100.00 | Set up |
| JA Solar Japan Asset Management LLC | Japan | Japan | Asset management | JPY100,000.00 | - | 100.00 | Set up |
| Fukushimanakamori Real Estate LLC | Japan | Japan | Land lease | JPY100,000.00 | - | 100.00 | Set up |
| JA Solar Investment China Co., Ltd. | Shanghai | Shanghai | Investment company | RMB7,721,974,500.00 | - | 100.00 | Purchase |
| JA Solar Technology Yangzhou Co., Ltd. | Jiangsu Province | Jiangsu Province | Production base | RMB2,831,859,675.00 | - | 71.16 | Purchase |
| Hefei JA Solar Technology Co., Ltd. | Anhui Province | Anhui Province | Production base | RMB2,167,340,000.00 | - | 78.54 | Purchase |
| Shanghai JA Solar Technology Co., Ltd. | Shanghai | Shanghai | Production base | RMB821,450,520.00 | - | 85.29 | Purchase |
| Shanghai JA Solar PV Technology Co., Ltd. | Shanghai | Shanghai | Trading company | RMB251,424,000.00 | - | 100.00 | Purchase |
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?
| Name of the subsidiaries (continued) | Principal place of business | Registration place | Business nature | Registered capital | Shareholding percentage (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Jingneng PV Electric (Zhengding) Co., Ltd. | Hebei Province | Hebei Province | Distributed project companies | RMB10,000,000.00 | - | 100.00 | Set up |
| Jingneng New Energy Development (Ningjin) Co., Ltd. | Hebei Province | Hebei Province | Distributed project companies | RMB50,000,000.00 | - | 100.00 | Set up |
| Jingneng New Energy Development (Lincheng) Co., Ltd. | Hebei Province | Hebei Province | Centralized project companies | RMB200,000,000.00 | - | 100.00 | Set up |
| Jingneng New Energy Development (Renxian) Co., Ltd. | Hebei Province | Hebei Province | Centralized project companies | RMB120,000,000.00 | - | 100.00 | Purchase |
| Jingneng New Energy Development (Kangbao) Co., Ltd. | Hebei Province | Hebei Province | Centralized project companies | RMB30,000,000.00 | - | 100.00 | Purchase |
| JA Solar PV Electric (Wulanchabu) Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Centralized project companies | RMB70,000,000.00 | - | 100.00 | Purchase |
| JA New Energy Development (Hebei) Co., Ltd. | Hebei Province | Hebei Province | Others | RMB50,000,000.00 | - | 100.00 | Purchase |
| JA Solar PV Electric (Yanchi) Co., Ltd. | Ningxia Hui Autonomous Region | Ningxia Hui Autonomous Region | Centralized project companies | RMB180,000,000.00 | - | 100.00 | Purchase |
| Aiyouen Power Electric (Yinchuan) Co., Ltd. | Ningxia Hui Autonomous Region | Ningxia Hui Autonomous Region | Centralized project companies | RMB100,000,000.00 | - | 100.00 | Purchase |
| JA Solar PV Electric (Baotou) Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Centralized project companies | RMB100,000,000.00 | - | 100.00 | Purchase |
| Shanghai Jinglong Solar Technology Co., Ltd. | Shanghai | Shanghai | Others | RMB180,000,000.00 | - | 100.00 | Purchase |
| JA Solar PV Electric (Linzhou) Co., Ltd. | Henan Province | Henan Province | Centralized project companies | RMB110,000,000.00 | - | 100.00 | Purchase |
| JA Solar PV Electric (Laiwu) Co., Ltd. | Shandong Province | Shandong Province | Centralized project companies | RMB60,000,000.00 | - | 100.00 | Purchase |
| JA Solar (Zhangjiakou) Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB130,000,000.00 | - | 100.00 | Set up |
| JA Solar (Kangbao) Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB100,000,000.00 | - | 100.00 | Set up |
| JA Solar (Xingtai) Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB1,236,007,700.00 | - | 100.00 | Purchase |
| Baotou JA Solar Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Production base | RMB780,000,000.00 | - | 78.54 | Purchase |
| Solar Silicon Valley Electronic Science and Technology Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB351,407,014.19 | - | 100.00 | Purchase |
| Donghai JA Solar Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Trading company | RMB250,000,000.00 | - | 100.00 | Set up |
| Jiangsu JA Convention Centre Co., Ltd. | Jiangsu Province | Jiangsu Province | Service company | RMB10,000,000.00 | - | 100.00 | Purchase |
| Jing Hai Yang Semiconductor Material (Donghai) Co., Ltd. | Jiangsu Province | Jiangsu Province | Production base | RMB714,482,900.00 | - | 100.00 | Set up |
| Beijing JA Solar PV Technology Co., Ltd. | Beijing | Beijing | Trading and investment company | RMB500,000,000.00 | - | 100.00 | Purchase |
| JA PV Technology Co., Ltd. | Shanghai | Shanghai | Trading company | RMB61,107,000.00 | - | 100.00 | Purchase |
| JA Solar PV Electric (Shexian) Co., Ltd. | Hebei Province | Hebei Province | Centralized project companies | RMB110,000,000.00 | - | 100.00 | Purchase |
| JA Solar PV Electric (Shanghai) Co., Ltd. | Shanghai | Shanghai | Distributed project companies | RMB2,000,000.00 | - | 100.00 | Purchase |
| Qingdao Hai Neng Zhi Guang PV Technology Co., Ltd. | Shandong Province | Shandong Province | Distributed project companies | RMB3,000,000.00 | - | 100.00 | Purchase |
| Qingdao Qing Heng Han New Energy Technology Co., Ltd. | Shandong Province | Shandong Province | Distributed project companies | RMB10,000,000.00 | - | 100.00 | Purchase |
| Xusheng New Enegy Electric (Kazuo) Co., Ltd. | Liaoning province | Liaoning province | Distributed project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| Xinghua PV Electric (Chaoyang) Co., Ltd. | Liaoning province | Liaoning province | Centralized project companies | RMB380,000,000.00 | - | 100.00 | Set up |
| Dongsheng PV Electric (Chaoyang) Co., Ltd. | Liaoning province | Liaoning province | Centralized project companies | RMB10,000,000.00 | - | 100.00 | Set up |
| Yangzhou JA Solar PV Engineering Co. Ltd. | Jiangsu Province | Jiangsu Province | Engineering company | RMB68,270,000.00 | - | 100.00 | Purchase |
| Longsheng PV Electric (Chaoyang) Co., Ltd. | Liaoning province | Liaoning province | Centralized project companies | RMB390,000,000.00 | - | 100.00 | Set up |
| JA Solar New Energy Yangzhou Co., Ltd. | Jiangsu Province | Jiangsu Province | Production base | RMB1,900,000,000.00 | - | 100.00 | Set up |
| Qingdao Shun Yao Yang PV Technology Co., Ltd. | Shandong Province | Shandong Province | Distributed project companies | RMB1,000,000.00 | - | 100.00 | Purchase |
| Ecoplexus Shiojiri Project LLC | Japan | Japan | Centralized project companies | JPY200,000.00 | - | 100.00 | Purchase |
| Changde Dingcheng Xingyang PV Electric Technology Co., Ltd. | Hunan Province | Hunan Province | Centralized project companies | RMB70,000,000.00 | - | 100.00 | Set up |
| Jingsheng PV Electric (Daqing) Co., Ltd. | Heilongjiang Province | Heilongjiang Province | Centralized project companies | RMB200,000,000.00 | - | 100.00 | Set up |
| Yiwu JA Solar Technology Co., Ltd. | Zhejiang Province | Zhejiang Province | Production base | RMB4,116,518,557.00 | - | 90.12 | Set up |
| Jingyuan PV Electric (Yiwu) Co., Ltd. | Zhejiang Province | Zhejiang Province | Distributed project companies | RMB40,000,000.00 | - | 100.00 | Set up |
| JA SOLAR MIDDLE EAST DMCC | United Arab Emirates | United Arab Emirates | Trading company | AED50,000.00 | - | 100.00 | Set up |
| JA Solar Trading Limited | Hong Kong | Hong Kong | Trading company | HKD100,000.00 | - | 100.00 | Set up |
| JA Wisdom Energy Technology (Hainan) Co., Ltd. | Hainan Province | Hainan Province | Investment company | RMB300,000,000.00 | - | 100.00 | Set up |
| Baotou Jingxu Carbon-carbon Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Production base | RMB30,000,000.00 | - | 80.00 | Set up |
| Qujing JA PV Technology Co., Ltd. | Yunnan Province | Yunnan Province | Production base | RMB1,300,000,000.00 | - | 100.00 | Set up |
| JA Solar PV VietNam Company Limited | Vietnam | Vietnam | Production base | USD60,000,000.00 | - | 100.00 | Set up |
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| Name of the subsidiaries (continued) | Principal place of business | Registration place | Business nature | Registered capital | Shareholding percentage (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Beijing JA Energy Technology Co., Ltd. | Beijing | Beijing | Trading company | RMB300,000,000.00 | - | 100.00 | Set up |
| Dongtai JA Solar PV Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Trading company | USD80,000,000.00 | - | 100.00 | Set up |
| Changde Jingsheng PV Technology Co., Ltd. | Hunan Province | Hunan Province | Trading company | RMB28,100,000.00 | - | 100.00 | Set up |
| JA Solar (Wuxi) PV Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Production base | RMB388,878,000.00 | - | 100.00 | Set up |
| JA Solar (Gaoyou) PV Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Production base | RMB200,000,000.00 | - | 100.00 | Set up |
| JA Solar Smart Energy (Hong Kong) Limited | Hong Kong | Hong Kong | Investment company | USD100,000.00 | - | 100.00 | Set up |
| JA Solar PV Electric (Qujing) Co., Ltd. | Yunnan Province | Yunnan Province | Distributed project companies | RMB60,000,000.00 | - | 100.00 | Set up |
| Tuquan Xinhua New Energy Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Trading company | RMB1,000,000.00 | - | 100.00 | Set up |
| Zhuhai Hengqin JA New Energy Investment Co., Ltd. | Guangdong Province | Guangdong Province | Investment company | RMB1,000,000.00 | - | 100.00 | Set up |
| Zhuhai Hengqin JA Trading Co., Ltd. | Guangdong Province | Guangdong Province | Trading company | RMB1,000,000.00 | - | 100.00 | Set up |
| Zhuhai Hengqin JA Information Consulting Service Co., Ltd. | Guangdong Province | Guangdong Province | Consulting company | RMB1,000,000.00 | - | 100.00 | Set up |
| Yiwu Jingcheng Photovoltaic Materials Co., Ltd. | Zhejiang Province | Zhejiang Province | Production base | RMB160,000,000.00 | - | 100.00 | Set up |
| Hebei JA Education Technology Co., Ltd. | Hebei Province | Hebei Province | Education company | RMB500,000,000.00 | 100.00 | - | Set up |
| Jingxin PV Electric (Wuqiang) Co., Ltd. | Hebei Province | Hebei Province | Residential project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| Hefei Jingjiu PV Technology Co., Ltd. | Anhui Province | Anhui Province | Production base | RMB56,000,000.00 | - | 100.00 | Set up |
| Baotou JA Carbon Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Production base | RMB9,000,000.00 | - | 100.00 | Set up |
| Changde Xiangchu Technology Co., Ltd. | Hunan Province | Hunan Province | Energy storage project companies | RMB24,000,000.00 | - | 100.00 | Set up |
| Hebei Ruineng Electricity Sales Co., Ltd. | Hebei Province | Hebei Province | Electricity sales intermediary service companies | RMB50,000,000.00 | - | 100.00 | Purchase |
| Jingneng PV Electric (Longyao) Co., Ltd. | Hebei Province | Hebei Province | Distributed project companies | RMB5,000,000.00 | - | 100.00 | Set up |
| Linyi Xingjing PV Technology Co., Ltd. | Shandong Province | Shandong Province | Distributed project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Chengjing PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB69,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Li’ao PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB106,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Hui’ao PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB109,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia An’ao PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Rui’ao PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia You’ao PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB56,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Ruijia PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB86,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia He’ao PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB160,000,000.00 | - | 100.00 | Set up |
| JA Wisdom Distributed Energy Technology (Hainan) Co., Ltd. | Hainan Province | Hainan Province | Investment company | RMB2,917,560,000.00 | - | 100.00 | Set up |
| JA New Energy Power Investment (Hainan) Co., Ltd. | Hainan Province | Hainan Province | Investment company | RMB1,000,000,000.00 | - | 100.00 | Set up |
| Shanghai Jiejing Jicheng Chemical Technology Co., Ltd. | Shanghai | Shanghai | Engineering company | RMB35,000,000.00 | - | 70.00 | Set up |
| Changde Jingyang Technology Co., Ltd. | Hunan Province | Hunan Province | Centralized project companies | RMB3,000,000.00 | - | 100.00 | Set up |
| Suiyang Jingneng Energy Technology Co., Ltd. | Guizhou Province | Guizhou Province | Centralized project companies | RMB40,000,000.00 | - | 100.00 | Set up |
| Jiuquan Jingyang New Energy Co., Ltd. | Gansu Province | Gansu Province | Energy storage project companies | RMB5,000,000.00 | - | 100.00 | Set up |
| Suiyang Jingyang Energy Technology Co., Ltd. | Guizhou Province | Guizhou Province | Centralized project companies | RMB40,000,000.00 | - | 100.00 | Set up |
| JA Solar NE VietNam Company Limited | Vietnam | Vietnam | Production base | USD30,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Anjing PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Huijing PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB35,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Huixing PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB42,000,000.00 | - | 100.00 | Set up |
| Name of the subsidiaries (continued) | Principal place of business | Registration place | Business nature | Registered capital | Shareholding percentage (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Inner Mongolia Yijia PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Jingneng New Energy (Dalian) Co., Ltd. | Liaoning province | Liaoning province | Centralized project companies | RMB3,000,000.00 | - | 100.00 | Set up |
| Qujing JA Solar Technology Co., Ltd. | Yunnan Province | Yunnan Province | Production base | RMB3,334,484,600.00 | - | 100.00 | Set up |
| Zhengxiang Baiqi Xingsheng PV Electric Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Centralized project companies | RMB3,000,000.00 | - | 100.00 | Set up |
| Zhejiang JA New Materials Technology Co., Ltd. | Zhejiang Province | Zhejiang Province | Production base | RMB30,000,000.00 | - | 75.00 | Set up |
| JA Yuhong New Energy Power Development Co., Ltd. | Tianjin | Tianjin | Distributed project companies | RMB100,000,000.00 | - | 65.00 | Set up |
| Beijing JA Haibo Energy Storage Technology Co., Ltd. | Beijing | Beijing | Energy storage project companies | RMB100,000,000.00 | - | 50.50 | Set up |
| Hainan Honghui New Energy Technology Co., Ltd. | Hainan Province | Hainan Province | JA Yuhong Project companies | RMB5,000,000.00 | - | 100.00 | Set up |
| Yiwu Jingda New Energy Co., Ltd. | Zhejiang Province | Zhejiang Province | Solution project companies | RMB8,000,000.00 | - | 100.00 | Set up |
| Tangxian Jingxing New Energy Technology Co., Ltd. | Hebei Province | Hebei Province | Distributed project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Mengjia PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB51,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Pujia PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Fengjia PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB88,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Fujia PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB127,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Fengxing PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB35,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Fengjing PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Lijia PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Hejia PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Feng’ao PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Yanhe Jingneng Energy Technology Co., Ltd. | Guizhou Province | Guizhou Province | Centralized project companies | RMB2,000,000.00 | - | 100.00 | Set up |
| Yanhe Jingyang Energy Technology Co., Ltd. | Guizhou Province | Guizhou Province | Centralized project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| Nanchang Hongjie New Energy Development Co., Ltd. | Jiangxi Province | Jiangxi Province | Distributed project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| JA Solar Energy Investment (Hong Kong) Co., Ltd. | Hong Kong | Hong Kong | Investment company | USD100,000.00 | - | 100.00 | Set up |
| JA (Donghai) New Materials Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Production base | RMB65,000,000.00 | - | 100.00 | Set up |
| Xinrong PV Electric (Tuquan) Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Centralized project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| Lanping JA PV Technology Co., Ltd. | Yunnan Province | Yunnan Province | Trading company | RMB1,000,000.00 | - | 100.00 | Set up |
| Zhangjiagang Hongneng PV Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Distributed project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| Xuzhou Hongjing PV Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Distributed project companies | RMB12,600,000.00 | - | 100.00 | Set up |
| Qidong Hongguang PV Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Distributed project companies | RMB23,430,000.00 | - | 100.00 | Set up |
| Daqing Jingyang Wind Power Co., Ltd. | Heilongjiang Province | Heilongjiang Province | Centralized project companies | RMB3,000,000.00 | - | 100.00 | Set up |
| Liaocheng Aozhi PV Technology Co., Ltd. | Shandong Province | Shandong Province | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Ningjin Ning’ao New Energy Technology Co., Ltd. | Hebei Province | Hebei Province | Distributed project companies | RMB50,000,000.00 | - | 100.00 | Set up |
| Qionghai Jinneng New Energy Development Co., Ltd.(Hainan) | Hainan Province | Hainan Province | Centralized project companies | RMB3,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Ruijing PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB33,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia Yijing PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
?
