阳光电源:2022年年度报告(英文简版)

Sungrow Power Supply Co., Ltd.

2022Annual Report

Announcement No.: 2023-020

April 2023


2022Annual Report

Section I Important Notes, Contents and Definitions

The Board of Directors, the Board of Supervisors, directors, supervisors and executives of the
Company hereby guarantee that the information presented in this annual report is truthful,
accurate and integrate, free of any false records, misleading statements or material omissions,
and assume individual and joint legal liabilities thereof.

Cao Renxian as the President of the Company, Tian Shuai as the Chief Accountant, and Li
Pan as the head of accounting department (accounting supervisor) hereby guarantee the
truthfulness, integrity, and accuracy of financial statements in this annual report.

All directors have attended the board meeting to review this report.

Contents in this report concerning future plans, performance forecasts, and etc., do not
constitute any commitment made by the Company to any investor or related party. Investors
and related parties should maintain adequate risk awareness and understand the possible
difference between plans, forecasts, and commitments. Investors are kindly advised to pay
attention to investment risks.
(1) Policy-related risks

Although technologies related to renewable energy power generation are still evolving and
grid parity has been achieved in most regions around the world, there are still a few regions
where the power generation cost or the on-grid electricity price is higher than that of fossil
energy, and the unit electricity cost per kilowatt-hour from wind-solar-storage integrated
applications maintains relatively high. In addition, considering the various constraints
including grid consumption, intermittent fluctuations in new energy availability, as well as
land and taxation, policy support and encouragement from governments are still necessary.
Since the supportive policies are formulated by the governments of various countries, while
the global trend of energy conservation and emission reduction remains unchanged, major
changes in the macro economies of major markets or relevant supportive policies will affect
the growth pace of the industry and the Company’s profitability to a certain extent. To this
end, the Company actively makes global presence, and continually delves into the global
market to minimize the impact of policy fluctuations within a single country.

(2) Risk of gross margin reduction due to intensified competition

As the world's largest PV inverter manufacturer, the Company's core product, PV inverters,
enjoys an obvious market advantage. However, the huge potential of domestic and foreign
markets has also attracted fierce market competition. If the Company fails to maintain the
leading edge in technological innovation, new product development, and cost control, the
products will face the risk of gross margin declination. As such, the Company needs to further
accelerate new product upgrade and iteration through R&D innovation and increasing R&D
investment, speed up the research and application of AI technology, so as to constantly

provide customers with value-added services, delivering better customer experience, and
consolidate product advantages in the market.

(3) Risk of collecting accounts receivables

As the domestic market grows rapidly, the Company makes more efforts in product sales. In
consideration of the PV industry characteristics in China, such as subsidy arrearage, large
project amount, and long payment term, the Company's business growth at fast pace will lead
to a quick increase of receivables and certain risks in payment collection. In order to prevent
credit risks and accelerate capital turnover, the Company has formulated strict credit
management systems and sale-on-credit policies, and actively reduce the risk of
non-performing loans and bad accounts through legal actions.

(4) Risk of international trade frictions

Under the impact of intensified international trade frictions, global economy is under huge
pressure of inclination, governments are launching monetary policies and other economic
stimulation policies. While boosting the economy, such policies may cause bigger supply chain
fluctuation, logistic efficiency reduction, and cost increase. The PV industry where the
Company is in also faces short-term pressures due to changes in demand tempo. The
Company has formulated a series of defensive measures and lean production plans to actively
respond to the complicated global situation and expand the global market on the premise of
ensuring employees’ safety and health. By strengthening the global supply chain layout,
improving supply chain management capabilities, the Company makes every effort to reduce
trade frictions and other impacts, ensuring that the annual tasks are completed on time.

(5) Risk of exchange rate fluctuation

USD, AUD and EUR are the three major currencies used for the Company's overseas revenue
settlement. The impact of exchange rate fluctuations is mainly reflected in the following two
aspects: a. Because of the CNY exchange rate fluctuation, changes in operating income
measured in local currency pose a direct impact on the gross margin of main products; b.
From the moment sales revenue is confirmed and accounts receivable is generated to the
moment of collecting foreign currency, the Company is subject to exchange gains/losses from
the fluctuations in the CNY exchange rate, which also directly affects the Company's
performance. On the foundation of normal operation and relying on specific businesses, the
Company takes various means, including hedging, continuous monitoring, and timely settling
foreign currency sales to reduce exchange-related loss and control operating risks.

(6) Risks in the supply chain of semiconductor components

Semiconductors used in the Company's power electronic devices mainly include power
semiconductors and chips that are mostly sourced from overseas. With the rapid growth of
new energy vehicles, renewable energy power generation, 5G use cases, and charging
infrastructure, semiconductors are facing certain risks of short supply and price fluctuation.
To this end, the Company has made plans in anticipation, established long-term strategic
partnerships with suppliers, and locked orders in advance, so as to get hold of the industry
supply dynamics and secure the supply chain to the maximum extent.

(7) Risks in construction management of PV power station investment and development
projects

PV power station projects feature large amount of investment and short lead time. These
projects not only involve ground resources but also commercial roofs. For these projects, the
investment decision-making is quite challenging, and a lot of uncertainties exist in project
engineering and implementation, which may lead to project delays and jeopardize timely grid
connection for power generation. While challenging the Company's project management, the
projects also require a huge amount of working capital. In response to such risks, the
Company makes cautious considerations when selecting new energy power generation
projects to prioritize those with better grid connection conditions, clearly communicated
subsidy policies, controllable installed cost and higher gross profit. Meanwhile, the Company
further enhances engineering management and improves project management. After entering
into sales contracts with customers, the Company reinforces project construction
management in a timely manner, adequately communicates with customers on the progress,
and adjusts the work schedule according to the result of communication, so that the impact of
project delay on the Company's production and operation is eliminated or alleviated to the
most extent. By providing project owners with safe, efficient and intelligent PV power stations
that meet their needs, the Company's reputation in PV power station investment and
development is improved.

The board meeting has deliberated and approved the following profit distribution proposal:
Based on a base quantity of 1,478,705,935 shares, a cash dividend of CNY 2.20 per 10 shares
(tax inclusive) will be distributed to all shareholders, no bonus share (tax inclusive) will be
distributed, and no share distribution from capital reserve.


Contents


Section I Important Notes, Contents and Definitions ......2

Section II Company Profile & Key Financial Indicators......9

Section III Management’s Discussion and Analysis...... 13

Section IV Corporate Governance...... 53

Section V Environment and Social Responsibilities...... 78

Section VI Significant Events ...... 80

Section VII Changes in Shares and Information about Shareholders ...... 110

Section VIII Preference shares ...... 123
Section IX Bonds ...... 124
Section X Financial Reports...... 125

Documents for Future Reference

1. Accounting statements signed and stamped by the Legal Respective, the ChiefAccountant, and the head of the accounting

department of the Company.

2. The original Audit Report signed and stamped by the certified public accountants and stamped by the accounting firm.

3. The originals of company documents and announcements publicly disclosed on www.cninfo.com.cn during the reporting period.
4. Other relevant documents.


Definitions

Term Definition

Sungrow, the Company Sungrow Power Supply Co., Ltd.

Sungrow Renewables Sungrow Renewables Development Co., Ltd., the Company's holding
subsidiary

PV Solar photovoltaic effect, refers to the light-caused potential difference
inside uneven semiconductors or combinations of semiconductors and
metals

Inverter, PV inverter One of the critical devices in a solar PV power generation system, which
converts DC power from solar cells into AC power that meets the grid
power quality requirements

Centralized PV inverter Connecting a number of parallel PV modules to the DC input of a
centralized inverter for maximum power point tracking (MPPT), then
connecting them into the grid after inversion. With a relatively high
power, it is mainly used in large-scale centralized ground PV power
stations with uniform lighting and other centralized PV power generation
systems

String PV inverter Performing separate MPPT on several groups (in general 1 to 4 groups) of
PV modules, and connecting them into the AC grid after inversion. A
string inverter may have multiple MPPT modules. With a relatively low
small power, it is mainly used in distributed power generation systems,
and sometimes also in centralized PV power generation systems

Energy storage converter Power conversion devices between the energy storage batteries and the
AC power grid, capable of charging and discharging the batteries. They
are used in PV, power smoothing for wind power generation, peak load
shifting, micro-grid and other scenarios

Wind power converter Devices that convert the electric energy with unstable voltage frequency
and amplitude generated by wind turbine generators under the actions of
natural wind into electric energy with stable frequency and amplitude that
meets the grid requirements, and connect it to the grid

Distributed power supply Distributed power supply units, that is, small and modular standalone
power supplies ranging from several kilowatts to 50 MW that are
environment-compatible

Energy storage Storage of electrical energy

UL One of the globally renowned testing and certification bodies and


standard development bodies

A safety certification mark granted by the TüV Group to products, which
TüV

is widely recognized around the world

A certification that must be obtained by products entering the European
CE

market

A standard developed by the Italian State Power Board (Enel), which is
Enel-GUIDA

widely recognized in Italy

An Australian standard. PV modules and inverters must comply with this
AS4777 standard in order to be used in the design and installation of PV systems
in Australia

Abbreviation of the California Energy Commission. External power
CEC

supplies exported to California must obtain this certification

Canadian Standards Association, the largest non-profit organization for
CSA

defining industrial standards in Canada

One of the most experienced certification bodies in Europe with a high
VDE reputation in the world that is directly involved in developing the German
national standards

IPD Integrated product development management process

Watt (W), Kilowatt (kW), Megawatt (MW), The unit of measure for power of electricity, in specific, 1 GW = 1,000
Gigawatt (GW) MW = 1,000,000 kW = 1,000,000,000 W

CNY, 10K CNY, 100 million CNY Renminbi yuan, renminbi 10,000 yuan, renminbi 100 million yuan

Reporting period, current reporting period, this January 1, 2022 to December 31, 2022

period


Section II Company Profile & Key Financial Indicators

I. Company Profile

Stock abbreviation Sungrow Stock code 300274

Name of the Company in Chinese 阳光电源股份有限公司

Abbreviation of the Company in Chinese 阳光电源

Name of the Company in English (if any) Sungrow Power Supply Co., Ltd.

Abbreviation of the Company in English (if any) Sungrow

Legal representative Cao Renxian

Registered address No. 1699 Xiyou Road, High-tech Zone, Hefei, Anhui Province

Zip code of registered address 230088

Changes in the Company's registered address The registered address has not changed since the Company went public in 2011

Business address No. 1699 Xiyou Road, High-tech Zone, Hefei, Anhui Province

Zip code of business address 230088

Company website http://www.sungrowpower.com

E-mail dshms@sungrow.cn, kangml@sungrowpower.com

II. Contacts and Contact Information

Board Secretary SecuritiesAffairs Representative

Name Lu Yang Kang Maolei

No. 1699 Xiyou Road, High-tech Zone, No. 1699 Xiyou Road, High-tech Zone,

Address

Hefei, Anhui Province Hefei, Anhui Province

Phone 0551-65325617 0551-65325617

Fax 0551-65327800 0551-65327800

E-mail dshms@sungrow.cn kangml@sungrowpower.com

III. Information Disclosure and Place of the Report

Website of the stock exchange specified for disclosing

http://www.cninfo.com.cn

theAnnual Report

Media and websites specified for disclosing the China Securities Journal, Securities Times, Shanghai Securities News,

Annual Report Securities Daily

Place where theAnnual Report is available for Office of the Board of Directors

inspection
IV. Other Relevant Information

Accounting firm engaged by the Company

Name of the accounting firm RSM China (Special General Partnership)

Business address of the accounting firm 29/F, BlockA, the Landmark, Shushan District, Hefei City, Anhui Province

Name of the undersigning accountants Wan Yunlong, Jiang Wei, Pan Lili

Sponsor institution engaged by the Company for continuous supervision during the reporting period

 Applicable □ NotApplicable

Period of continuous

Name of sponsor institution Business address of sponsor institution Sponsor representative

supervision

Floors 27/28, China World Office 2,

China International Capital No. 1 Jianguomenwai Avenue, Beijing October 22, 2021 to December
Corporation Limited Liu Chengli, Li Jizhe 31, 2023

100004, P.R. China

Financial advisor engaged by the Company for continuous supervision during the reporting period

□Applicable  NotApplicable

V. Key Accounting Data and Financial Indicators

Whether the Company performed a retroactive adjustment or restatement of previous accounting data

□ Yes  No

2022 2021 YOY Change 2020

Operating income (CNY) 40,257,239,155.34 24,136,598,726.55 66.79% 19,285,641,347.02

Net profit attributable to shareholders of the

3,593,410,009.26 1,582,707,374.76 127.04% 1,954,308,244.82
Company (CNY)

Net profit attributable to shareholders of the

Company after deducting non-recurring gains and 3,385,797,303.38 1,334,589,366.45 153.70% 1,846,326,102.70
losses (CNY)

Net cash flows from operating activities (CNY) 1,210,498,485.89 -1,638,632,122.77 173.87% 3,088,658,224.59

Basic earnings per share (CNY/share) 2.42 1.08 124.07% 1.34

Diluted earnings per share (CNY/share) 2.42 1.08 124.07% 1.34

Weighted average return on equity 20.95% 13.05% 7.90% 20.36%

As at Dec. 31 2022 As at Dec. 31 2021 YOY Change As at Dec. 31 2020

Total assets (CNY) 61,626,211,527.11 42,840,130,915.46 43.85% 28,002,933,994.86

Net assets attributable to shareholders of the

18,666,305,389.67 15,655,063,485.71 19.23% 10,455,904,743.14
Company (CNY)

The lower of the Company's net profit including extraordinary and net profit excluding extraordinary is negative in the last three


fiscal years, and the audit report for the last year shows that uncertainties exist in the Company's business continuity

□ Yes  No

The lower of net profit including extraordinary and net profit excluding extraordinary is negative

□ Yes  No

VI. Key Financial Indicators by Quarter

(in CNY)

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Operating income 4,567,689,691.24 7,713,545,221.55 9,942,702,573.53 18,033,301,669.02

Net profit attributable to shareholders

410,913,211.59 489,526,979.80 1,160,125,763.75 1,532,844,054.12
of the Company
Net profit attributable to shareholders

of the Company after deducting 370,528,596.97 424,873,966.83 1,106,827,682.00 1,483,567,057.58
non-recurring gains and losses
Net cash flows from operating

-1,682,576,215.24 423,495,040.13 -1,637,591,350.25 4,107,171,011.25
activities

Whether there are significant differences between above financial indicators or their sums and the relevant financial indicators in the
quarterly and half-year reports disclosed by the Company

□ Yes  No

VII. Differences in Accounting Data between Chinese and Overseas Accounting Standards

1. Differences in the net profits and net assets disclosed in the financial statements as per the international
accounting standards and China accounting standards

□Applicable  NotApplicable

There is no difference in the net profits and net assets disclosed in the financial statements as per the international accounting
standards and China accounting standards.

2. Differences in the net profits and net assets disclosed in the financial statements as per the local
(overseas) accounting standards and China accounting standards

□Applicable  NotApplicable

There is no difference in the net profits and net assets disclosed in the financial statements as per the local (overseas) accounting
standards and China accounting standards.

VIII. Non-recurring Items and Their Gains/Losses

 Applicable □ NotApplicable

(in CNY)

Item Amount in 2022 Amount in 2021 Amount in 2020 Remarks

Gains or losses from disposal of non-current assets (including

the write-off accrued for impairment of assets) -3,361,515.27 198,734,481.06 255,099.07

Government grants accounted for, in the Gains or losses for

the current period (except for those closely related to the

Company’s normal business operation, compliant with 140,744,784.09 110,269,947.66 103,595,912.36

national policies and regulations, and granted to a certain

standard or at a fixed amount)

Gains entitled to the Company when the investment cost of

acquiring subsidiaries, associates or joint ventures is No more

than the fair value of identifiable net assets of invested unit at 266,221.04

the time of investment

Gains or losses from debt restructuring 8,019,908.32

Gains or losses from changes in fair value arising from

holding trading financial assets and trading

financial liabilities, as well as investment gains from disposal

of trading financial assets, trading financial liabilities, and 114,038,405.73 12,598,837.40 15,060,054.04

salable financial assets, except for the effective hedging

business associated with the Company’s normal business

operation

Reversal of impairment provisions for accounts receivable

5,784,209.13 2,883,005.14

which are separately tested for impairment

Other non-operational income and expenditure in addition to

the items listed above -6,748,079.29 -198,891.28 11,538,157.44

Less: Income tax impact 39,295,421.32 42,695,728.48 19,730,145.34

Minority shareholders' equity impact (after tax) 3,549,677.19 41,759,772.55 2,736,935.45

Total 207,612,705.88 248,118,008.31 107,982,142.12 --

Details of other gains or losses that fit in the definition of extraordinary items:

□Applicable  NotApplicable

There are no other gains or losses in the Company that fit in the definition of extraordinary items.

Explanation on defining the extraordinary items listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for

Companies Publicly Offering Securities - Extraordinary Items as recurring gains or losses

 Applicable □ NotApplicable

Item Amount (CNY) Reason

Equity gains from transfer of power Equity transfer of power station projects is one of the Company's

-1,640,494.75

station projects day-to-day businesses

Gains from changes in fair value of Equity transfer of power station projects is one of the Company's

power station projects in possession 28,274,565.33 day-to-day businesses


Section III Management’s Discussion andAnalysis

I. Discussion and analysis of business situation

Despite the complex international situation, economic slowdown, challenging logistics, supply chain price chaos, power device
shortage and many other negative factors in 2022, under the guidance of the global low-carbon goal, renewable energy gained a
vigorous momentum worldwide. In the context of global energy crisis due to the Russia-Ukraine conflict, short supply of fossil fuel
and high prices further highlighted the safety and economic benefits of developing renewable energy. Major economies around the
world put significantly more focus on renewable energy, strengthened policy and financial support for renewable energy in order to
get away from fossil energy dependence and accelerate green energy development. For example, the European Union launched the
REPowerEU plan, in which the proportion of renewable energy was increased from 40% to 45% by 2030 and a plan was made to
invest EUR 210 billion more over the next five years to accelerate the growth of green energy. The United States released the IRA
and planned to allocate USD 369 billion to subsidize and support projects in the clean energy sector. India launched the PLI plan to
promote efficient PV manufacturing in India, which was expected to attract a direct investment of nearly INR 940 billion (USD 11.59
billion). China released the 14th Five-Year Plan for Renewable Energy Development and the Implementation Plan for Promoting the
Quality New Energy Development in the New Era, and put forward a number of objects, including consuming renewable energy by
more than 50% in the 14th Five-Year-Plan period, and achieving a total installed capacity of over 1.2 billion kilowatts for wind
power and solar power generation by 2030. On a worldwide scale, the process of new energy transformation, with solar energy being
the representative, accelerated significantly with a quick expansion in scale. According to China Photovoltaic Industry Association,
global installed capacity of PV increased by 230 GW-AC (installed capacity increased by about 276 GW-DC on DC-side, according
to the Company) in 2022, a year-on-year increase of 35.3%, reaching a historic high. The installed capacity mainly came from China,
the European Union, the United States, and India.

In 2023, as new capacity for silicon materials and etc. is gradually released, the upstream supply-demand contradiction that the PV
industry has been suffering for two years will be effectively alleviated. Prices of silicon chips, solar cells and modules started to fall
at the end of last year, and a downward trend is expected throughout this year. The economy of PV power generation will be further
improved, downstream demand for installed capacity will be further supported and released. Driven by the carbon neutrality goals,
clean energy transformation efforts and economic resurrection in many countries, the PV industry looks to a highly prosperous
growth. According to the predictions of China Photovoltaic Industry Association and International Energy Agency, the installed
capacity of new photovoltaic units worldwide will reach 280 to 330 GW in 2023. In 2024, the cumulative installed capacity of
photovoltaic units worldwide will exceed that of hydropower, making it the largest contributor of non-fossil energy power generation.
In 2026, the cumulative installed capacity of photovoltaic units worldwide will exceed that of natural gas. In 2027, the cumulative
installed capacity of photovoltaic units worldwide will exceed that of coal, becoming the world's largest source of power. From 2023
to 2050, an installed capacity of 13,000 GW is expected for photovoltaic units worldwide.

II. Business Scope in the Reporting Period

Sungrow Power Supply Co., Ltd. is a national key high-tech enterprise specializing in R&D, manufacturing, sales and service of
solar energy, wind energy, energy storage, electric vehicles, and other new energy power supply equipment. With a wide range of
products including PV inverters, wind energy converters, energy storage systems, electric drive system for new energy vehicles,
floating PV systems, and smart energy operation and maintenance service, the Company is committed to providing world-class
solutions for the full life cycle of clean energy.

1. PV inverters


Since the establishment in 1997, the Company has been concentrating on the R&D and manufacturing of PV system equipment, with
PV inverters being the core product. Adhering to the mission of “Clean power for all”, the Company provides cutting-edge PV
system solutions to users around the globe.

PV inverter is one of the main components in a PV power generation system, which connects PV arrays to the grid and plays a
critical role in ensuring the long-term and reliable operation of PV power stations and improving the project investment return.
Sungrow’s PV inverter family, consisting of residential inverters, string inverters, centralized inverters, and modular inverters, covers
a power range from 3 kW to 8,800 kW, and is widely used in residential, industrial and commercial, large ground power station, and
other application scenarios.

Residential PV inverters feature high power density, appealing exterior design, and simple installation and maintenance, which can
automatically adapt to complicated grid environment, prolong power generation, and effectively improve power generation revenue.
With built-in lightning protection and high-precision leakage current protection, as well as energy storage interfaces and various
communication modes, they can meet various application requirements indoor and outdoor, and are widely used in residential PV
power generation systems on residential roofs or in courtyards.

String PV inverters feature high power density and simple installation and maintenance, which can meet the requirements of different
applications indoor and outdoor, hence are widely used in small and medium PV power generation systems in parking lots or on
commercial roofs, as well as in large-scale ground power stations on complex terrains.

Centralized PV inverters feature high conversion efficiency, safety and reliability, are highly grid-friendly and cost effective. They
can cope with various environments such as extremely low temperature and high altitude, and are widely used in large and
medium-sized PV power generation systems in deserts, plateaus, and on commercial roofs.

Modular inverters mark a new category in the industry. At a unit power of 1.1 MW, modules can be connected in parallel to form a
flexible subarray configuration of 1.1 MW to 8.8 MW. Integrating the advantages of centralized inverters and string inverters, each
module features independent operation and an independent MPPT design, is built with higher tracking accuracy and plug-and-play
convenience for operation and maintenance, capable of addressing the diverse needs and application scenarios of different markets
around the world.

Sungrow Cloud: Capitalizing on the Internet of Things, artificial intelligence, big data, and blockchain technologies, Sungrow Cloud
enables group customers to collectively operate and manage solar energy, energy storage, charging piles and other energies, and
creates a smart energy brain. It comprehensively satisfies the management needs of customers at different levels throughout the entire
energy lifecycle, and delivers four core values: stabilizing investment returns, guaranteeing asset safety, standardizing operation and
management, and assisting the group’s decision-making.

Sungrow's PV inverters are exported to more than 150 countries around the world, and topped the BloombergNEF list of “The
World’s Most Bankable Inverter Brand for four consecutive years. In IHS Markit’s list of 2021 global PV inverter shipment,
Sungrow ranked the first. As of December 2022, Sungrow has cumulatively installed over 340 GW of inverter equipment in the
global market.
2. Wind power converters

The Company's wind power converter products are transmission frequency conversion devices that integrate power electronics,
modern transmission control theory and new energy application technologies. Covering a power range from 1.5 MW to 26 MW and a
voltage range of 690V, 1140V, and 3300V, the portfolio consists of full-power wind power converters and double-fed wind power
converters that are fully compatible with mainstream wind turbine models in China, which is suitable for various wind farm
environments on-shore and off-shore. Dedicated in the power electronics industry for more than 20 years, Sungrow has recently
developed high-power double-fed air-cooled main control integrated converters, 3 MW to 16 MW three-level converters and other
new products to supply mainstream wind turbine manufactures in China. In the future, Sungrow will stick to the low-cost innovation
and development strategy, accelerate the system cost reduction of wind turbines, and contribute added values to customers.

3. Energy storage system (ESS)

Sungrow's energy storage business relies on the world-leading technology integration of power electronics, electrochemistry, and


grid support to build profession energy storage systems. With a focus on the R&D, production, sales, and service of lithium battery
ESS, the Company can provide energy storage converters, lithium batteries, energy management system and other core equipment for
energy storage, deliver a range of ESS solutions for auxiliary new energy grid connection, power frequency and peak regulation,

demand side response, micro-grid, and residential scenarios, and is acknowledged a world-class supplier of energy storage equipment
and system solutions.

As one of companies that made the earliest attempts in the field of energy storage in China, Sungrow’s ESS business footprints have
now covered China, US, UK, Germany, Japan, and etc.

4. New energy investment and development

In recent years, Sungrow Renewables, as the Company's new energy project development and investment platform, has upheld to the
development concept of "More Power Generation in a Friendlier Way" to comprehensively advance development efforts for
centralized PV, industrial and commercial PV, residential PV, and wind power, innovatively explore a new model of green and
ecological development featuring multiple-energy complementation and industrial synergy. Under the dual propulsion of technology
and market, Sungrow has established a diversified and collaborative business landscape featuring a solid foundation in China and
rapid development overseas. As of end 2022, the Company has developed and built PV and wind power stations with a cumulatively
capacity of more than 31 million kilowatts, with Sungrow Renewables continuing to hold the first place in the list of global PV
developers.

Centralized PV power stations: Covering various application scenarios, centralized PV power stations leverage advanced R&D
capabilities and extensive project experiences to largely improve the ROI of PV power stations, creating greater value for customers.
In the meanwhile, comprehensive development models such as PV desertification control, reclamation of saline and alkaline land,
PV-agriculture complement, and floating systems are adopted to enable efficient and composite utilization of wind, solar, and land
resources, providing integrated development examples for comprehensive environmental treatment and new energy industry
application.

Industrial and commercial PV power stations: In response to the diversified and personalized energy needs, the Company capitalizes
on its world-leading new energy technological strength as well as innovative and efficient industrial and commercial PV power
station products to provide enterprises with comprehensive new energy lifecycle solutions covering consulting, development,
investment, and delivery. Based on the core advantages of “technology + platform", the Company builds a multi-win landscape for
the brand, channel operators, partners, industrial and commercial enterprises, shortens service radius, and improves responsiveness,
hence to assist a variety of industries in accelerating zero carbon transformation.

Residential PV power stations: As the world's first residential PV brand certified by TÜV, Sungrow Residential PV relies on
Intelligentization and digitization to innovate serialized solutions for complex scenarios including flat roofs, flat-to-slope roofs, slope
roofs, and courtyards. The end-to-end intelligent residential PV systems featuring independent design and integrated development
and the innovative iSolar Roof-C residential smart design software can improve power station design efficiency by 400% and
increase power generation by 0.6%.

Wind power station: Wind farms can fit in different operating environments such as high/low temperatures, high altitude, low wind
speed, coastal areas, and are intended for plain wind power, mountain wind power, decentralized wind power, wind-PV
complementary systems and other healthy ecosystems and development patterns to meet the diverse needs of customers and
maximize value.

Multi-energy integration: Relying on the PowMart smart energy solution featuring independent intellectual property, Sungrow
incorporates advanced system integration technology into the wind-PV-storage integration, wind-PV-hydrogen production,
PV-storage-charging integration and other new energy integration application scenarios, establishes innovative examples in
multi-energy collaboration, intelligent scheduling, grid friendliness, safety and reliability, and provides support for building a new
type of power system running on new energies.

5. New energy vehicle drive system

With the profound accumulation of clean power conversion technology and R&D advantages, Sungrow has extended inverter

application into the electric vehicle industry, providing new energy vehicles with quality drive systems.

As the Company’s platform for exploring the new energy vehicle industry, Sungrow Electric Power has grown into a national key
high-tech enterprise specializing in R&D, production, sales, and service of electronic control, power supply, and other products for
new energy vehicles. Based on the Company’s R&D platform with 26 years of history, the abundant manufacturing experience and
stable global supply chain, Sungrow Electric Power brings together high-level automotive electronics professionals and is committed
to providing quality electric control and power supply products for energy-saving and new energy vehicles. Sungrow Electric Power
has been providing products and services for manufacturers of quality passenger vehicles, commercial vehicles, and construction
machineries since 2010. Having adopted a platform based design, the serialized products boast high efficiency, high reliability, and
flexible adaptation. In the reporting period, Sungrow Electric Power’s No. 500,000 electric control product left the production line.
As of the end of 2022, the Company's products have been installed on more than 1 million vehicles.

Sungrow Electric Power has obtained the ISO9001, IATF16949, ISO14001, ISO45001 and other system certifications, as well as the
ISO 26262 Automotive Safety Integrity Level ASIL-D certification, and instituted a product development and management system to
the highest level of functional safety. With multiple electric control and power supply automation production lines built, the
Company is capable of producing 1.5 million units per annum. With professional technological competence, trustworthy product
quality, and stable delivery capability, the Company has won a number of honors, such as the Red Dot: Best of the Best, the First
Prize in Science and Technology of the China Electrotechnical Society, the First Prize of Science and Technology Award of China
Power Supply Society, the 2022 Top 100 EV Core Components Manufacturers in China, and Top 100 Excellent Automotive Parts
Suppliers in China. In December 2022, the company was recognized as an SRDI (Specialized, Refined, Differential and Innovative)
enterprise by the Anhui Provincial Department of Economy and Information Technology.

6. Floating PV system

Relying on the Company’s technology R&D and production experience in the PV industry of more than 20 years, Sungrow Floating
Modules (Sungrow FM) has set up an R&D team for floating PV systems consisting of industry experts and doctors. The team has
mastered key technologies of floating power stations, including system design, materials, product structure and arrays, anchoring
system, made more than 150 patent applications in the fields of floating bodies, anchoring system, inverter booster floating platforms,
system operation and maintenance, led and participated in the formulation of multiple standards related to floating systems.

Upholding the mission of “Clean power for all” and based on the vision of “To be a global leader in floating PV systems”, Sungrow
FM is dedicated to creating eco-friendly, reliable, and efficient floating PV systems, and is committed to providing one-stop floating
PV system solutions suitable for different water bodies. In the reporting period, Sungrow FM completed design and delivery of the
first 200 MW floating PV system in a 100-meter-deep area, and cumulatively installed more than 2.2 GW of floating PV systems by
the end of 2022, making it the world's first GW level floating PV system supplier and leading the global market share for five
consecutive years.
7. Charging equipment

Rooted in Sungrow’s 20+ years of design and application experiences in outdoor high-power-rating power supply products as well as
the profound power electronics technology background, Sungrow Lechong builds EV charging equipment based on the core
principles of “Reliable, Efficient, and Intelligent", has introduced DC charging piles and AC charging piles series. The industry's first
"integrated DC charging pile" has adopted an innovative integrated design that delivers high reliability, maintenance free, and long
service life, leading technological transformation of the charging industry. The products were quickly applied in many benchmark
projects after the launch, such as the Shanghai urban road charging project and the Shenzhen freeway service area project, receiving
wide praise from operators and vehicle owners.

In the reporting period, the Sungrow 30 kW charging pile was launched in Europe with batch deliveries made, continually leading the
charging technology transformation. In the meanwhile, Sungrow charging piles were connected to Sungrow’s PV and energy storage
systems to provide charging stations with an integrated PV-storage-charging solution, offering new energy to new energy vehicles
and helping to deliver the dual carbon target earlier.

8. Smart operation and maintenance


Relying on the Company’s 20+ years of power electronic conversion technology and power station integration practice, the operation
and maintenance business adheres to the service concept of “Secure with technology, be reliable and trustworthy” to provide
one-stop asset management services for new energy assets, and continues to ensure customers' stable return and asset safety with
advanced technology.

In the reporting period, Sungrow Smart Operation enlisted the National Specialized Little Giant enterprise and achieved a 90%
increase in business size. As of end 2022, Sungrow Smart Operation had contracted new energy power station operation and
maintenance projects with a total capacity exceeding 19 GW, accumulated extensive experiences in PV power station, wind farm,
and energy storage operation and maintenance, and was capable of customizing proven and effective operation and maintenance
solutions for different types of power stations. The SolarEye smart energy operation and maintenance platform developed
independently by the company offers a digitalized operation and maintenance system, a data analysis system, and an intelligent
application system. The platform empowers production management by digital and information-based means, hence to achieve
visualized and closed-loop control of the operation and maintenance process. Moreover, it leverages intelligent tools and methods to
assist in operation and maintenance work, quickly identifying problems and defects in power stations, and improving the efficiency
of power station operation and maintenance.

9. Hydrogen energy

As the very first new energy company that set foot in the hydrogen energy field in China, the Company is committed to providing
efficient, intelligent and safe green power hydrogen production systems and solutions, and is capable of developing and delivering
IGBT hydrogen production power supply, ALK and PEM water electrolysis equipment, gas-liquid separation and purification
equipment, smart hydrogen energy management system, and other integrated system equipment. The Company has also developed
hydrogen production system solutions in multiple modes including off-grid, grid-connected, and micro-grid. The Company is the first
to build a nationally-leading comprehensive testing platform for electrolyzed water hydrogen production system, a demonstration
platform for renewable energy variable-power hydrogen production and hydrogen storage power generation, a joint laboratory of
PEM electrolysis for hydrogen production technology, and an electrolysis hydrogen production material laboratory.

In the reporting period, the company passed CQC and TÜV certifications for hydrogen production power supply; optimized structure
and key component materials for the 1000 m³/h ALK electrolysis cell, with cell body energy consumption reaching an
industry-leading level; developed (ongoing) four 1000 m³/h ALK electrolysis cells together with one gas-liquid separation and
purification device to cope with renewable energy hydrogen production projects of larger scale; developed the 100 m³/h PEM
electrolysis cell and achieved system delivery; upgraded the smart hydrogen energy management system that was equipped with
software platforms and monitoring systems suitable for the hydrogen energy business scenarios; established and optimized the EHS
management system and the quality certification system. The hydrogen production equipment plant with a GW level annual capacity
was put into operation, capable of building high-power ALK and PEM electrolysis hydrogen production systems on a large scale. In
July 2022, the company was awarded the Most Influential Enterprise in China's Hydrogen Energy Industry in 2021. In November
2022, the ALK electrolyzed hydrogen production system was included in the first white list of the Hydrogen Energy Forerunner
Initiative, and was awarded China’s first energy efficiency certificate for the 1000 m³/h ALK electrolyzed hydrogen production
system by Bureau Veritas. In December 2022, the company enlisted top 30 of the first China Hydrogen Alliance SRDI
Entrepreneurship Competition, and managed to achieve top 5 of the Competition and the first place in the hydrogen production
industry. In the same month, the 1000 Nm³/h ALK wind-PV hydrogen production demonstration project in Baicheng of Jilin started
operation, and Yangtze Power’s 200 Nm³/h PEM hydroelectricity hydrogen production demonstration project reached full capacity.
The Company's green power hydrogen production system is applicable for various scenarios such as energy and power,
petrochemicals, transportation, and metallurgy, which has been widely used in wind-PV-water renewable energy hydrogen
production projects across Jilin, Ningxia, Inner Mongolia, Gansu, and Hubei provinces.