?
| Name of the subsidiaries (continued) | Principal place of business | Registration place | Business nature | Registered capital | Shareholding percentage (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Inner Mongolia Youjing PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB63,000,000.00 | - | 100.00 | Set up |
| Hainan Fengjing New Energy Technology Co., Ltd. | Hainan Province | Hainan Province | Distributed project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| JA Solar Technology Chaoyang Co., Ltd. | Liaoning province | Liaoning province | Production base | RMB100,000,000.00 | - | 100.00 | Set up |
| Tianjin Lijing New Energy Technology Co., Ltd. | Tianjin | Tianjin | Distributed project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Mengchenge Mengjing New Energy Technology Co., Ltd. | Anhui Province | Anhui Province | Distributed project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Ningjin Jingteng PV Electric Co., Ltd. | Hebei Province | Hebei Province | Distributed project companies | RMB28,780,000.00 | - | 100.00 | Set up |
| Changzhi Anjing New Energy Technology Co., Ltd. | Shanxi Province | Shanxi Province | Distributed project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Wuxi Jinghao New Materials Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Production base | RMB10,000,000.00 | - | 51.00 | Set up |
| Inner Mongolia Lijing PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Residential project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Qujing Development Zone Jiantou Green Energy Technology Co., Ltd. | Yunnan Province | Yunnan Province | Distributed project companies | RMB5,000,000.00 | - | 51.00 | Set up |
| Taiyuan Honghui PV Technology Co., Ltd. | Shanxi Province | Shanxi Province | Distributed project companies | RMB5,840,000.00 | - | 100.00 | Set up |
| Tangshan Honggao New Energy Development Co., Ltd. | Hebei Province | Hebei Province | Distributed project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| Baoding Honghui New Energy Development Co., Ltd. | Hebei Province | Hebei Province | Distributed project companies | RMB10,000,000.00 | - | 100.00 | Set up |
| Ja Solar Ireland Limited | Ireland | Ireland | Trading company | - | - | 100.00 | Set up |
| Lushan Honghui New Energy Development Co., Ltd. | Jiangxi Province | Jiangxi Province | Distributed project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| Tianjin Jingtong PV Electric Co., Ltd. | Tianjin | Tianjin | Distributed project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| Dongtai JA Solar Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Production base | RMB1,500,000,000.00 | - | 100.00 | Set up |
| Shijiazhuang Chengjing New Energy Technology Co., Ltd. (Formerly known as “Zanhuang Ruijing New Energy Technology Co., Ltd.”) | Hebei Province | Hebei Province | Distributed project companies | RMB20,000,000.00 | - | 100.00 | Set up |
| Jinzhou Ruijing New Energy Technology Co., Ltd. | Hebei Province | Hebei Province | Residential project companies | RMB30,000,000.00 | - | 100.00 | Set up |
| Beijing Jingtong PV Technology Co., Ltd. | Beijing | Beijing | Distributed project companies | RMB1,000,000.00 | - | 100.00 | Set up |
| Shijiazhuang JA Solar Technology Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB1,000,000,000.00 | - | 100.00 | Set up |
| Inner Mongolia JA Solar PV Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Production base | RMB200,000,000.00 | - | 78.54 | Set up |
| Name of the subsidiaries (continued) | Principal place of business | Registration place | Business nature | Registered capital | Shareholding percentage (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Anhui Chengjia New Energy Technology Co., Ltd. | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Guangdong Xingjia New Energy Technology Co., Ltd. | Guangdong Province | Guangdong Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Langfang Fujing New Energy Technology Co., Ltd. | Hebei Province | Hebei Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Xingtai Jingyi Energy Technology Co., Ltd. | Hebei Province | Hebei Province | Integrated energy project company | RMB10,000,000.00 | - | 100.00 | Set up |
| Shanghai Jingzhihui New Energy Co., Ltd. | Shanghai | Shanghai | Distributed project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Linzhou Mengxing New Energy Technology Co., Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Rongcheng Hejing New Energy Technology Co., Ltd. | Shandong Province | Shandong Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Wuxi JA Waylion New Energy Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Production base | USD50,000,000.00 | - | 100.00 | Set up |
| Zhengyang Anxing New Energy Technology Co., Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Meizhou Fuao New Energy Technology Co., Ltd. | Guangdong Province | Guangdong Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Dongtai Jingzhihui New Energy Co., Ltd. | Jiangsu Province | Jiangsu Province | Integrated energy project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Dongtai JA Distributed Energy Co., Ltd. | Jiangsu Province | Jiangsu Province | Distributed platform company of industry and commerce | RMB1,000,000,000.00 | - | 100.00 | Set up |
| JA Solar Investment (Inner Mongolia) Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Investing platform company | RMB1,000,000,000.00 | - | 100.00 | Set up |
| Ordos JA Solar Technology Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Production base | RMB1,000,000,000.00 | - | 100.00 | Set up |
| Shanghai JA Waylion New Energy Technology Co., Ltd. | Shanghai | Shanghai | Production base | RMB50,000,000.00 | - | 100.00 | Set up |
| Hengyang Shuojing New Energy Technology Co., Ltd. | Hunan Province | Hunan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Tangshan Youjing New Energy Technology Co., Ltd. | Hebei Province | Hebei Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Donghai Jinghang New Energy Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Zhengzhou Jingkun New Energy Technology Co., Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Nanning Jingcheng New Energy Technology Co., Ltd. | Guangxi Zhuang Autonomous Region | Guangxi Zhuang Autonomous Region | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| LuAn HuiAo New Energy Technology Co., Ltd. | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Suqian Xujing New Energy Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| TaiAn Aosheng New Energy Technology Co., Ltd. | Shandong Province | Shandong Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Bozhou Yijing New Energy Technology Co., Ltd. | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Putian Aoshuo New Energy Technology Co., Ltd. | Fujian Province | Fujian Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Jingzhou Jingyao New Energy Technology Co., Ltd. | Hubei Province | Hubei Province | Distributed project company | RMB1,000,000.00 | - | 80.00 | Set up |
| Yiyang Jingnuo New Energy Co., Ltd. | Hunan Province | Hunan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Tianjin DingAo New Energy Technology Co., Ltd. | Tianjin | Tianjin | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Chongqing Hongjing PV Technology Co., Ltd. | Chongqing | Chongqing | Distributed project company | RMB14,000,000.00 | - | 100.00 | Set up |
| Beihai Jinghai New Energy Technology Co., Ltd. | Guangxi Zhuang Autonomous Region | Guangxi Zhuang Autonomous Region | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Ordos Jingyang New Energy Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Centralized project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Jiangsu JA International Investment Co., Ltd. | Jiangsu Province | Jiangsu Province | Investment company | RMB550,000,000.00 | - | 100.00 | Set up |
| Chengdu Jingxin Mingneng PV Technology Co., Ltd. | Sichuan Province | Sichuan Province | Research and development company | RMB100,000,000.00 | - | 65.00 | Set up |
| Suzhou Jinghui New Energy Technology Co.,Ltd | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Dongfang Shuojing New Energy Technology Co.,Ltd. | Hainan Province | Hainan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Jingxingbao(Guangxi) New Energy Technology Co.,Ltd. | Guangxi Zhuang Autonomous Region | Guangxi Zhuang Autonomous Region | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Suzhou Yuanao PV Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Jingxing Shuke(Beijing) Energy Co., Ltd. | Beijing | Beijing | Integrated energy project company | RMB10,550,000.00 | - | 100.00 | Set up |
| Jinping Jingjian(Shantou) Technology Co., Ltd. | Guangdong Province | Guangdong Province | Centralized project company | RMB10,000,000.00 | - | 100.00 | Set up |
| Shanghai Jinglianghui New Energy Co., Ltd. | Shanghai | Shanghai | Integrated energy project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Donghai Jinglu New Energy Co., Ltd. | Jiangsu Province | Jiangsu Province | Distributed project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Dongtai Jingdong New Energy Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Centralized project company | RMB300,000,000.00 | - | 66.67 | Set up |
| Yangzhou Crystal Storage New Energy Co., Ltd. | Jiangsu Province | Jiangsu Province | Energy storage project company | RMB1,000,000.00 | - | 100.00 | Set up |
| JA Solar Renewable Energy Limited | Hong Kong | Hong Kong | Investment company | HKD100,000 | - | 100.00 | Set up |
| JA Solar Industrial Corp. | USA | USA | Investment company | - | - | 100.00 | Set up |
| JA Solar AZ, LLC. | USA | USA | Production base | - | - | 100.00 | Set up |
| Chongqing Jingyonghai New Energy Technology Co., Ltd. | Chongqing | Chongqing | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Name of the subsidiaries (continued) | Principal place of business | Registration place | Business nature | Registered capital | Shareholding percentage (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Shanghai Xingyao New Energy Co.,Ltd. | Shanghai | Shanghai | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Gejiu Jingsheng New Energy Co.,Ltd. | Yunnan Province | Yunnan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Yichang Jingyan New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Puer Jingfeng New Energy Co.,Ltd. | Yunnan Province | Yunnan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Hubei Aowei New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Yuanshi Jingsheng Energy Co., Ltd. | Hebei Province | Hebei Province | Centralized project company | RMB2,000,000.00 | - | 70.00 | Set up |
| Guangxi Jingzuo New Energy Technology Co.,Ltd. | Guangxi Zhuang Autonomous Region | Guangxi Zhuang Autonomous Region | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Jieyang Ruijing New Energy Co.,Ltd. | Guangdong Province | Guangdong Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Binzhou Jingyan New Energy Co.,Ltd. | Hunan Province | Hunan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Zhanjiang Yuanjia New Energy Co.,Ltd. | Guangdong Province | Guangdong Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Hubei Weifeng New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Shanxi Yuanao New Energy Technology Co.,Ltd. | Shanxi Province | Shanxi Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Anhui Yeteng New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Shanghai Xingfeng New Energy Co.,Ltd. | Shanghai | Shanghai | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Shanghai Xingjing Energy Co.,Ltd. | Shanghai | Shanghai | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Shayang Jingaoda New Energy Technology Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Shanghai Mingjia Energy Co.,Ltd. | Shanghai | Shanghai | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Shanghai Jiaming Energy Co.,Ltd. | Shanghai | Shanghai | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Shanghai Xinjia Energy Co.,Ltd. | Shanghai | Shanghai | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Hefei Jingyue New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Shanxi Jingyang Risheng New Energy Technology Co., Ltd. (Formerly known as “Weinan Aofeng Solar New Energy Technology Co., Ltd.”) | Shanxi Province | Shanxi Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Huangshan Jingbao New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Xinxiang Jingshun New Energy Co., Ltd. | Henan Province | Henan Province | Distributed project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Anhui Aoqing New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Hube Chuangguang New Energy Technology Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Zhangzhou Aolong New Energy Technology Co.,Ltd. | Fujian Province | Fujian Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Erdos Jingfei PV Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Investment company | USD2,000,000.00 | - | 100.00 | Set up |
| Guangxi Jingyu New Energy Technology Co.,Ltd. | Guangxi Zhuang Autonomous Region | Guangxi Zhuang Autonomous Region | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Hubei Aofan New Energy Technology Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Xuzhou Aozhi New Energy Technology Co.,Ltd | Jiangsu Province | Jiangsu Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Anhui Chenao New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Dongguan Jingshun New Energy Technology Co.,Ltd. | Guangdong Province | Guangdong Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Heyuan Jinghuo New Energy Technology Co.,Ltd. | Guangdong Province | Guangdong Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Hubei Aoyu New Energy Technology Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Mingguang Aosheng New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Yangquan Aoya New Energy Technology Co.,Ltd. | Shanxi Province | Shanxi Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Yuzhou Longao New Energy Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Fuyang Haotai New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Hefei Jingwanjia New Energy Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Fengqiu Lichuang New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Puyang Jingzhong New Energy Co., Ltd. | Henan Province | Henan Province | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Quanzhou Jinxin New Energy Technology Co.,Ltd. | Fujian Province | Fujian Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Anhui Jingran New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Beijing Jingchuang New Energy Co., Ltd. | Beijing | Beijing | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Zhengzhou Aohai New Energy Co., Ltd. | Henan Province | Henan Province | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Name of the subsidiaries (continued) | Principal place of business | Registration place | Business nature | Registered capital | Shareholding percentage (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Tianchang Jingyong New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Suzhou Jinghong New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Zhejiang Suao New Energy Technology Co.,Ltd. | Zhejiang Province | Zhejiang Province | Residential project company | RMB10,000,000.00 | - | 100.00 | Set up |
| Yuanyang Mingchang New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Yanjin Yunche New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Hubei Aoyu New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Anhui Jingteng New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Henan Yaojing New Energy Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Qingxu Aojie New Energy Technology Co.,Ltd. | Shanxi Province | Shanxi Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Yangxin Yuzhiyuan New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Luotian Jingxing New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Chuzhou Aofeng New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Hubei Chujing New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Yicheng Jingyu New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Hubei Yichang New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Hubei Aoyu New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Hubei Jingran New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Xiangcheng Jingsheng New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Gongan Jingle New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| JA SOLAR SA (PTY) LTD | South Africa | South Africa | Trading company | ZAR1,000,000.00 | - | 100.00 | Set up |
| JA SOLAR DMCC | Dubai | Dubai | Trading company | AED50,000.00 | - | 100.00 | Set up |
| Jingzhou Jingrui New Energy Technology Co., Ltd. | Hubei Province | Hubei Province | Distributed project company | RMB10,000,000.00 | 100.00 | Set up | |
| Baotou Jingyun New Energy Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Distributed project company | RMB50,000,000.00 | - | 100.00 | Set up |
| Shijiazhuang JA PV Technology Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB200,000,000.00 | - | 100.00 | Business combination under common control |
| Yichun Jingming New Energy Co.,Ltd. | Jiangxi Province | Jiangxi Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Maanshan Aoxiong New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Jinzhou Ruineng New Energy Technology Co., Ltd. | Hebei Province | Hebei Province | Distributed project company | RMB20,000,000.00 | - | 100.00 | Purchase |
| Anhui Aokang New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Datong Jingxing New Energy Co.,Ltd. | Shanxi Province | Shanxi Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Zhumadian Xingao New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Xunxian Lijing New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Changde Jingde New Energy Technology Co.,Ltd. | Hunan Province | Hunan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Shaoyang Jingju New Energy Technology Co.,Ltd. | Hunan Province | Hunan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Shaoyang Jingshao New Energy Technology Co.,Ltd. | Hunan Province | Hunan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Shanxi Jingyu New Energy Technology Co.,Ltd | Shanxi Province | Shanxi Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Chenzhou Yongjing New Energy Technology Co.,Ltd. | Hunan Province | Hunan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Guangxi Jingyang New Energy Technology Co.,Ltd. | Guangxi Zhuang Autonomous Region | Guangxi Zhuang Autonomous Region | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Zhumadian Fengda New Energy Co., Ltd. | Henan Province | Henan Province | Distributed project company | RMB2,200,000.00 | - | 100.00 | Purchase |
| Anhui Aosbang New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Anhui Aosheng New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Wenxian Fuao New Energy Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Pingdingshan Jingming New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Name of the subsidiaries (continued) | Principal place of business | Registration place | Business nature | Registered capital | Shareholding percentage (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Guangxi Jingrui New Energy Technology Co.,Ltd. | Guangxi Zhuang Autonomous Region | Guangxi Zhuang Autonomous Region | Residential project company | RMB10,000,000.00 | - | 100.00 | Set up |
| Xuchang Jinghao New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Xinyang Aoxing New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Fuyang Jingfeng Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Taikang Jingsheng New Energy Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Suixian Jingfeng New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Shenqiu Aofeng New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Zhengzhou Qianao New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Qujing Jinghao New Energy Co.,Ltd. | Yunnan Province | Yunnan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Haerbin Jingguan New Energy Technology Co., Ltd. | Heilongjiang Province | Heilongjiang Province | Centralized project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Xiangxi Jinghong New Energy Technology Co.,Ltd. | Hunan Province | Hunan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Chizhou Jingxing Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Huainan Jinghong New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Zhoukou Jinghui New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Wushe Ruijing New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Xinyang Aoan New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Xinyang Jingan New Energy Technology Co.,Ltd. | Henan Province | Henan Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Anhui Aoteng New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Shijiazhuang JA Electronic Technology Co., Ltd. | Hebei Province | Hebei Province | Production base | RMB150,000,000.00 | - | 100.00 | Set up |
| Dongtai JA New Energy Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Production base | RMB500,000,000.00 | - | 100.00 | Set up |
| Baotou JA New Material Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Production base | RMB30,000,000.00 | - | 78.54 | Set up |
| Nanyang Jingling New Energy Technology Co., Ltd. | Henan Province | Henan Province | Distributed project company | RMB30,000,000.00 | - | 100.00 | Set up |
| Haerbin Aohai New Energy Co., Ltd. | Heilongjiang Province | Heilongjiang Province | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Jinzhou Jingshun New Energy Co., Ltd. | Liaoning province | Liaoning province | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Shenyang Jingshun New Energy Co., Ltd. | Liaoning province | Liaoning province | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Ezhou Kasilaite New Energy Co., Ltd. | Hubei Province | Hubei Province | Distributed project company | RMB17,600,000.00 | - | 100.00 | Purchase |
| Suzhou Yaoka New Energy Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Distributed project company | RMB7,000,000.00 | - | 100.00 | Set up |
| Wuhan Aohai New Energy Co., Ltd. | Hubei Province | Hubei Province | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Sihong Huayi New Energy Co., Ltd. | Jiangsu Province | Jiangsu Province | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Boao Energy (Jiangsu) Co., Ltd. | Jiangsu Province | Jiangsu Province | Distributed project company | RMB10,000,000.00 | - | 80.00 | Set up |
| Heze Aosheng New Energy Technology Co.,Ltd. | Shandong Province | Shandong Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Zhangjiakou Jingxing New Energy Technology Co.,Ltd. | Hebei Province | Hebei Province | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Suiping Siao New Energy Co., Ltd. | Henan Province | Henan Province | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Qinzhou Jingyang New Energy Technology Co., Ltd. | Guangxi Zhuang Autonomous Region | Guangxi Zhuang Autonomous Region | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Guangdong Jinghuo New Energy Technology Co.,Ltd. | Guangdong Province | Guangdong Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Jiujiang Jingming New Energy Co.,Ltd. | Jiangxi Province | Jiangxi Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Qujing Jingfeng New Energy Co.,Ltd. | Yunnan Province | Yunnan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Xinyi JA PV Technology Co., Ltd. | Jiangsu Province | Jiangsu Province | Trading company | RMB10,000,000.00 | - | 100.00 | Set up |
| Shenze Jingsheng New Energy Technology Co., Ltd. | Hebei Province | Hebei Province | Centralized project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Jingzhou Jingsheng New Energy Technology Co., Ltd. | Hebei Province | Hebei Province | Centralized project company | RMB2,000,000.00 | - | 100.00 | Set up |
| Xinbaerhu Jingyao New EnergyCo., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Centralized project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Yiyang Jingzhen New Energy Co.,Ltd. | Hunan Province | Hunan Province | Residential project company | RMB10,000,000.00 | - | 100.00 | Set up |
| Hubei Aobo New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Name of the subsidiaries (continued) | Principal place of business | Registration place | Business nature | Registered capital | Shareholding percentage (%) | Acquisition method | |
| Direct | Indirect | ||||||
| Hubei Jingxu New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Daye Jingyu New Energy Technology Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Hubei Jingxing New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Shiyan Aoshun New Energy Technology Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Shiyan Baojing New Energy Technology Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Shiyan Aosheng New Energy Technology Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Anhui Aoning New Energy Technology Co.,Ltd. | Anhui Province | Anhui Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Hubei Jingyang New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Hubei Jingfeng New Energy Technology Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Fuzhou Jingding New Energy Technology Co.,Ltd. | Fujian Province | Fujian Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| JA Energy Storage Technology(Shanghai) Co., Ltd. | Shanghai | Shanghai | Energy storage project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Honghe Jingfeng New Energy Co.,Ltd. | Yunnan Province | Yunnan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Anlu Aoliang New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Zaoyang Jingying New Energy Development Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Yunnan Fengjing New Energy Technology Co.,Ltd. | Yunnan Province | Yunnan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Yunnan Fengjia New Energy Technology Co.,Ltd. | Yunnan Province | Yunnan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Kunming Jingsheng New Energy Co.,Ltd. | Yunnan Province | Yunnan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Guangxi Jingan New Energy Technology Co.,Ltd. | Guangxi Zhuang Autonomous Region | Guangxi Zhuang Autonomous Region | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Yangchun Xingjia New Energy Technology Co., Ltd. | Guangdong Province | Guangdong Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Luyi Aofeng PV Technology Co., Ltd. | Henan Province | Henan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Qujing Jingsheng New Energy Co.,Ltd. | Yunnan Province | Yunnan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Xingtang Jingsheng New Energy Technology Co., Ltd. | Hebei Province | Hebei Province | Centralized project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Shanxi Anjing New Energy Technology Co.,Ltd. | Shanxi Province | Shanxi Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Hubei Jinghao New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Yuncheng Anjing New Energy Technology Co.,Ltd. | Shanxi Province | Shanxi Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Meishan Aoshun New Energy Co., Ltd. | Sichuan Province | Sichuan Province | Distributed project company | RMB1,000,000.00 | - | 100.00 | Set up |
| Shanghai Jiahe Energy Co.,Ltd. | Shanghai | Shanghai | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
| Shijiazhuang Jingming PV Technology Co., Ltd. | Hebei Province | Hebei Province | Distributed project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Hubei Jingmian New Energy Co.,Ltd. | Hubei Province | Hubei Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Ningde Jinghui New Energy Technology Co.,Ltd. | Fujian Province | Fujian Province | Residential project company | RMB5,000,000.00 | - | 100.00 | Set up |
| Qujing Fengjing New Energy Co.,Ltd. | Yunnan Province | Yunnan Province | Residential project company | RMB3,000,000.00 | - | 100.00 | Set up |
| Shanghai Xingzheng Energy Co.,Ltd. | Shanghai | Shanghai | Residential project company | RMB20,000,000.00 | - | 100.00 | Set up |
(2) Material non-wholly owned subsidiaries
| Name of the Subsidiary | Proportion of ownership interest held by non-controlling interests | Profit or loss allocated to non-controlling interests during the year | Dividend declared to non-controlling shareholders during the year | Balance of non-controlling interests at the end of the year |
| Yiwu JA Solar Technology Co., Ltd. | 9.88% | （9,292,486.46) | - | 648,879,012.58 |
?
?
Note: Refer to Note VIII.2(1)
(3) Key financial information about material non-wholly owned subsidiaries
| Name of the Subsidiary | 2023 | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Yiwu JA Solar Technology Co., Ltd. | 8,795,018,216.11 | 3,648,608,095.41 | 12,443,626,311.52 | 5,499,186,619.68 | 475,990,837.07 | 5,975,177,456.75 |
?
?
| Name of the Subsidiary | 2022 | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Yiwu JA Solar Technology Co., Ltd. (Restated) | 9,515,903,742.57 | 4,059,789,311.86 | 13,575,693,054.43 | 8,254,659,070.36 | 609,616,206.39 | 8,864,275,276.75 |
?
?
| Name of the Subsidiary | 2023 | 2022 (Restated) | ||||||
| Operating income | Net profit for the year | Total comprehensive income for the year | Cash flows from operating activities | Operating income | Net profit for the year | Total comprehensive income for the year | Cash flows from operating activities | |
| Yiwu JA Solar Technology Co., Ltd. | 21,154,819,542.78 | 751,402,046.83 | 751,402,046.83 | (692,274,491.39) | 24,380,321,632.80 | 985,253,239.81 | 985,253,239.81 | 1,417,730,517.59 |
?
2 Transactions that cause changes in the Group’s interests in subsidiaries that do not result in
loss of control
(1) Changes in the Group’s interests in subsidiaries:
In June 2023, a subsidiary of the Group, Yiwu JA Solar Technology Co., Ltd. (hereinafterreferred to as “Yiwu Base”), accepted an investment of RMB1 billion from ICBC Financial AssetInvestment Co., Ltd. (hereinafter referred to as “ICBC Investment”) to optimise its capitalstructure and reduce its asset-liability ratio, thereby promoting its healthy development of itsbusiness and enhancing its overall competitiveness. The funds will mainly be used to repaythe debts to financial institutions and for the production and operation. After the capital injectionfrom ICBC Investment, the Group holds 90.12% equity in Yiwu Base, and ICBC Investmentholds 9.88%. Therefore Yiwu Base is still within the consolidation scope of the Group.
In October 2023, Sino-German Manufacturing (Anhui) Investment Fund (L.P.) transferred 2.31%equity in Yangzhou Battery to JA Solar, for a consideration of RMB218,450,000.00. After thetransfer, the Group holds 71.16% equity in Yangzhou Battery, China Orient Asset ManagementCo., Ltd. holds 23.07%, ABC Financial Asset Investment co., Ltd. holds 5.77%. YangzhouBattery is still within the consolidation scope of the Group.
In November 2023, JA Solar acquired all the shares of Xingtai Jinglong PV Materials Co., Ltd.held by Shanghai HIUV New Materials Co., Ltd. (a non-controlling shareholder) with aconsideration of RMB10,552,334.60. After the acquisition, the Group holds 100% equity inXingtai Jinglong PV Materials Co., Ltd.
(2) Impact from transactions with non-controlling interests and equity attributable to the
shareholders of the Company:
| ? | Yiwu JA Solar Technology Co., Ltd. | JA Solar Technology Yangzhou Co., Ltd. | Xingtai Jinglong PV Materials Co., Ltd. |
| Acquisition cost - Cash | 1,000,000,000.00 | 218,450,000.00 | 10,552,334.60 |
| Less: share of net assets in subsidiaries based on the shares disposed | 658,171,499.74 | 183,390,282.60 | 16,496,143.18 |
| Difference | 341,828,500.26 | 35,059,717.40 | (5,943,808.58) |
| Including: Adjustment on capital reserve | 341,828,500.26 | 35,059,717.40 | (5,943,808.58) |
3 Interests in joint ventures or associates
| Item | 31 December 2023 | 31 December 2022 |
| Associates | ||
| - Material associates | 632,114,368.10 | 527,998,575.22 |
| - Immaterial associates | 267,041,230.10 | 245,755,452.97 |
| Sub-total | 899,155,598.20 | 773,754,028.19 |
| Less: Provision for impairment | - | - |
| Total | 899,155,598.20 | 773,754,028.19 |
?
(1) Material associates
| Name of associate | Principal place of business | Registered place | Nature of business | Shareholding percentage (%) | Accounting treatment of investments in associates | Registered capital | |
| Direct | Indirect | ||||||
| Inner Mongolia Xinte Silicon Material Co., Ltd. | Inner Mongolia Autonomous Region | Inner Mongolia Autonomous Region | Production | 9.00 | - | Equity method | RMB3,500,000,000.00? |
?
(2) Key financial information of material associates:
| Item | 2023 | 2022 |
| Inner Mongolia Xinte Silicon Material Co., Ltd. | Inner Mongolia Xinte Silicon Material Co., Ltd. | |
| Current assets | 5,227,754,291.29 | 3,659,131,121.24 |
| Non-current assets | 8,578,206,719.71 | 8,699,660,948.05 |
| Total assets | 13,805,961,011.00 | 12,358,792,069.29 |
| ? | ? | ? |
| Current liabilities | 3,836,028,252.54 | 3,260,072,925.25 |
| Non-current liabilities | 2,946,439,779.65 | 3,208,845,565.63 |
| Total liabilities | 6,782,468,032.19 | 6,468,918,490.88 |
| ? | ? | ? |
| Non-controlling interests | - | - |
| Equity attributable to shareholders of the Company | 7,023,492,978.81 | 5,889,873,578.41 |
| ? | ? | ? |
| Group’s share of net assets | 632,114,368.10 | 530,088,622.06 |
| Adjustments | - | - |
| - Goodwill | - | - |
| - Unrealized profits of intra-group transactions | - | - |
| - Others | - | - |
| Carrying amount of equity investments in associates | 632,114,368.10 | 527,998,575.22 |
| Fair value of equity investments in associates which have quoted market prices | - | - |
| ? | ? | ? |
| Operating income | 9,078,630,667.85 | 5,035,245,094.00 |
| Net profit for the year | 2,462,815,556.75 | 2,364,113,038.35 |
| Net profit from discontinued operations | - | - |
| Other comprehensive income for the year | - | - |
| Total comprehensive income for the year | 2,462,815,556.75 | 2,364,113,038.35 |
| ? | ? | ? |
| Dividends received from associates during the year | 118,304,406.02 | - |
(3) Summarized financial information of immaterial associates:
| ? | 2023 | 2022 |
| Associates:： | ? | ? |
| Aggregate carrying amount of investments | 267,041,230.10 | 245,755,452.97 |
| Aggregate amount of share of | ? | ? |
| - Net profit | 28,201,978.01 | 27,387,853.85 |
| - Other comprehensive income | 6,535,373.91 | - |
| - Total comprehensive income | 34,737,351.92 | 27,387,853.85 |
(4) Excess loss from associates
| Name of enterprise | Accumulated unrecognized loss in prior periods | Unrecognized loss at the end of the year | Accumulated unrecognized loss at the end of the year |
| Jingguan PV Electric (Yugan Xian) Co., Ltd. | (60,320,780.55) | (30,114,495.47) | (90,435,276.02) |
?
?
The net loss of Jingguan PV Electric (Yugan Xian) Co., Ltd. for the year 2023 isRMB33,460,550.52, and has recognized an accumulated unrecovered loss ofRMB110,483,640.02. In the year 2020, the Group recognized the investment loss ofRMB9,000,000.00 according to the 90% shareholding ratio, and the remainingRMB7,333,775.87 of excess losses were recorded off the books for future reference. In 2021,the Group recognized the investment loss of RMB17,291,195.61 according to the 90%shareholding ratio. In the year 2022, the Group recognized the investment loss ofRMB35,695,809.07 according to the 90% shareholding ratio and the accumulatedRMB60,320,780.55 of excess losses were recorded off the books for future reference. In theyear 2023, the Group recognized the investment loss of RMB30,114,495.47 according to the90% shareholding ratio and the accumulated RMB90,435,276.02 of excess losses wererecorded off the books for future reference.
IX. Government grants
1 Details of government grants
2023
| Item | Amount | Presentation item | Amount recognized in profit or loss for the current period |
| Industrial development support funds | 438,157,882.60 | Other income | 438,157,882.60 |
| Fixed assets subsidy and infrastructure support funds | 74,283,138.12 | Other income | 74,283,138.12 |
| Research and development subsidy | 48,327,944.00 | Other income | 48,327,944.00 |
| Special funds | 39,693,989.85 | Other income | 39,693,989.85 |
| Electricity subsidy | 24,487,907.95 | Other income | 24,487,907.95 |
| Tax rebate support funds | 19,144,087.31 | Other income | 19,144,087.31 |
| Housing support funds | 17,178,300.00 | Other income | 17,178,300.00 |
| Project grants | 24,150,474.22 | Other income | 24,150,474.22 |
| Foreign trade subsidy | 10,699,998.84 | Other income | 10,699,998.84 |
| Job stabilization subsidy | 8,551,670.00 | Other income | 8,551,670.00 |
| Technical transformation subsidy funds | 6,703,411.13 | Other income | 6,703,411.13 |
| Land support funds | 1,318,074.00 | Other income | 1,318,074.00 |
| Loan discount subsidy | 19,894,040.02 | Financial expenses | 19,894,040.02 |
| Others (individual amount less than 1 million) | 11,337,490.06 | Other income | 11,337,490.06 |
2022
| Item | Amount | Presentation item | Amount recognized in profit or loss for the current period |
| Industrial development support funds | 75,754,120.60 | Other income | 75,754,120.60 |
| Fixed assets subsidy and infrastructure support funds | 43,792,048.20 | Other income | 43,792,048.20 |
| Research and development subsidy | 8,600,000.00 | Other income | 8,600,000.00 |
| Special funds | 25,377,959.12 | Other income | 25,377,959.12 |
| Electricity subsidy | 82,610,000.00 | Other income | 82,610,000.00 |
| Tax rebate support funds | 10,002,349.75 | Other income | 10,002,349.75 |
| Project grants | 31,559,069.61 | Other income | 31,559,069.61 |
| Foreign trade subsidy | 5,807,857.00 | Other income | 5,807,857.00 |
| Job stabilization subsidy | 12,282,609.45 | Other income | 12,282,609.45 |
| Technical transformation subsidy funds | 14,539,917.70 | Other income | 14,539,917.70 |
| Loan discount subsidy | 43,640,300.00 | Financial expenses | 43,640,300.00 |
| Others (individual amount less than 1 million) | 29,460,229.70 | Other income | 29,460,229.70 |
2 Liabilities relating to government grants
| Item | Balance at the beginning of the year | Additions during the year | Amounts recognised in non-operating income during the year | Amounts recogniesd in other income during the year | Other changes during the year | Balance at the end of the year | Related to assets/income |
| Deferred income | 611,231,908.32 | 431,810,895.00 | - | 96,836,967.90 | (49,613,101.22) | 896,592,734.20 | related to assets |
| Deferred income | - | 337,070,000.00 | - | 332,756,129.71 | - | 4,313,870.29 | related to income |
X. Risk related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in thenormal course of the Group’s operations:
- Credit risk- Liquidity risk- Interest rate risk- Foreign currency risk- Other price risks
The following mainly presents information about the Group’s exposure to each of the aboverisks and their sources, their changes during the year, and the Group’s objectives, policies andprocesses for measuring and managing risks, and their changes during the year.