Division Product Picture Brief Introduction

PV inverters 1+X modular products Based on the profound insight into

New energy market demands, the Company made
investment and significant innovation to traditional

development inverters and introduced the

Wind power first-to-market 1+X modular inverters
converters in the industry. At a unit power of 1.1
Energy storage MW, multiple inverters can be

system connected in parallel to shape a

flexible sub-array of 1.1 MW to 8.8

MW, making station configuration

more flexible and operation and

maintenance easier. By optimizing

the modular design of equipment,

systems, and components, operation

and maintenance is streamlined,

power generation efficiency is

improved.

320HX string inverter To cope with the widespread

(overseas model: 350) application of high-power modules,

Sungrow introduced the 320HX

high-power string inverter for

large-scale ground power stations.

Through the combination of

sub-arrays and power optimization,

the product can optimize system BOS
cost while enabling upgrades in

safety, reliability, multi-dimensional
integration, and stronger support for

the power grid, which is a leading

300 KW+ high-power string

technology.

SG30-110CX-P2-CN string Based on precise market insights,

inverter (for industrial and Sungrow introduced the

commercial scenarios) SG30—110CX-P2 string inverters.

This product series further enriches

the portfolio of small and

medium-sized power inverters and

achieves full coverage of distributed

application scenarios.

SG10-25RT-P2-CN To cope with the widespread

residential inverter application of high-power PV

modules and the demand for larger

residential PV systems, Sungrow

made all-around upgrades to its RT

series of products. The input current

of a single string is increased to 16A,
allowing the it to flexibly adapt to

high-power PV modules and

double-sided PV modules. At the

same time, the power range of

products are expanded to address

diversified residential installation

needs.


New energy Centralized PV power Centralized PV power station

vehicle electric station solution covers various application

drive system scenarios, and relies on

Floating PV market-leading technologies to

system optimize power station LCOE, hence
Charging significantly improving the ROI of

equipment PV power stations and creating

Intelligent greater value for customers.

operation and Following the national strategy of

maintenance building large wind-PV power

Divisions generation bases, Sungrow offers

PV inverters comprehensive utilization models

such as desertification control, land

reclamation, forestry-PV

complement, salt-PV complement,

and floating systems to set integrated
development examples for

comprehensive environmental

treatment and new energy industry

application.

Wind power station solution Wind power station solution covers

plain wind power, mountain wind

power, and decentralized wind power
applications. Upholding the principle
of "wind power development and

ecological protection in parallel",

Sungrow develops and builds

ecological friendly wind power

stations in various scenarios, and

refines wind resource assessment

according to local situation for value
maximization.

iClean cleaning solution for iClean cleaning solution for

distributed PV system distributed PV system leverages AI to
ensure all-around powerful

self-cleaning, which can significantly
reduce dirt coverage loss and increase
power generation by minimum 6%.

As a distributed PV system that

enables secondary power generation

improvement, it can drastically

reduce power station overhead and

achieve long-term investment return.

iBlock flat-roof distributed iBlock flat-roof distributed solution is
solution an innovative application developed

for flat-roof distributed power

stations. The module brackets are

integrated with cement bases for

support and stabilization. Standard

modular design and installation

improves placement rate of modules

and increases installed capacity,

hence significantly shortening the

construction lead time.


iBuilding smart BIPV iBuilding smart BIPV distributed

distributed solution solution is an integrated system that

combines modern roof building

materials and PV power generation.

Built with a national patented

waterproof technology, it requires no
consumable replacement in 30 years,
enables a worry-free and comfortable
production environment together with
multiple benefits brought by clean

power.

iRoof residential power iRoof residential power station

station solution solution is an exclusive design and

customized development of Sungrow
Residential PV featuring “more

power generation”. With intelligent

inverters, efficient modules,

intelligent grid-connection units,

dedicated supports, and intelligent

monitoring software integrated, the

system features industry-leading

stability and can work in perfect

condition round-the-clock.

iGarden colorful PV winter iGarden colorful PV winter garden

garden solution solution is an exclusive design and

integrated development of Sungrow

Residential PV for high-end

residential PV power generation

system. Featuring an exclusive patent
on water resistance, it requires no

glue application and is water tight.

The colors can be customized, the

inclination angle can be adjusted, and
the dimensions can be expanded. The
product can be customized according
to users’ personalized needs, allowing
solar energy to truly blend into the

living environment.

New energy Double-fed 4.x MW - 10 The product features an integrated

investment and MW wind power converter heat dissipation design that improves
development heat dissipation efficiency and

Wind power product stability, a high power

converters density design and integrated

components for a compact structure,

an integrated design of main control

and converters for larger

load-carrying capacity, and strong

environmental adaptability for

customization in various application

scenarios.


Full power 5.x MW - 26 This product features the highest unit
MW wind power converter power of wind power converters in

China, and a redundant design to

ensure unit power generation

revenue. It can proactively adapt to

complex grid environments to ensure
grid friendliness; it is built with

enhanced anti-corrosion and

anti-condensation design to

effectively cope with the marine

environment; cabin-mounted

applications and a special

anti-vibration structure help to meet

the strict vibration requirements.

Energy storage PowerTitan large-scale Adhering to the “3-in-1 integration"

system ground energy storage concept and innovative combination

New energy system of power electronics,

vehicle electric electrochemistry, and grid support

drive system technologies, Sungrow introduced the
Floating PV professionally integrated PowerTitan
system series energy storage systems.

Liquid-cooling temperature control

and intelligent cluster-level

management help to deliver the goals
of longer service life, higher

efficiency, and less loss, reducing

LCOS by more than 20%. Combined
innovations in electrical safety, cell

safety, and grid safety improve the

overall safety of the energy storage

system.

PowerStack industrial and In response to the increased civil

commercial energy storage power consumption and large power

system load fluctuations in peak hours,

Sungrow introduced the PowerStack
industrial and commercial energy

storage system for industrial and

commercial scenarios. Based on

intelligent EMS energy management,
the product supports multiple

application modes in on-grid or

off-grid scenarios, coordinates energy
scheduling among grids, PV systems,
charging piles, and loads, and

increases scheduling gain by 10%.

Thanks to the liquid-cooling

technology and intelligent safety

protection, it can improve the

reliability of energy storage systems

in multiple dimensions.


Residential battery The overseas residential energy

SBR096-256 storage market is experiencing an

explosive growth. Capitalizing on the
channel advantages, Sungrow

accelerates the residential PV-storage
business and has introduced the new

generation of SBR series residential

battery solutions. The product

features convenient installation,

flexible configuration, safety and

reliability, and outstanding

performance.

Charging HEM3 series hybrid dual The product is suitable for Class A

equipment electric control for and Class B hybrid passenger

Intelligent passenger vehicles vehicles, and can work with various

operation and drive motors with a rated power of 45
maintenance to 80 kW. Built with the brand-new

Divisions discrete device parallel connection

PV inverters technology, it features high reliability
New energy and power scalability.

investment and EC60 series SiC motor The product is suitable for Class B

development controller and Class C high-end new energy

Wind power passenger vehicles, and can work

converters with various drive motors with a

rated power of 100 to 140 kW. Built

with the full silicon carbide discrete

device parallel connection

technology, it features ultra-high

efficiency and meets functional safety
standards.

EE30 series 4-in-1 With main motor controller, DCDC,

controller OBC, and PDU integrated, the

product is suitable for N1 vehicles

such as minivans. It features high

integration, high reliability, and

flexible adaptation.

EP10 series in-vehicle With OBC, DCDC, and PDU

power supply functions integrated, the product is

suitable for Class A00 and Class A0

new energy passenger vehicles. It

features high reliability, high power

density, and platform design.

EC53 series motor The product is suitable for new

controller energy buses, heavy-duty trucks, and
construction machineries. Built with

single and dual-motor control

functions to flexibly cope with

various scenarios, it supports power

expansion and is reliable and

compliant with functional safety

standards.


EC32 series dual-motor The product is suitable for pure

controller electric and hybrid passenger

vehicles, and can work with various

drive motors with a rated power of 45
to 60 kW. Built with the new

generation of parallel power modules,
it can adapt to various power ratings

and support single and dual-motor

control, delivering high efficiency

and reliability.

EC11 series motor The product is suitable for Class A00
controller pure electric passenger vehicles, and
can work with various drive motors

with a rated power of 10 to 15 kW. It
features platform design, high

reliability, and high power density.

Energy storage Floating bodies The product underlies PV modules

system and electrical equipment on water

surface, hence to form a floating PV

power station. 1. It can reduce water

evaporation and minimize waste of

water resources; 2. It inhibits the

growth of blue-green algae and

improves water environment; 3. It

effectively cools down the floating

modules and can increase power

generation; 4. It can be used in

various water environments such as

coal mining subsidence areas,

reservoirs, and offshore areas.

New energy Chinese standard 120 kW The industry-leading 120 kW

vehicle electric integrated DC charging pile integrated DC charging pile features

drive system highly integrated power conversion,

Floating PV system control, and thermal

system management systems. The

dual-chamber isolated design of

power electronics and heat

dissipation parts enables IP65

protection rating and a service life of
more than 10 years, which effectively
reduces the total cost across the entire
life cycle and ensures ROI for

charging station operators.

European standard 30 kW This European standard charging pile
integrated DC charging pile is compatible with all vehicles with a
European CCS2 interface, and is

mainly used in destination charging

scenarios. Being a reliable, efficient,
and friendly product, it delivers

industry-leading technological

advantages, including IP65 protection
rating, efficiency up to 96.5%, noise

below 50 dB, and residential level

EMC Class B performance. The

product has a minimum service life of
10 years, is reliable and maintenance


free, and brings continuous benefits

to customers.

Charging Smart operation and Relying on the Company’s 20+ years
equipment maintenance service of power electronic conversion

technology and power station

integration practice, Sungrow Smart

Maintenance adheres to the service

concept of “Secure with technology,

be reliable and trustworthy” to

provide standard all-around services

for new energy assets, and continues
to ensure customers' stable return and
asset safety with advanced

technology.

Intelligent IGBT rectifier power supply The product leverages the IGBT

operation and full-control power devices and PWM
maintenance control technology to rectify and

convert AC into DC required for the

electrolytic cell, which is suitable for
large-scale renewable energy

AC-coupling hydrogen production

scenarios.

IGBT DC conversion power The product leverages the IGBT

supply full-control power devices and PWM
control technology to convert

unstable wind or solar power supply

into DC required for the electrolytic

cell, which is suitable for direct

hydrogen production scenarios using
off-grid wind and/or solar power.

Alkaline electrolyzed water The product uses direct current to

hydrogen production electrolyze alkaline solution into

equipment hydrogen and oxygen, and obtains

high-purity finished hydrogen after

gas-liquid separation and purification.
It consists of an alkaline electrolysis

cell, gas-liquid separation and

purification equipment, and utilities

equipment.

PEM electrolyzed water The product uses direct current to

hydrogen production facility electrolyze pure water into hydrogen
and oxygen, and obtains high-purity

finished hydrogen after gas-liquid

separation and purification. It consists
of a PEM electrolysis cell, gas-liquid
separation and purification

equipment, and utilities equipment.


Intelligent hydrogen energy The product is the "brain" of green

management system power hydrogen production systems,

which enables coordinated control

between multiple hydrogen

production systems as well as

between hydrogen production

systems and multiple energy sources.
It is built with four major functions:

operation monitoring, analysis and

diagnosis, coordinated control, and

operation management, which can

ensure system efficiency,

intelligence, and safety.

The Company needs to comply with the requirements on the disclosure of PV industry chain related business specified in the
Shenzhen Stock Exchange’s No. 4 Regulatory Guidelines for Listed Companies — Information Disclosure of GEM-Listed
Companies.
1. PV inverters’ conversion efficiency

The indicator “conversion efficiency” refers to the ratio of inverters converting the input DC power to AC power, which is inverter’s
output power / inverter’s DC input power × 100%.

By utilizing new semiconductor materials and high-efficiency magnetic devices, optimizing circuit design, improving MPPT
algorithm, and optimizing the heat dissipation system, the Company continuously drives inverters’ efficiency to go up. The
maximum efficiency of Sungrow's full range of inverters has reached 99% at the moment.

2. Cost of energy per kilowatt-hour of the Company's PV system

The indicator “cost of energy per kilowatt-hour” refers to the ratio of the PV system’s total investment cost versus the power
generated throughout the entire life cycle of the system. The total investment cost includes the initial investment and the operation
and maintenance investment throughout the life cycle. The cost of energy per kilowatt-hour directly reflects the power generation
cost of the PV system, that is, the lower the cost of energy per kilowatt-hour, the higher revenue the PV system generates.

Through constant technological innovation and system optimization, the Company reduces investment cost and increases system
power generation, thereby reducing the cost of energy per kilowatt-hour and improving customers' return on investment. By
increasing the unit power of inverters, less inverters are required for power stations to reach the same capacity, and the cable cost is
also reduced. By forming inverters into power units of larger capacity, a maximum sub-array of 12.5 MW can be supported, which
further saves the cost of transformers and reduces the initial investment. Highly integrated inverters and solutions will be widely used.
For example, the box-type medium-voltage inverter not only has the inverter, transformer, power distribution, communication, and
smoke detection functions integrated, but also is built with a PID control box and communication power supply interfaces for the
tracking system. By improving the level of integration, the system cost across its life cycle, including cable cost, construction cost,
project management cost, post-operation and maintenance cost, can be reduced; systems are strongly coupled, which improves
reliability and increases power generation of the power station. The modular design from "device level" to "system level" reduces
system operation and maintenance costs, and higher equipment uptime rate increases the power generation of PV power stations.
Intelligent medium-voltage shutdown solutions feature intelligent algorithm control between inverters, collector circuit breakers, and
step-up transformers, achieving zero loss standby for step-up transformers and further improving ROI for customers.

3. PV system’s grid friendliness

As PV systems are being utilized at large scale, the penetration rate of PV increases year by year. Inverters are directly connected to
the grid as a link for energy transfer, and the requirements for inverters’ grid friendliness are getting increasingly higher.

Sungrow inverters are built with low-voltage ride-through, zero-voltage ride-through, and high-voltage ride-through capabilities,
which can cope with the voltage changes of power grid in the case of power grid problems, hence to ensure that PV systems will not
be disconnected from the grid on a large scale and result in the escalation of incident. Moreover, inverters are built-in with fast power

control modules to enable quick scheduling in less than 20 ms for reactive power response and support stronger reactive power. They
also support the VSG (virtual synchronous power generation) technology to realize proactive support for the power grid. Inverters
have the DC energy storage interface integrated, hence to eliminate transformation afterwards. In addition, they support reverse
charging and take advantages of the energy storage equipment. The power generation side is a multi-energy complementary platform
that allows PV power station peak regulation, smooth PV power station output, and grid stability; the power consumption side is an
intelligent PV-storage micro-grid platform, which enables peak-trough balance through energy storage, improves PV consumption,
and achieves precise energy supply. As new energy application increases year by year, the SCR (short-circuit ratio) of power grid
decreases, which can easily cause frequent disconnection of inverters. Sungrow has developed the adaptive control algorithm to
precisely perceive the strength of power grid. The algorithm has passed the SCR=1.02 weak current grid certification, which
positively promotes an ear of "grid friendliness" and achieves the dual carbon target.

4. PV system safety

As the installed capacity of PV systems increase year by year, safety hazards in PV power stations become an increasingly large
concern. The Company takes the safety of power stations a priority at work and further improves the safety of system design.

Sungrow’s inverter systems are capable of detecting DC series and parallel arc pulling in real time. They have passed relevant
protection certifications, can quickly identify arc pulling based on the intelligent arc pulling detection algorithm, and cut off in
milliseconds to block the damage of arc pulling. Inverters are built with AC/DC insulation monitoring systems to cope with various
application environments, quickly locate insulation faults, enable self-protection in case of cable faults, avoid electric shock and fire
risks, and safeguard the power station round-the-clock. Thanks to the intelligent protection and control algorithms, integrated
isolation switches, and big data-based operations, inverters can precisely identify reverse connections, short circuits, and other faults,
cut off in down to 10 ms, hence effectively avoiding fault escalation.

5. Unit production cost of the Company's PV inverters

Due to wide range of the Company's PV inverters and different power ratings, the unit production cost varies from CNY 0.07 to
CNY 0.15 per watt at the moment.

III. Analysis of Core Competitiveness

In the nearly two decades of rapid development, the Company has been committed to the independent innovation of power
electronics and electric energy conversion technology in the new energy field, with a number of technologies reaching the
world-leading level. In recent years, the Company successively deployed a range of new businesses, such as key components of new
energy vehicles, micro-grid energy storage, smart energy and new energy hydrogen production, and gained considerable growth.

1. Brand Advantages

As the first enterprise engaged in the R&D and production of inverter products in China, the Company has been committed to
developing and producing PV inverters and other PV system equipment since its establishment in 1997, and secured a solid leading
position. In 2015, the Company for the first time outperformed a European company that had been the world leader in terms of
shipment for many years, and shipped the most PV inverters in the world. With a leading market share, the Company’s products were
sold to more than 150 countries including Germany, Italy, Australia, the United States, Japan, and India. By the end of 2022, the
Company has cumulatively installed more than 340 GW of inverter equipment worldwide. The Company's brand and reputation are
highly acknowledged in the industry and continually improving. The Company has successively received the honors of China
Industry Awards, Demonstration Enterprise of National Individual Champion in Manufacturing, Forbes Top 50 Most Innovative
Chinese Companies, National Intellectual Property Demonstration Enterprise, Global Top 500 New Energy Enterprises, Best
Companies to Work For in Asia, and etc. Boasting a state-level post-doctoral research workstation, a national high-tech
industrialization demonstration base, a national recognized enterprise technology center, a national industrial design center, and a
national green plant, the Company holds a leading position in the global new energy power generation industry in terms of
comprehensive strength. In the 2022 list of China's 500 Most Valuable Brands released by the World Brand Lab, the Company

ranked No. 153 with a brand value of CNY 61.586 billion, a year-on-year increase of over 40%. In 2022, the Company was the only
inverter brand rated 100% bankable by BloombergNEF, securing the top position for four consecutive years.

2. R&D Innovation Capability

Since its establishment in 1997, the Company has been focusing on the new energy power generation sector to advance the research
and development of core technologies while maintaining market oriented and innovation based. To transform technological
advantages into product advantages, benefits advantages, and competitive advantages, the Company has fostered a professional R&D
team with solid R&D experiences and strong innovation capabilities. The Company has set up six R&D centers in Hefei, Shanghai,
Nanjing, Shenzhen, Germany, and the Netherlands, providing leading technological support for building globally competitive new
energy equipment. In order to explore cutting-edge technologies, the Company has set up the Central Research Institute that is
responsible for making high-value intellectual property plans in advance and addressing critical technical challenges, hence to
provide efficient platform services and innovation management for the Company's product and technology development, and foster
R&D and management professionals to build core technological competitiveness. In the meantime, each division has set up an
independent R&D task-force for close interaction with the market and customers. In 2022, the Company invested CNY 1.692 billion
in research and development, an increase of 45.70% year-on-year. As of the end of the reporting period, the Company boasted an
R&D headcount of 3,647, accounting for nearly 40% of total employees, including 51 doctorate holders and 1,336 master's degree
holders. The Company has successively undertaken more than 20 national key science and technology programs, and led the drafting
of multiple national standards, making it one of the few enterprises in the industry that boast multiple independent core technologies.
The Company also attaches great importance to the accumulation of intellectual properties in technological innovation achievements
and closely follows the evolution of various new technical standards. In 2022, 1,756 new patent applications were filed, accounting
for a patent application growth rate of 57%, which added up to 5,410 patent applications cumulatively, including 4,691 in China and
719 overseas. A total of 2,877 patents were awarded cumulatively, accounting for a growth rate of 47.4%, including 1,073 inventions,
1,591 utility models, and 213 exterior designs. Relying on the industry-leading technological reserve, the Company actively
promoted the formulation and optimization of relevant standards in the industry, organized and contributed to a number of Chinese
national standards.

The Company has introduced the IPD (Integrated Product Development) process to guide the technological reserve and product
development efforts according to customer demand analysis, technology development analysis, and competitive strategy analysis.
From concept, planning, development, verification, trial production to mass production, staged quality indicators are set for each step
of new product development to ensure the quality of products. The Company has invested in a world-leading electromagnetic
compatibility laboratory that is equipped with high-performance large-capacity low-voltage ride-through facilities as well as a variety
of power supplies and power grid simulators, which is capable of providing the most demanding test condition. The Company
continues to establish and optimize the ISO9001:2015, ISO14001, OHSAS18001 management systems, and strictly promote the
integrated quality, environment, occupational health and safety management system. The Company's products have passed a number
of authoritative international certifications including UL, TÜV, CE, Enel-GUIDA, AS4777, CEC, CSA, and VDE.

3. Global Marketing, Channels and Service Network

Since its establishment, the Company has identified a global development strategy, and established now an oversea production
capacity of 25 GW in the India production base and the Thailand plant. As of today, the Company has set up 20+ oversea subsidiaries,
6 global service regions, 85+ global service centers, 280+ authorized service providers, and hundreds of important channel partners,
with products being sold to more than 150 countries around the world. In the future, the Company will continue to explore the global
market, orderly promote the global deployment of inverters, energy storage, charging, power stations, and floating system businesses,
prioritize the improvement of global marketing, service, financing, and other key capabilities, thereby reinforcing the global support
capability system and strengthen the global influence.

IV. Core Business Analysis
1. Overview

A. Overview of core business analysis

As the global new energy market grew rapidly in 2012, the Company seized the opportunity and overcame the impacts of challenging
logistics and supply shortage to enhance R&D innovation and deeply explore the global market. As a result, the Company further
consolidated its leading position in core business and expanded the brand influence. At the same time, benefited from the scale effect,
channel expansion, and improvements in operational capabilities, the Company’s profitability improved further.

In the reporting period, the Company achieved a total revenue of CNY 40.257 billion, an increase of 66.79% year-on-year; an
operating cost of CNY 30.376 billion, a year-on-year increase of 61.87%. The increase in both revenue and operating cost mainly
came from the Company's continuous expansion in the market and the subsequent expansion of sales scale. The Company achieved a
gross profit rate of 24.55%, a year-on-year increase of 2.29%, which mainly came from expansion of the energy storage business,
especially the increase in the proportion of residential storage and the decrease in shipping costs. The Company realized a net profit
attributable to shareholders of CNY 3.593 billion, an increase of 127.04% year-on-year; selling expenses amounted to CNY 3.169
billion, a year-on-year increase of 100.26%, which mainly came from expansion of business scale, increase in sales personnel costs,
and increased investment to expand the global channel and service network. The Company realized R&D expenses amounting to
CNY 1.692 billion, a year-on-year increase of 45.70%, which was mainly due to the large increase in the salaries of R&D staff and
the use of raw materials for the expanded R&D investment in the current period. The Company realized financial expenses of CNY
-477 million, a year-on-year decrease of 268.48%, mainly due to the relatively large exchange earnings from foreign exchange rate
fluctuations in the current period. The net cash flow from operating activities was CNY 1.210 billion, a year-on-year increase of
173.87%, which was mainly contributed by the increase in cash collection from commodities sold and labor services provided in the
current period.

B. Overview of core business in the reporting period

In the reporting period, the Company made the following attempts related to the main business:

(1) Business development
PV inverters

In the reporting period, the Company released the 2023-2027 technology roadmap, based on which the Company intended to advance
technological R&D and product innovation related to the solar power and energy storage. In addition, the Company continued to
strengthen R&D innovation, vigorously pushed forward the global brand strategy, and deeply explore key segmented markets, in
order to capitalize on the global marketing, service, and supply chain advantages. With increasing global competitiveness and
influence, the Company successfully guaranteed green power supply for the World Cup 2022, 2022 Winter Olympics, COP27 and
other global events. In 2022, the Company shipped 77 GW of PV inverters in total, including 900,000 units shipped through channels.
As of December 2022, the Company has cumulatively installed over 340 GW of inverter equipment in the global market.

In the reporting period, the Company expanded its presence in the European, American, Australian, and Chinese channel markets,
and set up 370+ service outlets worldwide, including 85+ global service centers and 280+ authorized certification service providers.
Being customer-oriented, the Company has established solid cooperation with global customers, entered into several contracts for
GW-level inverters. The Company’s performance in distributed market continued to go up, with the market share in dominating
markets stably ranking the first.

In the reporting period, the SG320HX leading the 300kW+ string technology and the groundbreaking 1+X modular inverter were
widely applied in various scenarios worldwide. The Company assisted in the grid connection operation of an 800 MW PV power
station in Qatar, contracted a 256 MW (the largest in Africa) standalone new energy power generation project with the SOLA Group
in South Africa, as well as a 650 MW PV project in Brazil, a 480 MW PV project in Chile, and a 320MW project in Denmark.

In the meanwhile, Modular Technology and Equipment for New Medium-Voltage PV Power Generation Units, one of the National

Key Research and Development Plan programs, passed acceptance, giving birth to the world's first direct-mounted 35 kV
medium-voltage PV inverter.

For the distributed market, the Company launched new industrial and commercial products globally, with 125 kW high-power
products leading the industry. Sungrow’s upgraded CX series industrial and commercial PV inverters fitted in various industrial and
commercial scenarios, featuring the advantages of flexible compatibility with large modules, global MPPT solutions, and removable
enclosure design. This series further enriched the portfolio of small and medium-sized power inverters and redefined the future of
distributed inverters.

In response to the growing global demand for residential storage, Sungrow released the new generation of residential integrated
PV-storage-charging solution, and launched the PV-Storage-Charging Green Power Solution for residences. Leading the global
residence energy independency transition, the solutions were widely acknowledged by the market because of its high power
generation efficiency and convenient operation and maintenance. They were also largely welcomed and praised by customers in
many projects.
Wind power converters

In the reporting period, significant breakthroughs were made in offshore wind power converters, wind power aftermarket, and
powertrain businesses. In 2022, 23 GW of wind power converters were shipped, marking a year-on-year increase of 53%. The
Company continued to increase strategic investment in the wind energy business during the reporting period, insisted on R&D
innovation, maintained a leading edge in wind power converter technologies, and continually expanded in wind power conversion
and electric powertrain technologies, hence to increase Sungrow’s brand influence in the wind power industry, promote quality
development of the wind power industry, and contribute to the earlier arrival of a zero carbon society under the dual-carbon goal.

Energy storage

In the reporting period, Sungrow introduced PowerTitan and PowerStack, the industry's first “3-in-1 professionally integrated"
liquid-cooling energy storage solutions. three electricity integration professional integration" full series of liquid cooling energy
storage solutions, PowerTitan and PowerStack, for large-scale ground and industrial power plant application scenarios. While
maintaining the temperature uniformity and lower power consumption of liquid cooling, the solutions creatively incorporated
“cluster-level managers” to address the "barrel effect” of batteries, and supported mixed use of new and old batteries to further
reduce LCOS. In 2022, Sungrow shipped 7.7 GWh of energy storage systems worldwide.

At present, the Company's energy storage systems are widely used in mature electricity markets such as US, UK, and Germany to
enhance the deep integration of wind power, solar power, and energy storage. No safety incident was reported in any of the energy
storage projects the Company was involved in, extensive application experiences were gained in frequency regulation and peak
shaving, auxiliary renewable energy grid connection, micro-grid, industrial and commercial energy storage, residential energy
storage and other fields. In the reporting period, the Company provided one-stop solutions for various projects around the world,
including the 638 MWh energy storage project (the largest) in Latin America, the Phase I 176 MWh PV-storage integration project of
Ginan Solar in Australia, the 136.24 MWh PV-storage integrated power station (the largest) in Southeast Asia, the 430 MWh energy
storage project (the largest) in Israel, and the 100 MW/200 MWh grid-side standalone energy storage project in Taiyang of
Taierzhuang, Shandong.

According to the Energy Storage Industry White Paper 2023 released by China Energy Storage Alliance in April 2023, Sungrow’s
shipment of energy storage systems ranked No. 1 among Chinese manufacturers for 7 consecutive years. the shipment volume of
solar power storage systems ranked first among Chinese enterprises for seven consecutive years. With proven strengthen in clean
power conversion technology, Sungrow will continuously capitalize on the advantages of collaborative wind power, solar power and
energy storage innovation, ensure the safe, stable, and efficient operation of new energy, energy storage, and power grid, advance
top-level industry designs, and assist in building new power systems running on new energy.

New energy investment and development

In the reporting period, Sungrow Renewables focused on the vision of “To be the global leader of new energy power generation
technology”, practiced the value proposition of “More Power Generation in a Friendlier Way”, and continued to implement the

business policy of “being pragmatic and refined in operation”. The Company continued to enhance research and development of new
energy system technology, innovative and optimize power station products, accelerate channel business layout, and upgrade service
capability. As of the end of the reporting period, Sungrow's new energy business extended into 30 provinces, autonomous regions
and municipalities in China, as well as countries along the Belt and Road, with cumulative volume of global development and
construction of PV/wind power stations exceeding 31 million kilowatts.

Leveraging system technology innovation to secure the differentiated competitiveness, Sungrow Renewables continually increases
technological innovation and industrial application of new energy systems. In the reporting period, the Company increased R&D
investment targeting at three core technology systems (high-efficiency power generation, system integration, and power station life
cycle optimization); upgraded the PowMart smart energy solution portfolio to cover more application scenarios and cope with
diversified industries. The latest iSolarRoof-B intelligent industrial and commercial PV system design software, iSolarBP initial
evaluation software for industrial and commercial PV systems, and iSolarRoof-C intelligent residential PV system design software
assisted industrial, commercial, and residential PV power stations in efficient evaluation and decision-making, streamlined designing,
intelligent optimization, cost reduction and efficiency improvement, and efficient power generation, which comprehensively
improved the development quality of the distributed PV industry.

In the reporting period, Sungrow Renewables joined forces with the National Energy Key Laboratory for Wind and Solar Simulation,
Testing and Certification and the China General Certification Center to roll out the Good PV Power Station certification project. As a
result, the BIPV (Building Integrated PV) Technology White Paper, the Floating PV System Power Generation Technology White
Paper, and a number of Good PV Power Station evaluation standards for BIPV, floating systems, and PV integration with agriculture,
forestry, husbandry, fishery, soil/environment reclamation were released. The relevant white papers and technical achievements
bridged the gap of no evaluation standards available for quality PV power stations, and played a significant role in guiding the quality
development of the PV industry. Along the course, the Company chaired the Webinar on Tonga Volcano Eruption and PV Power
Generation, and the Webinar on Energy Storage System Development under the Dual Carbon Target, providing consistent technical
support for developing PV, energy storage and other new energy businesses.

Focusing on the new energy development track and guided by the value proposition of "More Power Generation in a Friendlier Way”,
Sungrow Renewables openly embraced major national energy strategies such as the large-scale wind power and PV base, and the
county-wide PV/wind power development across the county, continuously built project reserve and converted resource conversion.
In the domestic market, the Company built the first grid-side energy storage application demonstration project in Anhui Province, the
largest PV-storage integration project in China, the annual energy storage demonstration project in Shandong, and a number of
industry benchmarks. In the overseas market, the Company accelerated market exploration, maintained a steady momentum, won the
bid of Australia's top credit rating PPA project and officially connected Kazakhstan's 150 MW wind power project to the grid.

In the field of industrial and commercial PV systems, the Company insisted on parallel development of "direct selling + channel
distribution", and fully leveraged the advantages of “technology + platform" dual drive, to incubate unique technologies in the field
of industrial and commercial PV systems, as well as effective power generation products and intelligent software that assist channel
partners in rapid development. Sungrow Renewables has also innovated a series of technology service platform, partner platform,
financing platform, supply chain platform, information management platform, and etc., to provide channel partners with all-around
platform services throughout the entire lifecycle. In the reporting period, Sungrow Renewables cumulatively developed more than 4
GW of industrial and commercial PV power stations, and cooperated with nearly one thousand industrial and commercial enterprises.
In response to the increasingly popular residential PV market, Sungrow continued to enhance the comprehensive advantages in brand,
product, service, and other aspects, deepen the channel model, and achieve coordinated development of multiple business models
including full payment, financing, cooperative operation, and operational leasing in the market. The Company continued to shape a
community of interests for manufacturers; made market assistance efforts in technological guidance, financial support, training and
empowerment, market promotion; kicked off the 2022 All Quality Matters Tour and other brand service initiatives in China to
enhance customer experience. To consolidate the product and technological advantages, the Company optimized and upgraded the
iRoof residential power station, the iGarden colorful PV winter garden and other products to ensure efficient power generation. In the

reporting period, the market share of Sungrow residential PV systems steadily increased, the installed capacity doubled, enabling the
Company to hold a solid position in the leading group among residential PV manufacturers, and earning the 2022 Influential Brands
of Residential PV Systems in China as well as other honors.

While the business developed rapidly, Sungrow Renewables received a number of honors, such as the National May Day Labor
Award, Anhui Provincial Industrial Design Center, National Service-oriented Manufacturing Demonstration Enterprise, and 2022
Best ESG Employers in China. The Company won the very first TÜV Rheinland PV Power Station Developer Award, and received
the approval for establishing a postdoctoral research workstation.