The Group aims to seek appropriate balance between the risks and benefits from its use offinancial instruments and to mitigate the adverse effects that the risks of financial instrumentshave on the Group’s financial performance. Based on such objectives, the Group’s riskmanagement policies are established to identify and analyse the risks faced by the Group, toset appropriate risk limits and controls, and to monitor risks and adherence to limits. Riskmanagement policies and systems are reviewed regularly to reflect changes in marketconditions and the Group’s activities.
1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for theother party by failing to discharge an obligation. The Group is mainly exposed to credit riskarising from customers’ failure to discharge an obligation in sales on credit. The Group mainlyfaces customer credit risks caused by sales on account. Prior to the conclusion of the newcontract, the Group will evaluate the credit risk of the new customer including the externalcredit rating and bank credential letter under some circumstances (if it is available). The Groupsets a credit limit for each customer. The limit is the maximum amount unnecessary foradditional approval.
The Group quarterly monitors the existing customer credit rating and monthly reviews aginganalysis of accounts receivable to ensure that the Group’s overall credit risk is within thecontrollable range. When monitoring the credit risk of the customer, the Group will divide thecustomer into groups by their credit characteristics. Customers rated as “high risk” level will beplaced in a restricted customer list. The Group may sell goods to such customers on credit infuture periods in case of additional approval, otherwise the Group must require advancepayments of the corresponding amount.
The maximum exposure to credit risk is represented by the carrying amount of each financialasset, including derivative financial instruments, in the balance sheet. The Group does notprovide any other guarantees which would expose the Group to credit risk.
2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations thatare settled by delivering cash or another financial asset. The Group’s policy is to maintainsufficient cash to meet maturing obligations. Liquidity risk is centralized controlled by theCompany’s finance department. The finance department monitors cash balances, readilyrealizable marketable securities, and rolling forecasts of cash flows over the next 12 monthsto ensure that the Company has sufficient funds to repay debts under all reasonable forecasts.
The following tables set out the remaining contractual maturities at the balance sheet date ofthe Group’s financial liabilities, which are based on contractual undiscounted cash flows(including interest payments computed using contractual rates or, if floating, based on ratescurrent at the balance sheet date) and the earliest date the Group can be required to pay:
| Item | 2023 Contractual undiscounted cash flow | Carrying amount at balance sheet date | ||||
| Within 1 year or demand (inclusive) | More than 1 year but less than 2 years (inclusive) | More than 2 years but less than 5 years (inclusive) | More than 5 years | Total | ||
| Short-term loans | 1,062,995,428.03 | - | - | - | 1,062,995,428.03 | 978,591,075.08 |
| Bills payable | 18,609,296,613.85 | - | - | - | 18,609,296,613.85 | 18,609,296,613.85 |
| Accounts payable | 8,816,378,706.33 | - | - | - | 8,816,378,706.33 | 8,816,378,706.33 |
| Other payables | 14,369,723,054.48 | - | - | - | 14,369,723,054.48 | 14,369,723,054.48 |
| Long-term loans (including the portion due within one year) | 262,010,256.25 | 212,244,481.30 | 675,916,499.35 | 881,823,654.80 | 2,031,994,891.70 | 1,705,647,906.85 |
| Lease liabilities (including the portion due within one year) | 292,704,714.13 | 471,747,100.32 | 337,370,153.33 | 761,182,360.86 | 1,863,004,328.64 | 1,375,781,457.39 |
| Long-term payables (including the portion due within one year) | 417,614,564.83 | 215,104,698.02 | 1,620,646,959.18 | 3,357,887,011.74 | 5,611,253,233.77 | 4,359,874,503.93 |
| Other non-current liabilities (including the portion due within one year) | - | 27,235,914.00 | 56,640,000.00 | - | 83,875,914.00 | 83,875,914.00 |
| Total | 43,830,723,337.90 | 926,332,193.64 | 2,690,573,611.86 | 5,000,893,027.40 | 52,448,522,170.80 | 50,299,169,231.91 |
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| Item | 2022 Contractual undiscounted cash flow (Restated) | Carrying amount at balance sheet date | ||||
| Within 1 year or demand (inclusive) | More than 1 year but less than 2 years (inclusive) | More than 2 years but less than 5 years (inclusive) | More than 5 years | Total | ||
| Short-term loans | 1,801,452,489.98 | - | - | - | 1,801,452,489.98 | 1,787,142,065.32 |
| Derivative financial liabilities | 113,064,066.74 | - | - | - | 113,064,066.74 | 113,064,066.74 |
| Bills payable | 13,418,146,649.03 | - | - | - | 13,418,146,649.03 | 13,418,146,649.03 |
| Accounts payable | 5,155,050,686.52 | - | - | - | 5,155,050,686.52 | 5,155,050,686.52 |
| Other payables | 5,659,249,722.01 | - | - | - | 5,659,249,722.01 | 5,659,249,722.01 |
| Long-term loans (including the portion due within one year) | 495,211,612.80 | 451,113,052.53 | 688,150,142.28 | 1,102,807,776.80 | 2,737,282,584.41 | 2,257,403,597.56 |
| Lease liabilities (including the portion due within one year) | 414,293,324.48 | 146,587,193.14 | 275,824,273.25 | 685,783,146.22 | 1,522,487,937.09 | 1,031,646,335.92 |
| Long-term payables (including the portion due within one year) | 687,621,409.56 | 476,889,914.50 | 220,616,898.16 | 1,937,346,028.21 | 3,322,474,250.43 | 2,612,101,405.39 |
| Other non-current liabilities (including the portion due within one year) | 651,163,858.67 | - | 183,875,914.00 | - | 835,039,772.67 | 835,039,772.67 |
| Total | 28,395,253,819.79 | 1,074,590,160.17 | 1,368,467,227.69 | 3,725,936,951.23 | 34,564,248,158.88 | 32,868,844,301.16 |
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3 Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market interest rates. The Group’s exposure to currency riskis primarily arising from variable-rate bank balances and variable-rate borrowings. The Grouphas not yet formulated a policy to manage its interest rate risk, but the management will closelymonitor interest rate risk and use interest rate swaps when necessary to achieve the expectedinterest rate structure. Although this measure cannot completely prevent the Company frompaying the risk that the interest rate paid exceeds the current market interest rate, nor can itcompletely eliminate the cash flow risk associated with fluctuations in interest income andexpenditure, the management believes that this measure achieves a reasonable balancebetween these risks.
(1) As at 31 December, the Group held the following interest-bearing financial instruments:
Fixed rate financial instruments :
| Item | 2023 | 2022 | ||
| Financial assets | Effective interest rate | Amounts | Effective interest rate | Amounts |
| Non-current assets due within one year | 2.70%-3.99% | 2,498,637,840.30 | 2.50% - 3.60% | 268,477,657.97 |
| Long-term receivables(including the portion due within one year) | 4.57%-6.00% | 546,453,754.76 | - | - |
| Other non-current assets | 2.65%-3.55% | 2,770,570,732.73 | 2.70% - 3.99% | 4,597,104,451.98 |
| Financial liabilities | ? | ? | ||
| Short-term loans | 0-3.89% | 536,006,444.00 | 0 - 5.22% | 1,787,142,065.32 |
| Long-term loans(including the portion due within one year) | 1.00%-2.95% | 70,163,855.56 | 0 - 5.39% | 1,911,326,647.83 |
| Lease liabilities(including the portion due within one year) | 3.56%-6.70% | 1,375,781,457.39 | 4.20% - 6.70% | 1,031,646,335.92 |
| Long-term payables(including the portion due within one year) | 1.52%-4.65% | 4,359,874,503.93 | 1.52% - 4.65% | 2,612,101,405.39 |
| Debentures payable(including the portion due within one year) | 0.20%-2.00% | 8,367,890,158.50 | - | - |
| Total | ? | (8,894,054,091.59) | (2,476,634,344.51) | |
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Variable rate financial instruments:
| Item | 2023 | 2022 (Restated) | ||
| Financial assets | Effective interest rate | Amounts | Effective interest rate | Amounts |
| Cash at bank and on hand | 0-7.50% | 15,988,433,550.07 | 0 - 5.10% | 12,183,639,319.53 |
| Financial liabilities | - | - | ||
| Short-term loans | LPR-0.25% | 105,938,435.17 | - | - |
| Short-term loans | LPR-0.43% | 2,001,650.00 | - | - |
| Short-term loans | LPR-0.45% | 80,095,206.26 | - | - |
| Short-term loans | LPR-0.55% | 112,098,527.86 | - | - |
| Short-term loans | PBOC benchmark lending rate+10% | 1,544,400.00 | - | - |
| Short-term loans | LPR-0.20% | 140,906,411.79 | - | - |
| Long-term loans(including the portion due within one year) | LPR | 10,009,777.78 | 3M LIBOR + 2.75% | 346,076,949.73 |
| Long-term loans(including the portion due within one year) | LPR-0.43% | 298,255,627.78 | - | - |
| Long-term loans(including the portion due within one year) | LPR-0.45% | 901,617,423.41 | - | - |
| Long-term loans(including the portion due within one year) | LPR-0.95% | 99,596,026.70 | - | - |
| Long-term loans(including the portion due within one year) | PBOC benchmark lending rate+10% | 167,638,131.70 | - | - |
| Long-term loans(including the portion due within one year) | LPR-1.40% | 50,000,000.00 | - | - |
| Long-term loans(including the portion due within one year) | LPR+5.00% | 43,040,000.00 | - | - |
| Long-term loans(including the portion due within one year) | LPR-0.20% | 59,679,673.22 | - | - |
| Long-term loans(including the portion due within one year) | 6MLIBOR+4% | 5,647,390.70 | - | - |
| Total | ? | 13,910,364,867.70 | 11,837,562,369.80 | |
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(2) Sensitivity analysis
As at 31 December 2023, it is estimated that a general increase/decrease of 100 basis pointsin interest rates, with all other variables held constant, would increase/decrease the Group’sequity by RMB123,802,247.33 (2022: RMB104,170,548.86 (Restated)), and net profit byRMB123,802,247.33 (2022: RMB104,170,548.86 (Restated)).
4 Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loansdenominated in foreign currencies other than the functional currency, the Group ensures thatits net exposure is kept to an acceptable level by buying or selling foreign currencies at spotrates when necessary to address short-term imbalances.
(1) As at 31 December, the Group’s exposure to currency risk arising from recognized assets or
liabilities denominated in foreign currencies is presented in the following tables. Forpresentation purposes, the amounts of the exposure are shown in Renminbi, translated usingthe spot rate at the balance sheet date. Differences resulting from the translation of thefinancial statements denominated in foreign currency are excluded.
| Item | 2023 | 2022 | ||
| Balance in foreign currency | Balance in RMB equivalent | Balance in foreign currency | Balance in RMB equivalent | |
| Cash at bank and on hand | ||||
| - USD | 408,181,587.14 | 2,891,027,727.22 | 234,696,374.78 | 1,634,566,371.82 |
| - EUR | 23,344,459.80 | 183,468,778.44 | 42,955,059.40 | 318,851,110.45 |
| - Other foreign currencies | 218,688,151.88 | 176,902,883.95 | ||
| Derivative financial assets | ||||
| - USD | 589,264.13 | 4,173,581.05 | - | - |
| Accounts receivable | ||||
| - USD | 649,998,749.76 | 4,603,746,144.90 | 436,629,119.77 | 3,040,947,167.56 |
| - EUR | 176,640,804.34 | 1,388,255,409.44 | 445,921,450.76 | 3,310,030,336.87 |
| - Other foreign currencies | 289,621,346.39 | 171,344,870.96 | ||
| Other receivables | ||||
| - USD | 92,129,104.83 | 652,522,810.79 | 62,047,650.95 | 432,137,070.03 |
| - EUR | 2,296,123.53 | 18,045,694.05 | 1,272,961.15 | 9,449,063.35 |
| - Other foreign currencies | 8,500,448.37 | 19,982,509.53 | ||
| Short-term loans | ||||
| - EUR | 1,800,582.75 | 14,151,139.95 | 40,238,634.63 | 298,687,361.03 |
| Derivative financial liabilities | ||||
| - USD | - | - | 9,130,633.92 | 63,591,213.00 |
| Accounts payable | ||||
| - USD | 76,566,780.61 | 542,299,537.00 | 98,151,169.05 | 683,583,631.98 |
| - EUR | 2,356,668.40 | 18,521,528.25 | 7,655,261.50 | 56,824,240.61 |
| - Other foreign currencies | 23,921,301.92 | 26,693,581.29 | ||
| Other payables | ||||
| - USD | 153,987,232.21 | 1,090,645,369.57 | 120,921,748.67 | 842,171,610.77 |
| - EUR | 6,686,211.00 | 52,548,269.52 | 8,822,182.58 | 65,486,179.05 |
| - Other foreign currencies | 138,992,391.64 | 82,588,919.99 | ||
| Long-term loans (including the portion due within one year) | ||||
| - USD | - | - | 48,759,270.04 | 339,588,812.09 |
| - Other foreign currencies | 35,775,190.70 | 39,211,573.46 | ||
| Gross balance sheet exposure | ||||
| - USD | 920,344,693.04 | 6,518,525,357.39 | 456,410,323.83 | 3,178,715,341.57 |
| - EUR | 191,437,925.52 | 1,504,548,944.21 | 433,433,392.60 | 3,217,332,729.98 |
| - Other foreign currencies | 318,121,062.38 | 219,736,189.70 | ||
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(2) The following are the exchange rates for Renminbi against foreign currencies applied by the
Group:
| ? | Average rate | Balance sheet date mid-spot rate | ||
| ? | 2023 | 2022 | 2023 | 2022 |
| USD | 7.0467 | 6.7261 | 7.0827 | 6.9646 |
| EUR | 7.6425 | 7.0721 | 7.8592 | 7.4229 |
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(3) Sensitivity analysis
Assuming all other risk variables remained constant, a 5% strengthening of the Renminbiagainst other foreign currencies at 31 December would have decreased / increased theshareholders’ equity and net profit by the amount shown below, whose effect is in Renminbiand translated using the spot rate at the year-end date:
| ? | Shareholders’ equity | Net profit |
| As at 31 December 2023 | ||
| Increase by 5% | (372,959,265.23) | (372,959,265.23) |
| Decrease by 5% | 372,959,265.23 | 372,959,265.23 |
| As at 31 December 2022 | ||
| Increase by 5% | (290,146,415.34) | (290,146,415.34) |
| Decrease by 5% | 290,146,415.34 | 290,146,415.34 |
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A 5% weakening of the Renminbi against other foreign currencies at 31 December would havehad the equal but opposite effect to the amounts shown above, on the basis that all othervariables remained constant.
5 Other price risks
Other price risk refers to the risk that the fair value or future cash flow of financial instrumentswill fluctuate due to changes in market prices other than exchange rate risk and interest raterisk. The Group did not hold equity investments in other listed companies in the year 2023.
XI. Fair value disclosure
The following table presents the fair value information and the fair value hierarchy, at the endof the current reporting period, of the Group’s assets and liabilities which are measured at fairvalue at each balance sheet date on a recurring or non-recurring basis. The level in which fairvalue measurement is categorized is determined by the level of the fair value hierarchy of thelowest level input that is significant to the entire fair value measurement. The levels are definedas follows:
Level 1 inputs: unadjusted quoted prices in active markets that are observable at the
measurement date for identical assets or liabilities;
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly observable
for underlying assets or liabilities;
Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.
1 Fair value of assets and liabilities measured at fair value at the end of the year
| Item | Note | 31 December 2023 | |||
| Level 1 Fair value measurement | Level 2 Fair value measurement | Level 3 Fair value measurement | Total | ||
| Recurring fair value measurements | ? | ||||
| Receivables under financing | V.5 | - | - | 831,601,690.24 | 831,601,690.24 |
| Investments in other equity instruments | V.14 | - | - | 99,664,681.07 | 99,664,681.07 |
| Derivative financial assets | V.2? | - | 11,847,761.02 | - | 11,847,761.02 |
| Total assets measured at fair value on a recurring basis | ? | - | 11,847,761.02 | 931,266,371.31 | 943,114,132.33 |
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| Item | Note | 31 December 2022 | |||
| Level 1 Fair value measurement | Level 2 Fair value measurement | Level 3 Fair value measurement | Total | ||
| Recurring fair value measurements | ? | ||||
| Receivables under financing | V.5 | - | - | 738,795,367.11 | 738,795,367.11 |
| Investments in other equity instruments | V.14 | - | - | 32,500,800.00 | 32,500,800.00 |
| Total assets measured at fair value on a recurring basis | ? | - | - | 771,296,167.11 | 771,296,167.11 |
| Derivative financial liabilities | V.24? | - | 113,064,066.74 | - | 113,064,066.74 |
| Total liabilities measured at fair value on a recurring basis | ? | - | 113,064,066.74 | - | 113,064,066.74 |
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2 Valuation techniques used and the qualitative and quantitative information of key parameters
for recurring and non-recurring fair value measurements categorized within Level 2
The Company uses the input value verified by the market as the basis for determining the fairvalue of the second-level financial assets.
3 Valuation techniques used and the qualitative and quantitative information of key parameters
for recurring and non-recurring fair value measurements categorized within Level 3
The Company uses the unobservable input value as the basis for determining the fair value ofthe third-level financial assets.
The Company's receivables under financing for items measured at fair value in Level 3 is bankacceptance bills. These bills will mature in a relatively short period of time, and there is nosignificant difference between their carrying amount and fair value. The fair value is based onthe carrying value of the bank acceptance bills.
The Company's investments in other equity instruments measured at fair value in Level 3 arethe equity interests in Yonz Technology Co., Ltd., Nordkette (SuZhou) Intelligent EquipmentCo.,Ltd. and Duowei Union Group Co., Ltd. The fair value of investments in other equityinstruments is based on the fair value of the initial investment consideration in the investee andadjustments to the cost of investment from the investee's operations.
XII. Related parties and related party transactions
1 Information about the parent of the Company
| Company name | Registered place | Business nature | Registered capital (RMB’0000) | Shareholding percentage (%) | Percentage of voting rights (%) |
| Dongtai Jingtaifu Technology Co., Ltd. | Dongtai, Jiangsu | Investment | 3,000.00 | 47.35 | 47.35 |
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The parent company of the Company is Dongtai Jingtaifu Technology Co., Ltd., and theultimate controlller of the Company is Jin Baofang.
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Group, refer to Note VIII. Interests in other entities.
3 Information about joint ventures and associates of the Company
For information about the joint ventures and associates of the Group, refer to Note VIII.Interests in other entities. Joint ventures and associates that have related party transactionswith the Group during this year or the previous year are as follows:
| Name of entity | Relationship with the Company |
| JA Solar PV Electric (Lincheng) Co., Ltd. | Associates of the Group |
| Fukushima Nakamori Power Plant Contract Company | Associates of the Group |
| Jingguan PV Electric (Yugan Xian) Co., Ltd. | Associates of the Group |
| Suzhou JSolar Incorporated | Associates of the Group |
| Inner Mongolia Xinte Silicon Material Co., Ltd. | Associates of the Company |
| Yuhong JA New Energy Technology Co., Ltd. | Associates of the Group |
| Datang Angli (Lingwu) New Energy Co., Ltd. | Associates of the Group |
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4 Information on other related parties
| Name of other related parties | Related party relationship |
| Jinglong Industrial Group Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong (Anhui) Property Co., Ltd. | Company controlled by the same ultimate controller |
| Ningjin County Jinglong Hotel Co., Ltd. | Company controlled by the same ultimate controller |
| Yiwu Hongyang Catering Management Co., Ltd. | Company controlled by the same ultimate controller |
| Hefei Dinghong Catering Management Co., Ltd. | Company controlled by the same ultimate controller |
| Yangzhou Hongkang Catering Management Co., Ltd. | Company controlled by the same ultimate controller |
| Xingtai Jingning Catering Management Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong Catering Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong Property Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong (Hebei) Property Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong (Jiangsu) Property Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong (Zhejiang) Property Co., Ltd. | Company controlled by the same ultimate controller |
| Yunnan Jinglong Property Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong (Lianyungang) Property Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong (Inner Mongolia) Property Co., Ltd. | Company controlled by the same ultimate controller |
| Sanhe Lewanjia Trading Co., Ltd. | Company controlled by the same ultimate controller |
| Ningjin Jinglong Small Loan Co., Ltd. | Company controlled by the same ultimate controller |
| Sunshine Silicon Peak Electronic Technology Co., Ltd. | Company controlled by the same ultimate controller |
| JASO HOLDINGS LIMITED | Company controlled by the same ultimate controller |
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| Name of other related parties (continued) | Related party relationship |
| Hebei Jinglong Logistics Co., Ltd. | Company controlled by the same ultimate controller |
| Qujing Dinghong Catering Management Co., Ltd. | Company controlled by the same ultimate controller |
| Sanhe Huadian Yili Technology And Trade Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong Technology Holdings Limited | Company controlled by the same ultimate controller |
| Ningjin County Xinghe Real Estate Development Co., Ltd. | Company controlled by the same ultimate controller |
| Yiwu Jinghong Supermarket Co., Ltd. | Company controlled by the same ultimate controller |
| Baotou Hongyang Catering Management Co., Ltd. | Company controlled by the same ultimate controller |
| Ningjin County Jingdian Jingwei Pastry Co., Ltd. | Company controlled by the same ultimate controller |
| Ningjin County Chengzhi Trading Co., Ltd. | Company controlled by the same ultimate controller |
| Sanhe Jingning Catering Co., Ltd. | Company controlled by the same ultimate controller |
| Ningjin County Dinggao Trading Co., Ltd. | Company controlled by the same ultimate controller |
| Hebei Jinglong Human Resource Service Co., Ltd. | Company controlled by the same ultimate controller |
| Hebei Jinglong Hotel Co., Ltd. | Company controlled by the same ultimate controller |
| Tianjin Jinfeng Logistics Co., Ltd. | Company controlled by the same ultimate controller |
| Yangzhou Jinglefu Supermarket Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong (Xingtai) Property Co., Ltd. (Formerly known as “Jinglong Property (Xingtai) Co., Ltd.”) | Company controlled by the same ultimate controller |
| Hebei Jingning Elderly Care Service Co., Ltd. | Company controlled by the same ultimate controller |
| Xingtai Hongfan Trading Co., Ltd. | Company controlled by the same ultimate controller |
| Bank of Xingtai Co., Ltd. | Company invested by the ultimate controller |
| Xinte Energy Co., Ltd. | Company invested by the ultimate controller |
| Xinjiang Xinte Crystalline Silicon High-tech Co., Ltd. | Company invested by the ultimate controller |
| Name of other related parties (continued) | Related party relationship |
| Ningjin County Heilonggang Construction and Installation Co., Ltd. | Company under the significant influence of close relatives of executives |
| Yuhong JA New Energy Technology (Tianjin) Co., Ltd. | Subsidiary of associates |
| Baotou Jinglong Hotel Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong (Shijiazhuang) Catering Management Co., Ltd. | Company controlled by the same ultimate controller |
| Yangzhou Jinglong Catering Management Co., Ltd. | Company controlled by the same ultimate controller |
| Lianyungang Jingkanghong Catering Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong (Qujing) Catering Co., Ltd. | Company controlled by the same ultimate controller |
| Jinglong (Dongtai) Catering Management Co., Ltd. | Company controlled by the same ultimate controller |
| Baotou Jinghong Trading Co., Ltd. | Company controlled by the same ultimate controller |
| Yancheng Jiwa New Material Technology Co., Ltd. | Subsidiary of associates |
| Xinte Silicon-based New Material Co., Ltd. | Company invested by the ultimate controller |
| Jinglong (Dongtai) Property Co., Ltd. | Company controlled by the same ultimate controller |
| Ningjin County Jingyuan New Energy Investment Co., Ltd. | Company controlled by the same ultimate controller |
| Donghai County Longhai Real Estate Co., Ltd. | Company controlled by the same ultimate controller |
| Beijing Sunshine Jinglong Technology and Trade Co., Ltd. | Company controlled by the same ultimate controller |
5 Transactions with related parties
(1) Purchase of goods/receiving of services (excluding remuneration of key management
personnel)
| Name of related party | Nature of transaction | 2023 | 2022 |
| Bank of Xingtai Co., Ltd. | Interest and handling fees | 1,625,358.78? | 9,228,606.96 |
| Qujing Dinghong Catering Management Co., Ltd. | Procurement of services | 15,802,827.00? | 13,253,101.00 |
| Sanhe Lewanjia Trading Co., Ltd. | Procurement of services | - | 272,210.03 |
| Ningjin County Heilonggang Construction and Installation Co., Ltd. | Procurement of services | 299,026.61 | 1,645,929.03 |
| Hebei Jinglong Logistics Co., Ltd. | Procurement of services | 149,087,669.47 | 92,089,495.50 |
| Jinglong Industrial Group Co., Ltd. | Procurement of services | 227,690.15 | 63,736.28 |
| Sanhe Jingning Catering Co., Ltd. | Procurement of services | 76,625.00 | 1,692,627.37 |
| Yiwu Hongyang Catering Management Co., Ltd. | Procurement of services | 27,066,722.25 | 26,479,814.19 |
| Baotou Hongyang Catering Management Co., Ltd. | Procurement of services | 9,545,937.00 | 4,235,148.95 |
| Hefei Dinghong Catering Management Co., Ltd. | Procurement of services | 20,284,857.00 | 11,775,588.00 |
| Tianjin Jinfeng Logistics Co., Ltd. | Procurement of services | 90,206,008.53 | 54,364,370.33 |
| Yangzhou Hongkang Catering Management Co., Ltd. | Procurement of services | 19,660,582.58 | 21,518,896.78 |
| Jinglong (Anhui) Property Co., Ltd. | Procurement of services | 7,895.43 | 30,723.37 |
| Jinglong Catering Co., Ltd. | Procurement of services | 17,451,911.67 | 10,538,525.00 |
| Hebei Jinglong Human Resource Service Co., Ltd. | Procurement of services | 408,098.26 | 205,883.65 |
| Hebei Jinglong Hotel Co., Ltd. | Procurement of services | 1,328,892.27 | 949,832.58 |
| Xingtai Jingning Catering Management Co., Ltd. | Procurement of services | 16,423,184.86 | 8,909,610.15 |
| Ningjin County Jinglong Hotel Co., Ltd. | Procurement of services | 52,503.96 | 409,747.08 |
| Yuhong JA New Energy Technology (Tianjin) Co., Ltd. | Procurement of services | 51,440,459.56 | - |
| Jinglong Property Co., Ltd. | Procurement of services | 12,182.55 | - |
| Baotou Jinglong Hotel Co., Ltd. | Procurement of services | 70,379.61 | - |
| Jinglong (Shijiazhuang) Catering Management Co., Ltd. | Procurement of services | 3,628,664.20 | - |
| Yangzhou Jinglong Catering Management Co., Ltd. | Procurement of services | 3,247,451.17 | - |
| Lianyungang Jingkanghong Catering Co., Ltd. | Procurement of services | 635,621.87 | - |
| Jinglong (Qujing) Catering Co., Ltd. | Procurement of services | 4,175,593.35 | - |
| Jinglong (Dongtai) Catering Management Co., Ltd. | Procurement of services | 6,444,271.48 | - |
| Xinte Energy Co., Ltd. | Procurement of materials | 654,958,937.96 | 1,688,811,858.44 |
| Inner Mongolia Xinte Silicon Material Co., Ltd. | Procurement of materials | 3,696,235,710.83 | 1,022,527,433.56 |
| Xinjiang Xinte Crystalline Silicon High-tech Co., Ltd. | Procurement of materials | 1,231,017,345.93 | 2,099,610,168.22 |
| Name of related party (continued) | Nature of transaction | 2023 | 2022 |
| Yancheng Jiwa New Material Technology Co., Ltd. | Procurement of materials | 4,531,407.30 | - |
| Xinte Silicon-based New Material Co., Ltd. | Procurement of materials | 197,028,318.60 | - |
| Sanhe Huadian Yili Technology And Trade Co., Ltd. | Rental and property management fees | - | 1,079,194.34 |
| Jinglong (Xingtai) Property Co., Ltd. | Rental and property management fees | 3,389,434.00 | 1,363,449.79 |
| Jinglong Technology Holdings Limited | Rental and property management fees | 2,170,098.12 | 2,455,592.93 |
| Jinglong (Jiangsu) Property Co., Ltd. | Rental and property management fees | 9,185,369.76 | 6,862,753.00 |
| Jinglong (Hebei) Property Co., Ltd. | Rental and property management fees | 1,535,173.63 | 4,578,204.11 |
| Jinglong (Zhejiang) Property Co., Ltd. | Rental and property management fees | 7,812,073.23 | 7,043,740.40 |
| Jinglong (Inner Mongolia) Property Co., Ltd. | Rental and property management fees | 3,345,542.14 | 1,534,512.94 |
| Jinglong (Lianyungang) Property Co., Ltd. | Rental and property management fees | 2,073,834.88 | 1,831,157.24 |
| Yunnan Jinglong Property Co., Ltd. | Rental and property management fees | 7,174,992.07 | 2,556,722.48 |
| Jinglong Property Co., Ltd. | Rental and property management fees | 2,966,436.27 | 5,553,714.22 |
| Jinglong (Anhui) Property Co., Ltd. | Rental and property management fees | 2,799,730.90 | 2,487,146.44 |
| Jinglong (Dongtai) Property Co., Ltd. | Rental and property management fees | 3,925,247.87 | - |
| Ningjin County Jingdian Jingwei Pastry Co., Ltd. | Procurement of goods | 153,984.70 | 174,417.00 |
| Ningjin County Jinglong Hotel Co., Ltd. | Procurement of goods | 442,859.00 | 899,353.00 |
| Hebei Jinglong Hotel Co., Ltd. | Procurement of goods | 2,571,452.69 | 543,177.00 |
| Xingtai Hongfan Trading Co., Ltd. | Procurement of goods | 734.00 | 3,665.50 |
| Yangzhou Jinglefu Supermarket Co., Ltd. | Procurement of goods | 162,782.89 | 60,310.60 |
| Ningjin County Chengzhi Trading Co., Ltd. | Procurement of goods | 14,842.00 | 36,747.00 |
| Ningjin County Dinggao Trading Co., Ltd. | Procurement of goods | 2,730,041.71 | 947,410.00 |
| Yiwu Jinghong Supermarket Co., Ltd. | Procurement of goods | 465,798.80 | 82,805.59 |
| Jinglong Catering Co., Ltd. | Procurement of goods | 36,600.00 | - |
| Jinglong Property Co., Ltd. | Procurement of goods | 35,761.60 | - |
| Yiwu Hongyang Catering Management Co., Ltd. | Procurement of goods | 5,349.50 | - |
| Baotou Jinghong Trading Co., Ltd. | Procurement of goods | 21,374.24 | - |
| Jinglong (Qujing) Catering Co., Ltd. | Procurement of goods | 11,040.00 | - |
| Qujing Dinghong Catering Management Co., Ltd. | Procurement of goods | 410,450.00 | - |
| Xingtai Jingning Catering Management Co., Ltd. | Procurement of goods | 1,909.44 | - |
| Total | 6,276,425,048.67 | 5,108,707,380.05 |
(2) Sale of goods/rendering of services
| Name of related party | Nature of transaction | 2023 | 2022 |
| Bank of Xingtai Co., Ltd. | Interest income | 1,504,393.04 | 1,898,535.03 |
| Jingguan PV Electric (Yugan Xian) Co., Ltd. | Sale of goods | 1,374,848.68 | (5,436,645.00) |
| Sanhe Lewanjia Trading Co., Ltd. | Sale of goods | 6,293.85 | 20,341.79 |
| Ningjin Jinglong Small Loan Co., Ltd. | Sale of goods | - | 176.99 |
| Yuhong JA New Energy Technology Co., Ltd. | Sale of goods | 516,515,263.28 | 222,647,416.95 |
| JA Solar PV Electric (Lincheng) Co., Ltd. | Sale of goods | - | 581,365.49 |
| Xinte Energy Co., Ltd. | Sale of goods | 54,557.52 | 17,208.70 |
| Hebei Jinglong Logistics Co., Ltd. | Sale of goods | 344,992.49 | 10,006.20 |
| Jinglong Industrial Group Co., Ltd. | Sale of goods | 135,163.05 | 3,982.31 |
| Jinglong Property Co., Ltd. | Sale of goods | 1,017.69 | 3,379.11 |
| Inner Mongolia Xinte Silicon Material Co., Ltd. | Sale of goods | - | 35,935.81 |
| Xingtai Jingning Catering Management Co., Ltd. | Sale of goods | - | 663.71 |
| Ningjin County Dinggao Trading Co., Ltd. | Sale of goods | - | 442.48 |
| Ningjin County Jinglong Hotel Co., Ltd. | Sale of goods | - | 1,969.02 |
| Hebei Jinglong Hotel Co., Ltd. | Sale of goods | 4,619.46 | - |
| Jinglong (Anhui) Property Co., Ltd. | Rendering of services | 484,475.11 | 290,222.64 |
| Fukushima Nakamori Power Plant Contract Company | Rendering of services | 602,689.52 | 613,594.16 |
| Yiwu Hongyang Catering Management Co., Ltd. | Rendering of services | 159,077.82 | 295,734.43 |
| Jinglong (Hebei) Property Co., Ltd. | Rendering of services | 59,687.78 | 346,636.99 |
| Baotou Jinglong Hotel Co., Ltd. | Rendering of services | 780,483.80 | - |
| Heifei Dinghong Catering Management Co., Ltd. | Rendering of services | 93,577.98 | - |
| Jinglong (Inner Mongolia) Property Co., Ltd. | Rendering of services | 236,240.90 | - |
| Jinglong (Dongtai) Catering Management Co., Ltd. | Rendering of services | 60,311.06 | - |
| Total | 522,417,693.03 | 221,330,966.81 |
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(3) Leases
As the lessee:
| Name of lessor | Type of assets leased | Short-term rental expense and low-value lease expense, to which the practical expedient is applied | Rental paid | Interest expenses incurred on lease liabilities | Increased right-of-use assets | ||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||
| Jinglong Technology Holdings Limited | Plant and buildings, transportation vehicles | 435,495.51 | 381,365.82 | 19,103,709.40 | 18,378,454.00 | 382,221.49 | 1,080,688.53 | - | 3,808,227.01 |
| Jinglong Industrial Group Co., Ltd. | Land use rights, buildings, equipment, machinery equipment | 1,683,225.16 | 5,421,484.72 | 52,764,777.48 | 53,674,713.07 | 1,683,144.95 | 3,776,243.64 | 21,310,761.96 | (45,906,371.01) |
| Sanhe Huadian Yili Technology And Trade Co., Ltd. | Plant and buildings | 3,725,037.48 | - | 3,847,384.17 | 13,218,821.04 | 294,752.80 | 888,538.62 | - | (2,620,919.31) |
| Sunshine Silicon Peak Electronic Technology Co., Ltd. | Machinery and equipment | 4,800,000.00 | - | 5,961,809.23 | 32,800,000.00 | 169,656.94 | 1,979,361.53 | - | (9,766,777.58) |
| Hebei Jinglong Logistics Co., Ltd. | Transportation vehicles | 1,561,254.12 | 31,380.00 | 1,999,952.34 | 267,075.09 | 13,598.55 | 8,443.70 | 354,446.79 | (513,518.91) |
| Total | 12,205,012.27 | 5,834,230.54 | 83,677,632.62 | 118,339,063.20 | 2,543,374.73 | 7,733,276.02 | 21,665,208.75 | (54,999,359.80) | |
(4) Guarantees with related parties
(a) The Group does not act as a guarantor for the year.