Sungrow Renewables proactively embraces changes in policies and market environment, and adheres to the strategic positioning of
being a proven player in new energy system technologies. With comprehensive efforts made in brand, products, channels, and service,
the Company develops and builds power station products featuring “More Power Generation in a Friendlier Way”, helping achieve
higher power generation efficiency and lower unit electricity costs, and leading the quality development of the new energy industry.
(2) Operation management and others

The 2022 Restricted Stock Incentive Plan

To further optimize the long-term incentive mechanism of the Company, attract and retain outstanding talents, and motivate
employees at work, by effectively considering the interests of shareholders, the Company, and employees so that all parties jointly
contribute to the Company’s long-term development, and following the principle of equal benefits and contributions, a total of
6,165,000 Class II restricted shares were granted to 467 incentive objects at the price of CNY 35.54 per share in the reporting period.
This equity incentive plan helped to grow endogenic force for the sustainable and healthy development of the Company, which
integrated the interests of core personnel with the Company's future performance growth and shareholder return capability. It helped
to continuously improve the Company's operating performance and value creation capability, and set a guidance for attracting and
retaining more outstanding employees in the future and effectively implementing long-term strategic plans.

Share buyback for equity incentive

Based on the positive prospect of the Company's growth, Sungrow successfully implemented the share buyback plan in 2022 to
safeguard the interests of shareholders, enhance investors’ confidence, and further improve the Company's long-term incentive
mechanism. Taking into account the Company's operating performance, financial performance, profitability, and development
prospects, the Company bought back some of the Company's shares with self-supplied funds, and intended to use them for employee
stock ownership plans or equity incentive plans for key employees in the future. As of the end of the reporting period, the Company
had bought back approximately 6,485,000 shares through centralized bidding in the Shenzhen Stock Exchange’s trading system, with
the total payment amounting to CNY 521 million.

Corporate culture

Year 2022 marked the 25th anniversary of Sungrow. With systematic thinking and collective wisdom, the Company instituted the
Sungrow Guidelines to guide the Company's operation and growth in the future. While firmly upholding the green mission of “Clean
power for all”, Sungrow’s core values were upgraded to "Honest & Reliable, Excellent & Open-minded, Innovative & Respectful,
Customer First”, which intended to foster an inclusive organizational atmosphere, and strived to enable all Sungrow employees to
innovate and collaborate in mutual trust and respect. In the reporting period, the “Global Sungrow” concept was reinforced to expand
the influence of the Sungrow culture; the Role Model series publicizing passed on positive attitude and inspired empathy; the
Cross-Cultural Salon promoted exchange and interaction of cross-cultural teams. A number of themed cultural activities were carried
out: the Sungrow Trailwalk attracted nearly 10,000 employees from all over the world as well as external followers, with the
cumulative distance hitting nearly 250,000 kilometers; the Global Skills Competition helped to communicate the concepts of lean
production and smart manufacturing; employees across multiple regions in China and overseas acted in coordination to bless
Sungrow’s 25th anniversary in diversified ways; the Love from Sungrow Donation brought warmth to the left-behind children in
rural areas and demonstrated corporate social responsibilities. By continuously advancing the global employer branding efforts across
Europe, Americas, and Asia Pacific regions, Sungrow won multiple international employer brand awards including Top Company
2022, Great Place To Work Certification, and Best Companies to Work For in Asia, which further consolidated Sungrow’s employer

brand image overseas. The third Sungrow University Innovation Competition attracted more than 100 undergraduates as well as
master and doctoral candidates from key universities in the country; Open Day activities, campus workshops, winter camps and etc.
attracted more talents to the Company. Sungrow has created a diverse and inclusive workplace, and recruited 900 employees
overseas, accounting for a localized employment rate of 99.6%. The Company extends internal and external training to empower
employees, offers diversified incentives and benefits to motivate employees and enhance employees’ well-being, and shapes the
Sungrow atmosphere of “joyful work and healthy life”.

Social responsibilities

Since the Company joined EP100 and made commitments to increase energy productivity by at least 35% by 2028 on top of the 2018
benchmark, multiple energy-saving and emission reduction activities were launched to progress refined energy management driven
by technology and management. In the meanwhile, the Company speeded up towards the RE100 target and realized 45% of green
power use during the year.

Assuming the mission of “Clean power for all”, the Company makes in-depth exploration in the field of clean power, and is
committed to addressing the challenges in producing, converting, storing, and using clean power with technological progress. We
strive to lower energy cost, raise the proportion of green energy worldwide, offer more efficient and convenient ways to use energy,
and allow more people to get involved, ultimately enabling affordable, safe, and smart low-carbon energy to be accessible for all, and
making unremitting contributions to a greener planet.

Adhering to the brand position of “technologic power”, the Company insists on high level of R&D investment, delves into the
energy-saving and emission-reduction scenarios of various industries, continually innovates and delivers outstanding products and
services, to help customers reduce emissions, save resources, and lead partners in the ecosystem towards low-carbon transformation.
By the end of 2022, the Company has achieved a cumulative installed capacity of 340 GW of inverter equipment worldwide,
produced 471.1 billion kWh of clean power, and reduced carbon dioxide emission by nearly 377 million tons per annum. Moreover,
the Company has reduced carbon emission by 23,000 tons throughout the year by focusing on company-wide green operation.

In 2022, the Company made full use of its advantages and professional capabilities, and rolled out public welfare volunteer programs
in ecology and environment protection, support for education, technology and human resources, poverty alleviation, community
growth, and disaster assistance. The Sungrow Forest program was included in China’s Sustainability Cases in Industrial and
Information Technology released by China Federation of Industrial Economics. The Company released the Supplier Code of Conduct
and conducted a product carbon footprint survey. In addition, the Company set up a dedicated public welfare fund of CNY 10 million
and launched the Sungrow Global Volunteer Service Program to repay the care and support received from society. Throughout the
year, the Company made a total donation of CNY 7.4807 million.

R&D, intellectual property

In the reporting period, the Company continued to increase R&D investment and actively advanced the consolidation of independent
intellectual properties and patent application. In 2022, the Company was granted 895 new patents, all of which were original ones,
including 40 patents overseas, 208 inventions, 598 utility models, and 50 exterior design patents in China. A total of 1,750 new
patent applications were filed, including 169 patents in foreign countries, 743 invention patents, 764 utility model patents and 74
appearance patents in China. Such efforts further enhanced the Company's independent innovation capabilities and strengthened the
core competitiveness.

As of the end of the reporting period, the Company has cumulatively acquired a total of 2,877 patents, including 1,073 inventions,
1,591 utility models, and 213 exterior designs. Relying on the industry-leading technological reserve, the Company actively
promoted the formulation and optimization of relevant standards in the industry, organized and contributed to a number of Chinese
national standards.

Honors and awards received in the reporting period

Honors and Awards Awarded by

Top Chinese Listed Companies 2022 (Most Progressive Listed National Business Daily


Companies in New Energy and New Materials Industries)

2022 Top 100 Companies inAnhui Anhui Enterprise Federation,Anhui Entrepreneur

Federation

2022 Top 100 Manufacturing Companies in Anhui Anhui Enterprise Federation,Anhui Entrepreneur

Federation

2022 Top 500 Manufacturing Companies in China China Enterprise Confederation, China Entrepreneur

Association

PVBLTop Global Photovoltaic Brand Award Photovoltaic Brand Lab (PVBL), Century New Energy

Network

Top 100 Global Photovoltaic Brands Century New Energy Network, Photovoltaic Brand Lab

2022 Top 100 Most Valuable Chinese PV Brands Organizing Committee of the 5th China International

Photovoltaic Industry Summit Forum

2022 EPC Excellence PV Companies World Solar Photovoltaic Industry Expo, Guangdong

Hongwei International Exhibition Co., Ltd.

2022 Excellent PV Inverter Companies World Solar Photovoltaic Industry Expo, Guangdong

Hongwei International Exhibition Co., Ltd.

2022 Most Influential Chinese Rooftop PV Inverter Brands Organizing Committee of China Residential PV

Conference

China Distributed PV Conference - Top Ten Most Influential Organizing Committee of the 5th China Distributed PV

Inverter Brands Conference

2022 China Energy Storage Industry Evaluation - Best System Solarbe ESN, The Solar Energy Cup Evaluation

Integration Solution Award Committee

The Solar Energy Cup Evaluation - 2022 Most Influential PV Solarbe Global, The Solar Energy Cup Evaluation

Inverter Companies Committee

The Solar Energy Cup Evaluation - 2022 Most Influential PV Solarbe Global, The Solar Energy Cup Evaluation

Storage Solution Providers Committee

The 11th North Star Cup 2022 Most Influential PV-Storage North Star Solar Photovoltaic Network, Beijing Huonet

Integration Solution Providers Power Technology Co., Ltd.

The 11th North Star Cup 2022 Most Influential PV Inverter Brands North Star Solar Photovoltaic Network, Beijing Huonet

Power Technology Co., Ltd.

GGII Energy Storage 2022 Energy Storage Industry Chain GGII Energy Storage, GGII

Nominee for the Paulson Prize for Sustainability Paulson Institute

Contributor to the Carbon Neutrality Green Brand Influence

China Energy News, China Institute of Energy Economics
Initiative

Demonstration Enterprise of Green Design for Industrial Products Ministry of Industry and Information Technology

The 11th North Star Cup 2022 Most Influential Low Carbon Action North Star Solar Photovoltaic Network, Beijing Huonet

Brands Power Technology Co., Ltd.


First Prize in the Science and Technology ProgressAward

(Dispatching and Control Technology and itsApplication for

China Electrotechnical Society

Multiple New Resources Involved in Secondary Frequency

Regulation of Power Systems)

Science and TechnologyAward of China Power Supply Society

(First Prize - Technological Invention) (Key Technologies and

China Power Supply Society

Application of a Large Scale Energy Storage System Based on

Power Electronics Battery Units)

Anhui Province Patent GoldAward (a method for exiting and

Anhui Provincial Market Supervision and Administration

switching the MPPT centralized mode and its application)

2022 Forbes Most Innovative Chinese Companies Forbes China

China's 500 Most Valuable Brands World Brand Lab

Enterprise of Best Practices in Achieving the Sustainable

Global Compact China Network

Development Goals (Carbon Peaking and Carbon Neutrality)

2022 Best Companies to Work For In Asia HR Asia

Top Company Kununu

2. Income and Cost Analysis
(1) Composition of operating income

The Company needs to comply with the requirements on the disclosure of “PV industry chain related business” specified in the

Shenzhen Stock Exchange’s No. 4 Regulatory Guidelines for Listed Companies — Information Disclosure of GEM-Listed Companies:
Overview of operating income

(in CNY)

2022 2021

% of Operating % of Operating YoY Change
Amount Amount

Income Income

Total operating income 40,257,239,155.34 100% 24,136,598,726.55 100% 66.79%

By sector

PV 27,245,555,359.81 67.68% 18,931,185,451.66 78.43% 43.92%

Energy storage 10,126,474,666.35 25.15% 3,137,622,772.49 13.00% 222.74%

Other 2,885,209,129.18 7.17% 2,067,790,502.40 8.57% 39.53%

By product
PV inverters and other power

15,717,345,647.09 39.04% 9,050,773,565.63 37.50% 73.66%

conversion devices
New energy investment and

11,603,806,618.82 28.82% 9,678,744,379.61 40.10% 19.89%

development

Energy storage systems 10,126,474,666.35 25.15% 3,137,622,772.49 13.00% 222.74%


Wind power converters 1,461,329,609.84 3.63% 1,177,080,263.56 4.88% 24.15%

PV power generation 625,483,634.25 1.55% 485,629,355.11 2.01% 28.80%

Other 722,798,978.99 1.80% 606,748,390.15 2.51% 19.13%

By geography

Mainland China (not including Hong 21,194,893,809.26 52.65% 14,959,211,117.66 61.98% 41.68%

Kong, Macau and Taiwan)

Overseas (including Hong Kong, 19,062,345,346.08 47.35% 9,177,387,608.89 38.02% 107.71%

Macao and Taiwan)
Sales to major revenue-contributing countries

(in CNY)

Major Significant adverse changes in local PV industrial policies or
revenue-contributing Sales volume Sales revenue trade policies and their impacts on the Company's current and
countries future operating results

China Not Applicable 21,194,893,809.26 Not Applicable

Basic situation of PV power stations

Since there are a large number of PV power station projects in the reporting period, the basic information of the top ten PV power
stations by revenue is disclosed here item by item, and the rest power stations are listed as a whole by business pattern.

Source of PV
Capacity

No. Project Name BT/EPC Status inverters/wind
(MW/MWH)

power converters

The BOREY 100 MW Wind Power Project in 100

1 BT Grid connected Outsourced

Kazakhstan

Hebei Yangmin New Energy 190 MW Sungrow 203 Construction in

2 BT Self-supplied
Residential PV Power Station Project progress

Anyang Yangzhao 260 MW Sungrow 195 Construction in

3 BT progress Self-supplied
Residential PV Power Station Project

Hefei Yangjie New Energy Technology Co., Ltd. 175 Construction in

4 BT progress Self-supplied
370 MW Residential Project

5 Laizhou Haoyang Phase II 140 MW PV Project EPC 140 In trial operation Self-supplied

Luohe Yangzhao 90 MW Sungrow Residential 180 Construction in

6 BT progress Self-supplied
PV Power Station Project

Sungrow Renewables - Gao'an Fuyang Xiangfu 114 Construction in

7 BT progress Self-supplied
Town 150 MW Project

Shandong Daiyang New Energy Co., Ltd. 260 121 Construction in

8 BT progress Self-supplied
MW Residential PV Power Station Project

9 Hefei Yangyuan New Energy Technology Co., BT 122 Construction in Self-supplied


Ltd. 340 MW Sungrow Residential PV Power progress

Station Project

Kaifeng Yangzhao 365 MW Sungrow 123 Construction in

10 BT progress Self-supplied
Residential PV Power Station Project

Other BT power station projects 1,513 - -

Other EPC power station projects 506 - -

The construction contract between the Company and the
customer includes the performance obligation for power
station construction. Since customer has control over the
construction-in-progress during the contract performance,
the Company considers it as a performance obligation
within a certain period of time, and recognizes revenue
according to the progress of performance, unless the
progress of performance cannot be reasonably determined.
Accounting treatment for BT and EPC models

The Company determines the performance progress of
service provision according to the percentage of
investment. The performance progress is the ratio of the
actual cost incurred for the performance of the contract
versus the estimated cost of the contract. The Company
re-estimates the progress of completion or the labor
service provided on the date of the balance sheet, so that it
can reflect changes in the contract performance.

(2) Industries, products, geographies, and sales models that account for more than 10% of the Company's
operating income or operating profit
 Applicable □ NotApplicable

(in CNY)

Gross YoY changes in YoY changes in YoY changes in
Operating income Operating cost margin operating income operating cost gross margin

By sector

PV 27,245,555,359.81 20,387,578,197.75 25.17% 43.92% 40.60% 1.77%

Energy storage 10,126,474,666.35 7,773,287,416.92 23.24% 222.74% 188.43% 9.13%

By product
PV inverters and other

power conversion 15,717,345,647.09 10,495,620,278.70 33.22% 73.66% 75.18% -0.58%
devices
New energy investment

and development 11,603,806,618.82 10,238,914,199.99 11.76% 19.89% 20.08% -0.15%

Energy storage systems 10,126,474,666.35 7,773,287,416.92 23.24% 222.74% 188.43% 9.13%

By geography

Mainland China (not

including Hong Kong, 21,194,893,809.26 16,523,804,445.24 22.04% 41.68% 36.48% 2.97%
Macau and Taiwan)
Overseas (including

Hong Kong, Macao and 19,062,345,346.08 13,852,002,105.08 27.33% 107.71% 108.04% -0.12%
Taiwan)

Where the statistical caliber for the Company's core business data was adjusted in the reporting period, the adjusted core business

data in the last year at the end of the reporting period

□Applicable  NotApplicable

(3) Whether the Company's physical sales revenue is greater than the labor revenue

 Yes □ No

Sector Item UoM 2022 2021 YoY Change

Sales GW 77 47 63.83%

PV inverters Production GW 82 56 46.43%

Inventory GW 23 18 27.78%

Reasons for year-on-year changes greater than 30%

 Applicable □ NotApplicable

Sales volume increased by 63.83% year-on-year, mainly contributed by the increase in business scale;

Production volume increased by 46.43% year-on-year, mainly contributed by the increase in business scale.

(4) Performance of major sales contracts and purchase contracts entered by the Company up to the
reporting period
□Applicable  NotApplicable
(5) Composition of operating cost
By sector

(in CNY)

2022 2021

Sector Item % of Operating % of Operating YoY Change
Amount Amount

Income Income

PV Raw materials 16,582,269,527.82 81.13% 11,648,179,923.82 80.33% 42.36%

(6) Whether the scope of consolidation changed in the reporting period

 Yes □ No

For details, please refer to the Description of Changes in the Scope of Consolidation in Section X Financial Reports.


(7) Significant changes or adjustments to the Company's business, products or services in the reporting
period
□Applicable  NotApplicable

(8) Major Customers and Major Suppliers

Major customers

Total amount of sales to top five customers (CNY) 5,239,115,401.56

Proportion of total sales amount to top five customers in the annual total sales 13.01%

Proportion of related party sales to top five customers in the annual total sales 0.00%

Sales to top 5 customers

No. Customer Name Sales (CNY) % of Total Annual Sales

1 Customer 1 1,338,807,154.18 3.33%

2 Customer 2 1,298,032,210.93 3.22%

3 Customer 3 1,213,105,455.78 3.01%

4 Customer 4 721,485,964.97 1.79%

5 Customer 5 667,684,615.70 1.66%

Total -- 5,239,115,401.56 13.01%

Other information about major customers
□Applicable  NotApplicable
Major suppliers

Total amount of purchase from top five suppliers (CNY) 9,932,320,322.67

Proportion of total purchase amount from top five suppliers in the annual purchase amount 27.21%

Proportion of related party purchase from top five suppliers in the annual purchase amount 0.00%

Purchase from top 5 suppliers

No. Supplier Name PurchaseAmount (CNY) % of Total Annual PurchaseAmount

1 Supplier 1 4,960,843,607.87 13.59%

2 Supplier 2 1,746,457,310.41 4.78%

3 Supplier 3 1,130,956,185.58 3.10%

4 Supplier 4 1,054,275,704.98 2.89%

5 Supplier 5 1,039,787,513.83 2.85%

Total -- 9,932,320,322.67 27.21%

Other information about major suppliers
□Applicable  NotApplicable

3. Expenses

(in CNY)

2022 2021 YOY Change Notes on Major Changes

3,169,263,472.82 1,582,578,297.46 100.26% Mainly due to the large increase in the salaries of
sales staff and the post-sales service fee accrued

Selling expenses

for the increased sales revenue in the current

period.

Management expenses 612,314,748.77 491,053,482.80 24.69%

-477,244,161.25 283,256,851.58 -268.48% Mainly due to the relatively large exchange

Financial expenses earnings from foreign exchange rate fluctuations
in the current period.

1,692,156,198.42 1,161,389,788.60 45.70% Mainly due to the large increase in the salaries of
R&D expenses R&D staff and the use of raw materials for the

expanded R&D investment in the current period.

4. R&D Investment
 Applicable □ NotApplicable

Major R&D Impacts Expected on the

Purpose Progress Planned Objective

Projects Company’s Growth

The SG8800UD Modular design to lower Ready for volume Design an 8.8 MW series Solve the problem of large

Series Product power generation loss shipment integrated MV system that power generation loss due to
Project due to faults; optimized can be accommodated in a faults in previous generations;
system design to improve 40-foot container; design a drastically reduce costs;

equipment utilization; 4.4 MW integrated MV gradually replace the

enhanced intelligent system that can be SG3125HV series with new

operation and accommodated in a 20-foot product in the market.

maintenance to reduce container; reduce LCOE of

maintenance costs. power station; offer IP65

protection; real-time

monitoring of DC parallel

arcing; reactive response < 20

ms.

The SG320HX Bridge deficiencies in In volume shipment Carry on the characteristics of Solve problems facing

Project previous generations of SG250HX series products previous generations; further
products; reduce product following the principle of reduce product cost and

costs; increase power suitability for manual safeguard customer

generation; expand handling; cope with the 182 investment; increase power

product application and 210 series modules generation and customer

scenarios. introduced in the industry. revenue.


The SG320HX Guarantee product In volume shipment Guarantee product delivery; Replace the legacy product

Module delivery. reduce cost and increase SG225HX; increase customer
Replacement efficiency; introduce multiple power generation and reduce
Project suppliers to reduce finished customer investment; repair

product cost. failures in legacy products

and increase market share.

The Introduce multiple In volume shipment Lightweight container design, Enhance product

SG6250HV-MV suppliers to reduce cost introduce multiple suppliers competitiveness; improve

Optimization and increase efficiency; to ensure delivery; satisfy product gross margin;

Project satisfy customer needs. customer needs, integrate new enhance the market share of

customer demands into centralized products.

product development; create

value for customers, and

contribute to customer

success.

Statement of R&D staff

2022 2021 % of Change

Total R&D Staff 3,647 2,734 33.39%

R&D Staff in Total HC 39.47% 40.65% -1.18%

Educational Background of R&D Staff

Bachelor 1,807 1,350 33.85%

Master 1,336 994 34.41%

Doctor 51 31 64.52%

College Graduate and. below 453 359 26.18%

Age Structure of R&D Staff

Below 30 1,463 1,031 41.90%

30 to 40 1,945 1,529 27.21%

Above 40 239 174 37.36%

R&D investment size and percentage in operating proceeds in the past three years

2022 2021 2020

R&D investment (CNY) 1,692,156,198.42 1,161,389,788.60 806,352,266.48

Percentage of R&D investment in operating proceeds 4.20% 4.81% 4.18%

Capitalized R&D expenditure (CNY) 0.00 0.00 0.00

Capitalized R&D expenditure as a percentage of R&D 0.00% 0.00% 0.00%
investment

Capitalized R&D expenditure as a percentage of net 0.00% 0.00% 0.00%
profit in the period

Reasons for substantial changes in R&D staff and their impacts

□Applicable  NotApplicable

Reasons for substantial change in percentage of total R&D investment in operating income as compared with the previous year

□Applicable  NotApplicable

Reasons for substantial changes in the capitalization rate of R&D investment and the justifications

□Applicable  NotApplicable
5. Cash Flows

(in CNY)

Item 2022 2021 YoY Change (%)

Cash inflow from operating activities 40,759,815,988.81 24,052,818,855.57 69.46%

Cash outflow from operating activities 39,549,317,502.92 25,691,450,978.34 53.94%

Net cash flow from operating activities 1,210,498,485.89 -1,638,632,122.77 173.87%

Cash inflow from investment activities 14,684,990,549.50 4,557,428,471.65 222.22%

Cash outflow from investment activities 14,339,435,233.12 8,270,637,807.44 73.38%

Net cash flow from investment activities 345,555,316.38 -3,713,209,335.79 109.31%

Cash inflow from financing activities 9,949,974,901.15 6,979,881,183.93 42.55%

Cash outflow from financing activities 8,203,257,437.80 1,801,225,561.76 355.43%

Net cash flow from financing activities 1,746,717,463.35 5,178,655,622.17 -66.27%

Net increase in cash and cash equivalents 3,242,092,864.04 -192,686,945.97 1,782.57%

Explanation on main contributors to the significant YoY change in relevant data

 Applicable □ NotApplicable

1. Cash inflow from operating activities increased by 69.46% YoY, mainly contributed by the increase in cash collection from
commodities sold and labor services provided in the current period;

2. Cash outflow from operating activities increased by 53.94% YoY, mainly contributed by the increase in cash payment for
commodities purchased and labor services received in the current period;

3. Cash inflow from investment activities increased by 222.22% YoY, mainly contributed by the increase in cash recovery of
project investment in the current period;

4. Cash outflow from investment activities increased by 73.38% YoY, mainly contributed by the increase in cash payments for
investment projects in the current period;

5. Cash inflow from financing activities increased by 42.55% YoY, mainly contributed by the increase in cash received from
borrowings in the current period;

6. Cash outflow from financing activities increased by 355.43% YoY, mainly contributed by the increase in cash paid for
borrowings in the current period;

Explanation on reasons for the significant difference between the net cash flow from operating activities and the net profit of the year
during the reporting period
□Applicable  NotApplicable

V. Status of Non-Core Business
□Applicable  NotApplicable

VI. Analysis of Assets and Liabilities

1. Significant changes in asset composition

(in CNY)

End of Year 2022 Beginning ofYear 2022 Notes on Major
Change

Amount % of Total Assets Amount % of Total Assets Variations

Money funds 11,666,601,491.42 18.93% 7,790,144,016.01 18.18% 0.75%

Accounts receivable 13,804,040,262.60 22.40% 8,748,141,497.54 20.42% 1.98%

Contract assets 1,291,527,303.40 2.10% 1,364,393,136.40 3.18% -1.08%

Inventory 19,060,142,584.88 30.93% 10,767,519,365.64 25.13% 5.80%

Long-term equity

228,278,242.43 0.37% 115,159,366.42 0.27% 0.10%

investment

Fixed assets 4,543,555,993.02 7.37% 4,245,993,353.02 9.91% -2.54%

Construction-in-progress 1,188,671,605.49 1.93% 424,310,899.34 0.99% 0.94%

Right-of-use asset 559,699,600.83 0.91% 344,386,440.69 0.80% 0.11%

Short-term loan 1,422,187,421.05 2.31% 1,524,580,849.05 3.56% -1.25%

Contract liabilities 3,788,439,560.39 6.15% 1,713,946,572.46 4.00% 2.15%

Long-term loan 4,161,650,000.00 6.75% 1,891,445,000.00 4.42% 2.33%

Lease liability 430,999,112.05 0.70% 283,789,579.70 0.66% 0.04%

High percentage of overseas assets
□Applicable  NotApplicable

2. Assets and liabilities measured at fair value

 Applicable □ NotApplicable

(in CNY)

Gains/losses Cumulative

from changes at Amount of

Impairment procuremen Amount of

Beginning changes at fair value accrued for sales in the Other

Item Amount t in the changes Closing amount
fair value in included in the period period

period

the period equity

FinancialAssets

1. Trading financial 3,802,888, -30,274,158 11,851,632, 14,143,207,

assets (excl. 726.03 .24 954.00 870.42 1,481,039,651.37

derivative financial
assets)
2. Derivative financial 10,008,06

-553,717.34 9,454,345.61
assets 2.95

3. Other investments 762,715,9 5,431,559,8 5,156,234,2

1,038,041,498.25
in debts 06.62 55.18 63.55

4. Investment in other 40,008,52 53,309,889. 217,201,271 6,842,046.2

303,677,642.96
equity instruments 7.59 74 .87 4

Sum - Financial 4,615,621, 22,482,014. 17,500,394, 19,306,284,

2,832,213,138.19
Assets 223.19 16 081.05 180.21

Sub-total 4,615,621, 22,482,014. 17,500,394, 19,306,284,

2,832,213,138.19
223.19 16 081.05 180.21

Financial Liabilities
1. Trading financial

liabilities (excl. 51,919,973.

51,919,973.63
derivative financial 63

assets)

2. Derivative financial 854,928.

173,025.00 1,027,953.77
liabilities 77

Sum - Financial 52,092,998. 854,928.

52,947,927.40
Liabilities 63 77

Significant changes in the measurement attributes of the Company's main assets in the reporting period

□ Yes  No

3. Restricted asset rights as of the end of the reporting period

(in CNY)

Item Closing Book Value Reasons for Restriction

1,842,079,141.45 Bank acceptance, letter of guarantee, letter of credit and PV loan

Other monetary assets deposit, refundable deposits

Notes receivable 240,597,907.63 Short-term loan pledge, notes payable pledge

Cash in bank 22,429,693.17 Judicial freeze

Receivables financing 721,517,301.09 Short-term loan pledge, notes payable pledge

Accounts receivable 717,277,614.31 Long-term loan pledge

Other receivables 23,968,200.00 Long-term loan pledge

Fixed assets 1,722,200.00 Long-term loan pledge

Total 3,569,592,057.65

VII. Investment Analysis
1. Overview
 Applicable □ NotApplicable

Investment in the reporting period (CNY) Investment in the same period last year (CNY) Change

2,619,435,233.12 2,674,922,334.76 -2.07%

2. Significant equity investment received in the reporting period

□Applicable  NotApplicable

3. Significant non-equity investment in progress in the reporting period

□Applicable  NotApplicable
4. Financial asset investment
(1) Securities investment
□Applicable  NotApplicable

The Company made no securities investment in the reporting period.

(2) Derivatives investment
 Applicable □ NotApplicable

a. Derivatives investment for hedging purpose in the reporting period

 Applicable □ NotApplicable

For details, please refer to VII. Notes to Consolidated Financial Statement, 2. Trading Financial Assets in Section X.

b. Derivatives investment for speculative purpose in the reporting period

□Applicable  NotApplicable

The Company made no derivatives investment for speculative purpose in the reporting period.

5. Use of raised funds
 Applicable □ NotApplicable

(1) General use of raised funds

 Applicable □ NotApplicable

(in CNY 10K)

Percenta

Total ge of

Purpose Amount of
Total amount of Cumulativ cumulati

and raised

amount of Cumulativ raised e amount ve

Year of Fund- Total funds whereabou funds that
Total raised raised e amount funds with of raised amount

fund- raising raised but ts of have been
funds funds used of raised changed funds with of raised

raising mode not used unused idle for
in this funds used use in the changed funds

raised more than
period reporting use with

funds two years
period changed

use

2021 Non- 362,314.61 71,133.30 155,757.96 0 0 0.00% 214,667.65 CNY 0
public 1,056,676,


offering 500 in the

special

account

for raised

funds,

CNY

1,090,000,

000 used

on undue

financial

products.

Total -- 362,314.61 71,133.30 155,757.96 0 0 0.00% 214,667.65 -- 0

Description of the general use of raised funds

1. Before the above-mentioned raised funds were in place, the Company had accumulatively invested CNY 243,141,600 in
fund-raising projects with self-raised funds as of October 11, 2021. After the raised funds were in place, the Company replaced the
self-raised funds of CNY 243,141,600 with the raised funds for the specific projects.

2. In 2022, the raised funds were used as the following: a. An amount of CNY 711,333,000 was directly invested in fund-raising
projects; b. An amount of CNY 800,000,000 from idle raised funds was used to supplement working capital in this period, and was
fully recovered at the end of the period; c. A total return and interest amounting to CNY 74,519,500 was gained from financial
products bought with the temporarily idle raised funds; d. A service charge of CNY 25,200 was paid for the special account for
raised funds in this period. As of December 31, 2022, the balance of raised funds was CNY 2,146,676,500, of which CNY
1,056,676,500 was in the special account for raised funds, CNY 1,090,000,000 was in premature wealth management products.

(2) Projects commitments of raised funds

 Applicable □ NotApplicable


(in CNY 10K)

Cumulative

Total Cumulative

Changes Total Amount Investment Date of Benefit benefit

investment amount of Substantial

in projects investment invested in progress by the projects realized realized by Achieved the

Investment projects committed and amount investment changes in the

(including after the end of the reaching in the the end of expected

target of over-raised funds committed by the end project

partial adjustment reporting period scheduled reporting the benefits

by raised of the feasibility

changes) (1) period (3)=(2)/(1) availability period reporting

funds period (2)

period

Investment Project Commitments
The New Energy Power Generation

241,787 240,343.09 40,434.17 65,468.23 27.24% Apr. 30, Not

Equipment Manufacturing Base Project No 0 0 No

2024 applicable

with an annual output of 100 GW

The R&D Innovation Center Expansion 63,970 63,970 28,026.4 42,490.44 66.42% Mar. 31, Not

Project No 2024 0 0 applicable No

The Global Marketing Service System 49,835 49,835 2,672.73 39,632.77 79.53% Mar. 31, Not

No 0 0 No

Project 2023 applicable

The Supplementary Working Capital 8,166.52 8,166.52 8,166.52 100.00% Not

Project No 0 0 applicable No

Subtotal of committed investment 363,758.52 362,314.61 71,133.3 155,757.96

-- -- -- -- --

projects
Target of over-raised funds

Total -- 363,758.52 362,314.61 71,133.3 155,757.96 -- -- -- --

Description of projects behind planned Not Applicable

schedule or failing to gain expected

returns and the reasons (including those

identified as “Not Applicable” in the


column “Achieved the expected

benefits”)

Description of material changes in Not Applicable

project feasibility

Amount, purpose, and progress of use of Not Applicable

over-raised funds

Changes in implementation locations of Not Applicable

projects invested with raised funds

Changes in implementation modes of Not Applicable

projects invested with raised funds
Preliminary investment and replacement Applicable

in projects invested with raised funds

Changes in implementation modes of

Not Applicable

projects invested with raised funds

Applicable

As of October 11, 2021, the Company had invested CNY 243,141,600 in fund-raising projects with self-raised funds, of which CNY 143,827,900
was for the new energy power generation equipment manufacturing base with an annual output of 100 GW, CNY 94,743,100 for the expansion of
Preliminary investment and replacement R&D Innovation Center, and CNY 4,570,600 for the global marketing service system project. At the 12th meeting of the Fourth Board of Directors,
in projects invested with raised funds the Proposal on Replacing Self-Raised Funds Previously Used in Fund-Raising Projects was reviewed and approved, which agreed that the
Company should replace CNY 243,141,600 of self-raised funds previously used in fund-raising projects with the raised funds. RSM China (Special
General Partnership) verified the advanced investment in the above-mentioned fundraising projects, and issued the Assurance Report on the
Advance Input in Fund-Raising Projects made by Sungrow Power Supply Co., Ltd. with Self-Raised Funds (RSM [2021] No. 230Z2674) on October
12, 2021.


Applicable

On October 26, 2022, the Company held the 21st meeting of the Fourth Board of Directors, at which the Proposal on Temporarily Replenishing

Working Capital with Some of the Idle Raised Funds was reviewed and approved. It was agreed that the Company would temporarily replenish

Description of temporarily replenishing working capital with less than CNY 1,000 million of idle raised funds provided that the funding needs of fund-raising projects and the normal

working capital with idle raised funds progress of the raised funds investment plans were ensured. Such an amount should be used within a period of 12 months from the date of approval

by the Board of Directors, and should be returned to the special account for raised funds upon expiration.As of December 31, 2022, the Company

had used CNY 800 million of raised funds to temporarily replenish working capital, and returned this amount to the special account for raised funds
within 12 months.

Amount of surplus raised fund in project

Not Applicable

implementation and reasons behind

Purpose and whereabouts of unused As of December 31, 2022, the unused raised funds amounted to CNY 2,146,676,500, of which CNY 1,056,676,500 was in the special account for

raised funds raised funds, CNY 1,090,000,000 was in premature wealth management products.