(b) The Group as the guarantee holder
| Name of guarantor | Amount of guarantee | Inception date of guarantee | Maturity date of guarantee | Guarantee expired (Y/N) |
| Sanhe Huadian Yili Technology And Trade Co., Ltd. | 210,000,000.00 | 01/04/2022 | 15/03/2023 | N |
(5) Funding from related parties
| Name of related party | Amount of funding | Inception date | Maturity date |
| Funds received | |||
| Sunshine Silicon Peak Electronic Technology Co., Ltd. | 33,000,000.00 | 08/11/2022 | 06/04/2023 |
| Donghai County Longhai Real Estate Co., Ltd. | 2,000,000.00 | 21/09/2022 | 06/04/2023 |
| Donghai County Longhai Real Estate Co., Ltd. | 15,000,000.00 | 05/05/2022 | 06/04/2023 |
| Donghai County Longhai Real Estate Co., Ltd. | 7,000,000.00 | 09/03/2022 | 07/04/2023 |
| Total | 57,000,000.00 | ||
(6) Fund usage fees and guarantee fee paid to the related parties
| Name of related party | Nature of transaction | Current period | Prior period |
| JASO HOLDINGS LIMITED | Guarantee fee | 10,293,764.83? | 12,238,027.37 |
| Sanhe Huadian Yili Technology And Trade Co., Ltd. | Guarantee fee | 2,100,000.00 | 3,975,000.00 |
| Dongtai Jingtaifu Technology Co., Ltd. | Guarantee fee | 1,716,657.53? | 1,749,945.21 |
| Jinglong Technology Holdings Limited | Guarantee fee | 420,273.97? | 3,985,616.44 |
| Jinglong Industrial Group Co., Ltd. | Guarantee fee | -? | 6,429,166.67 |
| Total | 14,530,696.33? | 28,377,755.69 |
(7) Transfer of assets and debt restructuring between related parties
| Name of related party | Nature of transaction | 2023 | 2022 |
| Ningjin County Jingyuan New Energy Investment Co., Ltd. | Acquire 100% equities of Shijiazhuang JA PV Technology Co., Ltd. (formerly known as Shijiazhuang Jinglong Electronic Materials Co., Ltd.) | 56,000,000.00 | - |
| Jinglong Industrial Group Co., Ltd. | Disposal of equipment | 90,086.44 | 32,446.56 |
| Jinglong Property Co., Ltd. | Disposal of equipment | 789.31 | - |
| Hebei Jingning Elderly Care Service Co., Ltd. | Disposal of equipment | - | 40,480.00 |
| Hebei Jinglong Hotel Co., Ltd. | Disposal of equipment | - | 10,000.00 |
| Ningjin County Xinghe Real Estate Development Co., Ltd. | Disposal of equipment | 176.99 | - |
| Sanhe Huadian Yili Technology And Trade Co., Ltd. | Disposal of equipment | 6,686.22 | - |
| Jinglong Industrial Group Co., Ltd. | Procurement of equipment | 26,548.67 | -? |
| Yuhong JA New Energy Technology Co., Ltd. | Procurement of equipment | - | 186,902.65 |
| Suzhou JSolar Incorporated | Procurement of equipment | - | 37,207,998.25 |
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(8) Remuneration of key management personnel
| Item | 2023 | 2022 |
| Remuneration of key management personnel | 56,560,196.57 | 34,823,846.59 |
| Share-based payments for key management personnel | 28,423,921.66 | 29,190,803.77 |
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6 Receivables from and payables to related parties
(1) Receivables from related parties
| Item | Related party | 2023 | 2022 | ||
| Book value | Provision for bad and doubtful debts | Book value | Provision for bad and doubtful debts | ||
| Cash at bank and on hand | Bank of Xingtai Co., Ltd. | 76,358,206.21 | - | 270,585,091.48 | - |
| Accounts receivable | Jingguan PV Electric (Yugan Xian) Co., Ltd. | 66,006,736.00 | 23,606,556.80 | 76,006,736.11 | 12,176,527.86 |
| Jinglong Industrial Group Co., Ltd. | 2,970.00 | 29.70 | 26,664.61 | 266.65 | |
| Yuhong JA New Energy Technology Co., Ltd. | 7,873,424.10 | 82,635.74 | 1,015,860.93 | 10,158.61 | |
| Jinglong Property Co., Ltd. | - | - | 600.00 | 6.00 | |
| Ningjin County Jinglong Hotel Co., Ltd. | - | - | 1,050.00 | 10.50 | |
| Xingtai Jingning Catering Management Co., Ltd. | - | - | 750.00 | 7.50 | |
| Yiwu Hongyang Catering Management Co., Ltd. | - | - | 61,310.23 | 613.10 | |
| Jinglong (Anhui) Property Co., Ltd. | 77,224.42 | 772.24 | - | - | |
| ? | Baotou Jinglong Hotel Co., Ltd | 852,192.83 | 8,521.93 | - | - |
| Jinglong (Inner Mongolia) Property Co., Ltd. | 257,542.96 | 2,575.43 | - | - | |
| Prepayments | Xinjiang Xinte Crystalline Silicon High-tech Co., Ltd. | 42,535,200.00 | - | - | - |
| Xinte Energy Co., Ltd. | 112,836,000.00 | - | 183,720,000.00 | - | |
| Inner Mongolia Xinte Silicon Material Co., Ltd. | 74,180,337.19 | - | - | - | |
| Jinglong Technology Holdings Limited | 198,476.19 | - | 186,479.26 | - | |
| Ningjin County Dinggao Trading Co., Ltd. | - | - | 105,560.00 | - | |
| Ningjin County Jinglong Hotel Co., Ltd. | - | - | 49,388.78 | - | |
| Xinte Silicon-based New Material Co., Ltd. | 820,800.00 | - | - | - | |
| Other receivables | Jinglong Technology Holdings Limited | 13,000.00 | - | 13,000.00 | - |
| Dividends receivable | JA Solar PV Electric (Lincheng) Co., Ltd. | - | - | 2,000,000.00 | - |
| Datang Angli (Lingwu) New Energy Co., Ltd. | 3,042,037.80 | - | - | - | |
| Other non-current assets | Xinte Energy Co., Ltd. | 83,920,000.00 | - | - | - |
?
(2) Payables to related parties
| Item | Related party | 2023 | 2022 (Restated) |
| Accounts payable | Tianjin Jinfeng Logistics Co., Ltd. | 10,181,172.00 | 10,923,214.46 |
| ? | Ningjin County Heilonggang Construction and Installation Co., Ltd. | 205,678.28 | 208,749.73 |
| Jinglong Catering Co., Ltd. | 233,744.00 | - | |
| Hebei Jinglong Hotel Co., Ltd. | 33,200.00 | - | |
| Hebei Jinglong Logistics Co., Ltd. | 6,993,211.82 | 6,749,316.50 | |
| Suzhou JSolar Incorporated | 16,876,905.85 | 16,876,905.82 | |
| Xingtai Jingning Catering Management Co., Ltd. | - | 2,088,042.00 | |
| Jinglong Industrial Group Co., Ltd. | - | 2,349.40 | |
| ? | Ningjin County Jinglong Hotel Co., Ltd. | - | 20,244.00 |
| ? | Yancheng Jiwa New Material Technology Co., Ltd. | 475,805.30 | - |
| Jinglong (Zhejiang) Property Co., Ltd. | 31,273.50 | - | |
| Yiwu Hongyang Catering Management Co., Ltd. | 97,994.00 | - | |
| Yiwu Jinghong Supermarket Co., Ltd. | 3,690.00 | - | |
| Jinglong (Qujing) Catering Co., Ltd. | 1,215,564.00 | - | |
| Jinglong (Heibei) Property Co., Ltd. | 64,800.00 | - | |
| Other payables | JASO HOLDINGS LIMITED | - | 1,812,821.88 |
| Yiwu Jinghong Supermarket Co., Ltd. | 676.35 | 35,169.85 | |
| Yiwu Hongyang Catering Management Co., Ltd. | 1,742,734.12 | 1,669,024.60 | |
| Baotou Hongyang Catering Management Co., Ltd. | 3,764,007.00 | 437,391.00 | |
| Hefei Dinghong Catering Management Co., Ltd. | 2,384,538.00 | - | |
| Tianjin Jinfeng Logistics Co., Ltd. | 12,406,314.92 | 5,305,412.12 | |
| Ningjin County Heilonggang Construction and Installation Co., Ltd. | 342,041.39 | 341,494.99 | |
| ? | Jinglong (Lianyungang) Property Co., Ltd. | 367,415.54 | 520,950.00 |
| Ningjin County Dinggao Trading Co., Ltd. | 177,080.00 | - | |
| Jinglong Industrial Group Co., Ltd. | 4,458,530.01 | 132,403.42 | |
| Jinglong Catering Co., Ltd. | 1,286,890.00 | 1,705,497.00 | |
| Hebei Jinglong Human Resource Service Co., Ltd. | 93,185.02 | 22,361.99 | |
| Hebei Jinglong Hotel Co., Ltd. | 85,566.00 | 3,929.00 | |
| Hebei Jinglong Logistics Co., Ltd. | 65,117,623.42 | 23,101,629.91 | |
| ? | Fukushima Nakamori Power Plant Contract Company | 324,375.98 | 343,931.64 |
| ? | Jinglong (Anhui) Property Co., Ltd. | 631,750.34 | 6,132.08 |
| Ningjin County Jinglong Hotel Co., Ltd. | - | 112,948.00 | |
| Xingtai Jingning Catering Management Co., Ltd. | 1,369,334.00 | 378,357.00 | |
| Jinglong Property Co., Ltd. | 134,288.35 | 12,490.57 | |
| Sanhe Jingning Catering Co., Ltd. | - | 93,377.03 | |
| Sanhe Lewanjia Trading Co., Ltd. | - | 68,864.97 | |
| Sunshine Silicon Peak Electronic Technology Co., Ltd. | - | 33,940,604.15 | |
| Donghai County Longhai Real Estate Co., Ltd. | - | 24,000,000.00 | |
| Lianyungang Jingkanghong Catering Co., Ltd. | 213,248.32 | - | |
| ? | Jinglong (Inner Mongolia) Property Co., Ltd. | 1,127,509.43 | - |
| ? | Baotou jinghong Trading Co., Ltd. | 3,600.00 | - |
| ? | Yangzhou Jinglong Catering Management Co., Ltd. | 879,154.25 | - |
| Jinglong (Zhejiang) Property Co., Ltd. | 714,306.84 | - | |
| ? | Jinglong (Shijiazhuang) Catering Management Co., Ltd. | 1,491,960.00 | - |
| ? | Jinglong (Hebei) Property Co., Ltd. | 117,794.00 | - |
| Yuhong JA New Energy Technology (Tianjin) Co., Ltd. | 3,412,890.86 | - | |
| Suzhou JSolar Incorporated | 800,000.00 | - | |
| Contract liabilities | Hebei Jinglong Logistics Co., Ltd. | - | 66,376.64 |
| ? | Fukushima Nakamori Power Plant Contract Company | 361,872.55 | - |
| Lease liabilities | Jinglong Industrial Group Co., Ltd. | 13,219,821.92 | 8,981,737.23 |
| Jinglong Technology Holdings Limited | - | 23,879.71 | |
| ? | Hebei Jinglong Logistics Co., Ltd. | 175,348.26 | - |
| Non-current liabilities due within one year ? | Jinglong Industrial Group Co., Ltd. | 14,619,026.62 | 45,782,725.49 |
| Jinglong Technology Holdings Limited | - | 17,851,631.30 | |
| Hebei Jinglong Logistics Co., Ltd. | 150,497.04 | 17,931.60 |
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7 Commitments of the related parties
| Item | Related party | 2023 | 2022 |
| Procurement of goods | Xinte Energy Co., Ltd. | Note 1 | Note 1 |
| Procurement of goods | Inner Mongolia Xinte Silicon Material Co., Ltd. | ||
| Procurement of goods | Xinjiang Xinte Crystalline Silicon High-tech Co., Ltd. | ||
| Procurement of goods | Xinte Silicon-based New Material Co., Ltd. | ||
| Procurement of goods | Yancheng Jiwa New Material Technology Co., Ltd. | 6,120,000.00 | - |
| Receipt of service | Hebei Jinglong Human Resource Service Co., Ltd. | 130,000.00 | 312,245.16 |
| Receipt of service | Jinglong (Anhui) Property Co., Ltd. | 2,592,400.56 | 2,129,298.75 |
| Receipt of service | Jinglong (Hebei) Property Co., Ltd. | 908,364.00 | - |
| Receipt of service | Jinglong (Jiangsu) Property Co., Ltd. | 4,970,805.60 | 529,200.00 |
| Receipt of service | Jinglong (Lianyungang) Property Co., Ltd. | 2,160,493.24 | 2,113,800.00 |
| ?Receipt of service | Jinglong (Inner Mongolia) Property Co., Ltd. | 5,747,333.33 | 1,355,760.72 |
| ?Receipt of service | Jinglong (Zhejiang) Property Co., Ltd. | 7,500,000.00 | 9,009,059.54 |
| ?Receipt of service | Jinglong Technology Holdings Limited | 2,300,304.00 | 2,300,304.01 |
| Receipt of service | Jinglong (Xingtai) Property Co., Ltd. | 5,125,500.00 | 2,059,200.00 |
| Receipt of service | Jinglong Property Co., Ltd. | 1,630,800.00 | 4,161,422.92 |
| Receipt of service | Yuhong JA New Energy Technology (Tianjin) Co., Ltd. | 609,612.07 | 176,135.40 |
| Receipt of service | Yunnan Jinglong Property Co., Ltd. | 7,024,271.12 | 9,415,132.07 |
| Receipt of service | Ningjin County Heilonggang Construction and Installation Co., Ltd. | - | 108,231.00 |
| Rendering of services | Fukushima Nakamori Power Plant Contract Company | 298,572.57 | 310,685.20 |
| Lease out | Baotou Jinglong Hotel Co., Ltd. | 323,547.00 | - |
| Lease out | Fukushima Nakamori Power Plant Contract Company | 232,091.01 | 266,460.23 |
| Lease out | Jinglong (Inner Mongolia) Property Co., Ltd. | 107,848.83 | |
| Lease out | Jinglong (Anhui) Property Co., Ltd. | - | 334,951.20 |
| Rent in | Beijing Sunshine Jinglong Technology and Trade Co., Ltd. | 156,000.00 | - |
| Rent in | Jinglong Technology Holdings Limited | 60,000.00 | 156,000.00 |
| Rent in | Jinglong Industrial Group Co., Ltd. | 1,226,473.66 | 1,370,409.72 |
| Rent in | Hebei Jinglong Logistics Co., Ltd. | - | 94,000.00 |
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Note 1: In 2020, Donghai JA Solar, subsidiary of the Group, signed a “Strategic Cooperation
Sale and Purchase Agreement” with Xinte Energy Co., Ltd. (hereinafter referred toas “Xinte Energy”). Donghai JA Solar and other companies under its groupcompanies planned to pay Xinte Energy and its subordinate companies during theperiod from October 2020 to December 2025 to purchase 97,200 tons of primarypolysilicon, and the unit price of the product is determined by monthly negotiation,subject to the signed current contract execution confirmation. In 2021, both partiessigned a “Strategic Cooperation Sale and Purchase Agreement” to reach strategiccooperation. Donghai JA Solar and other companies under its group planned topurchase 181,000 tons of primary polysilicon from Xinte Energy and its subsidiariesfrom April 2022 to December 2026. The unit price of the product is determined bymonthly negotiation and confirmed by the execution of the signed current contract.As of 31 December 2023, a total of 183,700 (2022: 240,500) tons of primarypolysilicon is to be purchased.
XIII. Share-based payments
1 Information about share-based payments
| Total amount of equity instruments granted during the year | 82,240,200.00? |
| Total amount of equity instruments exercised during the year | 23,373,220.00 |
| Total amount of equity instruments forfeited during the year | 727,571.00 |
| Range of exercise prices and remaining contractual life of stock options outstanding at the end of the year | RMB7.89, 832,941.00 shares with a remaining maturity of 0 month; RMB17.66, 436,408.00 shares with a remaining maturity of 0 month; RMB30.21,5,470,876.00 shares with a remaining maturity of 0 month, 6,138,367.00 shares with a remaining maturity of 7 months, and 8,184,490.00 shares with a remaining maturity of 19 months; RMB21.75, 23,652,060.00 shares with a remaining maturity of 11 months, 23,652,060.00 shares with a remaining maturity of 23 months and 31,536,080.00 shares with a remaining maturity of 35 months. |
| Range of exercise prices and remaining contractual life of other equity instruments outstanding at the end of the year | RMB20.06, 1,805,160 shares with a remaining maturity of 7 months, 2,406,889 shares with a remaining maturity of 19 months; RMB14.5, 1,020,000 shares with a remaining maturity of 10 months, 1,020,000 shares with a remaining maturity of 22 months, and 1,360,000 shares with a remaining maturity of 34 months. |
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Expenses recognized during the year arising from share-based payments are as follows:
| Item | 2023 | 2022 |
| Equity-settled share-based payments | 306,762,489.43 | 232,545,033.22 |
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2 Equity-settled share-based payments
On 26 April 2023, the Proposal to Adjust the Number and Price of Interests Related to the 2022Stock Option and Restricted Stock Incentive Plan was approved at the 5th Meeting of the 6thBoard of Directors and the 5th Meeting of the 6th Supervisory Board of the Company. TheBoard of Directors has agreed to adjust the number and exercise price of the stock optionsand the number and repurchase price of the restricted shares due to the profit distribution bythe Company in 2022. Following the adjustment, the number of unvested share options grantedunder the Company's 2022 Incentive Plan has been adjusted to 20,731,300.00 shares and thenumber of unvested restricted shares has been adjusted to 6,017,200.00 shares.
On 30 August 2023, the 11th Meeting of the 6th Board of Directors approved the 2023 StockOption and Restricted Stock Incentive Plan (Draft) and its Summary, the Proposal on theManagement Measures for the Implementation and Evaluation of the 2023 Stock Option andRestricted Stock Incentive Plan of the Company, and the Proposal to Request the GeneralMeeting to Authorise the Board of Directors to Handle Matters Relating to the Equity Incentive.On 18 September 2023, the 3rd Extraordinary General Meeting of Shareholders of 2023approved the above three proposals. On 18 September 2023, the 13th Meeting of the 6th ofthe Board of Directors and the 10th Meeting of the 6th of the Supervisory Board approved theProposal for Adjustment of Matters Related to the 2023 Stock Option and Restricted StockIncentive Plan, and the Proposal for Granting Stock Options and Restricted Stock to IncentiveRecipients. In accordances to the aforementioned resolutions, the Company has implementedthe 2023 Stock Option and Restricted Stock Incentive Plan (“Incentive Plan 2023”) effective18 September 2023, and 3,400,000.00 restricted shares and 78,840,200.00 options weregranted.
(1) Method for determining the fair value of equity instruments at the grant date
Fair value of share options and model inputs are as follows:
| Item | 2023 | 2022 |
| Method for determining the fair value of equity instruments at the grant date | Calculated and confirmed according to the Black-Scholes model | Calculated and confirmed according to the Black-Scholes model |
| Method for determining the best estimate of the number fo exercizable equity instruments | Management’s best estimate? | Management’s best estimate? |
| Reasons for material differences between estimates for the current period and previous period | None? | None? |
| The cumulative amount of equity-settled share-based payments included in the capital reserves | 611,232,852.25 | 304,470,362.82 |
| The total amount of expenses recognized for the year arising from equity-settled share-based payments | 306,762,489.43 | 232,545,033.22 |
(2) Basis of determining the number of equity instruments expected to vest
At each balance sheet date during the vesting period, the best estimation is made accordingto the latest information, such as the number of employees who are granted options, and thenumber of equity instruments expected to vest is revised accordingly. On the vesting date, theestimated number is equal to the number of equity instruments that are ultimately vested.
XIV. Capital management
The Group’s primary objectives when managing capital are to safeguard its ability to continueas a going concern, so that it can continue to provide returns for shareholders, by pricingproducts and services commensurately with the level of risk and by securing access to financeat a reasonable cost.
The Group defines “capital” as including all components of shareholders’ equity. The balancesof related party transactions are not regarded by the Group as capital.
The Group’s capital structure is regularly reviewed and managed to achieve an optimalstructure and return for shareholders. Factors for the Group’s consideration include: its futurefunding requirements, capital efficiency, actual and expected profitability, expected cash flows,and expected capital expenditure. Adjustments are made to the capital structure in light ofchanges in economic conditions affecting the Group.
The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capital ratio.
XV. Significant commitments
1 Capital commitments
| Item | 2023 | 2022 |
| Signed assets procurement and assets construction contracts which are beinig executed, and the one signed or approved but not yet executed. | 8,002,287,297.17 | 4,385,980,935.62 |
2 Significant procurement commitments
For the year ended 31 December 2023, the Group did not have new significant procurementcontract. As of 31 December 2023, the undergoing significant procurement contracts are asfollows:
In October 2016, the Group and Hemlock have entered into a settlement agreement and a newsupply agreement. According to the new agreement, the Group shall purchase solar gradepolycrystalline silicon products from Hemlock on a quarterly basis until 31 October 2026. InSeptember 2020, Hemlock signed a supplementary agreement with the Group to postpone theexecution of the contract to 30 September 2027.
In September 2020, Donghai JA Solar Technology Co., Ltd. (hereinafter referred to as “DonghaiJA Solar”), a subsidiary of the Group , signed a “Strategic Cooperation Sale and PurchaseAgreement with Xinte Energy Co., Ltd. (hereinafter referred to as “Xinte Energy”). Donghai JASolar and other companies under its group companies planned to pay Xinte Energy and itssubordinate companies during the period from October 2020 to December 2025 to purchase97,200 tons of primary polysilicon. The unit price of the product is determined by monthlynegotiation and confirmed by the execution of the signed current contract. In April 2021,Donghai JA Solar, subsidiary of the Group, signed a “Strategic Cooperation Sale and PurchaseAgreement” with Xinte Energy. Donghai JA Solar and other companies under its group plannedto purchase 181,000 tons of primary polysilicon from Xinte Energy and its subsidiaries fromApril 2022 to December 2026. The unit price of the product is determined by monthlynegotiation and confirmed by the execution of the signed current contract.
In December 2020, the Group’s subsidiary Donghai JA Solar Technology Co., Ltd. (hereinafterreferred to as “Donghai JA Solar”) and Xinjiang Daquan Energy Co., Ltd. (hereinafter referredto as “Xinjiang Daquan”) signed the “Polysilicon Procurement Cooperation” on 23 December2020. Donghai JA Solar intended to purchase solar-grade polysilicon special-grade no-cleanmonocrystalline materials from Xinjiang Daquan from January 2021 to December 2023, andthe total purchase is expected to be 32,400 to 43,200 tons. The actual purchase price adoptsmonthly bargaining method, and the specific quantity and price are subject to the purchaseorder / contract reached each month. In May 2021, the Group’s subsidiary Donghai JA Solarand Xinjiang Daquan signed the “Polysilicon Procurement Cooperation” on 12 May 2021.Donghai JA Solar intended to purchase solar-grade polysilicon special-grade no-cleanmonocrystalline materials from Xinjiang Daquan from 1 July 2021 to 31 December 2025, andthe total purchase is expected to be 78,200 tons. The actual purchase price adopts monthlybargaining method, and the specific quantity and price are subject to the purchase order /contract reached each month.
The Company and Flat Glass Group Co., Ltd. (hereinafter referred to as “Flat”) signed the“Strategic Cooperation Agreement” on photovoltaic glass procurement on 30 July 2021. TheAgreement stipulated that the Company and the holding company designated by the Companyare expected to purchase approximately 230 million square meters of photovoltaic rolled glassfor modules from Flat and its designated wholly-owned holding company from 1 August 2021to 31 July 2024, and the specific order price will be determined through negotiation on amonthly basis.
The Group’s subsidiary Donghai JA Solar and Jiangsu Zhongneng Polysilicon TechnologyDevelopment Co., Ltd.(hereinafter referred to as “Jiangsu Zhongneng”) signed the “PolysiliconProcurement Framework Cooperation” on 27 May 2021. Donghai JA Solar intended topurchase granular silicon from Jiangsu Zhongneng from 1 July 2021 to 30 June 2026, and thetotal purchase is expected to be 145,800 tons. The actual purchase price adopts monthlybargaining method, and the specific quantity and price are subject to the purchase “TheContract Confirmation form” reached each month.
The Group’s subsidiary Donghai JA Solar and Asia Silicon Supply (Qinghai) Co., Ltd.(hereinafter referred to as “Asia Silicon”) signed the “Polysilicon Purchase and Sale Long OrderContract” on 24 August 2020. Donghai JA Solar intended to purchase polysilicon from AsiaSilicon from September 2020 to August 2023, and the total purchase is expected to be 19,800tons. In consideration of the Company’s future business plan, the Company fully guaranteedthe supply of raw materials, and on the basis of the above procurement contract, the Companyand Asia Silicon signed the “Supplementary Agreement for Polysilicon Purchase and SalesLong Order Contract” on 20 April 2021, to increase the purchase quantity of polysilicon materialand extend the supply period. According to the signed “Polysilicon Purchase and Sales LongOrder Contract” and supplementary agreement, Donghai JA Solar intended to purchasepolysilicon materials from Asia Silicon from September 2020 to August 2025, and the totalpurchase is expected to be 75,000 tons. The actual purchase price adopts monthly bargainingmethod, and the specific quantity and price are subject to the purchase order / contract reachedeach month.
XVI. Subsequent events
1 Material non-adjusting post balance sheet date events
On 14 March 2024, the 1st Extraordinary General Meeting of 2024 of the Company approvedthe Resolution on the Termination of the 2022 Stock Option and Restricted Stock IncentivePlan and the Cancellation of Stock Options and the Repurchase and Cancellation of RestrictedStocks, and the Proposal for Termination of the 2023 Incentive Plan and Cancellation of StockOptions and Repurchase and Cancellation of Restricted Shares. The 2022 and 2023 IncentivePlans shall be terminated, and all stock options granted but not yet exercised under the twoincentive plans shall be cancelled, all restricted stock granted but not yet vested under the twoincentive plans shall be repurchased and cancelled.
2 Profit appropriations after the balance sheet date
The Board of Director proposed on 29 April 2024, the appropriation of a cash dividend ofRMB5.63 (including tax) for every 10 shares to the Company’s ordinary shareholders, totallingRMB1,851,923,026.48. The proposal is subject to approval by the shareholders’ generalmeeting.
XVII. Other significant items
1 Segment reporting
(1) Determination basis and accounting policies of reporting segments
According to the Group’s internal organizational structure, management requirements andinternal reporting system, two reporting segments have been established, namely,manufacturing segment and power station segment. Each reporting segment of the Groupprovides different products or services, or operates in different region. As each segmentrequires different technologies or market strategies, the Group’s management separatelyoperates business activities of each reporting segment and regularly evaluates the businessresults of these reporting segments to decide on allocation of resources to them and evaluatetheir performance.
The transfer price between segments is determined on the basis of the actual transaction price,and the expenses indirectly attributable to each segment are allocated among the segmentsaccording to the proportion of revenue. Assets are allocated based on the operations of thesegments and the location of the assets. Segment liabilities include the liabilities attributableto the segment arising from the segment’s operating activities. If expenses related to liabilitiesshared by more than one operating segment are allocate to these operating segments, theshared liability is also allocated to those operating segments.
(2) Financial information about reportable segments
| Item | Manufacturing segment | Power station segment | Elimination among segments | Total |
| Total assets | 104,065,139,383.50 | 12,282,901,029.21 | (9,758,574,339.19) | 106,589,466,073.52 |
| Total liabilities | 66,781,491,477.76 | 5,623,482,819.92 | (3,819,639,208.10) | 68,585,335,089.58 |
| Total owners’ equity | 37,283,647,905.74 | 6,659,418,209.29 | (5,938,935,131.09) | 38,004,130,983.94 |
| Operating income | 83,112,397,015.53 | 1,032,114,657.74 | (2,588,334,436.29) | 81,556,177,236.98 |
| Operating costs | 68,512,730,780.01 | 610,678,268.58 | (2,350,333,488.92) | 66,773,075,559.67 |
| Net profit | 7,341,950,378.14 | 24,484,652.03 | (174,075,476.44) | 7,192,359,553.73 |
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XVIII. Notes to the Company’s financial statements
1 Accounts receivable
(1) Accounts receivable by customer type are as follows:
| Type | 2023 | 2022 |
| Amounts due from subsidiaries and related parties | 218,611,637.40 | 1,237,056,842.64 |
| Amounts due from third parties | 491,295,574.26 | 86,022,547.22 |
| Sub-total | 709,907,211.66 | 1,323,079,389.86 |
| Less: Provision for bad and doubtful debts | 15,681,489.49 | 1,225,867.02 |
| Total | 694,225,722.17 | 1,321,853,522.84 |
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(2) The ageing analysis of accounts receivable is as follows:
| Ageing | 2023 | 2022 |
| Within 6 months (inclusive) | 286,362,313.96 | 1,149,633,096.68 |
| Over 6 months but within 1 year (inclusive) | 208,599,987.82 | 173,446,293.18 |
| Over 1 year but within 2 years (inclusive) | 214,944,909.88 | - |
| Sub-total | 709,907,211.66 | 1,323,079,389.86 |
| Less: Provision for bad and doubtful debts | 15,681,489.49 | 1,225,867.02 |
| Total | 694,225,722.17 | 1,321,853,522.84 |
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The ageing is counted starting from the date when accounts receivable are recognized.