On April 16, 2021, the Company held the first extraordinary general meeting in 2021, at which the Proposal on Requesting the Shareholders’
Meeting to Authorize the Board of Directors to Proceed with the Issuance to Specific Objects was reviewed and approved. The Board of Directors
was authorized to handle all matters related to the issuance of shares to specific objects in 2021, including but not limited to determining the
specific arrangements for the use of the raised funds for this issuance to specific objects.

Problems or other situations in the use On October 21, 2021, Company held the 12th meeting of the fourth Board of Directors and the 11th meeting of the fourth Board of Supervisors, at
and disclosure of raised funds which the Proposal on Paying the Fund-Raising Investment Projects with Bank Acceptances and Replacing Them Equally with Raised funds was
reviewed and approved. It was agreed that during the implementation of the fund-raising investment project, the Company could use bank
acceptances for payments involved in the project, and regularly transfer the same amount from the special account of raised funds to the Company's
general settlement account. The Board of Supervisors, independent directors and sponsors expressed their consent. As of December 31, 2022, the
Company had accumulatively made investment project-related payments with CNY 160,688,900 of bank acceptances, and the same amount had
been replaced with raised funds.

(3) Projects with changes in raised funds

□Applicable  NotApplicable

There were no projects with changes in raised funds in the reporting period.


VIII. Sale of Major Assets or Equity

1. Sale of major assets
□Applicable  NotApplicable

The Company did not sell any major assets in the reporting period.

2. Sale of major equity
□Applicable  NotApplicable

IX. Analysis of Major Controlling and Holding Companies

 Applicable □ NotApplicable

Major subsidiaries and holding companies that contribute to a net profit by 10% and above

(in CNY 10K)

Company Main Registered Operating Operating

Type Total Assets Net Assets Net Profit
Name Business Capital Income Profit

Sungrow New energy

Renewables investment

Subsidiary 142,053.44 2,151,023.36 579,224.76 1,287,714.31 78,819.89 64,120.69

Development and

Co., Ltd. development

Subsidiaries acquired or disposed in the reporting period

 Applicable □ NotApplicable

For details, please refer to VIII. Changes in the Scope of Consolidation 2. Changes in the scope of consolidation due to other reasons
in Section X Financial Reports.

X. Structured Entities Controlled by the Company

□Applicable  NotApplicable

XI. Prospects of the Company’s Future Development

(1) Planned Prospects

Focus on the field of clean power, continuously increase R&D investment, hold on to development both in scope and in depth, make
deeper explorations in power electronics, grid support, and AI technology, further enrich product categories, and deliver leading
solutions for the integration of solar energy, wind energy, energy storage, electricity and hydrogen energy. Promote
customer-oriented transformation towards sales and service integration, pursue extraordinary customer experience, improve digital
operation standard, strengthen the brand image as a “technological power”, and further expand global leading advantages.

(2) Operating Plan

In 2023, the bottlenecks constraining the global green energy industry chain will be fully alleviated, and the high-growth momentum
will be further enhanced and continued. Taking “Gain momentum and embrace changes, make in-depth breakthroughs, contribute to
customer success with digital operation” as the annual guideline, the Company capitalizes on the opportunities for rapid market

development, comprehensively improves brand power, product power and marketing power, reinforces digital operation, and
continues to expand global leading advantages in a variety of businesses to achieve rapid and sustainable growth.

To deliver the annual business objectives, the Company plans to take the following key measures:

1. Maintain high level of investment in research and development, make in-depth breakthroughs in key technologies. Taking the
six R&D centers worldwide as the foundation, the Company continues to empower innovation with a high level of R&D
investment, makes in-depth breakthroughs in power electronics, grid support, and AI technologies, so as to gain leading
advantages in technology and promote product iteration and upgrading.

2. Further enrich product categories and improve the capability of delivering integrated solutions. By introducing diverse product
categories, strengthening coverage of segmented markets, and leveraging the Company's advantageous layout for solar energy,
wind energy, energy storage, electricity and hydrogen energy, the Company creates integrated solutions on the basis of terminal
new energy application scenarios, and continues to deliver customer values in solar power, energy storage, and charging
integration.

3. Explore the global market further and promote the sales and service integration. The Company upholds the globalization
strategy, consolidates national-level business systems, optimizes the global marketing and service network, establishes an
integrated sales and service platform, and increases investment in service resources to enhance customer service experience.

4. Upgrade global manufacturing and supply systems. By continuously optimizing the global supply network layout and
strengthening localization and core supplier management, the Company secures the stable supply of strategic materials. By
building digital plants worldwide and continuously improving lean manufacturing capabilities, the Company establishes a
global supply system featuring fast response, favorable cost, reliable quality, and timely delivery.

5. Create a globally renowned brand and continue to advance ESG efforts. By highlighting product innovation and globalized
marketing service, the Company continues to shape a trustworthy and responsible global brand. By improving the level of
corporate governance, actively contributing to environmental protection and social development, the Company empowers
sustainable development of itself while being deeply integrated with the global sustainable development process.

6. Advance all-around digital operations. The Company accelerates digital transformation, builds an integrated business process
across the entire value chain, and leverages digital intelligence technologies to create an intelligent enterprise and an agile
organization that is always online, shared, and transparent, hence to reduce operational cost, improve operational efficiency, and
continuously raise the standard of lean operation.

7. Strengthen organizational capacity building. Based on the principles of empowering business and focusing on core
competitiveness, the Company establishes a closed-loop organizational capability management system through the identification,
tracking, evaluation, and improvement of critical organizational capabilities. Furthermore, such capabilities are effectively
embedded in the organization to promote the constant upgrade of organizational capabilities.

XII. Events Register for Research Visits, Communication, and Interviews in the Period

 Applicable □ NotApplicable

Date Venue Type of Visit Type of Visitors Main Contents of Index of Basic

Visitors the Discussion Research Data

and Information

Provided

Apr. 19, 2022 On the Via phone Institution 1,000+ investors including 2021 annual www.cninfo.com.cn

phone Haitong Securities, performance, Investor Relations

Dongwu Securities, and status quo of Activity Register No.

Sinolink Securities operation and 20220420

governance, 2022


strategic plan and

adjustment

Apr. 22, 2022 An investor Other Institution Investors participating in Status of the www.cninfo.com.cn

relations the Sungrow 2022 Online Company's core Investor Relations

online Performance Briefing via business, status Activity Register No.

interaction the online interaction quo of operation 20220422

platform platform (www.p5w.net) and governance,

(https://ir.p5 etc.

w.net)

Aug. 26, 2022 On the Via phone Institution 1,000+ investors including 2022 half-year www.cninfo.com.cn

phone Haitong Securities, financial Investor Relations

Dongwu Securities, CITIC performance, Activity Register No.

Securities, and Yangtze highlights of core 20220826

Fund business, key

initiatives for the

second half year

Sep. 7, 2022 An investor Other Institution Online investors Current www.cninfo.com.cn

relations development Investor Relations

online status of energy Activity Register No.

interaction storage business, 20220907

platform overseas business

(https://ir.p5 situation,

w.net) adjustment to the

Company's

business layout

Sep. 20, 2022 An online Other Institution Investors participating in Prediction for the www.cninfo.com.cn

roadshow the activity via the future inverter and Investor Relations

(https://ir.p5 Panorama Roadshow energy storage Activity Register No.

w.net) markets, and 20220920

investment plans

of the Company

Oct. 26, 2022 On the Via phone Institution 1,000+ investors including Current situation www.cninfo.com.cn

phone Haitong Securities, of the PV Investor Relations

Changjiang Securities, industry, financial Activity Register No.

Dongwu Securities, and status of the 20221026

Nomura Fund Company, and

overseas market

analysis

Dec. 2, 2022 Sungrow Other Institution 2,000+ investors including Global PV and www.cninfo.com.cn

No. 1 Haitong Securities, energy storage Investor Relations

Conference Changjiang Securities, market situation, Activity Register No.

Room Dongwu Securities, and the impact of the 20221204


Nomura Fund Russia-Ukraine

conflict on the

European market,

etc.


Section IV Corporate Governance

I. Basic Situation of Corporate Governance

During the reporting period, the Company strictly followed the Company Law, the Securities Law, the Governance Guidelines for
Listed Companies, the Rules for Stock Listing at Shenzhen Stock Exchange as well as other laws and regulations to constantly
optimize the corporate governance structure, improve the internal control system, and achieve standardized operation.

The Company's overall operation in the reporting period was standardized and highly independent, the information disclosure was
compliant, and the actual situation was basically in line with the requirements in the CSRC normative documents on the governance
of listed companies.

a. About shareholders and the shareholders’ meeting

Shareholders of the Company hold equal status based on the shares they possess and assume corresponding obligations following the
provisions in the Articles of Association. The Company convenes and holds shareholders’ meetings in strict accordance with the
regulations and requirements of the Rules for the Shareholders’ Meeting of Listed Companies and the Rules of Procedure for the
Shareholder’s Meeting, making sure shareholders exercise their rights and interests legitimately, treating all shareholders equally,
and providing as much convenience as possible for shareholders to participate in the shareholders’ meetings, so that they can fully
exercise their rights as shareholders.

b. About the Company and the controlling shareholder

The Company’s controlling shareholder, Mr. Cao Renxian, strictly abides by the Governance Guidelines for Listed Companies, Rules
for GEM Stock Listing at Shenzhen Stock Exchange, Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies
— Standardized Operation of GEM-Listed Companies, and the Articles of Association to regulate his behavior. He makes no actions
that directly or indirectly interfere with the Company's decision-making and business activities beyond the shareholders’ meeting, nor
jeopardizes the interests of the Company and other shareholders. There is no occurrence of the controlling shareholder taking up the
Company's funds or the Company providing guarantees for the controlling shareholder. The Company owns independent and
complete business and is capable of operating independently. The Company is independent from the controlling shareholder in terms
of business, assets, personnel, organization and finance; the Company's Board of directors, Board of Supervisors, and internal
organizations operate independently.

c. About directors and the Board of Directors

The Board of Directors is composed of 8 directors, including 3 independent directors. The number of directors and the composition
of the Board of Directors are in line with the relevant laws, regulations and the Articles of Association. Directors perform their duties
in accordance with the Rules of Procedure for the Board of Directors, the Rules for Independent Director, and the Shenzhen Stock
Exchange’s No. 2 Regulatory Guidelines for Listed Companies — Standardized Operation of GEM-Listed Companies, attend board
meetings and shareholders' meetings, diligently assume their job responsibilities and obligations, and actively participate in relevant
training to get familiar with the relevant laws and regulations.

d. About supervisors and the Board of Supervisors

The Board of Supervisors is composed of 3 supervisors, including 2 employee supervisors. The number of supervisors and the
composition of the Board of Supervisors are in line with the requirements of laws and regulations. Supervisors perform their duties in
accordance with the Rules of Procedure for the Board of Supervisors, and supervise the Company’s major transactions, related-party
transactions, financial status, and the legitimacy and compliance of directors’ and executives’ job performance.

e. About performance evaluation and the incentive and restraint mechanism

The Remuneration and Evaluation Committee is set up under the Board of Directors, which has formulated the Working Rules of the
Remuneration and Evaluation Committee, established and implemented the performance evaluation system, and defined a scientific

system of indicators. The various centers, product lines, and departments make full use of the performance management tools to
ensure objectives and performance plans are under control. The manager-in-charge holds the primary accountability for realizing
annual objectives and performance plans of the respective department. Each department further breaks down the work plan into
monthly and weekly tasks, and strives to achieve performance indicators on time, in quality and quantity, hence to ensure the
delivery of the Company's annual objectives. All accountable organizations and all employees are subject to regular performance
evaluation and objective assessment, and the evaluation results are used as the grounds for determining employees’ remuneration,
promotion/demotion, appraisal and job transfer.

f. About information disclosure and transparency

In strict accordance with relevant laws and regulations, as well as the requirements in the Information Disclosure Management
Procedures and the Investor Relations Management Procedures, the Company fairly discloses the relevant information in a truthful,
accurate, timely, and complete manner. The Company's Board Secretary is appointed to take charge of information disclosure,
coordinate the relations between the Company and investors, receive investors’ visits, reply investors' inquiries, and provide investors
with the information disclosed by the Company. The Company has also designated www.cninfo.com.cn as the website for disclosing
company information, China Securities Journal, Securities Times, Securities Daily and Shanghai Securities News as the newspapers
for disclosing the Company’s periodical reports, hence to ensure that all shareholders of the Company are informed of with equal
opportunities.
g. About stakeholders

The Company fully values and safeguards the legitimate rights and interests of relevant stakeholders, attaches great importance to the
Company's social responsibilities, actively collaborates with relevant stakeholders, and enhances communication and exchange with
all parties, so as to realize the coordination and balance of the interests of shareholders, employees, society and other parties, and
jointly promote the sustainable and healthy development of the Company.

Whether there is a material difference between the actual situation of corporate governance and laws, administrative regulations and
the CSRC regulations on the governance of listed companies

□ Yes  No

There is no material difference between the actual situation of corporate governance and laws, administrative regulations and the
CSRC regulations on the governance of listed companies

II. The specific measures taken by the controlling shareholders and actual controllers to
ensure the independence of the Company's assets, personnel, finance, organization and
business

The Company is capable of operating its business independently and has set up a complete operation and management system that is
independent from the controlling shareholder in terms of business, personnel, assets, organization, and finance.

III. Horizontal competition
□Applicable  NotApplicable

IV. Information on the annual shareholders’ meeting and the extraordinary general
meeting(s) held in the reporting period

1. The shareholders’ meeting in the reporting period

Session Type Investor Date of Meeting Date of Disclosure Resolution(s)


Participation %

No. 2022-039

Announcement on the

Annual

2021 Annual Resolutions of the 2021

Shareholders’ 44.80% May 18, 2022 May 18, 2022

Shareholders’Meeting Annual Shareholders’

Meeting

Meeting on

http://www.cninfo.com.cn

No. 2022-047

Announcement on the

The First Extraordinary

Extraordinary Resolutions of the First

General Meeting in 45.30% May 30, 2022 May 30, 2022

General Meeting Extraordinary General

2022

Meeting in 2022 on

http://www.cninfo.com.cn

2. The extraordinary general meeting(s) requested by preference shareholders with restored voting rights
□Applicable  NotApplicable

V. The Company’s voting rights difference arrangement

□Applicable  NotApplicable

VI. Corporate governance with the red-chip architecture

□Applicable  NotApplicable

VII. Directors, Supervisors and Executives

1. Basic Situation

Shares

Shares Shares Shares

held at Reason
increased decrease Other held at

Office Office the for

Name Title Status Gender Age during d during changes the end

starts on ends on beginnin changes
the the (shares) of the

g of the in shares
period period period

period

Chairma

Cao Incumbe Dec. 8, May 19, 451,008, 451,008,

n and Male 55

Renxian nt 2016 2023 000 000

President

Zhang Vice

Incumbe May 19, May 19,

Xucheng Chairma nt Male 51 2020 2023 150,000 37,500 112,500 Sell

n

Zheng Director, Incumbe Male 55 Dec. 8, May 19, 11,976,3 11,976,3


Guibiao SVP nt 2016 2023 60 60

Zhao Director, Incumbe Dec. 8, May 19, 7,076,00 7,076,00

Male 50

Wei SVP nt 2016 2023 0 0

Gu Yilei Director, Incumbe Dec. 11, May 19,

Male 45 450,000 450,000

SVP nt 2018 2023

Li Ind. Incumbe May 19, May 19,

Male 60 -

Mingfa Director nt 2020 2023

Li Ind. Incumbe Dec. 8, May 19,

Male 70 -

Baoshan Director nt 2016 2023

Gu Ind. Incumbe May 19, May 19,

Female 60 -

Guang Director nt 2020 2023

Tao Chairma
Gaozhou n of the

Incumbe Dec. 8, May 19,

Board of Male 52 -

nt 2016 2023

Supervis

ors

He Wei Employe

e Incumbe Dec. 8, May 19,

Male 48 -

Supervis nt 2016 2023

or

Li Employe

Xiaomei e Incumbe Dec. 8, May 19,

Female 55 -

Supervis nt 2016 2023

or

Zhang Incumbe Dec. 8, May 19,

VP Male 56 225,000 225,000

Youquan nt 2016 2023

Chen Incumbe Dec. 8, May 19,

VP Male 43 375,000 375,000

Zhiqiang nt 2016 2023

Wu Incumbe Dec. 8, May 19,

VP Male 51 375,000 375,000

Jiamao nt 2016 2023

Xie

Incumbe Aug. 14, May 19,

Xiaoyon VP Male 47 300,000 300,000

nt 2017 2023

g

Deng Incumbe Dec. 11, May 19,

VP Male 47 369,679 369,679

Dejun nt 2018 2023

Li Shun Incumbe Oct. 29, May 19,

VP Male 46 25,000 25,000

nt 2020 2023

Peng Incumbe Oct. 29, May 19,

VP Male 46 78,750 78,750

Chaocai nt 2020 2023

Lu Yang VP,

Incumbe Oct. 21, May 19,

Board Male 41

nt 2021 2023

Secretary

Tian Finance Incumbe Jun. 27, May 19,

Shuai Director nt Male 40 2022 2023

Liu Zhen Dec. 8, May 18,

Director Resigned Male 47

2016 2022

Cheng Resigned Dec. 8, May 13,

Cheng VP Male 43 2016 2022 375,000 93,700 281,300 Sell

Li Finance Resigned Dec. 8, Jun. 27, 1,200,00 1,200,00

Male 48

Guojun Director 2016 2022 0 0

Total 473,983, 473,852,

-- -- -- -- -- -- 789 131,200 589 --

Resignation of directors/supervisors or dismissal of executives within the term of office during the reporting period

□ Yes  No

Changes in directors, supervisors and executives of the Company

 Applicable □ NotApplicable

Name Position Type Date Reason

Because Mr. Liu Zhen was unable to perform his duties as a director,
the Board of Directors proposed to the Shareholders' Meeting to

Liu Zhen Director Departure May 18, 2022

remove Liu Zhen from his position of a director (non-independent

director) of the fourth Board of Directors

Following review and approval by the 2021Annual Shareholders'

Gu Yilei Director Election May 18, 2022 Meeting, Mr. Gu Yilei was elected as a director (non-independent

director) of the fourth Board of Directors

Due to personal health reasons, Mr. Cheng Cheng resigned from the

Cheng Cheng VP Departure May 13, 2022

position of Vice President of the Company

Due to personal reasons, Mr. Li Guojun resigned from the position of
Li Guojun Finance Director Departure Jun. 27, 2022

Finance Director of the Company

At the 18th meeting of the Fourth Board of Directors, Mr. Tian Shuai
was appointed Finance Director of the Company. This appointment

Appointmen

Tian Shuai Finance Director Jun. 27, 2022 intended to further improve the Company's financial informatization
t

level and global service capabilities, promote the rapid and healthy

development of the Company’s businesses

2. Incumbents Overview

The professional background, main work experience and job responsibilities of current directors, supervisors and executives of the
Company
(1) Directors


Mr. Cao Renxian, Chinese national with no permanent residency overseas, born in July 1968, master degree, and researcher, is
currently a delegate of the 14th National People's Congress and the chairman of the China Photovoltaic Industry Association. Mr.
Cao Renxian was one of the faculty of Hefei University of Technology from June 1993 to 1998, and worked in Sungrow Power
Supply Co., Ltd. from July 1998 to July 2001. He served the role of Executive Director and General Manager of Sungrow Power
Supply Co., Ltd. from July 2001 to August 2007, followed by the role of Chairman and President fromAugust 2007 to date.

Mr. Zhang Xucheng, Chinese national with no permanent residency overseas, born in June 1972, master degree. He served the roles
of Vice Procurement Manager, Logistics Manager, Human Resources Manager and Senior Vice President of Sungrow. He is currently
Vice Chairman of Sungrow, Chairman and President of Sungrow Renewables Development Co., Ltd.

Mr. Zheng Guibiao, Chinese national with no permanent residency overseas, born in May 1968, master degree, senior engineer. He
served the roles of Vice General Manager and Director of Sungrow, and is currently Director and Senior Vice President of Sungrow.
Mr. Zhao Wei, Chinese national with no permanent residency overseas, born in December 1973, Ph.D., senior engineer. He served
the roles of Vice Director and Vice General Manager of Sungrow R&D Center, and is currently Director and Senior Vice President of
Sungrow.

Mr. Gu Yilei, Chinese national with no permanent residency overseas, born in February 1978, Ph.D. He has successively worked in
Zhongda Simike Electronics Co., Ltd. (Delta Group), Shenzhen Kangdawei Electronic Technology Co., Ltd., Santak Electronics
(Shenzhen) Co., Ltd., and Eaton (China) Investment Co., Ltd. He joined Sungrow in September 2015, and successively served the
roles of Vice Director of the Sungrow Research Institute, Director of the Central Research Institute. He is currently Director and
Senior Vice President of Sungrow and President of the Solar Storage Division.

Mr. Li Mingfa, Chinese national with no permanent residency overseas, born in February 1963, Ph.D., Level 2 professor and doctoral
supervisor of Anhui University. He was Director of the Law School of Anhui University and Executive Vice Director of the Graduate
School of Anhui University. He is currently Executive Director of the Civil Law Research Association of the China Law Society,
Vice Director-General of the Anhui Civil and Commercial Law Research Association, Legal Adviser of the Standing Committee of
the Anhui Provincial People's Congress, and an Expert Advisor of the Anhui Provincial People's Procuratorate. He is currently an
independent director of Wuhu Sanlian Forging Co., Ltd., Tongling Kingkong Electronics Technology Co., Ltd., Anhui Estone
Materials Technology Co., Ltd., and Sungrow Power Supply Co., Ltd.

Mr. Li Baoshan, Chinese national with no permanent residency overseas, born in March 1953, bachelor, senior engineer. He was a
research intern of the Energy Research Institute of the State Development and Reform Commission, an engineer of the Agricultural
Engineering Design and Research Institute of the Ministry of Agriculture, a vice section chief, researcher and vice inspector in the
Department of High and New Technology Development of the Ministry of Science and Technology. He is currently Vice Chairman
and Advisor of China Renewable Energy Society, an independent director of CECEP Wind Power Co., Ltd., Titan Wind Energy
(Suzhou) Co., Ltd., Sinofibers Technology Co., Ltd. and Sungrow Power Supply Co., Ltd.

Ms. Gu Guang, Chinese national with no permanent residency overseas, born in July 1963, master degree, certified public accountant
of China (non-practicing member). She graduated from the Department of Economics of Anhui University in 1986, and has been
teaching at the university ever since, having served the roles of Vice Director and Director of the Accounting Department of the
School of Business, Anhui University, Director of the MPAcc Education Center, Associate Professor and Master's Supervisor in
accounting at the School of Business, Anhui University. Currently, she is an independent director of Anhui Shanhe Pharmaceutical
Excipients Co., Ltd., Anhui Taida New Materials Co., Ltd., Anhui Hongyu Wuzhou Medical Manufacturer Co., Ltd., Atech
Automotive Co., Ltd., and Sungrow Power Supply Co., Ltd.

(2) Supervisors

Mr. Tao Gaozhou, Chinese national with no permanent residency overseas, born in March 1971, master degree, senior engineer. He
was Manager of Structure Department and a Supervisor of Sungrow, and is currently the Chairman of Sungrow’s Board of
Supervisors and a senior expert of the Structure Platform Department of Central Research Institute

Mr. He Wei, Chinese national with no permanent residency overseas, born in October 1975, master degree. He was Business

Planning Manager and Logistics Assurance Manager of Sungrow, and is currently an Employee Representative Supervisor of
Sungrow and General Manager of the Administrative Service Center.

Ms. Li Xiaomei, Chinese national with no permanent residency overseas, born in November 1968, bachelor degree. She was the
Process Technology Manager of Sungrow R&D Center, the PV System Engineering Technology Manager, and a Senior Internal
Audit Specialist of the System Management Team of the Power Station Division. She is currently an Employee Representative
Supervisor of Sungrow and a Senior SQE Engineer of the Supply Chain Quality Technology Department.

(3) Executives

Mr. Cao Renxian, President. Refer to the introduction in “(1) Directors” for details.

Mr. Zheng Guibiao, Senior Vice President. Refer to the introduction in “(1) Directors” for details.

Mr. Zhao Wei, Senior Vice President. Refer to the introduction in “(1) Directors” for details.

Mr. Gu Yilei, Senior Vice President. Refer to the introduction in “(1) Directors” for details.

Mr. Zhang Youquan, Chinese national with no permanent residency overseas, born in April 1967, master degree, senior engineer. He
was Vice Chief Engineer of Sungrow Hefei, Director of the Product Management Center, Chairman of the Board of Supervisors and
Vice General Manager of Sungrow. He is currently Vice President of Sungrow.

Mr. Chen Zhiqiang, Chinese national with no permanent residency overseas, born in April 1980, graduated from the University of
Science and Technology of China in 2020 with a master degree, and a certified quality engineer of China. He was the Quality Control
Supervisor, Quality Control Manager, Management Representative, Quality Director, Employee Supervisor, and Chairman of the
Board of Supervisors of Sungrow. He is currently Vice President of Sungrow.

Mr. Wu Jiamao, Chinese national with no permanent residency overseas, born in September 1972, master degree. He worked for
Anhui Ningguo Shuangjin Group previously and joined Sungrow in March 2005. He successively served the roles of Sales Manager
of Sungrow, General Manager of Shanghai Yangfeng Power Supply Co., Ltd., General Manager of Sungrow Shanghai Company,
and is currently Vice President of Sungrow and Vice President of the Solar Storage Division.

Mr. Xie Xiaoyong, Chinese national with no permanent residency overseas, born in September 1976, master degree. He worked for
Xuancheng Administration for Industry and Commerce, Yiren (Ningbo) Arts & Crafts Co., Ltd., Wison Marine Engineering Co., Ltd.
previously, and joined Sungrow in October 2009. He successively served the roles of Human Resources Manager, Strategic Planning
Manager, Operation Director, General Manager of the Strategy Center of Sungrow, and is currently Vice President of Sungrow.

Mr. Deng Dejun, Chinese national with no permanent residency overseas, born in September 1976, bachelor degree. He worked for
Maanshan Iron and Steel Co., Ltd., Foxconn Technology Group, Philips Electronics, and Great Wall Development Technology Co.,
Ltd. previously. After joining Sungrow in January 2011, he successively served the role of Production Planning Manager, Production
Planning Manager and Vice General Manager of the Gansu Division, Manufacturing Director of the Production Center and
Production Planning Manager, Vice General Manager of the Production Center, and General Manager of the Production Center. He
is currently Vice President of Sungrow and General Manager of the Production Center.

Mr. Li Shun, Chinese national with no permanent residency overseas, born in January 1977, master degree. He worked for China
Academy of Engineering Physics, Santak Electronics (Shenzhen) Co., Ltd., and Samil Power Co., Ltd. After joining Sungrow, he
successively served the roles of Director of Small-to-Medium Power Products, Director of String Products, and Vice President of the
Solar Storage Division. He is currently Vice President of Sungrow and Vice President of the Solar Storage Division.

Mr. Peng Chaocai, Chinese national with no permanent residency overseas, born in December 1977, master degree. He worked for
Shangqiu Experimental Middle School, Sinoma Technology Wind Power Blade Co., Ltd., and Delta Electronics (Shanghai) Co., Ltd.
before joining Sungrow as President of the Wind Energy Division. He is currently Vice President of Sungrow and President of the
Wind Energy Division.

Mr. Lu Yang, Chinese national with no permanent residency overseas, born in October 1982, master degree. He worked previously
for State Nuclear Power Technology Corporation, Beijing Zhenglue Junce Management Consulting Co., Ltd., and ENN Group Co.,
Ltd. In August 2016, he joined Sungrow and successively served the roles of Strategic Planning Manager, Strategic Planning
Director, and General Manager of the Strategy Center. He is currently Vice President, Board Secretary, and General Manager of the
Strategy Center of Sungrow.

Mr. Tian Shuai, Chinese national with no permanent residency overseas, born in November 1983, bachelor degree and MBA
candidate of Peking University, CMA (Certified Management Accountant). He worked previously for Sany Heavy Industry Co., Ltd.,
Huawei Technologies Co., Ltd., Hunan Huinong Technology Co., Ltd., and Honor Device Co., Ltd. In September 2021, he joined
Sungrow and successively served the roles of Vice General Manager of the Finance Center and General Manager of the Finance
Center. He is currently Finance Director of Sungrow.

Positions in organizations as a shareholder

□Applicable  NotApplicable
Positions in other organizations
 Applicable □ NotApplicable

Paid by the

Name Organization Position Office starts on Office ends on

Organization

Hefei Renshang Enterprise Management

Cao Renxian Supervisor No

Co., Ltd.

Li Mingfa Anhui Estone Material Technology Co., Ltd. Ind. Director Yes

Li Mingfa Wuhu Sanlian Forging Co., Ltd. Ind. Director Yes

Li Mingfa Tongling Kingkong Electronics Technology

Co., Ltd. Ind. Director Yes

Li Baoshan Titan Wind Energy (Suzhou) Co., Ltd. Ind. Director Yes

Li Baoshan CECEP Wind Power Co., Ltd. Ind. Director Yes

Gu Guang Anhui Shanhe Pharmaceutical Excipients

Ind. Director Yes

Co., Ltd.

Gu Guang Anhui Hongyu Wuzhou Medical

Manufacturer Co., Ltd. Ind. Director Yes

Gu Guang Anhui Taida New Materials Co., Ltd. Ind. Director Yes

Gu Guang Atech Automotive Co., Ltd. Ind. Director Yes

Xie Xiaoyong Hefei Shangneng Enterprise Management Exe. Director,

No

Co., Ltd. GM

Lu Yang Jiangyin Wanzai Trading Co., Ltd. Supervisor No

Penalties imposed by securities regulators in the past three years on incumbent directors, supervisors, executives and those departed
in the reporting period
□Applicable  NotApplicable

3． Remuneration of Directors, Supervisors and Executives

The procedure for determining remuneration for directors, supervisors and executives, the ground for determination, and the actual
payment

Procedure for determination: Remuneration of the Company's directors and supervisors is determined by the shareholders' meeting;
remuneration of executives is determined by the Board of Directors. Directors, supervisors and executives who hold offices in the
Company receive remuneration according to their specific positions.


Grounds for determination: Remuneration of directors, supervisors and executives is determined and paid in accordance with the
provisions in the Working Rules of the Remuneration and Evaluation Committee defined by the Board of Directors, taking into
consideration of their respective business performance, professional competency, job ranking and other evaluation results.

Actual payment: Remuneration of directors, supervisors and executives has been paid in full according to the predefined standard.
Remuneration of Directors, Supervisors and Executives of the Company during the Reporting Period

(in CNY 10K)

Total Paid by

Name Position Gender Age Status remuneration related-party of
before tax the CompanyY/N

Chairman,

Cao Renxian Male 55 Incumbent 351 No

President

Zhang Xucheng Vice Chairman Male 51 Incumbent 276 No

Zheng Guibiao Director, SVP Male 55 Incumbent 220 No

Zhao Wei Director, SVP Male 50 Incumbent 294 No

Gu Yilei Director, SVP Male 45 Incumbent 960 No

Li Mingfa Ind. Director Male 60 Incumbent 8 No

Li Baoshan Ind. Director Male 70 Incumbent 8 No

Gu Guang Ind. Director Female 60 Incumbent 8 No

Tao Gaozhou Chairman of the

Board of Male 52 Incumbent 105 No

Supervisors

He Wei Employee

Supervisor Male 48 Incumbent 105 No

Li Xiaomei Employee

Female 55 Incumbent 51 No

Supervisor

Zhang Youquan VP Male 56 Incumbent 170 No

Chen Zhiqiang VP Male 43 Incumbent 240 No

Wu Jiamao VP Male 51 Incumbent 775 No

Xie Xiaoyong VP Male 47 Incumbent 230 No

Deng Dejun VP Male 47 Incumbent 213 No

Li Shun VP Male 46 Incumbent 400 No

Peng Chaocai VP Male 46 Incumbent 276 No

Lu Yang VP, Board

Male 41 Incumbent 181 No

Secretary

Tian Shuai Finance Director Male 40 Incumbent 202 No

Liu Zhen Director Male 47 Resigned 0 No

Cheng Cheng VP Male 43 Resigned 28 No


Li Guojun Finance Director Male 48 Resigned 65 No

Total -- -- -- -- 5,166 --

VIII. Directors' Performance of Duties During the Reporting Period

1. Board meetings during the reporting period

Session Date of Meeting Date of Disclosure Resolution(s)

The 14th meeting of the fourth April 19, 2022 April 20, 2022 No. 2022-005 Announcement on Resolutions of the
Board of Directors Fourteenth Meeting of the Fourth Board of Directors
on http://www.cninfo.com.cn

The 15th meeting of the fourth May 6, 2022 May 6, 2022 No. 2022-029 Announcement on Resolutions of the
Board of Directors Fifteenth Meeting of the Fourth Board of Directors
on http://www.cninfo.com.cn

The 16th meeting of the fourth May 13, 2022 May 14, 2022 No. 2022-033 Announcement on Resolutions of the
Board of Directors Sixteenth Meeting of the Fourth Board of Directors
on http://www.cninfo.com.cn

The 17th meeting of the fourth May 30, 2022 May 30, 2022 No. 2022-049 Announcement on Resolutions of the
Board of Directors Seventeenth Meeting of the Fourth Board of Directors
on http://www.cninfo.com.cn

The 18th meeting of the fourth June 27, 2022 June 27, 2022 No. 2022-057 Announcement on Resolutions of the
Board of Directors Eighteenth Meeting of the Fourth Board of Directors
on http://www.cninfo.com.cn

The 19th meeting of the fourth August 26, 2022 August 27, 2022 No. 2022-069 Announcement on Resolutions of the
Board of Directors Nineteenth Meeting of the Fourth Board of Directors
on http://www.cninfo.com.cn

The 20th meeting of the fourth September 14, 2022 September 14, 2022 No. 2022-081 Announcement on Resolutions of the
Board of Directors Twentieth Meeting of the Fourth Board of Directors
on http://www.cninfo.com.cn

The 21st meeting of the fourth October 26, 2022 October 27, 2022 No. 2022-092 Announcement on Resolutions of the
Board of Directors Twenty-first Meeting of the Fourth Board of Directors
on http://www.cninfo.com.cn

2. Directors’ presence at Board Meetings and Shareholders’ Meetings

Directors’presence at Board Meetings and Shareholders’Meetings

Director Board Failed

meetings to be In-person Audio/Video Delegate in-person Presence at
presence at presence at presence at Absence from shareholders’
attended in the board meetings presence at

board meetings board meetings board meetings two meetings

period

consecutive


board meetings

Cao Renxian 8 1 7 0 0 No 2

Zhang Xucheng 8 1 7 0 0 No 2

Zheng Guibiao 8 1 7 0 0 No 2

Zhao Wei 8 1 7 0 0 No 2

Gu Yilei 5 1 4 0 0 No 1

Li Mingfa 8 1 7 0 0 No 2

Li Baoshan 8 1 7 0 0 No 2

Gu Guang 8 1 7 0 0 No 2

Liu Zhen 2 0 0 0 2 Yes 0

Explanation on failing in-person presence at two consecutive board meetings

Mr. Liu Zhen, an external director of the Company, was suspected of serious violations of discipline and law, and was unable to

perform his duties as a director. He was unreachable for the 14th and 15th meetings of the fourth Board of Directors, and failed

in-person presence at two consecutive board meetings, nor delegated anyone to attend the board meetings on his behalf. The 2021

Annual Shareholders' Meeting held on May 18, 2022 reviewed and approved to remove him from the director position.

3. Objections raised by directors to matters related to the Company

Whether there were objections raised by directors to matters related to the Company

□ Yes  No

No directors raised any objection to matters related to the Company during the reporting period.

4. Other explanations on directors’ performance of duties

Whether suggestions made by directors were accepted

 Yes □ No

Explanation on accepting or rejecting suggestions made by directors

During the reporting period, all directors of the Company strictly followed the Company Law, the Securities Law, the Governance
Guidelines for Listed Companies, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies — Standardized
Operation of GEM-Listed Companies, as well as other relevant regulations and requirements in the Articles of Association and the
Rules of Procedure for the Board of Directors. All directors performed their duties in a diligent and conscientious way to ensure
thoughts were adequately exchanged, decisions were made in a timely and efficient manner, and the legitimate rights and interests of
the Company and all shareholders were safeguarded. During the reporting period, independent directors expressed independent views
on critical issues such as profit distribution and outbound guarantee, which safeguarded the legitimate rights and interests of the
Company and all shareholders.

IX. Operation of Special Committees under the Board of Directors During the Reporting
Period

Committee Members Content of Important Specific

No. of Date of Performance of

comments and circumstances


Meetings Meetings Meeting suggestions other duties of objection (if
made any)

TheAudit Gu Guang, Li 1 Apr. 16, 2022 Deliberation of Approved the None None

Committee Baoshan, the Proposal proposal, and

Zheng Guibiao on agreed to

Re-engaging submit the

the Company's proposal for

Auditing Firm deliberation by

for 2022, the the Board of

Proposal on Directors

the Company's

2022 First

Quarter

Report, the

Proposal on

the Company's

2021 Annual

Report and the

Report

Summary

TheAudit Gu Guang, Li 1 Aug. 24, 2022 Deliberation of Approved the None None

Committee Baoshan, the Proposal proposal, and

Zheng Guibiao on the agreed to

Company's submit the

2022 Half Year proposal for

Report and the deliberation by

Report the Board of

Summary Directors

TheAudit Gu Guang, Li 1 Oct. 24, 2022 Deliberation of Approved the None None

Committee Baoshan, the Proposal proposal, and

Zheng Guibiao on the agreed to

Company's submit the

2022 Third proposal for

Quarter Report deliberation by

the Board of

Directors

The Cao Renxian, 1 Jun. 24, 2022 Deliberation of Approved the None None

Nomination Li Mingfa, Gu the Proposal proposal, and

Committee Guang on the agreed to

Appointment of submit the

Finance proposal for

Director deliberation by

the Board of


Directors

The Strategy Cao Renxian, 1 Nov. 30, 2022 Deliberation of Approved the None None

Committee Zhang the Proposal proposal

Xucheng, on the

Zheng Guibiao Company's

Medium- and

long-term

Planning and

Three-Year

Rolling Plans

of Functional

Centers

The Li Baoshan, Li 1 Apr. 16, 2022 Deliberation of Approved the None None

Remuneration Mingfa, Zhang the Proposal proposal, and

and Evaluation Xucheng on the 2022 agreed to

Committee Remuneration submit the

of Directors, proposal for

Supervisors deliberation by

and Executives the Board of

Directors

X. Operation of the Board of Supervisors

Whether the Board of Supervisors identified any risks during the monitoring activities in the reporting period

□ Yes  No

The Board of Supervisors had no objections to matters subject to supervision in the reporting period.

XI: Employees

1. The number of employees and their professional and educational background

Incumbent employees of the parent company at the end of the period 4,349

Incumbent employees of major subsidiaries at the end of the period 4,890

Total incumbent employees at the end of the period 9,239

Total number of employees receiving remuneration in the current period 9,239

Retirees to be financially supported by the parent company and major

0
subsidiaries

Professional Background

Profession Split Head Count

Production 2,834

Sales 1,511


Technical 3,647

Financial 137

Administration 1,110

Total 9,239

Educational Background

Education Level Head Count

Doctor 64

Master 2,033

Bachelor 4,086

College Graduate and below 3,056

Total 9,239

2. Remuneration policy

Competitive remuneration stimulates employees’ enthusiasm and creativity, and promotes the sustainable growth of the Company. In
consideration of the Company’s strategic development needs and based on the different stages of business development (mature
business for profit contribution and seeding business for rapid growth), the Company designed targeted incentive plans incorporating
the medium- and long-term objectives, thereby promoting the sustainable development of the various businesses. The Company also
made remuneration adjustments according to the relevant national laws and regulations on human resources management, the market
status, and employees' individual job performance, so as to allow employees to receive reasonable returns, and establish a
remuneration and performance management system that takes into account of internal fairness and external competitiveness.

3. Training plan

Centered around the employee value proposition of “accelerate employees’ growth and fulfill employees’ dreams", the Company
attaches great importance to employee development, pays attention to growing employees' technical skills and comprehensive
competency, and has established a robust training system. The Company has designed professional and personalized learning and
growth programs for different training groups and focuses, such as training programs for new hires from open recruitment and
campus recruitment, hierarchical leadership empowerment programs, cross-cultural training, and other general skills training
programs. The Company clarifies the annual training needs in combination with the corporate development objectives and the work
targets of each department, formulates a comprehensive annual training plan, and establishes a hierarchical curriculum design to
facilitate job-related skills training. While engaging external trainers, the Company has also set up an internal trainers’ team and
trained a number of excellent internal trainers, so that training efficiency and effectiveness could be improved, employees' skills and
competencies could be upgraded to better serve the business growth.

4. Labor outsourcing
□Applicable  NotApplicable


XII. Profit Distribution and Conversion of Capital Reserve into Share Capital

The formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend policy, during the
reporting period
 Applicable □ NotApplicable

The Company strictly implemented the profit distribution policy in accordance with the Articles of Association. The formulation and
implementation of the Company's cash dividend policy were aligned with the provisions in the Articles of Association and the
requirements in the resolution of the shareholders' meeting. The dividend standard and proportion were clearly specified; the relevant
decision-making procedures and mechanisms were in place. Independent directors fulfilled their responsibilities and played their
roles, the minority shareholders fully expressed their opinions and demands, and the legitimate rights and interests of the minority
shareholders were adequately safeguarded.

Special Explanation on the Cash Dividend Policy

Whether it complied with the provisions in the Articles of Association or the requirements in the

Yes

resolution(s) of the shareholders' meeting:

Whether the dividend standard and proportion were clearly specified: Yes

Whether the relevant decision-making procedures and mechanisms were in place: Yes

Whether independent directors performed their duties and played their roles: Yes

Whether minority shareholders had the opportunity to fully express their views and demands, Yes

and whether their legitimate rights and interests were adequately safeguarded:

In the case of cash dividend policy modification or change, whether the conditions and Yes

procedures were compliant and transparent:

The Company's profit distribution plan and capital reserve conversion plan for the reporting period were consistent with the relevant
provisions in the Articles ofAssociation and the dividend management policy

 Yes □ No □ Not Applicable

The Company's profit distribution plan and capital reserve conversion plan for the reporting period were in line with the relevant

provisions in the Articles ofAssociation.

Profit distribution and conversion of capital reserve into share capital for the year

Number of bonus shares for every 10 shares 0

Dividend (in CNY) per 10 shares (tax inclusive) 2.20

Number of shares transferred per 10 shares 0

Equity base of the distribution plan (in shares) 1,478,705,935.00

Cash dividend (in CNY) (tax inclusive) 325,315,305.70

Cash dividend in other ways (such as share buyback) (in CNY) 520,543,225.73

Total cash dividend (including those distributed in other ways) (in CNY) 845,858,531.43

Distributable profit (in CNY) 8,636,973,267.33

Total cash dividend (including those distributed in other ways) in total profit distribution 100.00%

Overview of this Cash Dividend

Other


Detailed description of the profit distribution or the capital reserve conversion plan

As audited and confirmed by RSM China (Special General Partnership), the net profit realized by the parent company in 2022 was
CNY 3,495,882,716.50. After setting aside statutory reserves of CNY 349,588,271.65 at 10% of the net profit realized, the

undistributed profit amounted to CNY 3,146,294,444.85. Adding up the undistributed profit of CNY 5,654,051,628.97 from the

previous year and deducting the 2021 cash dividend of CNY 163,372,806.49 already distributed, the distributable profit of the

parent company as of December 31, 2022 was CNY 8,636,973,267.33.

According to CSRC’s Notice on Further Implementing Cash Dividends of Listed Companies and Related Matters, the Company

Law, the No. 3 Regulatory Guidelines for Listed Companies — Cash Dividends of Listed Companies and the Articles of

Association, and after comprehensive consideration of the Company's financial status, business development needs in the future and
return to shareholders, the Company made the following profit distribution plan for 2022:

Based on a share capital of 1,478,705,935 shares (the existing total share capital of 1,485,190,984 shares minus 6,485,049 shares

that have been bought back in the special account for buyback), the Company plans to distribute a cash dividend of CNY 2.20 (tax
inclusive) for every 10 shares to all shareholders, with the total cash dividend amounting to CNY 325,315,305.70 (tax inclusive).

The remaining undistributed profit will carry forward next year. No share capital was increased, and no bonus shares was issued

this year. In the event that the Company’s total share capital changes prior to the execution of the distribution plan due to the

conversion of convertible bonds, share buyback, exercise of equity incentives, and listing of new shares from refinancing, the

Company will adjust the distribution ratio while maintaining the total amount of distribution unchanged.

The Company was profitable during the reporting period, the parent company made positive profits distributable to shareholders, but
no cash dividend distribution plan was proposed

□Applicable  NotApplicable

XIII. Progress of the Company's Equity Incentive Plan, Employee Stock Ownership Plan or
Other Employee Incentive Measures
 Applicable □ NotApplicable
a. Equity Incentives

The 2018 Restricted Stock Incentive Plan

1. On December 11, 2018, the Company held the 16th meeting of the third Board of Directors, at which the 2018 Restricted Stock
Incentive Plan (Draft) and its summary, the Assessment Measures for the Implementation of the 2018 Restricted Stock Incentive
Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with the 2018
Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. On the same day, independent directors
expressed independent views on the incentive object’s qualification and the specific contents of the restricted stock incentive
plan, as well as on whether it contributed to the sustainable development of the Company and whether there were any signs of
compromising the benefits of the Company and all shareholders.

2. On December 27, 2018, the Company held the fourth extraordinary general meeting in 2018, at which the 2018 Restricted Stock
Incentive Plan (Draft) and its summary, the Assessment Measures for the Implementation of the 2018 Restricted Stock Incentive
Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with the 2018
Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. The Board of Directors was authorized to deal
with the changes and terminations of the Plan according to the provisions in the Company's 2018 Restricted Stock Incentive
Plan, including but not limited to revoking the incentive object’s qualifications for unlocking restricted shares, buying back and
cancelling restricted shares held by incentive objects that have not been unlock.

3. On January 9, 2019, the Company held the 17th meeting of the third Board of Directors, at which the Proposal on Granting

Restricted Shares to Incentive Objects for the First Time was reviewed and approved. The Company decided to take January 9,
2019 as the granting date, and granted 7.5 million restricted shares to 142 incentive objects of the first grant in 2018 at the
granting price of CNY 4.66 per share.

In the registration for the first grant of restricted shares in 2018, some incentive objects voluntarily waived the restricted shares,
in whole or in part, due to personal reasons, the quantity of first grant in the 2018 incentive plan changed from 7.5 million shares
to 7.35 million shares, and the number of incentive objects changed from 142 to 139. After review and confirmation by the
Shenzhen Stock Exchange and the China Securities Depository and Clearing Corporation Limited Shenzhen Branch, the
Company completed the registration of 7.35 million restricted shares granted to 139 incentive objects involved in the first grant,
and the restricted shares granted were listed on February 27, 2019.

4. On May 9, 2019, the Company held the 20th meeting of the third Board of Directors, at which the Proposal on the Buyback and
Cancellation of Some Restricted Shares was reviewed and approved. Since some of the Company’s original incentive objects,
Wei Yongzhen, Zhang Daqiang, Ai Shaowei, Cheng Zheng, Zeng Jin, and Wang Qigang, resigned, according to the relevant
provisions of the Company's equity incentive plan, all the restricted shares that were granted to them but not unlocked should be
bought back and cancelled by the Company. Since the individual annual performance of the Company’s original incentive
objects, Li Bing, accounted for an unlocking percentage of 50%, according to the relevant provisions of the Company's equity
incentive plan, the remaining part of restricted shares that were granted to him but not unlocked should be bought back and
cancelled by the Company. The total buyback quantity amounted to 268,750 shares. The buyback price was CNY 5.1314 per
share for restricted shares in the first grant in 2017, CNY 8.8002 per share for the reserved grant in 2017, and CNY 4.66 per
share for the first grant in 2018.

5. On August 14, 2019, the Company held the 21th meeting of the third Board of Directors and the 18th meeting of the third Board
of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
Since some of the Company’s original incentive objects, Li Chen, Meng Wei, Hu Weichao, Li Guo, Jiang Lihui, Cao Zhi, Geng
Anran, Yu Guoqiang, Ling Li, Lai Chengzhi, Li Guoqing, Yang Mei, Zuo Yalian, Lu Tao, and Ma Xiangyun, resigned,
according to the relevant provisions of the Company's equity incentive plan, all the restricted shares that were granted to them
but not unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 528,000
shares. The buyback price was CNY 5.0714 per share for restricted shares in the first grant in 2017, CNY 8.7402 per share for
the reserved grant in 2017, and CNY 4.6 per share for the first grant in 2018.

6. On October 25, 2019, the Company held the 22th meeting of the third Board of Directors and the 19th meeting of the third
Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and
approved. Since some of the Company’s original incentive objects, Sun Hongfei, Ji Ruifei, Huang Yong, Yin Zufa, Tu Chao,
Chen Yadong, Dong Bincheng, Wang Huichao, and Han Gao, resigned, according to the relevant provisions of the Company's
equity incentive plan, all the restricted shares that were granted to them but not unlocked should be bought back and cancelled
by the Company, with the total buyback quantity amounting to 274,000 shares. The buyback price was CNY 5.0714 per share
for restricted shares in the first grant in 2017, CNY 8.7402 per share for the reserved grant in 2017, and CNY 4.6 per share for
the first grant in 2018.

7. On December 26, 2019, the Company held the 23rd meeting of the third Board of Directors and the 20th meeting of the third
Board of Supervisors, at which the Proposal on Granting the Reserved Part of Restricted Shares to Incentive Objects was
reviewed and approved. The Company decided to take December 26, 2019 as the granting date and granted 1.5 million restricted
shares from the reserved part of 2018 to 38 incentive objects.

8. On April 23, 2020, the Company held the 24th meeting of the third Board of Directors, at which the Proposal on the
Achievement of Unlocking Conditions for Stage III of the First Batch and Stage II of the Reserved Part of Restricted Shares

Granted in 2017 and Stage I of the First Batch Granted in 2018 was reviewed and approved. It was agreed that the unlocking of
the Stage I restricted shares in the first grant in 2018 should be proceeded with according to the relevant provisions of the 2018
Restricted Stock Incentive Plan. A total of 131 incentive objects were eligible for the Stage I unlock of the first batch granted in
2018, and the total number of restricted shares that could be unlocked was 2,145,000, accounting for 0.1472% of the Company's
total share capital at present.

9. On April 23, 2020, the Company held the 24th meeting of the third Board of Directors and the 21st meeting of the third Board
of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
Since some of the Company’s original incentive objects, Lu Chunguang, Xiao Fuqin, Wu Changhong, Zhang Changxin, Zhang
Lei, Wang Xiaofei, Yu Hong, Zhang Yingfan, Xie Jiehua, Liu Ziyu, Liu Dawei, Chen Qiang, Gao Yu, Jiao Xiangbo, Xu
Zhongren, Zhang Jiannan, Qu Rao, and Li Gaoshan, resigned, according to the relevant provisions of the Company's equity
incentive plan, all the restricted shares that were granted to them but not unlocked should be bought back and cancelled by the
Company. Since the individual annual performance of the Company’s original incentive objects, Yang Li, accounted for an
unlocking percentage of 50%, according to the relevant provisions of the Company's equity incentive plan, the remaining part of
restricted shares that were granted to him but not unlocked should be bought back and cancelled by the Company. The total
buyback quantity amounted to 522,000 shares. The buyback price was CNY 5.0714 per share for restricted shares in the first
grant in 2017, CNY 8.7402 per share for the reserved grant in 2017, and CNY 4.6 per share for the first grant in 2018.

10. On May 14, 2020, the Stage I unlocked restricted shares from the first grant of the 2018 Restricted Stock Incentive Plan were
listed for circulation. The number of restricted shares unlocked this time was 2,145,000, accounting for 0.1472% of the
Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 1,895,000,
accounting for 0.1301% of the Company's total share capital at present.

11. On July 13, 2020, the Company held the second meeting of the fourth Board of Directors and the second meeting of the fourth
Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and
approved. Since some of the Company’s original incentive objects, Yao Shaohua, Wu Zongjian, Zhang Fenggang, Liu Lei,
Wang Rui, Tian Geng, Wang Baoping, Wu Jie, Tang Jie, Yan Shichao, Wu Bin, Cheng Qi, Yang Gangxin, Shen Tan, Song
Zijian, Lin Guangyi, and Chen Chao, resigned, according to the relevant provisions of the Company's equity incentive plan, all
the restricted shares that were granted to them but not unlocked should be bought back and cancelled by the Company, with the
total buyback quantity amounting to 504,000 shares. The buyback price was CNY 5.0014 per share for restricted shares in the
first grant in 2017, CNY 8.6702 per share for the reserved grant in 2017, and CNY 4.5300 per share for the first grant in 2018.
12. On August 28, 2020, the Company made the Announcement on the Completion of the Reserved Grant Registration for the 2018
Restricted Stock Incentive Plan, and shares granted this time were listed on September 1, 2020. Since a large number of
incentive objects for this grant were foreign employees working outside China, it was very challenging for employees to pay and
verify their capital due to conditional constraints; therefore, the share-granting progress fell behind. The original plan was to
grant a total of 1.5 million restricted shares to 38 eligible incentive objects. In the subsequent payment and capital verification
process, the original incentive objects Xu Youbin and CARDOSOROBERTOMIGUEL voluntarily waived; therefore, 36
incentive objects were actually granted this time, and the actual quantity granted was 1,450,000 shares.

13. On October 29, 2020, the Company held the fourth meeting of the fourth Board of Directors and the fourth meeting of the fourth
Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and
approved. Since some of the Company’s original incentive objects, Zhu Hui, Yang Guoqiang, Zhang Tao, Wang Xinzhong,
Dong Yugang, Liu Ming, Yu Chuandian, Xing Zhen, Tian Hao, Hu Di, Tu Fang, WARDZACHARIAH HUSSEIN, and KIM
MYUNGKWAN, resigned, according to the relevant provisions of the Company's equity incentive plan, all the restricted shares
that were granted to them but not unlocked should be bought back and cancelled by the Company, with the total buyback
quantity amounting to 297,500 shares. The buyback price was CNY 5.0014 per share for restricted shares in the first grant in

2017 and CNY 8.6702 per share for the reserved grant in 2017, the buyback price was CNY 4.5300 per share for restricted
shares granted in the first grant in 2018 and CNY 5.3000 per share for the reserved grant in 2018.

14. On April 26, 2021, the Company held the 8th meeting of the fourth Board of Directors and the 7th meeting of the fourth Board
of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
Since some of the Company’s original incentive objects, Wan Rubin, Zhou Ping, Zhan Zhihai, Zhang Jianzhou, Jiang Wenjun,
Xie Feng, and Yao Li, resigned, according to the relevant provisions of the Company's equity incentive plan, all the restricted
shares that were granted to them but not unlocked should be bought back and cancelled by the Company. Since the individual
annual performance of the Company’s original incentive objects, Li Tao and Shang Xiaozhong, accounted for an unlocking
percentage of 50%, according to the relevant provisions of the Company's equity incentive plan, the remaining part of restricted
shares that were granted to them but not unlocked should be bought back and cancelled by the Company. The total buyback
quantity amounted to 142,000 shares. The buyback price for restricted shares in the first grant in 2017 was CNY 5.0014 per
share and that for restricted shares in the first grant in 2018 was CNY 4.5300 per share.

15. On April 26, 2021, the Company held the 8th meeting of the fourth Board of Directors and the 7th meeting of the fourth Board
of Supervisors, at which the Proposal on the Achievement of Unlocking Conditions for Stage IV of the First Batch and Stage III
of the Reserved Part of Restricted Shares Granted in 2017 and Stage II of the First Batch Granted in 2018 was reviewed and
approved. It was agreed that the unlocking of the Stage II restricted shares in the first grant in 2018 should be proceeded with
according to the relevant provisions of the 2018 Restricted Stock Incentive Plan. A total of 116 incentive objects were eligible
for the Stage II unlock of the first batch granted in 2018, and the total number of restricted shares that could be unlocked was
1,986,000, accounting for 0.1363% of the Company's total share capital at present.

16. On May 12, 2021, the Stage II unlocked restricted shares from the first grant of the 2018 Restricted Stock Incentive Plan were
listed for circulation. The number of restricted shares unlocked this time was 1,986,000, accounting for 0.1363% of the
Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 1,326,000,
accounting for 0.0910% of the Company's total share capital at present.

17. On September 8, 2021, the Stage I unlocked restricted shares from the reserved part of the 2018 Restricted Stock Incentive Plan
were listed for circulation. The number of restricted shares unlocked this time was 680,000, accounting for 0.0467% of the
Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 680,000,
accounting for 0.0467% of the Company's total share capital at present.

18. On April 19, 2022, the Company held the 14th meeting of the fourth Board of Directors and the 13th meeting of the fourth
Board of Supervisors, at which the Proposal on the Achievement of Unlocking Conditions for Stage III of the First Batch of
Restricted Shares Granted in 2018 was reviewed and approved. It was agreed that the unlocking of the Stage III restricted
shares in the first grant in 2018 should be proceeded with according to the relevant provisions of the 2018 Restricted Stock
Incentive Plan. A total of 116 incentive objects were eligible for the Stage III unlock of the first batch granted in 2018, and the
total number of restricted shares that could be unlocked was 2,648,000, accounting for 0.1783% of the Company's total share
capital at present.

19. On April 19, 2022, the Company held the 14th meeting of the fourth Board of Directors and the 13th meeting of the fourth
Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and
approved. Since Han Zhiyuan, one of the Company’s original incentive objects, resigned, according to the relevant provisions of
the Company's equity incentive plan, all the restricted shares that were granted to him but not unlocked were bought back and
cancelled by the Company, with the buyback quantity amounting to 25,000 shares. During the buyback period, the Company
completed equity distribution for 2021 and adjusted the buyback price to CNY 5.0495176 per share.

20. On May 6, 2022, the Stage III unlocked restricted shares from the first grant of the 2018 Restricted Stock Incentive Plan were

listed for circulation. The number of restricted shares unlocked this time was 264,8000, accounting for 0.1783% of the
Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 1,468,938,
accounting for 0.0989% of the Company's total share capital at present.

21. On August 26, 2022, the Company held the 19th meeting of the fourth Board of Directors and the 16th meeting of the fourth
Board of Supervisors, at which the Proposal on the Achievement of Unlocking Conditions for Stage II of the Reserved Part of
Restricted Shares Granted in 2018 was reviewed and approved. It was agreed that the unlocking of the Stage II restricted shares
in the reserved part granted in 2018 should be proceeded with according to the relevant provisions of the 2018 Restricted Stock
Incentive Plan. A total of 31 incentive objects were eligible for the Stage II unlock of the reserved part granted in 2018, and the
total number of restricted shares that could be unlocked was 615,000, accounting for 0.0414% of the Company's total share
capital at present.

22. On September 5, 2022, the Stage II unlocked restricted shares from the reserved part of the 2018 Restricted Stock Incentive Plan
were listed for circulation. The number of restricted shares unlocked this time was 615,000, accounting for 0.0414 of the
Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 615,000,
accounting for 0.0414% of the Company's total share capital at present.

The 2022 Restricted Stock Incentive Plan

1. On May 13, 2022, the Company held the 16th meeting of the fourth Board of Directors, at which the Proposal on the 2022
Restricted Stock Incentive Plan (Draft) and its Summary, the Assessment Measures for the Implementation of the 2022
Restricted Stock Incentive Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors
to Proceed with the 2022 Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. On the same day,
independent directors expressed independent views on the incentive object’s qualification and the specific contents of the
restricted stock incentive plan, as well as on whether it contributed to the sustainable development of the Company and whether
there were any signs of compromising the benefits of the Company and all shareholders.

2. On May 30, 2022, the Company held the first extraordinary general meeting in 2022, at which the Proposal on the 2022
Restricted Stock Incentive Plan (Draft) and its Summary, the Assessment Measures for the Implementation of the 2022
Restricted Stock Incentive Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors
to Proceed with the 2022 Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. The Board of
Directors was authorized to deal with the changes and terminations of the Plan according to the provisions in the Company's
2022 Restricted Stock Incentive Plan, including but not limited to revoking the incentive object’s qualifications for unlocking
restricted shares, buying back and cancelling restricted shares held by incentive objects that have not been unlock.

3. On May 30, 2022, the Company held the 17th meeting of the fourth Board of Directors, at which the Proposal on Adjusting the
List of Incentive Objects, the Number of Objects and the Number of Shares to be Granted for the First Grant of the 2022
Restricted Stock Incentive Plan and the Proposal on Granting Restricted Shares to Incentive Objects for the First Time were
reviewed and approved. Since one of the Company’s original incentive objects resigned and was no longer eligible for the
incentive, the Board of Directors agreed to adjust the list of incentive objects, the number of objects and the number of shares
for the first grant. After the adjustment, the number of incentive objects for the first grant of the 2022 Plan changed from 468 to
467, the total number of restricted shares to be granted changed from 6,500,000 to 6,485,000, and the number of restricted
shares for the first grant changed from 6,180,000 to 6,165,000. It was also agreed to take May 30, 2022 as the granting date for
the first grant of the 2022 Restricted Stock Incentive Plan to grant restricted shares to incentive objects.


Equity incentives granted to directors and executives

 Applicable □ NotApplicable

(in Shares)

Restricted

Stock Exercise price Stock shares Restricted Granting Restricted
options held Stock Shares Shares of shares options Market price Restricted shares price of shares held
options exercisable exercised at the end of held at the shares

Name Title at the exercised in held at the newly restricted at the end
granted in in the in the the period beginning unlocked in

beginning of the period end of the granted in shares of the

the period period period (CNY/share) of the the period

the period (CNY/share) period the period (CNY/share) period
period

Zheng Guibiao Director, SVP 120,000 120,000

Zhao Wei Director, SVP 120,000 120,000

Gu Yilei Director, SVP 120,000 120,000

Chen Zhiqiang VP 120,000 120,000

Wu Jiamao VP 120,000 120,000

Xie Xiaoyong VP 120,000 120,000

Zhang Youquan VP 120,000 120,000

Deng Dejun VP 80,000 80,000

Peng Chaocai VP 60,000 60,000

Total -- 0 0 0 0 -- 0 -- 980,000 980,000 --

Remarks (if any) On April 19, 2022, the Company held the 14th meeting of the fourth Board of Directors and the 13th meeting of the fourth Board of Supervisors, at which the
Proposal on the Achievement of Unlocking Conditions for Stage III of the First Batch of Restricted Shares Granted in 2018 was reviewed and approved. It

was agreed that a total of 980,000 restricted shares granted to directors and executives in Stage III of the first grant in the 2018 Restricted Stock Incentive Plan
should be unlocked according to the relevant provisions of the 2018 Plan.

Evaluation mechanism and incentives for executives

The Company has established a complete performance evaluation system and remuneration system for executives. Based on the delivery status of the Company's annual business objectives and
the job performance of executives, the Remuneration and Evaluation Committee of the Board of Directors carries out annual performance evaluation of executives and supervises the

implementation of the remuneration system. Rewards and punishments will be applied correspondingly according to the performance evaluation results.

b. Implementation of the Employee Stock Ownership Plan

□Applicable  NotApplicable

c. Other Employee Incentive Measures

□Applicable  NotApplicable

XIV: Establishment and Implementation of the Internal Control System during the Reporting Period

1. Establishment and Implementation of Internal Control

In strict accordance with the Company Law, the Securities Law, the Governance Guidelines for Listed Companies as well as other requirements in normative documents on the governance of
listed companies issued by the China Securities Regulatory Commission, the Company continued to improve the corporate governance structure and systems, such as the shareholders’ meeting,
the Board of Directors, and the Board of Supervisors. In addition, the Company followed the latest requirements of laws and regulations to standardize the behavior of controlling shareholders,
actual controllers, directors, supervisors, executives and related parties, thereby improving the level of internal governance. The Company organized directors, supervisors and executives to
regulatory compliance training on a timely basis, hence to improve the corporate governance standard of the management team. For middle-level managers and ordinary employees, the
Company conducted targeted compliance training to improve their risk prevention awareness, strengthen operational compliance, and ensure the effective implementation of internal control
policies, so that the Company’s standard operation level could be effectively raised, and the healthy and sustainable development could be promoted.

Subject to the Basic Internal Control Standards and the supporting guidelines as well as other internal control regulations, the Company established internal control systems and evaluation
mechanisms. Following the principle of risk orientation, such systems and mechanisms were constantly optimized on the basis of routine supervision and special supervision of internal control,
so as to cope with the ever-changing external environment and internal management requirements. During the reporting period, the development and implementation of the Company's internal
control system complied with the Basic Internal Control Standards and the relevant laws and regulations, and ensured effective internal control in all major aspects related to the business
operation and management of the Company. There were no critical internal control deficiencies in financial reporting or non-financial reporting.

2. Description of Critical Internal Control Deficiencies Identified During the Reporting Period

□ Yes  No


XV: Management and Control of the Company's Subsidiaries during the Reporting Period

Problems during

Company Name Integration Plan Integration Progress Resolutions Taken Resolution Progress Action Plan

Integration

Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable

XVI. Internal Control Self-Assessment Report or Internal Control Audit Report

1. Internal Control Self-Assessment Report

The full text of the internal control assessment report was disclosed on April 25, 2023

The full text of the internal control assessment report was disclosed at www.cninfo.com.cn

The ratio of the total assets of organizations included in the assessment to the total assets of

the Company's consolidated financial statements 100.00%

The ratio of the operating income of organizations included in the assessment to the

100.00%

Company’s total operating income in the consolidated financial statements

Criteria of Deficiencies

Category Financial Reports Non-Financial Reports

Deficiencies with the following characteristics are considered as critical deficiencies
Each of the following is considered a critical deficiency of in the internal control of non-financial reports:

the Company: Fraudulence of the Company's directors, 1) No scientific basis for the decision-making procedures, resulting in major

supervisors and executives; corrections to financial mistakes;

Qualitative Criteria statements disclosed; mistakes or omissions of major data in 2) High turnover of key positions, professionals and technical personnel;

the current financial statements discovered by certified 3) Internal control assessment results, especially critical deficiencies, are not

public accountant but ignored by the internal audit rectified;

department during the control operation. 4) Other situations that may have a significant negative impact on the Company.

Other situations are categorized as major deficiencies or minor deficiencies according


to the level of impact.

The quantitative criteria for determining the significance of

mistakes (including omissions) in the Company's

consolidated financial statements by benchmarking the data

from previous annual financial statements: The quantitative criteria for determining internal control deficiencies in non-financial
Quantitative Criteria Critical deficiency: mistakes ≥ 5% of total profit reports shall refer to the quantitative criteria for determining internal control

deficiencies in financial reports.

Major deficiency: 2% of total profits ≤ mistakes ≤ 5% of

total profit

Minor deficiency: mistakes ≤ 2% of total profit

Number of critical deficiencies in financial

0

reports

Number of critical deficiencies in

non-financial reports 0

Number of major deficiencies in financial

0

reports

Number of major deficiencies in

non-financial reports 0

2. Internal Control Audit Report or Assurance Report

Internal Control Assurance Report

Review Opinion in the Internal Control Assurance Report

Sungrow’s 2022 Special Report on the Annual Deposit and Use of Raised Funds was prepared in accordance with the No. 2

Regulatory Guidelines for Listed Companies — Regulatory Requirements for the Management and Use of Raised Funds by Listed

Companies and relevant regulations of the exchange in all critical aspects, which fairly reflected the actual deposit and use of

raised funds by Sungrow in 2022.

Disclosure of Internal Control Assurance Report (Y/N) Yes

Date of disclosing the full text of Internal Control Assurance Report April 25, 2023


Disclosure index of the full text of Internal Control Assurance Report www.cninfo.com.cn

Type of Internal Control Assurance Report opinion Standard unmodified opinion

Critical deficiencies in non-financial reports (Y/N) No

Does the accounting firm issue an internal control assurance report with non-standard opinion

□ Yes  No

Is the opinion in the internal control assurance report issued by the accounting firm consistent with that in the self-assessment report of the Board of Directors

 Yes □ No

XVII: Rectification of Problems Found in Dedicated Self-Examination Initiatives on Corporate Governance

According to the relevant requirements, the Company carried out dedicated self-examination initiatives on corporate governance in strict accordance with the Company Law, the Securities Law
and relevant laws and administrative regulations following a truth-based principle. The dedicated self-examination on corporate governance of listed companies identified that the Company had
established a supporting corporate governance structure and internal control system in accordance with the provisions of the Company Law, the Securities Law, and the Governance Guidelines
for Listed Companies, and there were no critical issues that need to be rectified. As the Company develops and the internal and external environment changes, it shall further improve the
internal control system, strengthen the learning and training of directors, supervisors, executives and relevant personnel, optimize the management details of the internal control system and
standardized operation of listed companies, hence to continuously improve the governance quality as a listed company.