(3) Accounts receivable by provisioning method
| Category | 2023 | 2022 | ||||||||
| Book value | Provision for bad and doubtful debts | Carrying amount | Book value | Provision for bad and doubtful debts | Carrying amount | |||||
| Amount | Percentage (%) | Amount | Percentage (%) | Amount | Percentage (%) | Amount | Percentage (%) | |||
| Individual assessment | - | - | - | - | - | - | - | - | - | - |
| Collective assessment | 709,907,211.66 | 100.00 | 15,681,489.49 | 2.21 | 694,225,722.17 | 1,323,079,389.86 | 100.00 | 1,225,867.02 | 0.09 | 1,321,853,522.84 |
| Attributable to: | ? | ? | ? | ? | ? | |||||
| - Accounts receivables due from external customers (except for power grid companies) | 491,393,111.71 | 69.22 | 15,681,489.49 | 3.19 | 475,711,622.22 | 87,038,408.15 | 6.58 | 1,225,867.02 | 1.41 | 85,812,541.13 |
| - Amounts due from companies within the scope of consolidation | 218,514,099.95 | 30.78 | - | - | 218,514,099.95 | 1,236,040,981.71 | 93.42 | - | - | 1,236,040,981.71 |
| Total | 709,907,211.66 | 100.00 | 15,681,489.49 | 2.21 | 694,225,722.17 | 1,323,079,389.86 | 100.00 | 1,225,867.02 | 0.09 | 1,321,853,522.84 |
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(a) Criteria for collective assessment in 2023 and details:
Accounts receivables are classified into several portfolios based on their similar credit risk characteristics and their expected credit loss aredetermined on a collectively basis. The basis of determining the portfolios is as follows:
Portfolio 1: Accounts receivables from external customers (except for power grid companies)Portfolio 3: Amounts due from companies within the scope of consolidation
(b) Assessment of ECLs on accounts receivable:
At all times the Company measures the impairment loss for accounts receivable at anamount equal to lifetime ECLs, and the ECLs are based on the number of ageing andthe expected loss rate. According to the historical experience of the Group, the losses ofdifferent customer groups are as follows:
Portfolio 1: Accounts receivables due from external customers (except for power gridcompanies)
2023
| ? | Expected credit loss rate | Carrying amount at the end of the year | Impairment loss at the end of the year |
| Within 6 months (inclusive) | 1% | 255,864,692.06 | 2,558,646.92 |
| Over 6 months but within 1 year (inclusive) | 5% | 208,599,987.82 | 10,429,999.39 |
| Over 1 year but within 2 years (inclusive) | 10% | 26,928,431.83 | 2,692,843.18 |
| Total | ? | 491,393,111.71 | 15,681,489.49 |
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2022
| ? | Expected credit loss rate | Carrying amount at the end of the year | Impairment loss at the end of the year |
| Within 6 months (inclusive) | 1% | 78,151,334.72 | 781,513.35 |
| Over 6 months but within 1 years (inclusive) | 5% | 8,887,073.43 | 444,353.67 |
| Total | 87,038,408.15 | 1,225,867.02 |
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(4) Movements of provisions for bad and doubtful debts
| 2023 | 2022 | |
| Balance at the beginning of the year | 1,225,867.02 | 660,981.41 |
| Additions during the year | 14,455,622.47 | 564,885.61 |
| Balance at the end of the year | 15,681,489.49 | 1,225,867.02 |
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(5) Five largest accounts receivable and contract assets by debtor at the end of the year
2023
| Debtor | Balance at the end of the year | ||
| Accounts receivable | Percentage in the total balance of accounts receivable (%) | Provision for bad and doubtful debts | |
| The First | 188,016,478.05 | 26.49 | - |
| The Second | 95,967,673.76 | 13.52 | 4,133,228.35 |
| The Third | 49,423,007.16 | 6.96 | 1,778,693.81 |
| The Fourth | 45,672,398.13 | 6.43 | 1,978,853.01 |
| The Fifth | 45,325,328.61 | 6.38 | 1,640,742.68 |
| Total | 424,404,885.71 | 59.78 | 9,531,517.85 |
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2022
| Debtor | Balance at the end of the year | ||
| Accounts receivable | Percentage in the total balance of accounts receivable (%) | Provision for bad and doubtful debts | |
| The First | 792,061,761.96 | 59.87 | - |
| The Second | 443,979,219.75 | 33.56 | - |
| The Third | 15,725,317.72 | 1.19 | 157,253.18 |
| The Fourth | 13,394,159.99 | 1.01 | 133,941.60 |
| The Fifth | 11,286,190.39 | 0.85 | 112,861.90 |
| Total | 1,276,446,649.81 | 96.48 | 404,056.68 |
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2 Other receivables
| Item | Note | 2023 | 2022 |
| Dividends receivable | (1) | 2,200,000,000.00 | 100,000,000.00 |
| Others | (2) | 2,925,453,888.79 | 429,294,532.86 |
| Total | ? | 5,125,453,888.79 | 529,294,532.86 |
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(1) Dividends receivable
Dividends receivable by category:
| Investee | 2023 | 2022 |
| JA Solar | 2,200,000,000.00 | 100,000,000.00 |
(2) Others
(a) Others by customer type:
| Customer type | 2023 | 2022 |
| Amounts due from related parties | 2,900,391,000.24 | 411,247,021.08 |
| Amounts due from third parties | 25,062,888.55 | 18,047,511.78 |
| Sub-total | 2,925,453,888.79 | 429,294,532.86 |
| Less: Provision for bad and doubtful debts | - | - |
| Total | 2,925,453,888.79 | 429,294,532.86 |
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(b) The ageing analysis is as follows:
| Ageing | 2023 | 2022 |
| Within 1 year (inclusive) | 2,912,396,867.71 | 429,294,532.86 |
| Over 1 year but within 2 years (inclusive) | 13,057,021.08 | - |
| Sub-total | 2,925,453,888.79 | 429,294,532.86 |
| Less: Provision for bad and doubtful debts | - | - |
| Total | 2,925,453,888.79 | 429,294,532.86 |
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The ageing is counted starting from the date when other receivables are recognized.
(c) Others categorized by nature
| Nature of other receivables | 2023 | 2022 |
| Amounts due to/from subsidiaries | 2,900,391,000.24 | 411,247,021.08 |
| Deposits | 24,752,500.00 | 11,625,000.00 |
| Others | 310,388.55 | 6,422,511.78 |
| Total | 2,925,453,888.79 | 429,294,532.86 |
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(d) Five largest others by debtor at the end of the year
2023
| Debtor | Nature of the receivable | Balance at the end of the year | Ageing | Percentage of ending balance of others (%) | Ending balance of provision for bad and doubtful debts |
| The First | Amounts due to/from subsidiaries | 1,963,902,507.26 | Within 1 year (inclusive) | 67.13 | - |
| The Second | Amounts due to/from subsidiaries | 903,469,788.06 | Within 1 year (inclusive) | 30.88 | - |
| The Third | Amounts due to/from subsidiaries | 11,360,661.29 | Over 1 year but within 2 years (inclusive) | 0.39 | - |
| The Fourth | Deposits | 6,200,000.00 | Within 1 year (inclusive) | 0.21 | - |
| The Fifth | Amounts due to/from subsidiaries | 4,999,268.97 | Within 1 year (inclusive) | 0.17 | - |
| Total | 2,889,932,225.58 | 98.78? | - |
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2022
| Debtor | Nature of the receivable | Balance at the end of the year | Ageing | Percentage of ending balance of others (%) | Ending balance of provision for bad and doubtful debts |
| The First | Amounts due to/from subsidiaries | 411,247,021.08 | Within 1 year (inclusive) | 95.80 | - |
| The Second | Others | 6,422,511.78 | Within 1 year (inclusive) | 1.50 | - |
| The Third | Deposits | 3,200,000.00 | Within 1 year (inclusive) | 0.75 | - |
| The Fourth | Deposits | 2,400,000.00 | Within 1 year (inclusive) | 0.56 | - |
| The Fifth | Deposits | 800,000.00 | Within 1 year (inclusive) | 0.19 | - |
| Total | -? | 424,069,532.86 | ?- | 98.80 | - |
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3 Long-term equity investments
(1) Long-term equity investments by category:
| Item | 2023 | 2022 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Investments in subsidiaries | 27,141,241,312.84 | - | 27,141,241,312.84 | 17,511,557,800.57 | - | 17,511,557,800.57 |
| Investments in associates | 632,114,368.10 | - | 632,114,368.10 | 527,998,575.22 | - | 527,998,575.22 |
| Total | 27,773,355,680.94 | - | 27,773,355,680.94 | 18,039,556,375.79 | - | 18,039,556,375.79 |
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(2) Investments in subsidiaries:
| Investee | Balance at the beginning of the year | Increase during the year | Decrease during the year | Balance at the end of the year | Impairment at the end of the year |
| Hebei JA Education Technology Co., Ltd. | 160,000,000.00 | 295,000,000.00 | - | 455,000,000.00 | - |
| JA Solar | 17,048,857,383.40 | 9,036,168,662.97 | - | 26,085,026,046.37 | - |
| Long-term equity investment recognized arising from equity-settled share-based payments | 302,700,417.17 | 298,514,849.30 | - | 601,215,266.47 | - |
| Total | 17,511,557,800.57 | 9,629,683,512.27 | - | 27,141,241,312.84 | - |
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For information about the subsidiaries of the Company, refer to Note VIII.
(3) Investments in associates
| Name of investee | Balance at the beginning of the year | Increase/decrease in the current year | Balance at the end of the year | Impariment at the end of the year | ||
| Investment Gains or losses under equity method | Other changes in equity | Declared distribution of cash dividends or profits | ||||
| Associates | ? | ? | ? | ? | ? | ? |
| Inner Mongolia Xinte Silicon Material Co., Ltd. | 527,998,575.22 | 221,653,400.11 | 766,798.79 | 118,304,406.02 | 632,114,368.10 | - |
4 Operating income and operating costs
(1) Operating income and operating costs
| Item | 2023 | 2022 | ||
| Income | Cost | Income | Cost | |
| Principal activities | 10,888,372,803.67 | 10,650,056,290.77 | 15,245,486,324.74 | 15,063,465,180.70 |
| Other operating activities | 58,928,082.24 | - | 12,308,781.81 | - |
| Total | 10,947,300,885.91 | 10,650,056,290.77 | 15,257,795,106.55 | 15,063,465,180.70 |
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(2) Disaggregation of revenue from contracts with customers
| Item | 2023 | 2022 |
| Solar module | 10,888,372,803.67 | 11,641,126,370.04 |
| Others | 58,928,082.24 | 3,616,668,736.51 |
| Total | 10,947,300,885.91 | 15,257,795,106.55 |
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5 Investment income
| Item | 2023 | 2022 |
| Income from long-term equity investments accounted for using cost method | 2,200,000,000.00 | 100,000,000.00 |
| Income from long-term equity investments accounted for using equity method | 221,653,400.11 | 212,668,889.08 |
| Total | 2,421,653,400.11 | 312,668,889.08 |
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XIX. Extraordinary gains and losses in 2023
| Item | Amount | Note |
| Disposal of non-current assets | (213,483,538.13) | ?Mainly are the assets disposals through technological transformation? |
| Government grants recognized through profit or loss (excluding those having close relationships with the Group’s operation and enjoyed in fixed amount or quantity according to uniform national standard) | 627,197,400.18? | Mainly are the government grants received during the period? |
| Profit or loss of subsidiaries generated before the acquisition date of a business combination involving entities under common control | (64,717.16) | |
| Changes in fair value of financial assets and liabilities held for trading and derivative financial assets and liabilities, and disposal of financial assets and liabilities held for trading, derivative financial assets and liabilities and other debt investments, other than those held for effective hedging related to normal operations | (425,313,440.17) | Mainly are losses arising from forward sale and purchase of foreign exchange? |
| Reversal of provision for bad and doubtful debts of receivables and contract assets assessed on an individual basis | 8,711,579.54? | ? |
| Other items that qualify as extraordinary gain and loss | 2,063,434.84 | ? |
| Other non-operating income and expenses besides items above | 32,392,123.01 | ? |
| Sub-total | 31,502,842.11? | ? |
| Tax effect | (114,397,509.29)? | ? |
| Effect on non-controlling interests after taxation | (18,113,902.67)? | ? |
| Total | (101,008,569.85) | ? |
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In accordance with Interpretive Pronouncement on the Preparation of Information Disclosuresof Companies Issuing Public Shares No.1 – Extraordinary Gains and Losses (Revised in2023), an amount of RMB75,375,117.06 in the items presented by the Group as extraordinarygains and losses in 2022 should be redefined as ordinary gains and losses, and a decrease ofRMB58,698,427.68 in the Group’s total extraordinary gains and losses in 2022 after deductingthe effects on tax and non-controlling interests.
XX. Return on net assets and earnings per share
In accordance with “Regulation on the Preparation of Information Disclosures by CompaniesIssuing Securities No.9 – Calculation and Disclosure of the Return on Net Assets and EarningsPer Share” (2010 revised) issued by the CSRC and relevant accounting standards, the Group’sreturn on net assets and earnings per share are calculated as follows:
| Profit for the reporting period | Weighted average return on net assets (%) | Basic earnings per share | Diluted earnings per share |
| Net profit attributable to the Company’s ordinary equity shareholders | 22.52% | 2.14 | 2.10 |
| Net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders | 22.84% | 2.17 | 2.12 |
1 Calculation of earnings per share
(1) Basic earnings per share
For calculation of the basic earnings per share, refer to Note V.62.
(2) Basic earnings per share excluding extraordinary gain and loss
Basic earnings per share excluding extraordinary gain and loss is calculated as dividingconsolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company by the weighted average number of ordinary shares outstanding:
| 2023 | 2022 (Restated) | |
| Consolidated net profit attributable to ordinary shareholders of the Company | 7,039,490,537.23 | 5,533,792,625.25 |
| Less: Extraordinary gains and losses attributable to ordinary shareholders of the Company | (101,008,569.85) | (24,625,874.33) |
| Net profit distributed to the shareholders of restricted shares for the period | 2,363,286.24 | 832,353.90 |
| Consolidated net profit (excluding extraordinary gain and loss and net profits distributed to the shareholders of restricted shares for the period) attributable to the Company’s ordinary equity shareholders | 7,138,135,820.84 | 5,557,586,145.68 |
| Weighted average number of ordinary shares outstanding | 3,295,316,958.40 | 3,227,048,327.33 |
| Basic earnings per share excluding extraordinary gain and loss (RMB/share) | 2.17 | 1.72 |
(3) Diluted earnings per share
For calculation of the diluted earnings per share, refer to Note V.62.
(4) Diluted earnings per share excluding extraordinary gain and loss
Diluted earnings per share excluding extraordinary gain and loss is calculated as dividingconsolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company (diluted) by the weighted average number of ordinary sharesoutstanding (diluted):
| 2023 | 2022 (Restated) | |
| Consolidated net profit attributable to ordinary shareholders of the Company (diluted) | 7,137,045,335.19 | 5,533,792,625.25 |
| Less: Extraordinary gains and losses attributable to ordinary shareholders of the Company | (101,008,569.85) | (24,625,874.33) |
| Consolidated net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders (diluted) | 7,238,053,905.04 | 5,558,418,499.58 |
| Weighted average number of ordinary shares outstanding (diluted) | 3,406,373,769.25 | 3,254,952,713.45 |
| Diluted earnings per share excluding extraordinary gain and loss (RMB/share) | 2.12 | 1.71 |
2 Calculation of weighted average return on net assets
(1) Weighted average return on net assets
Weighted average return on net assets is calculated as dividing consolidated net profitattributable to ordinary shareholders of the Company by the weighted average amount ofconsolidated net assets:
| 2023 | 2022 (Restated) | |
| Consolidated net profit attributable to ordinary shareholders of the Company | 7,039,490,537.23 | 5,533,792,625.25 |
| Weighted average amount of consolidated net assets | 31,265,657,778.87 | 22,899,996,673.00 |
| Weighted average return on net assets | 22.52% | 24.17% |
Calculation of weighted average amount of consolidated net assets is as follows:
| 2023 | 2022 (Restated) | |
| Consolidated net assets at the beginning of the year | 27,534,705,796.26 | 16,523,919,103.27 |
| Effect of consolidated net profit attributable to ordinary shareholders of the Company | 3,519,745,268.62 | 2,766,896,312.63 |
| Effect of net assets attributable to ordinary shareholders of the Company increased by issuance of new shares or debt-to-equity swaps during the reporting period | - | 3,311,611,788.13 |
| Effect of net assets attributable to ordinary shareholders of the Company decreased by redemption or cash dividends during the reporting period | (397,171,270.64) | (125,483,668.41) |
| Effect of changes of net assets arising from other transactions or events | 608,377,984.63 | 423,053,137.38 |
| Weighted average amount of consolidated net assets | 31,265,657,778.87 | 22,899,996,673.00 |
(2) Weighted average return on net assets excluding extraordinary gain and loss
Weighted average return on net assets excluding extraordinary gain and loss is calculated asdividing consolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company by the weighted average amount of consolidated net assets:
| 2023 | 2022 (Restated) | |
| Consolidated net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders | 7,140,499,107.08 | 5,558,418,499.58 |
| Weighted average amount of consolidated net assets | 31,263,236,763.93 | 22,870,609,234.93 |
| Weighted average return on net assets excluding extraordinary gain and loss | 22.84% | 24.30% |