Section V Environment and Social Responsibilities

I. Major Environmental Issues

Whether the Company and its subsidiaries are included in the list of key pollutant discharge organizations identified by the
environmental authority
□ Yes  No

Administrative penalties for environmental issues during the reporting period

The Company was subject to no environment-related administrative penalties during the reporting period.

Refer to other environmental information disclosed by key pollutant discharge units

Not Applicable

Measures taken to reduce carbon emissions during the reporting period and their effects

 Applicable □ NotApplicable

The Company actively implements carbon inventory and carbon footprint standards, and practices transparent and science-based
verification for low-carbon development. To assume corporate responsibilities, the Company started company-wide carbon inventory
in 2020, established independent inventory capabilities in 2022 and extended the inventory coverage to India Plant and Thailand
Plant. In 2022, the Company avoided 23,331.44 tons of carbon emission by directly purchasing green power and generating power
with rooftop PV power stations in plant areas, offset 10,265.40 tons of carbon emission by purchasing I-REC, making significant
achievements in emission reduction. For details of the Company’s carbon emission results, please refer to the Sungrow Power Supply
Co., Ltd. 2022 Sustainability Report disclosed on www.cninfo.com.cn.

Reasons for not disclosing other environmental information

The Company and its subsidiaries are not included in the list of key pollutant discharge units identified by the environmental
authority. The Company actively responds to the requirements of the national and local governments, strictly regulates noise, effluent,
waste gas, and hazardous waste generated within the Company, formulates corresponding environmental protection rules and
regulations, and monitors noise, effluent, waste gas, and hazardous waste in strict accordance with the pollution discharge permit
management requirements.
II. Social Responsibilities

For details, please refer to the Sungrow Power Supply Co., Ltd. 2022 Sustainability Report disclosed by the Company on
www.cninfo.com.cn.

III.Efforts on Consolidating and Expand the Achievements of Poverty Alleviation and Rural
Revitalization

Sungrow practices sustainability in operation and leverages its business advantages and resources to improve the lives of residents in
the surrounding, and contribute to local communities. The Company collaborates with governments, customers, enterprises, and
non-profit organizations in various countries to launch a number of activities, including rural revitalization, disaster assistance, and
public welfare donations, so as to benefit the communities along the Company's operations. In order to progress the public welfare
volunteer service effectively, ensure the rational and efficient use of public welfare funds, and practically fulfill corporate social
responsibilities, the Company formulated the Regulations on Managing External Donations in 2022, developed implementation

plans for public welfare products, and empowered public welfare volunteer service in the aspects of system, process, and resources.
The Company has made the following efforts in 2022:

1. Setting up a dedicated public welfare fund

On September 5, in response to the theme of the Charity Day of China — Participating in Charity Efforts, Spreading Truth, Kindness
and Beauty, Sungrow set up a dedicated public welfare fund of CNY 10 million at Hefei Charity Federation to support the
Federation’s exploration of goodness practices under common prosperity. During the reporting period, the Company donated
scholarship to Chengguan No. 5 Primary School in Jianhe County and Changqing No. 2 Primary School in Danzhai County of
Guizhou Province through the Federation, in order to promote rural education.

2. Public welfare volunteer services

The Company introduced the Volunteer Management Platform and launched the Global Volunteer Service Week program. From
November 29th to December 5th every year, volunteers may pick an area that is closely related to their functions, and participate in
volunteer activities worldwide in the same theme. With a focus on ecology and environment protection, a number of activities were
held in Hefei, Beijing, Shanghai, Munich, San Francisco, and Phoenix, including the Plastic Workshop, Canvas Shoes Painting,
community renovation, One Week Fast Cooking, and park cleaning. Currently, there are 230 registered volunteers in the Company.
In the future, Sungrow will further optimize the volunteer management system, plan diverse global activities, expand the number of
registered volunteers and increase volunteer service hours.

3. Poverty Alleviation

Sungrow Renewables proactively interacts with the local government of where the Company operates, surveys and visits
impoverished areas and population. In 2022, the Company offered assistance to the Vocational and Technical High School in Lingbi
County of Anhui Province and the Saryoba Middle School in Singapore, donated funds to renovate the village, school, water tower,
and clinic in Saryoba.
4. Community Development

Sungrow Renewables closely integrates social responsibilities with corporate development, and proactively responds to the national
strategy of rural revitalization. The Company donated a 200 kW residential PV power station in Jiulianshan of Fuyu City, to help
residents improve their quality of life and enable joint development with the local community. In remote areas such as Gansu and
Qinghai, the Company set up Sungrow Smart Classrooms and Sungrow Elderly Care to watch for the growth and education of
vulnerable children as well as the physical and mental health of the elderly.

5. Disaster Recovery Assistance

In 2022, Sungrow Renewables and Sungrow FM donated supplies to Shaanxi, Jilin, Hunan (Changde City) and Anhui (Huainan
City).ther places.


Section VI Significant Events

I. Fulfillment of Undertakings

1．Undertakings made by the Company or its actual controller, shareholder, related party and acquirer that are to be fulfilled in the reporting period, or
undertakings not yet fulfilled by the end of the reporting period

 Applicable □ NotApplicable

Date of

Origin of undertaking Undertaker Type of undertaking Content Duration Status of fulfillment
undertaking

Shareholders Mr. Cao Renxian, Mr. Zheng Guibiao and

Mr. Zhao Wei, who serve as the Company’s directors

and/or executives, hereby undertake that no shares

Undertaking on The undertaking is
Undertaking at IPO or Cao Renxian, Zheng Guibiao, Zhao exceeding 25% of the total shares held by each individual

executive’s share Jan. 31, 2011 Long-term being fulfilled with no
refinancing Wei shall be transferred each year after the lock-up period, and

lock up signs of breaching

no shares held by each individual shall be transferred

within 6 months after the shareholder resigns from the

Company.

1. On the date of signing this Letter of Undertaking, I or

the companies I have interests in, have not produced or

developed any product that competes or may compete

Undertaking on with those produced by the joint-stock company; have not The undertaking is
Undertaking at IPO or

Cao Renxian horizontal directly or indirectly operated any business that competes Jan. 31, 2011 Long-term being fulfilled with no
refinancing

competition or may compete with those operated by the joint-stock signs of breaching

company; have not invested in any other enterprise that

competes or may compete with the joint-stock company in

terms of products or business; 2.As of the date of signing


this Letter of Undertaking, I or the companies I have

interests in, will not produce or develop any product that

competes or may compete with those produced by the

joint-stock company; will not directly or indirectly

operate any business that competes or may compete with

those operated by the joint-stock company; will not invest

in any other enterprise that competes or may compete

with the joint-stock company in terms of products or

business; 3. As of the date of signing this Letter of

Undertaking if the joint-stock company further expands

its products and business scope, I or the companies I have

interests in, will not compete with the joint-stock

company in terms of the expanded products or business.

In the event of competition with the expanded products or

business of the joint-stock company, I or the companies I

have interests in, will stop producing the competing

product or operating the competing business, or

incorporate the competing business into the joint-stock

company, or transfer the competing business to an

unrelated third party, in order to avoid horizontal

competition; 4. If this Letter of Undertaking is proven to

be untrue or not complied with, the undertaker will

indemnify the joint-stock company for any and all direct

and indirect losses.

Hefei Huizhuo Equity Investment 1. On the date of signing this Letter of Undertaking, the

Partnership (Limited Partnership) Undertaking on undertaker or the company held or controlled by the The undertaking is
Undertaking at IPO or

(formerly Xinjiang Shangge Equity horizontal undertaker, has not produced or developed any product Jan. 31, 2011 Long-term being fulfilled with no
refinancing

Investment Partnership (Limited competition that competes or may compete with those produced by the signs of breaching

Partnership), Luzhou Huizhuo joint-stock company; has not directly or indirectly


Enterprise Management Partnership operated any business that competes or may compete with

(Limited Partnership)) those operated by the joint-stock company; has not

invested in any other enterprise that competes or may

compete with the joint-stock company in terms of

products or business; 2. Whenever the undertaker still

holds 5% or more of the joint-stock company’s shares, the

undertaker or the company controlled by the undertaker

will not produce or develop any product that competes or

may compete with those produced by the joint-stock

company; will not directly or indirectly operate any

business that competes or may compete with those

operated by the joint-stock company; will not control any

other enterprise that competes or may compete with the

joint-stock company in terms of products or business; 3. If

this Letter of Undertaking is proven to be untrue or not

complied with, the undertaker will indemnify the

joint-stock company for any and all direct and indirect

losses.

Sungrow Other undertaking The undertaker does not provide loans or financial May 13, 2022 During the The undertaking is
assistance in other forms, including providing guarantees implement being fulfilled with no
for their loans, for incentive objects of the 2022 ation of the signs of breaching

Restricted Stock Incentive Plan to acquire restricted Company's

Undertaking on equity shares. 2022

incentive

Restricted

Stock

Incentive

Plan

Undertaking is fulfilled

Yes

on time

If the undertaking is

expired and not

fulfilled, specify the

detailed reasons for Not Applicable

failure to fulfill and
subsequent action plans

2. If there is a profit forecast on the Company's assets or projects and the forecast period contains the reporting period, provide an explanation on whether
assets or projects achieving the profit forecast and the reasons behind

□Applicable  NotApplicable

II. Non-Operating Appropriation of Funds by Controlling Shareholders or Other Related Parties

□Applicable  NotApplicable

In the reporting period, there was no non-operating appropriation of funds by controlling shareholders or other related parties.

III. Illegal External Guarantees
□Applicable  NotApplicable

In the reporting period, the Company made no illegal external guarantees.

IV. The Board of Directors’ Statement on the Most Recent Non-Standard Audit Report

□Applicable  NotApplicable


V. Statement of the Board of Directors, the Board of Supervisors, and Independent Directors
(if any) on the Non-Standard Audit Report Issued by the Accounting Firm in the Reporting
Period
□Applicable  NotApplicable

VI. The Board of Directors’ Statement on the Changes in Accounting Policies and Accounting
Estimates and the Corrections to Significant Accounting Errors in the Reporting Period

 Applicable □ NotApplicable

1. Implementation of the provisions on “Accounting Treatment for External Sale of Products or By-products Produced before
Enterprise’s Fixed Assets Reaching Intended Usable State or during Research and Development” and “Judgment of Loss Contracts”
in the No. 15 Interpretation of Accounting Standards for Business Enterprises

On December 30, 2021, the Ministry of Finance issued the No. 15 Interpretation of Accounting Standards for Business Enterprises
(MOF-Acc-[2021] No. 35) (hereinafter referred to as the Interpretation No. 15), in which the provisions on “Accounting Treatment
for External Sale of Products or By-products Produced before Enterprise’s Fixed Assets Reaching Intended Usable State or during
Research and Development” and “Judgment of Loss Contracts” came into force as of January 1, 2022. Implementing the relevant
provisions of Interpretation No. 15 had no impact on the Company's financial statements for the reporting period.

2. Implementation the No. 16 Interpretation of Accounting Standards for Business Enterprises

On November 30, 2022, the Ministry of Finance issued the No. 16 Interpretation of Accounting Standards for Business Enterprises
(MOF-Acc-[2022] No. 31) (hereinafter referred to as the Interpretation No. 16), in which the provisions on “Accounting Treatment
for the Income Tax Impact on Dividends related to Financial Instruments Classified as Equity Instruments by the Issuer”, and
“Accounting Treatment for Enterprises’ Switch from Cash Settled Stock Payments to Equity Settled Stock Payments” came into
force on the date of issuance. Implementing the relevant provisions of Interpretation No. 16 had no impact on the Company's
financial statements for the reporting period.

VII. Changes in the Scope of Consolidated Statements as Compared to the Financial Reports
of the Previous Year
 Applicable □ NotApplicable
1. Newly established subsidiaries

In this period, the Company newly established 11 wholly-owned subsidiaries, namely Hefei Sungrow Zhiyuan Technology Co., Ltd.,
Binzhou Binyang Power Supply Co., Ltd., Liaoning Xinyang Power Supply Co., Ltd., Ordos Xuyang Power Supply Co., Ltd.,
Sungrow Power Supply (Sanya) Co., Ltd., Bozhou Daoyang Power Supply Technology Co., Ltd., Liaoning Huiyang Power Supply
Co., Ltd., Gansu Renyang Power Supply Co., Ltd., Ordos Zhunyang Power Supply Co., Ltd., Yan'an Anyang Green Energy Power
Supply Co., Ltd., and Dingyuan Renyang Power Supply Technology Co., Ltd.; the Company’s holding subsidiary, Sungrow
Renewables Development Co., Ltd., newly established 214 subsidiaries for power station projects; other holding subsidiaries of the
Company newly established 8 subsidiaries; none of the subsidiaries newly established in this period is an important one.

2. Consolidated project companies in this period

In this period, the Company’s holding subsidiary, Sungrow Renewables Development Co., Ltd., acquired 8 overseas project
companies for the purpose of developing power station business. None of the project companies newly included in the scope of

consolidated statements for this period is an important one.

3. Cancellation of subsidiaries

According to the Company's business needs, in this period, the Company cancelled 1 subsidiary, Hefei Sungrow Floating Modules
Co., Ltd.; the Company’s holding subsidiary, Sungrow Renewables Development Co., Ltd., cancelled 112 subsidiaries that were not
in actual business; other holding subsidiaries of the Company cancelled 6 subsidiaries that were not in actual business.

4. Transfer of new energy project companies

According to the Company's business needs, the Company’s holding subsidiary, Sungrow Renewables Development Co., Ltd.,
transferred 136 new energy project companies in this period, all of which were set up and transferred for the implementation of
projects.

VIII. Engagement and Disengagement of Accounting Firms

Accounting firm currently engaged

Name of accounting firm in China RSM China (Special General Partnership)

Compensation for accounting firm in China (CNY 10K) 206 (tax-inclusive)

Years of continuous auditing service provided by the accounting firm in China 16

Name of CPAs of the accounting firm in China Wan Yunlong, Jiang Wei, Pan Lili

Years of continuous auditing service provided by the CPAs of the firm 3 years, 3 years, 1 year

Whether to replace the accounting firm or not

□ Yes  No

Engagement of internal control auditing/accounting firms, financial advisors, or sponsors

□Applicable  NotApplicable

IX. Statement on Delisting after the Disclosure of Annual Report

□Applicable  NotApplicable

X. Matters Related to Bankruptcy Reorganization

□Applicable  NotApplicable

No bankruptcy reorganization related matters happened to the Company in the reporting period.

XI. Major Litigations and Arbitrations
 Applicable □ NotApplicable

Date of Disclosure: September 5, 2019

Announcement No.: 2019-057
Disclosed at: www.cninfo.com.cn
http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900021300&stockCode=300274&announcementId=120690379
2&announcementTime=2019-09-05%2015:52


Plaintiff or Defendant or Basic information of litigation (arbitration) Amount An Progress of Result and Execution of litigation Case
Applicant Respondent involved estimated litigation impacts of (arbitration) judgment Closed
(in CNY liability (arbitration) litigation Y/N
10K) Y/N (arbitration)

Enforcement was

terminated by the People’s

Court of Hefei High-Tech

Industrial Development

Zone because the

defendant had no property

available for enforcement.

Jingjiang Our bankruptcy liquidation

Changrunfenghe application

New Energy Judgment made

(2022-JS-1282-BLA-38)

Technology Co., A case was filed against the customer by the People’s

has been accepted by the

Ltd. because they failed to make the payment as Court of Hefei

Sungrow Power In bankruptcy People's Court of Jingjiang

agreed in the contract. We applied for 141.15 No High-Tech No
Supply Co., Ltd. Changzhou proceedings City, our rights as a

enforcement to the court, and the case is Industrial

Fenghe creditor has been declared

under enforcement at the moment. Development

Photoelectric and confirmed. Currently,

Zone

Technology Co., Jiangsu Shenque Law

Ltd Firm, the bankruptcy

administrator, is

proceeding with

bankruptcy liquidation, we

will receive corresponding

repayment in proportion to

the asset situation in the

future.


Enforcement was

terminated by the People’s

Court of Hefei High-Tech

Judgment made Industrial Development

by the People's Zone because the

Acase was filed against the customer

Court of Hefei defendant had no property

because they failed to make the payment as

Guangdong High-Tech available for enforcement.

agreed in the contract. The two parties

Shengpa New Industrial Our bankruptcy liquidation

Sungrow Power reached a mediation in the second instance, In

Energy 134.44 No Development application No
Supply Co., Ltd. but the defendant failed to perform as per enforcement

Development Zone, and (2022-GD-13-BLA-46)

the mediation. Therefore, we applied for

Co., Ltd. mediated at the was rejected by the Interim

enforcement to the court, and the case is

Intermediate People's Court of Huizhou

under enforcement at the moment.

People's Court City. We have appealed to

of Hefei City the Higher People's Court

of Guangdong Province,

and the case is currently

under trial.

We were not effectively

repaid after judgment was

The customer is a subsidiary of Zhejiang made by the Intermediate

Judgment made People's Court of

Dunan Group. Affected by the overall

Inner Mongolia by the Hangzhou City. On

operation of Dunan Group, the customer

Sungrow Power Geoho Energy In bankruptcy Intermediate February 4, 2021, the

failed to pay as agreed in the contract. 1,856.40 Yes No
Supply Co., Ltd. Equipment Co., proceedings People’s Court Intermediate People's

Although a lawsuit was brought to the

Ltd. of Hangzhou Court of Ordos City in

court, they failed to perform; therefore, we

City Inner Mongolia issued a

applied for enforcement.

ruling

(2021-IM-0602-BLA-1) on

the Company’s bankruptcy


and liquidation, and we

have declared creditors'

claims to the administrator.

So far, the first creditors'

meeting has been held, the

administrator is working

on the checking, sorting,

and resale of the

company's assets.

We were not effectively

repaid after judgment was

made by the Intermediate

People's Court of

Hangzhou City. On

February 4, 2021, the

Intermediate People's

Judgment made Court of Ordos City in

Inner Mongolia by the Inner Mongolia issued a

Sungrow Power Geoho Energy In bankruptcy Intermediate ruling

Same as above 448.85 Yes No
Supply Co., Ltd. Equipment Co., proceedings People’s Court (2021-IM-0602-BLA-1) on

Ltd. of Hangzhou the Company’s bankruptcy

City and liquidation, and we

have declared creditors'

claims to the administrator.

So far, the first creditors'

meeting has been held, the

administrator is working

on the checking, sorting,

and resale of the


company's assets.

We were not effectively

repaid after judgment was

made by the Intermediate

People's Court of

Hangzhou City. On

February 4, 2021, the

Intermediate People's

Court of Ordos City in

Judgment made

Inner Mongolia issued a

Inner Mongolia by the

ruling

Sungrow Power Geoho Energy In bankruptcy Intermediate

Same as above 562.15 Yes (2021-IM-0602-BLA-1) on No
Supply Co., Ltd. Equipment Co., proceedings People’s Court

the Company’s bankruptcy

Ltd. of Hangzhou

and liquidation, and we

City

have declared creditors'

claims to the administrator.

So far, the first creditors'

meeting has been held, the

administrator is working

on the checking, sorting,

and resale of the

company's assets.

Wuhan Suotai Judgment made Enforcement was

Green Energy A case was filed against the customer by the People’s terminated by the People’s

Environmental because they failed to make the payment as Court of Hefei Court of Hefei High-Tech

Sungrow Power In

Technology Co., agreed in the contract. We brought a 103.11 No High-Tech Industrial Development No
Supply Co., Ltd. enforcement

Ltd. lawsuit to the court, and the case is under Industrial Zone because the

Wuhan Suotai enforcement at the moment. Development defendant had no property

Energy Group Zone available for enforcement.


Co., Ltd. After we filed the

bankruptcy liquidation

application at the

Intermediate People's

Court of Wuhan City on

May 28, 2022, the

company provided its

accounts receivable claims

to a third party. Based on

the information, we had

the accounts receivable

claims to third party

frozen. Currently, the

claims have not matured

and will be paid as

conditions allow.

Enforcement was

terminated by the People’s

Court of Hefei High-Tech

Industrial Development

A case was filed at the court because the Judgment made

Zone because the

Jiangsu FGY customer failed to make the payment as by the People’s

Sungrow-Samsung defendant had no property

Energy Storage agreed in the contract. Customer was Court of Hefei

SDI Energy In bankruptcy available for enforcement.

Technology requested to pay CNY 222,000 for the 28.16 Yes High-Tech No
Storage Power proceedings On March 29, 2021, other

Research purchase together with overdue interests. Industrial

Supply Co., Ltd. creditors applied for

Institute Co., Ltd. Judgment has been made and enforcement Development

bankruptcy liquidation of

in progress. Zone

the company; however, the

bankruptcy reorganization

failed. On July 2, 2022, the

People's Court of


Zhenjiang Economic

Development Zone ruled

bankruptcy liquidation of

the Company

(2021-JS-1191-BLA-3).We

have declared creditor's

rights to the administrator

and is currently waiting for

the administrator’s further

advice.

Enforcement was

terminated by the People’s

Court of Hefei High-Tech

Industrial Development

Zone because the

Judgment made

defendant had no property

by the People’s

A case was filed at the court because the available for enforcement.

Shandong Yuhui Court of Hefei

Sungrow Power customer failed to make the payment as In In June 2022, we filed a

New Energy Co., 36.06 No High-Tech No
Supply Co., Ltd. agreed in the contract. Judgment has been enforcement bankruptcy liquidation

Ltd. Industrial

made and enforcement in progress. application for the

Development

company at the People's

Zone

Court of Lanshan District,

Linyi City, and the

application materials are

currently being reviewed

by the court.

Judgment made

Sungrow Power Hefei Sanchuan A case was filed at the court because the In bankruptcy by the People’s Enforcement was

Automatic customer failed to make the payment as 148.06 No terminated by the People’s No
Supply Co., Ltd. proceedings Court of Hefei

Control agreed in the contract. After the judgment High-Tech Court of Hefei High-Tech


Engineering Co., was made, we applied for enforcement Industrial Industrial Development

Ltd. Development Zone because the

Zone defendant had no property

available for enforcement.

Our bankruptcy liquidation

application

(2022-AH-8601-BLA-15)

has been accepted by the

Railway Transportation

Primary Court of Hefei. So

far, the first creditors'

meeting has been held, the

administrator is sorting the

company's assets.

Enforcement was

terminated by the People’s

Court of Hefei High-Tech

Industrial Development

Judgment made Zone because the

by the People’s defendant had no property

Huaxia Juguang A case was filed at the court because the

Court of Hefei available for enforcement.

Sungrow Power (Inner Mongolia) customer failed to make the payment as In 否
249.82 No High-Tech After we filed the

Supply Co., Ltd. PV Power Co., agreed in the contract. After the judgment enforcement

Industrial bankruptcy liquidation

Ltd. was made, we applied for enforcement

Development application at the

Zone Intermediate People's

Court of Hohohot City on

May 28, 2022, the

company provided its

accounts receivable claims


to a third party. Based on

the information, we had

the accounts receivable

claims to third party

frozen. Currently, the

claims have not matured

and will be paid as

conditions allow.

Enforcement in process.

Application has been filed

Judgment made

to the court to list the

Kelin by the People’s

A case was filed at the court because the respondent as a defaulter

Environmental Court of Hefei

Sungrow Power customer failed to make the payment as In and limit his/her high-end

Protection 182.77 No High-Tech No
Supply Co., Ltd. agreed in the contract. After the judgment enforcement consumption. The

Equipment Co., Industrial

was made, we applied for enforcement Company is actively

Ltd. Development

pursuing clues of

Zone

respondent’s property at

the moment.

Huainan Haifeng Enforcement in process.

Plastic Products Application has been filed

Co., Ltd. Mediated at the to the court to list the

People’s Court respondent as a defaulter

Huainan Sungrow A case was filed at the court because the

of Hefei and limit his/her high-end

Floating Module customer failed to make the payment as In

1,092.58 No High-Tech consumption. The payment No
Sci. & Tech. Co., agreed in the contract. After the judgment enforcement

Industrial has been partially

Ltd. was made, we applied for enforcement

Development recovered from the

Zone enforcement, and the

Company is actively

pursuing clues of


respondent’s property at

the moment in order to

recover the outstanding

Sichuan A case was filed at the court because the Enforcement was

Yuanzhongyuan customer failed to make the payment as terminated by the People’s

Electric Power agreed in the contract. After the judgment Court of Hefei High-Tech

Engineering was made, we applied for enforcement Industrial Development

Judgment made

Design Co., Ltd. Zone because the

by the People’s

defendant had no property

Court of Hefei

Sungrow Power In available for enforcement.

94.65 No High-Tech No
Supply Co., Ltd. enforcement We have filed a

Industrial

bankruptcy liquidation

Development

application at the People's

Zone

Court of Wuhou District,

Chengdu City on July 25,

2022, and are currently

waiting for the court result.

Qinghai Zhuma A case was filed at the court because the

Sapphire Crystal defendant, Qinghai Zhuma, refused to Application for Qinghai Zhuma Sapphire

Co., Ltd. refund the bid security. We requested court Crystal Co., Ltd. and He

Qinghai Zhuma and the guarantor He enforcement Kangyu were listed as

Sungrow Power In

Kangyu to assume the repayment 355.57 No filed at the defaulters by the court. No No
Supply Co., Ltd. enforcement

obligations. After the case came into effect, People's Court money or assets have been

we applied for enforcement to the court, of Hefei collected from the

and the enforcement is in process at the High-Tech Zone execution.

moment.

XII. Punishments and Rectification
□Applicable  NotApplicable

The Company was subject to no punishment or rectification in the reporting period.

XIII. Integrity of the Company, its Controlling Shareholder and Actual Controller

□Applicable  NotApplicable
XIV. Significant Related-Party Transactions

1. Related-party transactions involving daily operations

 Applicable □ NotApplicable

Related-par Relation Type of Content of Pricing Transactio Amount of In Transactio Exceedin Settleme Market Date of Disclosure
ty transaction transaction principles n price related-part percentage n limit g the nt of price disclosur index

for y of the approved approved transactio available e

transactio transaction amount of (in CNY limit Y/N n for similar

ns (in CNY similar 10K) transactio

10K) transactio ns

ns

EnerTrack EnerTrack Purchase Brackets Market Market 10,679.39 11.94% 25,000 N Wire Not Apr. 20, Apr. 20, 2022
Technology is the from price-base price transfer, applicable 2022 Announceme
Co., Ltd. holding related-part d bank nt No.:

(EnerTrack) subsidiary y transfer 2022-015

of Hefei Sell to Technical Market Market 31.47 100.00% Wire Not

Renchuang related-part services & price-base price transfer, applicable

Phase II y raw d bank

Equity materials transfer

Partnership

(Limited

Partnership

), and Mr.

Cao


Renxian,

the

Chairman,

is a limited

partner of

Hefei

Renchuang

Phase II

Equity

Partnership

(Limited

Partnership

)

Sunpure EnerTrack Purchase Intelligent Market Market 172.42 61.70% 1,050 N Wire Not Aug. 27, Aug. 27,
Intelligent is the from operation price-base price transfer, applicable 2022 2022

Technology holding related-part & d bank Announceme
Co., Ltd. subsidiary y maintenan transfer nt No.:

(Sunpure) of Hefei ce system 2022-074

Renchuang Sell to Intelligent Market Market 1,337.63 8.46% 3,476 N Wire Not Apr. 20, Apr. 20, 2022
Phase II related-part cleaning price-base price transfer, applicable 2022 Announceme
Equity y robots & d bank nt No.:
Partnership raw transfer 2022-015

(Limited materials

Partnership

), and Mr. Lease from Houses Market Market 24.82 100.00% N Wire Not

Cao related-part price-base price transfer, applicable

Renxian, y d bank

the transfer

Chairman,

is a limited

partner of

Hefei

Renchuang

Phase II

Equity

Partnership

(Limited

Partnership


)

Details of large sales returns Not applicable

Actual performance of daily related-party transactions There is a difference between the actual amount of daily related-party transactions and the expected amount in 2022. This is mainly
in the reporting period (if any), for which the total because the expected amount of daily related-party transactions in 2022 is calculated based on the upper limit of possible transactions
amount is estimated by category according to business needs and market demand, while the actual amount is determined according to the specific performance
progress of both parties, which is subject to a certain extent of uncertainty. Related-party transactions of the Company follow the
principles of fairness, justice and reasonableness, and the prices of which are determined through consultation with reference to the
market price, with no damage to the interests of the Company and shareholders.

Reasons for significant differences between transaction Not applicable

prices and market prices (if applicable)

2. Related-party transactions arising from the acquisition or sale of assets or equity

□Applicable  NotApplicable

The Company did not make any related-party transactions arising from the acquisition or sale of assets or equity in the reporting period.

3. Related-party transactions of joint outbound investment

 Applicable □ NotApplicable

Registered

Total assets of Net assets of Net profit of

capital of

Co-Investors Relationship Name of investee Main business of investee investee investee investee

investee

(in CNY 10K) (in CNY 10K) (in CNY 10K)

(in CNY 10K)

Cao Renxian, Hefei Renfa Xinneng Engaging in equity

Mr. Cao Renxian, the Hefei Sungrow Renfa

Investment Fund Management Co., investment, investment

controlling shareholder, Carbon Neutrality

Ltd., Anhui Railway Development management, asset

is currently the Chairman Investment Management 102,000 34,090.29 34,065.34 -104.66
Fund Co., Ltd., Hefei Quality management and other

and President of the Center (Limited

Development Guidance Fund Co., activities with private equity

company Partnership)

Ltd., Hefei Zhegu Energy funds

Conservation Industry
Development Partnership (Limited
Partnership), Shanghai Yihe
Hanyang New Materials Co., Ltd.,
Anhui Provincial Enterprises
Reform and Development Fund
Partnership (Limited Partnership),
Jiaxing Jun'an Equity Investment
Partnership (Limited Partnership)
Hefei Mingyang Enterprise
Management Partnership (Limited
Partnership), Anhui SME
Development Fund Co., Ltd.

Status of major construction-in-progress of the investee (if

any) Not applicable

4. Related Credits and Liabilities
□Applicable  NotApplicable

There were no related credits and liabilities in the reporting period.

5. Transactions with Related Financial Companies

□Applicable  NotApplicable

There was no saving, loan, credit or other financial business between the Company and related financial companies or related parties.

6. Transactions Between Financial Companies Controlled by the Company and Related Parties

□Applicable  NotApplicable


There was no saving, loan, credit or other financial business between financial companies controlled by the Company and related parties.

7. Other Significant Related-Party Transactions
□Applicable  NotApplicable

There were no other significant related-party transactions in the reporting period.

XV. Major Contracts and the Contract Performance

1. Trusteeship, Contracting and Leasing
(1) Trusteeship
□Applicable  NotApplicable

There was no trusteeship in the reporting period.

(2) Contracting
□Applicable  NotApplicable

There was no contracting in the reporting period.

(3) Leasing
□Applicable  NotApplicable

There was no leasing in the reporting period.

2. Major Guarantees
 Applicable □ NotApplicable

(in CNY 10K)

Outbound Guarantees of the Company and its Subsidiaries (Excl. Guarantees for Subsidiaries)

Date of Disclosure of Counter-

Actual Guarantee
Announcements Amount Actual Date of Type of Collateral (if Guarantee Fulfilled

Guarantee Object Amount of Guarantee for Related
Related to theAmount Guaranteed Guarantee Guarantee any) Period Y/N

Guarantee (if any) PartyY/N
Guaranteed

January 26, 2018; May 80,478.17 January 26, 58,467.00 Joint and From the date

Users of the Company's residential PV 18, 2018; April 1, 2021 2018 several of loan

products, owners of industrial and

liability origination to No No

commercial distributed projects (loan

guarantee the date of

application from collaborating banks)

loan pay off

Residential PV users eligible for August 5, 2021 50,000.00 August 6, 17,811.00 Joint and From the date

financing 2021 several of loan

liability origination to No No

guarantee the date of

loan pay off

Hefei Zhongan Sungrow New Energy December 27, 2018; 55,807.46 December 27, 55,807.46 Joint and

Industry Investment Partnership (Limited April 1, 2021 2018 several No more than

Partnership) liability 10 years No No

guarantee

The Company’s Guarantee for Subsidiaries

Date of Disclosure of Counter-

Announcements Actual Guarantee
Amount Actual Date of Amount of Type of Collateral (if Guarantee Fulfilled for Related
Guarantee Object Related to theAmount Guaranteed Guarantee Guarantee any) Guarantee Period Y/N

Guarantee (if any) PartyY/N
Guaranteed

Sungrow Power (Hong Kong) Co., Ltd. May 19, 2020 14,181.00 May 20, 2020 3,187.85 Joint and No more than

several No No

3 years

liability


guarantee

Sungrow USAcorporation Nov. 17, 2020 71,742.63 Nov. 20, 2020 71,742.63 Joint and

several No more than

liability 2 years No No

guarantee

SUNGROW POWER UK LIMITED Apr. 16, 2021 40,075.14 Nov. 11, 2021 40,075.14 Joint and

several No more than

No No

liability 10 years

guarantee

Sungrow USACorporation May 18, 2021 115,966.11 Feb. 17, 2022 61,736.75 Joint and

several No later than

December No No

liability

31, 2025

guarantee

Dec. 4, 2021 54,229.36 Joint and

No later than

several

December No No

liability

31, 2026

guarantee

Sungrow Energy Storage Technology May 18, 2021 500,000.00 Dec. 31, 2022 274,896.81 Joint and

Co., Ltd. several No more than

liability 2 years No No

guarantee

Lingbi Qingyang New Energy Power Jul. 24, 2017; Apr. 1, 17,307.00 Mar. 15, 2018 14,914.00 Joint and

Generation Co., Ltd. 2021 several No more than

Yes No

liability 15 years

guarantee

Xiao County Yiguang New Energy Power Apr. 23, 2018; Apr. 1, 8,052.00 Jun. 26, 2018 7,041.00 Joint and No more than

Generation Co., Ltd. 2021 several Yes No

15 years

liability


guarantee

Weishan Guoyang New Energy Power Nov. 22, 2019; Apr. 1, 27,500.00 Sep. 28, 2019 26,500.00 Joint and

Generation Co., Ltd. 2021 several No more than

liability 15 years Yes No

guarantee

Tuanfeng Shengyang New Energy Power Nov. 17, 2020 55,000.00 Jun. 11, 2021 49,350.00 Joint and

Generation Co., Ltd. several No more than

Yes No

liability 15 years

guarantee

Shenmu Yuanhang New Energy Nov. 17, 2020 12,000.00 Apr. 17, 2021 9,166.00 Joint and

Development Co., Ltd. several No more than

liability 15 years Yes No

guarantee

Sungrow Renewables Development Co., Nov. 17, 2020 120,000.00 Joint and

Ltd. several

No No

liability

guarantee

Sungrow Renewables Development Co., April 16, 2021 150,000.00 Joint and

Ltd. several

liability No No

guarantee

Sungrow Renewables Development Co., May 18, 2021 250,000.00 May 31, 2021 8,714.42 Joint and

Ltd. several No more than

No No

liability 2 years

guarantee

Zongyang Chenyang New Energy Power May 18, 2021 16,200.00 Jun. 30, 2021 15,900.00 Joint and No more than

Generation Co., Ltd. several Yes No

15 years

liability


guarantee

SUNGROW POWER (VIETNAM) Aug. 20, 2021 21,005.31 May 6, 2022 4,725.00 Joint and 2 years after

LIMITED COMPANY several the due date

liability of each

guarantee project

payment

No No

under the

main

contract, that

is, by the end

of 2024

Sungrow USACorporation May 18, 2022 Joint and

No later than

several

Aug. 10, 2022 79,487.91 December No No

liability

31, 2027

guarantee

800,000.00

Joint and

several No later than

Oct. 19, 2022 134,194.02 No No

liability July 13, 2028

guarantee

SungrowAustralia Group PTY LTD May 18, 2022 Joint and

several

75,000.00 No No

liability

guarantee

Sungrow Japan K.K. May 18, 2022 Joint and

several

5,000.00 No No

liability

guarantee


Sungrow Power UK limited May 18, 2022 Joint and

several No more than

32,000.00 Jul. 14, 2022 8,517.92 liability 10 years No No

guarantee

SUNGROW DO BRASIL May 18, 2022 Joint and From the date

REPRESENTACAO COMERCIAL, several of the Letter

INSTALACAO E MANUTENCAO DE Jun. 13, 2022 6,674.32 liability of guarantee Yes No

EQUIPAMENTOS LTDA guarantee to December

17, 2022

Joint and When

several obligations

15,000.00 liability are

guarantee completed or

five years

Sep. 29, 2022 1,454.83 from the date No No

of the Letter

of guarantee

(whichever

comes first)

Sungrow Power Korea Limited May 18, 2022 Joint and

several

3,000.00 No No

liability

guarantee

Sungrow Floating Modules Technology May 18, 2022 Joint and

Co., Ltd. several No more than

10,000.00 Dec. 31, 2022 221.00 liability 2 years No No

guarantee

Hefei Sungrow Electric Power May 18, 2022 10,000.00 Joint and No No


Technology Co., Ltd. several

liability

guarantee

Sungrow Smart Operation Technology May 18, 2022 Joint and

Co., Ltd. several

10,000.00 liability No No

guarantee

Subsidiary's Guarantee for Subsidiaries

Date of Disclosure of Counter-

Announcements Actual Guarantee
Amount Actual Date of Amount of Type of Collateral (if Guarantee Fulfilled for Related
Guarantee Object Related to theAmount Guaranteed Guarantee Guarantee any) Guarantee Period Y/N

Guarantee (if any) PartyY/N
Guaranteed

General No more than

Sungrow USACorporation Apr. 24, 2020 15,445.90 Apr. 25, 2020 15,445.90 No No

guarantee 5 years

SUNGROW DO BRASIL Joint and

REPRESENTACAO COMERCIAL, several No more than

INSTALACAO E MANUTENCAO DE Mar. 31, 2021 8,449.79 Apr. 1, 2021 8,449.79 liability 7 years No No

EQUIPAMENTOS LTDA guarantee

No later than

Five projects in Australia owned by General

Sep. 29, 2021 9,365.2 Sep. 30, 2021 9,365.2 December Yes No

Sungrow Investment & Holdings Pte. Ltd guarantee

31, 2022

No more than

two years

General from the

Sungrow Power Australia Pty Ltd Dec. 1, 2021 14,714.05 Dec. 2, 2021 14,714.05 No No

guarantee effective date

of the Letter

of


Commitment

Joint and Five years

several from the date

Sungrow Ibérica S.A.U. Dec. 1, 2021 3,309.16 Dec. 2, 2021 3,309.16 liability of the Letter No No

guarantee of Guarantee

Joint and Five years

several from the date

Sungrow Ibérica S.A.U. Jul. 1, 2022 26,459.68 Jul. 2, 2021 26,459.68 No No

liability of the Letter

guarantee of Guarantee

Joint and

SUNGROW RENEWABLE ENERGY several

INVESTMENT PTE.LTD Dec. 2, 2022 160,000.00 liability No No

guarantee

Dec. 2, 2022 joint and

SUNGROW POWER (VIETNAM) several No more than

35,000.00 Dec. 2, 2022 1,412.24

COMPANY LIMITED liability 1 year

guarantee

Dec. 2, 2022 Joint and

several

SUNGROW QURYLYS LLP 35,000.00 liability

guarantee

Dec. 2, 2022 Joint and

SUNGROW POWER AUSTRALIAPTY several

30,000.00

LTD liability

guarantee

SUNGROW RENEWABLE ENERGY Dec. 2, 2022 Joint and

15,000.00 several No No

SPAIN, S.L.

liability


guarantee

Dec. 2, 2022 Joint and

Xuancheng Heyang New Energy Co., several

Ltd. 5,000.00 liability No No

guarantee

Dec. 2, 2022 Joint and

Anhui Sungrow Supply Chain several No more than

300,000.00 Dec. 2, 2022 9,382.10 No No

Management Co., Ltd. liability 1 year

guarantee

Dec. 2, 2022 Joint and

SUNGROW POWER several

CONSTRUCCIONES SPA 25,000.00 liability No No

guarantee

3. Cash Assets Management Entrusted to Others

(1) Entrusted financial management
 Applicable □ NotApplicable

Overview of entrusted financial management in the reporting period

(in CNY 10K)

Source of funds for entrusted Amount of entrusted Impairment provision for overdue
Type Undue balance Overdue amount to be collected

financial management financial management amount to be collected

Financial products issued by banks Funds raised 499,000.00 109,000.00 0 0

Financial products issued by banks Funds owned by the Company 968,000.00 20,000.00 0 0

Financial products issued by Funds owned by the Company 1,000.00

0 0
securities traders


Total 1,467,000.00 130,000.00 0 0

Details of high-risk entrusted financial management with large amount, low security, or low flowability

□Applicable  NotApplicable

Expected inability to recover the principal of entrusted financial management or other circumstances that may lead to impairment

□Applicable  NotApplicable
(2) Entrusted loans
□Applicable  NotApplicable

There were no entrusted loans in the reporting period.

4. Other major contracts
□Applicable  NotApplicable

There were no other major contracts in the reporting period.

XVI. Explanation on Other Significant Matters

□Applicable  NotApplicable

There were no other significant matters to be explained in the reporting period.

XVII. Significant Matters of the Company's Subsidiaries

□Applicable  NotApplicable


Section VII Changes in Shares and Information about Shareholders

I. Changes in Share Capital

1. Changes in Shares

(in Shares)

Before the change Changes in the period (+, -) After the change

Capitalized from

Quantity Percentage New issuance Bonus common reserve Others Sub-total Quantity Percentage

I. Shares subject to conditional restriction(s) 389,073,583 26.20% -33,105,267 -33,105,267 355,968,316 23.97%

1. Shares held by state-owned corporation 1,171,875 0.08% -1,171,875 -1,171,875

2. Shares held by other domestic shareholders 373,287,761 25.13% -17,319,445 -17,319,445 355,968,316 23.97%

Incl. shares held by domestic enterprise 9,585,937 0.65% -9,585,937 -9,585,937

Shares held by domestic natural person 363,701,824 24.49% -7,733,508 -7,733,508 355,968,316 23.97%

3. Shares held by foreign capital 14,613,947 0.98% -14,613,947 -14,613,947

Incl. shares held by overseas enterprise 14,613,947 0.98% -14,613,947 -14,613,947

II. Shares subject to no restrictions 1,096,142,401 73.80% 33,080,267 33,080,267 1,129,222,668 76.03%

1. A-shares 1,096,142,401 73.80% 33,080,267 33,080,267 1,129,222,668 76.03%

III. Total 1,485,215,984 100.00% -25,000.00 -25,000.00 1,485,190,984 100.00%

Reasons for share changes
 Applicable □ NotApplicable

1. On April 20, 2022, the Company made the Suggestive Announcement on Unlocking and Circulating Restricted Shares Issued to Specific Objects. According to the Announcement, the

transfer restriction period for a total of 28,418,634 non-public A-shares issued to 18 specific objects in 2021 expired, the corresponding shares were listed for circulation as of April 22,
2022.

2. On April 29, 2022, the Company made the Suggestive Announcement on Unlocking and Circulating Stage III Restricted Shares from the First Grant of the 2018 Restricted Stock Incentive
Plan. Subject to the approval of the fourteenth meeting of the fourth Board of Directors, unlocking conditions for stage III restricted shares from the first grant of the 2018 Restricted Stock
Incentive Plan had been achieved, a total of 1,468,938 restricted shares were unlocked and listed for circulation as of May 6, 2022.

3. On September 1, 2022, the Company made the Suggestive Announcement on Unlocking and Circulating Stage II Restricted Shares from the Reserved Part of the 2018 Restricted Stock
Incentive Plan. Subject to the approval of the nineteenth meeting of the fourth Board of Directors, unlocking conditions for stage II restricted shares from the reserved part of the 2018
Restricted Stock Incentive Plan had been achieved, a total of 615,000 restricted shares were unlocked and listed for circulation as of September 5, 2022.

4. On the first trading day of 2022, the statutory amount of transferable shares in 2022 held by the Company’s directors, supervisors, and executives were calculated as 25% of total shares
registered to each of them on the last trading day of 2021. On the same day, Shenzhen Branch of China Securities Depository and Clearing Corporation Limited unlocked the tradable
shares held by the Company’s directors, supervisors, and executives that are subject to no transfer restrictions within the current year's transferable amount.

5. On April 19, 2022, the Company held the fourteenth meeting of the fourth Board of Directors and the thirteenth meeting of the fourth Board of Supervisors, at which the Proposal on the
Buyback and Cancellation of Some Restricted Shares was reviewed and approved. Since Han Zhiyuan, one of the Company’s original incentive objects, resigned, according to the relevant
provisions of the Company's equity incentive plan, all the restricted shares that were granted to the aforementioned personnel but not unlocked should be bought back and cancelled by the
Company, with the total buyback quantity amounting to 25,000 shares. The Company completed the buyback and cancellation at the Shenzhen Branch of China Securities Depository and
Clearing Corporation Limited on July 18, 2022, and the Company’s total share capital changed from 1,485,215,984 shares to 1,485,190,984 shares.

Approvals for share changes
 Applicable □ NotApplicable

Refer to “Reasons for share changes”.

Share transfers
 Applicable □ NotApplicable

Refer to “Reasons for share changes”.

The impact of changes in shares on financial indicators such as basic earnings per share, diluted earnings per share, net assets per share attributable to common shareholders in the last year and
the last period
□Applicable  NotApplicable

Other contents the Company considers necessary or required by the securities regulatory authorities to disclose

□Applicable  NotApplicable

2. Changes in Restricted Shares
 Applicable □ NotApplicable

(in Shares)

Opening Increased in Unlocked in Closing

Shareholder restricted shares current period current period restricted shares Reason for restriction Time of unlocking

Cao Renxian Lock-up of executives’shares 25% of lock-up shares at the end of last
338,256,000 338,256,000

year is released every year

Zheng Guibiao Lock-up of executives’shares 25% of lock-up shares at the end of last
9,807,270 120,000 945,000 8,982,270 year is released every year

Zhao Wei Lock-up of executives’shares 25% of lock-up shares at the end of last
6,057,000 120,000 870,000 5,307,000

year is released every year

Li Guojun Lock-up of executives’shares, Holder has resigned for more than 6

although holder has resigned as an months in the reporting period; 75% of
1,110,000 80,000 290,000 900,000

executive prior to the expiration of the shares in holder's possession remain

term of office locked

Gu Yilei Lock-up of executives’shares 25% of lock-up shares at the end of last
450,000 120,000 232,500 337,500

year is released every year

Zhang Xucheng Lock-up of executives’shares 25% of lock-up shares at the end of last
150,000 37,500 112,500 year is released every year

Chen Zhiqiang Lock-up of executives’shares 25% of lock-up shares at the end of last
375,000 120,000 213,750 281,250

year is released every year

Wu Jiamao Lock-up of executives’shares 25% of lock-up shares at the end of last
375,000 120,000 213,750 281,250 year is released every year

Cheng Cheng Lock-up of executives’shares, Holder has resigned for more than 6

375,000 120,000 213,750 281,250 although holder has resigned as an months in the reporting period; 75% of
executive prior to the expiration of the shares in holder's possession remain


term of office locked

Xie Xiaoyong Lock-up of executives’shares 25% of lock-up shares at the end of last
300,000 120,000 195,000 225,000 year is released every year

Deng Dejun Lock-up of executives’shares 25% of lock-up shares at the end of last
369,679 80,000 172,420 277,259

year is released every year

Zhang Youquan Lock-up of executives’shares 25% of lock-up shares at the end of last
225,000 120,000 176,250 168,750 year is released every year

Li Shun Lock-up of executives’shares 25% of lock-up shares at the end of last
18,750 18,750

year is released every year

Peng Chaocai Lock-up of executives’shares 25% of lock-up shares at the end of last
78,750 60,000 79,688 59,062 year is released every year

Zhou Yanfeng Lock-up of executives’shares, 25% of lock-up shares at the end of last
although holder has resigned as an year is released every year

559,500 119,025 440,475

executive prior to the expiration of the

term of office

Other incentive objects 2,148,000 2,108,000 40,000 Equity incentive restriction September 2022

Shanghai GreenwoodsAsset Non-public offering of shares with a

Management Co. Ltd. - Greenwoods commitment to lock for 6 months

937,500 937,500 Apr. 22, 2022

Jingtai Fenshou Private Securities
Investment Fund

Shanghai GreenwoodsAsset Non-public offering of shares with a

Management Co. Ltd. - Fengshou No. 3 937,500 937,500 commitment to lock for 6 months Apr. 22, 2022

Private Equity Fund

Huatai Financial Holdings (Hong Kong) Non-public offering of shares with a

937,500 937,500 Apr. 22, 2022

Limited commitment to lock for 6 months

JPMorgan Chase Bank, National 1,171,875 1,171,875 Non-public offering of shares with a Apr. 22, 2022


Association commitment to lock for 6 months

DajiaAsset Management Co., Ltd. - Non-public offering of shares with a

DajiaAsset-ICBC-DaJiaAsset-Blue commitment to lock for 6 months

Chip Selected No. 5 CollectiveAsset 1,562,500 1,562,500 Apr. 22, 2022

Management Product

Yunnan Energy Investment Co., Ltd. Non-public offering of shares with a

1,171,875 1,171,875 Apr. 22, 2022

commitment to lock for 6 months

Goldman Sachs & Co. LLC Non-public offering of shares with a

1,234,375 1,234,375 commitment to lock for 6 months Apr. 22, 2022

The Hongkong and Shanghai Banking Non-public offering of shares with a

937,500 937,500 Apr. 22, 2022

Corporation Limited commitment to lock for 6 months

UBS AG Non-public offering of shares with a

6,738,948 6,738,948 commitment to lock for 6 months Apr. 22, 2022

J.P.Morgan Securities PLC Non-public offering of shares with a

1,054,687 1,054,687 Apr. 22, 2022

commitment to lock for 6 months

Gao Jinhua Non-public offering of shares with a

1,171,875 1,171,875 commitment to lock for 6 months Apr. 22, 2022

Beijing XHTHAsset Management Non-public offering of shares with a

(Limited Partnership) - Xinhong commitment to lock for 6 months

937,500 937,500 Apr. 22, 2022

Xinghong No. 2 Private Securities
Investment Fund

WTAsset Management Limited Non-public offering of shares with a

1,562,500 1,562,500 commitment to lock for 6 months Apr. 22, 2022

Runhui Investment Management Hong Non-public offering of shares with a

976,562 976,562 Apr. 22, 2022

Kong Co., Ltd. commitment to lock for 6 months

Jinan Jiangshan Investment Partnership 1,953,125 1,953,125 Non-public offering of shares with a Apr. 22, 2022


(Limited Partnership) commitment to lock for 6 months

Caitong Fund Management Co., Ltd. Non-public offering of shares with a

960,937 960,937 commitment to lock for 6 months Apr. 22, 2022

Zhong Ge Non-public offering of shares with a

1,875,000 1,875,000 Apr. 22, 2022

commitment to lock for 6 months

Lord Abbett ChinaAsset Management Non-public offering of shares with a

Co., Ltd. 2,296,875 2,296,875 commitment to lock for 6 months Apr. 22, 2022

Total 389,073,583 1,180,000 34,285,267 355,968,316 -- --

II. Issuance and Listing of Securities

1. Securities (excl. preference shares) issued during the reporting period

□Applicable  NotApplicable

2. Changes in the Company’s total shares and shareholder structure, and changes in the Company’s asset and liability structure

 Applicable □ NotApplicable

On April 19, 2022, the Company held the fourteenth meeting of the fourth Board of Directors and the thirteenth meeting of the fourth Board of Supervisors, at which the Proposal on the

Buyback and Cancellation of Some Restricted Shares was reviewed and approved. Since Han Zhiyuan, one of the Company’s original incentive objects, resigned, according to the relevant

provisions of the Company's equity incentive plan, all the restricted shares that were granted to the aforementioned personnel but not unlocked should be bought back and cancelled by the

Company, with the total buyback quantity amounting to 25,000 shares. The Company completed the buyback and cancellation at the Shenzhen Branch of China Securities Depository and

Clearing Corporation Limited on July 18, 2022, and the Company’s total share capital changed from 1,485,215,984 shares to 1,485,190,984 shares.

3. Existing employees’ shares
□Applicable  NotApplicable

III. Shareholders and Actual Controllers

1. Total number of shareholders and share holdings

(in Shares)

Total number of

Total number of preference shareholders

ordinary shareholders Total number of preference

Total number of with restored voting Total number of

at the end of the shareholders with restored

ordinary shareholders rights at the end of the shareholders holding

136,437 previous month 143,001 voting rights at the end of 0 0 0
at the end of the previous month before special voting shares (if

before the disclosure the reporting period (if any)

reporting period the disclosure date of the any)

date of the annual (see Note 9)

annual report (if any)

report

(see Note 9)

Shareholders with a shareholding of over 5% or shareholdings of the top ten shareholders

Total shares held at Pledged, marked, or frozen
the end of the Changes in the Non-tradable Tradable shares

Name of shareholder Nature of shareholder Percentage reporting period shares held held

reporting period Share status Quantity

Cao Renxian Domestic natural person 30.37% 451,008,000.00 338,256,000.00 112,752,000.00 Pledged 22,800,000.00

Hong Kong Securities Clearing Overseas legal person

10.17% 151,060,230.00 -11,186,643.00 151,060,230.00

Company Limited
Hefei Huizhuo Equity Investment Domestic

Partnership (Limited Partnership) non-state-owned legal 3.55% 52,687,201.00 -2,179,000.00 52,687,201.00

person

Shanghai Pudong Development Other

Bank Co., Ltd. - GF High-End

0.85% 12,690,710.00 321,661.00 12,690,710.00

Manufacturing Equity Sponsored
Securities Investment Fund


Zheng Guibiao Domestic natural person 0.81% 11,976,360.00 8,982,270.00 2,994,090.00

ChinalinkAsia Holdings Limited Overseas legal person 0.76% 11,235,305.00 -472,000.00 11,235,305.00

China Construction Bank Other

Corporation - GF Technology

Pioneer Hybrid Securities 0.72% 10,715,006.00 -1,443,704.00 10,715,006.00

Investment Fund

Bank of China Co., Ltd. - Other

Huatai-PineBridge CSI PV Industry

0.70% 10,381,647.00 1,659,267.00 10,381,647.00

Open-Ended Index Securities
Investment Fund

China Minsheng Bank Co., Ltd. - Other

GF Industry Selected Three-Year 0.63% 9,422,419.00 -572,783.00 9,422,419.00

Hybrid Securities Investment Fund

CITIC Securities Co., Ltd. - Other

Tianhong CSI PV Industry Index 0.54% 8,053,609.00 -271,288.00 8,053,609.00

Initiated Securities Investment Fund

Relations between the Mr. Cao Renxian, the controlling shareholder and actual controller of the Company, holds 10.44% equity of Hefei Huizhuo Equity Investment Partnership
above-mentioned shareholders or (Limited Partnership).Apart from the shareholders’relations specified as above, the Company is not aware of any other relations between shareholders, and
actions in concert does not know whether they are persons acting in concert as stipulated in the Administrative Measures for the Acquisition of Listed Companies.

Shares held by top 10 shareholders subject to no restrictions on trading

Unrestricted shares held at the end of the Share Details

Shareholder

reporting period Type Quantity

Hong Kong Securities Clearing Company Limited 151,060,230.00 A-share 151,060,230.00

Cao Renxian 112,752,000.00 A-share 112,752,000.00

Hefei Huizhuo Equity Investment Partnership (Limited

Partnership) 52,687,201.00 A-share 52,687,201.00


Shanghai Pudong Development Bank Co., Ltd. - GF

High-End Manufacturing Equity Sponsored Securities 12,690,710.00 A-share 12,690,710.00
Investment Fund

ChinalinkAsia Holdings Limited 11,235,305.00 A-share 11,235,305.00

China Construction Bank Corporation - GF Technology

Pioneer Hybrid Securities Investment Fund 10,715,006.00 A-share 10,715,006.00

Bank of China Co., Ltd. - Huatai-PineBridge CSI PV

10,381,647.00 A-share 10,381,647.00
Industry Open-Ended Index Securities Investment Fund

China Minsheng Bank Co., Ltd. - GF Industry Selected

Three-Year Hybrid Securities Investment Fund 9,422,419.00 A-share 9,422,419.00

CITIC Securities Co., Ltd. - Tianhong CSI PV Industry

8,053,609.00 A-share 8,053,609.00
Index Initiated Securities Investment Fund

Industrial and Commercial Bank of China Limited - GF

Double Engine Upgraded Hybrid Securities Investment 7,942,999.00 A-share 7,942,999.00
Fund

Relations between top 10 shareholders of unrestricted Mr. Cao Renxian, the controlling shareholder and actual controller of the Company, holds 10.44% equity of Hefei Huizhuo Equity
circulating shares, relations between top 10 shareholders of Investment Partnership (Limited Partnership). Apart from the shareholders’relations specified as above, the Company is not aware of
unrestricted circulating shares and top 10 shareholders, or any other relations between shareholders, and does not know whether they are persons acting in concert as stipulated in the

actions in concert Administrative Measures for the Acquisition of Listed Companies.

Whether the Company has made arrangements for different voting rights

□Applicable  NotApplicable

Whether the top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares subject to no trading restrictions made the buy-back transaction as agreed in the reporting

period
□ Yes  No

The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares subject to no trading restrictions did not make the buy-back transaction as agreed in the reporting

period.


2. Controlling Shareholders of the Company

Nature of controlling shareholder: Natural person

Type of controlling shareholder: Natural person

Name of controlling shareholder Nationality In possession of right of abode in other countries

Cao Renxian Chinese No

Main occupation and title Mr. Cao Renxian has been the Chairman and President of the Company for the past 5 years

Domestic/overseas listed companies controlled/vested in the past 10 years Mr. Cao Renxian does not control other domestic/overseas listed companies

Changes of controlling shareholder during the reporting period

□Applicable  NotApplicable

The controlling shareholder of the Company did not change in the reporting period.

3. Actual Controllers and Persons Acting In Concert

Nature of actual controller: Domestic natural person

Type of actual controller: Natural person

Name of actual controller Relationship with actual controller Nationality In possession of right of abode in other countries

Cao Renxian Himself Chinese No

Main occupation and title Mr. Cao Renxian has been the Chairman and President of the Company for the past 5 years

Domestic/overseas listed companies controlled/vested in the past 10 years Mr. Cao Renxian does not control other domestic/overseas listed companies

Change of actual controller during the reporting period

□Applicable  NotApplicable

The actual controller of the Company did not change during the reporting period.

Block diagram of the property rights and control relationship between the Company and the actual controller


中文 英文

曹仁贤 Cao Renxian

通过配偶苏蕾 Via spouse Su Lei

合肥汇卓股份投资合伙企业（有限合伙）

Hefei Huizhuo Equity Investment Partnership (Limited

Partnership)

阳光电源股份有限公司 Sungrow Power Supply Co., Ltd.


The actual controller controls the Company through trust or other asset management methods

□Applicable  NotApplicable

4. The cumulative quantity of pledged shares of the Company’s controlling shareholder or the largest shareholder and its persons acting in concert
account for more than 80% of the Company’s shares held by them

□Applicable  NotApplicable

5. Other legal person shareholders holding more than 10% of the shares

□Applicable  NotApplicable

6. Share restrictions and reductions of controlling shareholder, actual controller, restructuring parties, and other undertaking entities

□Applicable  NotApplicable

IV. Specific implementation of share buy-back during the reporting period

Progress of share buy-back
 Applicable □ NotApplicable

In percentage of Planned amount Number of In percentage of the

Disclosure time Number of shares to be total share of buy-back Planned period Purpose of buy-back shares target quantity

of the plan bought-back capital (in CNY 10,000) of buy-back already involved in the equity

bought-back incentive plan (if any)

Used for the employee

May 14, 2022 5,000,000 - 10,000,000 0.3367%- 50,000 - 100,000 May 13, 2022 – stock ownership plan 6,485,049

0.6733% May 12, 2023 or equity incentive

plan

Progress of buy-back share reduction via centralized bidding

□Applicable  NotApplicable


Section VIII Preference shares

□Applicable  NotApplicable

No preference shares exist in the Company during the reporting period.


Section IX Bonds

□Applicable  NotApplicable


Section X Financial Reports

I. Audit Report

Type ofAudit Opinion Standard unqualified opinion

Audit Report Signed on April 24, 2023

Auditing Firm RSM China (Special General Partnership)

Audit Report Number RSM-AR [2023] No. 230Z0453

Name of CPAs Wan Yunlong, Jiang Wei, Pan Lili

Audit Report

I. Audit Opinion

We have audited the financial statements of Sungrow Power Supply Co., Ltd. (hereinafter referred to as Sungrow), including the
Consolidated Balance Sheet and Balance Sheet of Parent Company as at December 31, 2022, the Consolidated Income Statement and
Income Statement of Parent Company in 2022, and the Consolidated Statement of Cash Flows and Statement of Cash Flows of
Parent Company, Consolidated Statement of Changes in Equity and Statement of Changes in Equity of Parent Company, as well as
Notes to the relevant financial statements.

In our opinion, the financial statements as attached were prepared in accordance with the Accounting Standards for Business
Enterprises in all material aspects, which fairly reflect the consolidated financial position of Sungrow and the parent company as at
December 31, 2022, as well as the consolidated operating results and cash flows of Sungrow and the parent company in 2022.

II. Grounds for the Audit Opinion

The audit has been performed in accordance with the Auditing Standards for Certified Public Accountants of China. Our
responsibilities under these standards are further explained in the part CPA's Responsibilities for the Audit of Financial Statements in
the audit report. Abiding by the China Code of Ethics for Certified Public Accountants, we have operated independently from
Sungrow, and fulfilled other responsibilities in professional ethics. We believe that the audit evidence we obtained is sufficient and
appropriate to provide a ground for our audit opinion.

III. Key Audit Matters

Key audit matters are those we consider to be the most important to the audit of financial statements of the current period based on
our professional judgment. Such matters are addressed in the context that the financial statements are audited as a whole with the
audit opinion issued. We do not express separate opinions on these matters.

A. Recoverability of accounts receivable
1. Description of the matter

As stated in Notes “III. 10 Financial Instruments” and “V. 4 Accounts Receivable”, the book value of accounts receivable in
Sungrow’s consolidated financial statements was CNY 13,804 million, of which bad debt provision was CNY 1,367 million. The
Company determined the bad debt provision according to the recoverability of accounts receivable. To determine the book value of
the accounts receivable at the end of the period, the Sungrow management team (hereinafter referred to as the Management) needs to
identify the items that have been impaired and the objective evidences, evaluate the cash flows that are expected in the future and
determine their present value, which involves the Management’s use of significant accounting estimates and judgments. Moreover,

the recoverability of accounts receivable is vital to the financial statements; therefore, we have identified the recoverability of
accounts receivable as a key audit matter.

2. Audit response

The procedures we performed mainly include the following:

(1) We evaluated and tested the rationality of design and operational effectiveness of Sungrow's credit policy and internal controls
related to accounts receivable management.

(2) We analyzed the rationality of accounting estimates for bad debt provision for Sungrow's accounts receivable, including the
basis for determining the combination of accounts receivable and the judgment on separate bad debts provision.

(3) After considering the actual amount of bad debts of similar receivables and the situations in the past, and in combination with
customer credit, market condition, and other factors, we evaluated the appropriateness of approaches used by the Management
which divided receivables into several groups for impairment assessment. For receivables that had been accrued for bad debt
provision individually, we verified the foundations used by the Management to evaluate the expected cash flow; for receivables
that had been accrued for bad debt provision according to the characteristics of credit risk combination, we used expected credit
loss rate and aging analysis to test the rationality and accuracy of the Management's provision for bad debts.

(4) We evaluated the recoverability of accounts receivable in large amount, with special attention paid to those with an aging of
more than one year and those covered in lawsuits filed by Sungrow (for selected samples). Through the investigation of
customer background, operating status, litigation situation and etc., we interviewed with lawyers and sales personnel, inspected
the letters of confirmation and collections after the period, in order to evaluate the rationality and adequacy of the
Management’s bad debts provision.

B. Revenue recognition
1. Description of the matter

As stated in Notes “III. 26 Principles and Measurements for Revenue Recognition” and “V. 45 Operating Income and Operating
Costs”, Sungrow recognized an operating income of CNY 40,257 million. Since operating income is one of the Company's key
metrics, there might be an inherent risk that the Management manipulate revenue recognition in order to achieve specific goals or
expectations; therefore, we have identified revenue recognition as a key audit matter.

2. Audit response

The procedures we used mainly include the following:

(1) We evaluated and tested the design and operational effectiveness of internal controls related to Sungrow's revenue from product
sales and power station construction.

(2) We verified revenue growth and changes in gross profit in an analytic way.

(3) For revenue from product sales, we inspected samples of sales contracts, sales invoices, logistics documents, customer receipts,
customs declarations and other relevant materials to evaluate the authenticity of revenue recognition; for sales revenue
recognized around the date of the balance sheet, we ran cut-off test and verified supporting documents such as customer receipts,
thereby evaluating the completeness of revenue recognition.

(4) For revenue from power station construction, we compared and analyzed the actual total cost of the completed project samples
and the total contract cost estimated by the Management before project completion to evaluate the Management's experience
and capacity in making the accounting estimation; we inspected contracts of major construction projects to verify the total
contract revenue, review key contract terms, and confirm the correctness of contract revenue. For major contracts involving
power generation commitments, we reviewed the basis for determining the power generation estimation and the accuracy of

revenue recognition. For the actual cost of major projects, we checked the supporting documents such as contracts, invoices,
equipment receipts, progress confirmation documents, and analyzed the gross profit rate of the project, thereby evaluating the
authenticity and accuracy of the actual cost accounting. We shortlisted several projects and visited the project sites to determine
whether the site status matched the progress recorded.

C. Inventories
1. Description of the matter

As stated in Notes “III. 12 Inventories” and “V. 8 Inventories”, as of December 31, 2022, the book balance of inventories in
Sungrow’s consolidated financial statements is CNY 19,684 million, the inventory depreciation provision is CNY 624 million, and
the book value of inventories is CNY 19,060 million. In consideration that the inventory amount is huge and the determination of the
net realizable value of inventories involves significant management judgment, we have identified inventories as a key audit matter.
2. Audit response

The procedures we used mainly include the following:

(1) We evaluated and tested the rationality of design and operational effectiveness of Sungrow's internal controls related to
inventory management.

(2) We supervised inventory counting in the field, and inspected the quantity and status of inventories, with special attention paid to
the ending inventory status and the identification of obsolete stocks. For inventories at customers’ premises, we ran external
confirmations to verify the quantity.

(3) In combination with the audit of accounts payable and prepayments, we ran external confirmations with major suppliers to
verify the purchase amount, ending balance of current transactions, etc.

(4) We analyzed inventory changes and conducted valuation tests on major inventories to verify the accuracy of carrying cost of
inventories.

(5) We obtained the Management’s spreadsheet for calculating inventory depreciation provision, ran the inventory impairment test
and confirmation procedure, checked and analyzed the rationality of the net realizable value, and evaluated the accuracy of the
inventory depreciation reserve and resale.

(6) We conducted peer analysis of Sungrow’s inventory turnover rate and ratio of inventory depreciation provision, to analyze
whether the Company's inventory depreciation significantly deviates from the average level of the peer industry.

(7) We evaluated the appropriateness of the Management's disclosure of inventories and notes in the financial statements.

IV. Other information

Sungrow’s management team is responsible for other information. Other information includes those covered in Sungrow's 2022
annual report, but does not include the financial statements and our audit report.

The audit opinion on financial statements does not cover other information, nor do we make assurance conclusions on other
information in any form.

As it relates to the audit of financial statements, our responsibility is to read other information and identify whether there are material
inconsistence or errors between other information and the financial statements or the situation we learned during the audit.

Based on what we have done, if we are certain that material errors exist in other information, we should report. In this case, there is
nothing to be reported.

V. Management’s and Governance’s Responsibilities for the Financial Statements


The Sungrow management team is responsible for preparing and presenting these financial statements fairly in accordance with the
Accounting Standards for Business Enterprises, and for designing, implementing, and maintaining necessary internal controls so that
the financial statements are free from material misstatements due to fraud or error.

When preparing the financial statements, the management team is responsible for evaluating Sungrow’s ability to continue as a going
concern, disclosing matters related to going concerns, and applying going concern assumptions, unless the management team is
arranging liquidation, termination, or options of no other realistic alternatives for Sungrow.

Sungrow's governance team is responsible for overseeing Sungrow's financial reporting process.

VI. CPA's Responsibilities for the Audit of the Financial Statements

Our objective is to obtain reasonable assurance on that the financial statements as a whole are free from material misstatement due to
fraud or error, and to issue an auditor report containing our audit opinion. A reasonable assurance is a high level of assurance,
however, there is no assurance that an audit performed in accordance with Auditing Standards can always identify a material
misstatement in existence. Misstatements may result from fraud or error, and are generally considered material if, individually or in
aggregate, the misstatements could be reasonably expected to influence the economic decisions made by users of the financial
statements based on the content of the financial statements.

In the process of conducting the audit in accordance with Auditing Standards, we exercise professional judgment and maintain
professional skepticism. At the same time, we also perform the following:

1. Identify and evaluate the risk of material misstatement due to fraud or error, design and implement auditing procedures to
address the risk, and obtain sufficient and appropriate audit evidence as the grounds for our audit opinion. Since fraud may
involve collusion, forgery, intentional omission, misrepresentation or override of internal controls, the risk of failure to detect
material misstatements due to fraud is higher than the risk of failure to detect material misstatements due to error.

2. Understand the audit-related internal controls in order to design an appropriate auditing procedure.

3. Evaluate the appropriateness of accounting policies selected by the Management and the rationality of accounting estimates and
related disclosures.

4. Conclude on the appropriateness of the going concern assumptions used by the Management. Based on the audit evidence
obtained, draw conclusions on whether there are significant uncertainties in matters or situations that are likely to impair
Sungrow's ability to continue as a going concern. Should the conclusions considered significant uncertainties, we are required
by the auditing standards to remind users of the financial statements to the relevant disclosures in the financial statements; if the
disclosures were insufficient, we should not issue our opinion as non-qualified. Our conclusions are based on information
available as of the date of the audit report. However, matters or circumstances in the future may still cause Sungrow to cease to
operate as a going concern.

5. Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements
fairly reflect the relevant transactions and matters.

6. Obtain sufficient and appropriate audit evidence on the financial information of Sungrow’s entities or business activities, so as
to issue an audit opinion on the financial statements. We are responsible for directing, supervising and performing the group
audit, and are solely responsible for the audit opinion we make.

We communicate with the governance team on the planned scope, schedule and significant audit findings of the audit, including
internal control deficiencies of concern that we identified during our audit.

We have also provided the governance team with a statement of compliance with professional ethical requirements related to
independence, and communicated with them on all relationships and other matters that might be reasonably believed to affect our

independence, together with the corresponding countermeasures.

From the list of matters that we have communicated with the governance team, we identify those of the most significance to the audit
of financial statements of the current period as the key audit matters. We describe these matters in our audit report unless public
disclosure of such matters is prohibited by laws or regulations or; in rare circumstances where the adverse consequences of
communicating a matter in the audit report would be reasonably expected to outweigh the benefits in the public interest, we decide
not to communicate such a matter in the audit report.

II. Financial Statements

All numbers in the financial statements are in CNY.

1. Consolidated Balance Sheet

Prepared by: Sungrow Power Supply Co., Ltd.

December 31, 2022

(in CNY)

Item December 31, 2022 January 1, 2022

Current Assets:

Cash and cash equivalents 11,666,601,491.42 7,790,144,016.01

Settlements Provision

Loans to banks and other financial institutions

Financial assets held for trading 1,490,493,996.98 3,812,896,788.98

Derivative financial assets

Notes receivable 1,086,866,640.25 784,339,002.72

Accounts receivable 13,804,040,262.60 8,748,141,497.54

Financing receivables 1,038,041,498.25 762,715,906.62

Prepayments 382,891,914.73 359,819,409.47

Insurance premium receivable
Due from reinsurers
Reinsurance contract reserves receivable

Other receivables 1,171,813,634.65 946,579,893.54

Including: Interest receivable

Dividends receivable 27,389,502.93

Financial assets purchased under agreements to resell

Inventories 19,060,142,584.88 10,767,519,365.64

Contract assets 1,291,527,303.40 1,364,393,136.40

Assets classified as held for sale


Non-current assets due in one year 53,713,000.00 75,528,337.39

Other current assets 947,593,110.24 895,355,467.22

Total current assets 51,993,725,437.40 36,307,432,821.53

Non-current assets:
Loans and advances
Debt investment
Other debt investments

Long-term receivables 352,460,000.00 213,044,303.38

Long-term equity investments 228,278,242.43 115,159,366.42

Other equity instruments investments

Other non-current financial assets 303,677,642.96 40,008,527.59

Investment properties

Fixed assets 4,543,555,993.02 4,245,993,353.02

Construction in progress 1,188,671,605.49 424,310,899.34

Productive biological assets
Oil and gas assets

Right-of-use asset 559,699,600.83 344,386,440.69

Intangible assets 340,374,616.37 174,385,023.72

Development expenditures
Goodwill

Long-term prepaid expenses 98,761,004.79 23,696,359.28

Deferred tax assets 1,024,759,727.51 638,432,375.29

Other non-current assets 992,247,656.31 313,281,445.20

Total non-current assets 9,632,486,089.71 6,532,698,093.93

Total assets 61,626,211,527.11 42,840,130,915.46

Current liabilities:

Short-term borrowings 1,422,187,421.05 1,524,580,849.05

Borrowing from the central bank

Deposits and balances from banks and other financial

institutions

Financial liabilities held for trading 51,919,973.63

Derivative financial liabilities 1,027,953.77

Notes payable 12,502,200,528.61 7,939,950,795.46

Accounts payable 13,423,788,672.62 9,824,886,816.58

Receipts in advance

Contract liabilities 3,788,439,560.39 1,713,946,572.46

Financial assets sold under agreements to buy

Customer deposits and balances from banks and other

financial institutions
Customer brokerage deposits
Securities underwriting brokerage deposits

Payroll and employee benefits payable 647,136,521.65 380,993,966.96

Taxes payable 842,046,338.30 508,768,582.40

Other payables 760,375,319.15 500,890,674.53

Including: Interest payable
Dividend payable
Fees and commission payable
Payable reinsurance

Liabilities classified as held for sale

Non-current liabilities due in one year 809,879,585.68 205,372,932.33

Other current liabilities 1,219,596,256.39 907,970,842.58

Total current liabilities 35,468,598,131.24 23,507,362,032.35

Non-current liabilities:
Insurance reserves

Long-term borrowings 4,161,650,000.00 1,891,445,000.00

Bonds payable
Including: Preference shares
Perpetual debt

Lease liabilities 430,999,112.05 283,789,579.70

Long-term Payable 596,102,307.79 56,156,864.10

Long-term payroll and employee benefits payable

Provisions 1,012,055,993.93 242,096,475.53

Deferred income 166,799,167.22 141,475,530.69

Deferred tax liabilities 13,401,614.14 14,127,384.33

Other non-current liabilities 39,610,000.00

Total non-current liabilities 6,420,618,195.13 2,629,090,834.35

Total liabilities 41,889,216,326.37 26,136,452,866.70

Owners’equity:


Paid-in capital 1,485,190,984.00 1,485,215,984.00

Other equity instruments
Including: Preference share
Perpetual debt

Capital reserve 7,052,840,542.50 6,959,695,649.18

Less: treasury shares 520,749,625.73 15,133,520.00

Other comprehensive income -30,520,376.52 -24,221,290.12

Special reserve

Surplus reserve 1,066,201,017.69 716,612,746.04

General risk reserve

Retained earnings 9,613,342,847.73 6,532,893,916.61

Equity attributable to owners of the parent 18,666,305,389.67 15,655,063,485.71

Non-controlling interests 1,070,689,811.07 1,048,614,563.05

Total owners’equity 19,736,995,200.74 16,703,678,048.76

Total liabilities and owners’equity 61,626,211,527.11 42,840,130,915.46

Legal Representative: Cao Renxian ChiefAccountant: Tian Shuai Head ofAccounting Department: Li Pan
2. Balance Sheet of Parent Company

(in CNY)

Item December 31, 2022 January 1, 2022

Current Assets:

Cash and cash equivalents 7,843,493,020.92 4,686,803,427.38

Financial assets held for trading 1,023,462,624.14 2,655,239,184.22

Derivative financial assets

Notes receivable 513,951,198.39 460,268,788.01

Accounts receivable 12,289,281,607.26 6,633,778,001.81

Financing receivables 841,039,102.74 477,280,432.91

Prepayments 15,214,576.36 54,560,360.00

Other receivables 1,064,683,730.83 729,294,428.68

Including: Interest receivable

Dividends receivable 27,389,502.93

Inventories 4,305,038,408.84 3,571,281,925.32

Contract assets 356,483,190.49 400,767,894.33

Assets classified as held for sale


Non-current assets due in one year 53,713,000.00 75,528,337.39

Other current assets 49,297,706.52 179,708,891.30

Total current assets 28,355,658,166.49 19,924,511,671.35

Non-current assets:
Debt investment
Other debt investments

Long-term receivables 352,460,000.00 213,044,303.38

Long-term equity investments 5,287,620,696.34 4,645,754,539.19

Other equity instruments investments

Other non-current financial assets 125,035,324.41

Investment properties

Fixed assets 1,412,825,971.90 1,276,995,771.25

Construction in progress 585,904,972.37 240,635,749.42

Productive biological assets
Oil and gas assets

Right-of-use asset 47,727,364.25 42,607,365.77

Intangible assets 207,480,610.30 122,705,732.83

Development expenditures
Goodwill

Long-term prepaid expenses 57,092,196.74 17,802,929.79

Deferred tax assets 310,943,335.06 348,201,521.51

Other non-current assets 537,065,057.02 171,253,899.20

Total non-current assets 8,924,155,528.39 7,079,001,812.34

Total assets 37,279,813,694.88 27,003,513,483.69

Current liabilities:

Short-term borrowings 74,407,523.19 566,025,816.24

Financial liabilities held for trading 6,367,790.64

Derivative financial liabilities 1,027,953.77

Notes payable 6,574,809,279.06 3,859,144,185.00

Accounts payable 9,326,539,265.79 6,093,277,528.94

Receipts in advance

Contract liabilities 690,409,136.06 695,217,795.44

Payroll and employee benefits payable 259,302,306.80 166,713,271.18

Taxes payable 265,054,124.87 139,986,244.97


Other payables 419,115,721.82 273,839,838.70

Including: Interest payable
Dividend payable

Liabilities classified as held for sale

Non-current liabilities due in one year 64,942,372.58 23,520,306.60

Other current liabilities 124,706,255.00 91,452,860.84

Total current liabilities 17,806,681,729.58 11,909,177,847.91

Non-current liabilities:

Long-term borrowings 957,720,000.00 10,500,000.00

Bonds payable
Including: Preference shares
Perpetual debt

Lease liabilities 21,784,939.47 28,185,840.68

Long-term Payable
Long-term payroll and employee
benefits payable

Provisions 532,428,639.25 14,629,180.74

Deferred income 146,613,574.00 125,720,570.24

Deferred tax liabilities
Other non-current liabilities

Total non-current liabilities 1,658,547,152.72 179,035,591.66

Total liabilities 19,465,228,882.30 12,088,213,439.57

Owners’equity:

Paid-in capital 1,485,190,984.00 1,485,215,984.00

Other equity instruments
Including: Preference share
Perpetual debt

Capital reserve 7,146,687,476.79 7,074,553,205.11

Less: treasury shares 520,749,625.73 15,133,520.00

Other comprehensive income 281,692.50

Special reserve

Surplus reserve 1,066,201,017.69 716,612,746.04

Retained earnings 8,636,973,267.33 5,654,051,628.97

Total owners’equity 17,814,584,812.58 14,915,300,044.12


Total liabilities and owners’equity 37,279,813,694.88 27,003,513,483.69

3. Consolidated Income Statement

(in CNY)

Item 2022 2021

I. Total revenue 40,257,239,155.34 24,136,598,726.55

Including: Operating proceeds 40,257,239,155.34 24,136,598,726.55

Interest income
Net earned premiums
Net fee and commission revenue

II. Total operating costs 35,514,911,265.50 22,365,999,105.36

Including: Operating costs 30,375,806,550.32 18,765,234,741.08

Interest expenses
Fees and commission expenses
Surrenders
Net payments for insurance claims
Net provision of insurance reserve
Policyholder dividends
Reinsurance expenses

Taxes and surcharges 142,614,456.42 82,485,943.84

Selling expenses 3,169,263,472.82 1,582,578,297.46

General and administrative expenses 612,314,748.77 491,053,482.80

R&D expenses 1,692,156,198.42 1,161,389,788.60

Financial expenses -477,244,161.25 283,256,851.58

Including: Interest expense 209,088,016.88 124,111,368.70

Interest income 77,821,870.16 62,999,892.35

Add: Other income 220,935,253.06 186,298,661.20

Investment gains (or losses) 40,338,523.02 354,966,135.62

Including: Share of gains of associates

-2,286,676.64 9,335,376.24
and joint ventures
Gains from derecognition of financial
assets measured at amortized cost
Exchange gains (or losses)

Net exposure hedging gains (or losses)


Gains (or losses) on the changes in fair

-29,610,984.47 66,438,296.41
value

Credit impairment losses -456,447,435.65 -207,580,392.56

Assets impairment losses -374,657,742.38 -273,593,601.70

Gain (or losses) from disposal of assets -1,741,000.52 448,633.20

III. Operating profit (or loss) 4,141,144,502.90 1,897,577,353.36

Add: Non-operating income 9,156,115.54 17,119,329.76

Less: Non-operating costs 16,339,008.39 22,024,546.89

IV. Profit (or loss) before tax 4,133,961,610.05 1,892,672,136.23

Less: Income tax expense 438,525,751.74 188,677,565.32

V. Net profit (or loss) 3,695,435,858.31 1,703,994,570.91

(1) Categorized by operation continuity

1. Net profit (or loss) from continuing

operations 3,695,435,858.31 1,703,994,570.91

2. Net profit (or loss) from discontinuing

operations
(2) Categorized by ownership

1. Net profit attributable to shareholders

3,593,410,009.26 1,582,707,374.76
of parent company
2. Net profit attributable to

non-controlling interests 102,025,849.05 121,287,196.15

VI. Other comprehensive income, net of

-7,899,020.61 -9,833,344.80
tax

Other comprehensive income, net of tax,

attributable to shareholders of parent -6,299,086.40 -9,833,344.80
company

a. Other comprehensive income not be

reclassified as profit or loss

1. Remeasurement gains or losses of a

defined benefit plan

2. Other comprehensive income not to be

reclassified as profit or loss using the

equity method

3. Changes in fair value of other equity

instrument investments

4. Changes in fair value of enterprise’s

own credit risk

5. Others

b. Other comprehensive income to be

reclassified as profit or loss -6,299,086.40 -9,833,344.80

1. Other comprehensive income to be

reclassified as profit or loss using equity

method

2. Changes in fair value of other debt

investments

3. Amount of financial assets reclassified

into other comprehensive income

4. Provision for credit impairment of

other debt investments

5. Cash flow hedging reserves 281,692.50

6. Exchange differences on translation of

foreign currency financial -6,580,778.90 -9,833,344.80

7. Others

Other comprehensive income, net of tax,

attributable to non-controlling interests -1,599,934.21

VII. Total comprehensive income 3,687,536,837.70 1,694,161,226.11

Total comprehensive income attributable

to owners of parent company 3,587,110,922.86 1,572,874,029.96

Total comprehensive income attributable

100,425,914.84 121,287,196.15
to non-controlling interests
VIII. Earnings per share

(1) Basic earnings per share 2.42 1.08

(2) Diluted earnings per share 2.42 1.08

Legal Representative: Cao Renxian ChiefAccountant: Tian Shuai Head ofAccounting Department: Li Pan
4. Income Statement of Parent Company

(in CNY)

Item 2022 2021

I. Operating revenue 26,798,345,232.68 11,679,896,018.21

Less: Operating costs 20,736,938,957.77 9,435,266,771.20

Taxes and surcharges 89,454,540.58 32,993,657.30

Selling expenses 1,121,725,628.76 466,391,969.51

General and administrative expenses 294,158,951.57 212,847,588.74


R&D expenses 1,108,693,906.17 791,547,101.42

Financial expenses -387,191,420.14 69,838,783.75

Including: Interest expense 24,305,403.72 15,910,260.18

Interest income 75,655,482.56 128,135,123.54

Add: Other income 70,596,800.23 78,490,900.38

Investment gains (or losses) 434,746,619.98 376,596,031.61

Including: Share of gains of associates

-2,408,049.57 -1,641,941.89
and joint ventures

Gains (or losses) from derecognition of

financial assets measured at amortized
cost

Net exposure hedging gains (or losses)

Gains (or losses) on the changes in fair

value -506,748.31 33,457,802.21

Credit impairment losses -447,759,303.14 169,936,441.85

Assets impairment losses -15,264,193.57 -37,298,170.36

Gain (or losses) from disposal of assets 86,130.64 418,400.22

II. Operating profit (or loss) 3,876,463,973.80 1,292,611,552.20

Add: Non-operating income 4,704,919.95 10,938,246.07

Less: Non-operating costs 5,014,049.48 20,522,307.52

III. Total profit (or loss) 3,876,154,844.27 1,283,027,490.75

Less: Income tax expense 380,272,127.77 55,714,428.41

V. Net profit (or loss) 3,495,882,716.50 1,227,313,062.34

a. Net profit (or loss) from continuing

operations 3,495,882,716.50 1,227,313,062.34

b. Net profit (or loss) from discontinuing

operations

V. Other comprehensive income, net of

tax 281,692.50

a. Other comprehensive income not to be

reclassified as profit or loss

1. Remeasurement gains or losses of a

defined benefit plan

2. Other comprehensive income not to be

reclassified as profit or loss using the

equity method

3. Changes in fair value of other equity

instrument investments

4. Changes in fair value of enterprise’s

own credit risk
5. Others

b. Other comprehensive income to be

281,692.50

reclassified as profit or loss

1. Other comprehensive income to be

reclassified as profit or loss using equity

method

2. Changes in fair value of other debt

investments

3. Amount of financial assets reclassified

into other comprehensive income

4. Provision for credit impairment of

other debt investments

5. Cash flow hedging reserves 281,692.50

6. Exchange differences on translation of

foreign currency financial
7. Others

VI. Total comprehensive income 3,496,164,409.00 1,227,313,062.34

VII. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share

5. Consolidated Statement of Cash Flows

(in CNY)

Item 2022 2021

I. Cash flows from operating activities

Cash receipts from the sale of goods and the

38,113,475,847.04 22,746,962,796.41
rendering of services

Net increase in customer bank deposits and due to

banks and other financial institutions

Net increase in loans from the central bank

Net increase in funds borrowed from other financial

institutions

Cash premiums received on original insurance

contracts


Net cash received from re-insurance business

Net increase in deposits and investments from

insurers

Cash received from interest, fees and commission

Net increase in funds deposit

Net increase in repurchase business funds

Net income from securities trading brokerage

business

Tax refunds received 2,010,210,787.57 790,867,061.23

Cash received relating to other operating activities 636,129,354.20 514,988,997.93

Sub-total of cash inflows 40,759,815,988.81 24,052,818,855.57

Cash paid for purchase of goods and services 32,223,692,792.32 21,463,759,761.25

Net increase in loans and payments on behalf of

customers

Net increase in deposits with central bank and other

financial institutions

Payments for claims for original insurance contracts

Net increase in funds lent

Cash paid for interest, fees and commission

Commissions on insurance policies paid

Cash paid to and on behalf of employee 2,905,936,662.96 1,763,505,472.38

Cash paid for taxes 1,983,956,956.63 848,134,227.11

Cash paid relating to other operating activities 2,435,731,091.01 1,616,051,517.60

Sub-total of cash outflows 39,549,317,502.92 25,691,450,978.34

Net cash flows from operating activities 1,210,498,485.89 -1,638,632,122.77

II. Cash flows from investing activities:

Cash received from disposal of investments 14,661,894,272.35 4,399,319,691.62

Cash received from investment income 13,728,203.53 142,090,826.04

Net proceeds from disposal of fixed assets, intangible

9,368,073.62 12,149,964.76
assets and other long-term assets

Cash received from disposal of subsidiaries and other

business units 3,814,295.00

Cash received relating to other investing activities 53,694.23

Sub-total of cash inflows 14,684,990,549.50 4,557,428,471.65

Cash paid for purchase/construction of fixed assets,

1,526,766,108.85 1,665,649,098.40
intangible assets and other non-current assets


Cash paid for investments 12,812,669,124.27 6,604,988,709.04

Net increase in secured loans

Net cash paid for acquisition of a subsidiary and other

operating units

Cash paid relating to other investing activities

Sub-total of cash outflows 14,339,435,233.12 8,270,637,807.44

Net cash flows from investing activities 345,555,316.38 -3,713,209,335.79

III. Cash flows from financing activities:

Cash received from investment 15,000,000.00 4,178,537,220.12

Including: Cash receipts from capital contributions

15,000,000.00

from non-controlling interests of subsidiaries

Proceeds from borrowings 8,870,222,959.85 2,727,391,963.81

Cash receipts relating to other financing activities 1,064,751,941.30 73,952,000.00

Subtotal of cash inflows 9,949,974,901.15 6,979,881,183.93

Repayments for debts 5,678,221,694.06 1,357,130,322.37

Cash payments for distribution of dividends or profit

and interest expenses 351,615,275.80 319,225,674.30

Including: Dividends or profit paid to non-controlling

shareholders of subsidiaries

Cash payments relating to other financing activities 2,173,420,467.94 124,869,565.09

Subtotal of cash outflows 8,203,257,437.80 1,801,225,561.76

Net cash flows from financing activities 1,746,717,463.35 5,178,655,622.17

IV. Effect of exchange rate changes on cash and cash

-60,678,401.58 -19,501,109.58
equivalents

V. Net increase in cash and cash equivalents 3,242,092,864.04 -192,686,945.97

Add: Cash and cash equivalents at beginning of the

6,559,999,792.76 6,752,686,738.73
period

VI. Cash and cash equivalents at end of the period 9,802,092,656.80 6,559,999,792.76

6. Statement of Cash Flows of Parent Company

(in CNY)

Item 2022 2021

I. Cash flows from operating activities

Cash receipts from the sale of goods and the

rendering of services 21,311,183,225.00 13,888,228,231.73

Tax refunds received 1,147,907,367.79 573,067,985.35


Cash received relating to other operating activities 190,264,372.84 267,054,687.30

Sub-total of cash inflows 22,649,354,965.63 14,728,350,904.38

Cash paid for purchase of goods and services 16,517,692,526.60 12,624,409,133.49

Cash paid to and on behalf of employee 1,275,541,506.39 864,821,507.51

Cash paid for taxes 417,527,277.33 86,378,257.47

Cash paid relating to other operating activities 1,213,446,733.19 875,243,605.70

Sub-total of cash outflows 19,424,208,043.51 14,450,852,504.17

Net cash flows from operating activities 3,225,146,922.12 277,498,400.21

II. Cash flows from investing activities:

Cash received from disposal of investments 13,338,421,935.62 2,459,948,800.00

Cash received from investment income 107,506,947.55 263,267,352.70

Net proceeds from disposal of fixed assets, intangible

assets and other long-term assets 25,086,997.75 15,354,478.36

Cash received from disposal of subsidiaries and other

business units

Cash received relating to other investing activities 2,019,346,250.00

Sub-total of cash inflows 15,490,362,130.92 2,738,570,631.06

Cash paid for purchase/construction of fixed assets,

intangible assets and other non-current assets 853,811,119.38 1,060,816,972.70

Cash paid for investments 12,442,801,480.00 7,402,062,808.31

Net increase in secured loans

Net cash paid for acquisition of a subsidiary and other

2,267,731,705.99

operating units

Cash paid relating to other investing activities 15,564,344,305.37 8,462,879,781.01

Sub-total of cash outflows -73,982,174.45 -5,724,309,149.95

Net cash flows from investing activities

III. Cash flows from financing activities: 3,623,146,130.36

Cash received from investment 1,209,531,000.00 563,705,196.00

Cash received from borrowings 134,997,884.97 1,994,736,469.94

Cash receipts relating to other financing activities 1,344,528,884.97 6,181,587,796.30

Subtotal of cash inflows 726,205,196.00 606,044,522.37

Repayments for debts 182,657,721.65 222,227,003.29

Cash payments for distribution of dividends or profit

736,422,321.35 160,201,781.92
and interest expenses

Cash payments relating to other financing activities 1,645,285,239.00 988,473,307.58


Net cash flows from financing activities -300,756,354.03 5,193,114,488.72

IV. Effect of exchange rate changes on cash and cash

equivalents -52,497,688.47 -9,667,764.78

V. Net increase in cash and cash equivalents 2,797,910,705.17 -263,364,025.80

Add: Cash and cash equivalents at beginning of the

period 4,127,114,236.11 4,390,478,261.91

VI. Cash and cash equivalents at end of the period 6,925,024,941.28 4,127,114,236.11


7. Consolidated Statement of Changes in Equity

Current period amount

(in CNY)

2022

Equity attributable to owners of the parent

Item Total

Other equity instruments Less: Other Non-controll owners’
Share Capital Special Surplus General Retained ing interests

Preference Perpetual treasury comprehensive Others Subtotal equity
capital Others reserve reserve reserve reserve earnings

share debt shares income

I. Balance at 1,485,2

the end of 15,984. 6,959,69 15,133,52 716,612, 6,532,893,916 15,655,063 1,048,614,5 16,703,678,
5,649.18 0.00 -24,221,290.12 746.04 .61 ,485.71 63.05 048.76
previous year 00

Add: changes
in accounting
policies
Corrections of
prior period
errors
Business
combination
under
common
control
Others

II. Balance at 1,485,2 6,959,69 15,133,52 716,612, 6,532,893,916 15,655,063 1,048,614,5 16,703,678,
-24,221,290.12

the beginning 15,984. 5,649.18 0.00 746.04 .61 ,485.71 63.05 048.76


of the year 00

III. Increase

(or decrease) -25,000 93,144,8 505,616,1 349,588, 3,080,448,931 3,011,241, 22,075,248. 3,033,317,1
during the .00 93.32 05.73 -6,299,086.40 271.65 .12 903.96 02 51.98
period
a. Total

3,593,410,009 3,587,110, 102,025,849 3,689,136,7
comprehensiv -6,299,086.40

.26 922.86 .05 71.91
e income
b. Owners’

contribution -25,000 118,536, 505,616,1 -387,105,0 -4,729,545.5 -391,834,58
.00 062.03 05.73 43.70 3 9.23
and reduction
1. Owners’

-25,000 -101,237 -126,237.9 -4,729,545.5 -4,855,783.
contribution in

.00 .94 4 3 47
ordinary share
2.
Contribution
from other
equity
instruments
3. Amount of
share-based

118,637, 505,616,1 -386,978,8 -386,978,80
payments

299.97 05.73 05.76 5.76
recognized in
equity
4. Others

c. Profit 349,588, -512,961,078. -163,372,8 -163,372,80
distribution 271.65 14 06.49 6.49

1. Transfer to

surplus 349,588, -349,588,271.

271.65 65

reserve
2. Transfer to
general
reserve
3. Distribution

to owner (or -163,372,806. -163,372,8 -163,372,80
49 06.49 6.49
shareholder)
4. Others
d. Transfer
within equity
1. Capital
reserves
converted to
share capital
2. Surplus
reserves
converted to
share capital
3. Loss made
up by surplus
reserves
4. Changes in
the defined
benefit plan
transferred to

retained
earnings
5. Other
comprehensiv
e income
transferred to
retained
earnings
6. Others
e. Special
reserve

1. Additions 1,165,58 1,165,580. 1,165,580.0
0.09 09 9

2. Utilization 1,165,58 1,165,580. 1,165,580.0
0.09 09 9

f. Others -25,391, -25,391,16 -75,221,055. -100,612,22
168.71 8.71 50 4.21

IV. Balance at 1,485,1

the end of the 90,984. 7,052,84 520,749,6 1,066,20 9,613,342,847 18,666,305 1,070,689,8 19,736,995,
0,542.50 25.73 -30,520,376.52 1,017.69 .73 ,389.67 11.07 200.74
period 00

Last period amount

(in CNY)

2021

Equity attributable to owners of parent company

Item Non-controlling

Share Other equity instruments Capital Less: Other Special Surplus General Retained Total owners’equity
Others Subtotal interests

capital Preference Perpetual Others reserve treasury comprehensive reserve reserve reserve earnings


share debt shares income

I. Balance at 1,457,2 10,455,9

the end of 36,850. 3,218,415 76,130,65 593,881, 5,276,889, 04,743.1

,694.87 3.30 -14,387,945.32 439.81 357.08 408,792,371.89 10,864,697,115.03
previous year 00 4

Add: changes
in accounting
policies
Corrections of
prior period
errors
Business
combination
under common
control
Others

II. Balance at 1,457,2 10,455,9

3,218,415 76,130,65 593,881, 5,276,889,

the beginning 36,850. -14,387,945.32 04,743.1 408,792,371.89 10,864,697,115.03
,694.87 3.30 439.81 357.08

of the year 00 4

III. Increase (or

decrease) 27,979, 3,741,279 -60,997,1 122,731, 1,256,004, 5,199,15

during the 134.00 ,954.31 33.30 -9,833,344.80 306.23 559.53 8,742.57 639,822,191.16 5,838,980,933.73
period
a. Total

1,582,707, 1,572,87

comprehensive -9,833,344.80 121,287,196.15 1,694,161,226.11
374.76 4,029.96

income

b. Owners’ 27,979, 3,741,279 -60,997,1 3,830,25

contribution 134.00 ,954.31 33.30 6,221.61 518,534,995.01 4,348,791,216.62

and reduction
1. Owners’

contribution in 27,979, 3,592,820 3,620,79

134.00 ,606.46 9,740.46 491,720,977.71 4,112,520,718.17
ordinary share
2. Contribution
from other
equity
instruments
3. Amount of
share-based

payments 169,330,2 -60,997,1 230,327,

79.19 33.30 412.49 230,327,412.49
recognized in
equity

4. Others -20,870,9 -20,870,

26,814,017.30 5,943,085.96
31.34 931.34

c. Profit 122,731, -326,702,8 -203,971

distribution 306.23 15.23 ,509.00 -203,971,509.00

1. Transfer to 122,731, -122,731,3

surplus reserve 306.23 06.23

2. Transfer to -203,971,5 -203,971

general reserve 09.00 ,509.00 -203,971,509.00

3. Distribution
to owner (or
shareholder)
4. Others
d. Transfer
within equity

1. Capital
reserves
converted to
share capital
2. Surplus
reserves
converted to
share capital
3. Loss made
up by surplus
reserves
4. Changes in
the defined
benefit plan
transferred to
retained
earnings
5. Other
comprehensive
income
transferred to
retained
earnings
6. Others
e. Special
reserve
1. Additions

2. Utilization
f. Others

IV. Balance at 1,485,2 15,655,0

the end of the 15,984. 6,959,695 15,133,52 716,612, 6,532,893, 63,485.7 1,048,614,563.0

,649.18 0.00 -24,221,290.12 746.04 916.61 5 16,703,678,048.76
period 00 1

8. Statement of Changes in Owners’ Equity of Parent Company

Current amount

(in CNY)

2022

Other equity instruments Other

Item Share Capital Less: treasury Special Surplus Retained

Preference Perpetual comprehensive Others Total Owners’Equity
capital Others reserve shares reserve reserve earnings

share debt income

I. Balance at the end of 1,485,215,9 7,074,553,2 15,133,520.0 716,612,7 5,654,05

14,915,300,044.12
previous year 84.00 05.11 0 46.04 1,628.97

Add: changes in
accounting policies
Corrections of prior
period errors
Others

II. Balance at the 1,485,215,9 7,074,553,2 15,133,520.0 716,612,7 5,654,05

14,915,300,044.12
beginning of the year 84.00 05.11 0 46.04 1,628.97

III. Increase (or

decrease) during the 72,134,271. 505,616,105. 349,588,2 2,982,92

-25,000.00 68 73 281,692.50 71.65 1,638.36 2,899,284,768.46
period


a. Total comprehensive 3,495,88

income 281,692.50 2,716.50 3,496,164,409.00

b. Owners’contribution 72,134,271. 505,616,105.

-25,000.00 -433,506,834.05
and reduction 68 73

1. Owners’contribution

in ordinary share -25,000.00 -101,237.94 -126,237.94

2. Contribution from
other equity instruments
3. Amount of

share-based payments 72,235,509. 505,616,105.

62 73 -433,380,596.11
recognized in equity
4. Others

c. Profit distribution 349,588,2 -512,961,

71.65 078.14 -163,372,806.49

1. Transfer to surplus 349,588,2 -349,588,

reserve 71.65 271.65

2. Distribution to owner -163,372,

(or shareholder) 806.49 -163,372,806.49

3. Others
d. Transfer within equity
1. Capital reserves
converted to share
capital
2. Surplus reserves
converted to share
capital

3. Loss made up by
surplus reserves
4. Changes in the
defined benefit plan
transferred to retained
earnings
5. Other comprehensive
income transferred to
retained earnings
6. Others
e. Special reserve

1. Additions 290,881.

290,881.03
03

2. Utilization 290,881.

03 290,881.03

f. Others ·

IV. Balance at the end of 1,485,190,9 7,146,687,4 520,749,625. 1,066,201 8,636,97

the period 84.00 76.79 73 281,692.50 ,017.69 3,267.33 17,814,584,812.58

Last period amount

(in CNY)

2021

Other equity instruments Other

Item Capital Less: treasury Special Surplus Retained Total Owners’
Share capital Preference comprehensive Others

Perpetual debt Others reserve shares reserve reserve earnings Equity

share income

I. Balance at the 10,084,100,773.07
1,457,236,850. 3,355,671,7 76,130,653.3 593,881,439 4,753,441,

end of previous


year 00 54.70 0 .81 381.86

Add: changes in
accounting
policies
Corrections of
prior period
errors
Others
II. Balance at

1,457,236,850. 3,355,671,7 76,130,653.3 593,881,439 4,753,441,

the beginning 10,084,100,773.07
00 54.70 0 .81 381.86

of the year
III. Increase (or

decrease) 3,718,881,4 -60,997,133.3 122,731,306 900,610,2

during the 27,979,134.00 50.41 0 .23 47.11 4,831,199,271.05
period
a. Total

1,227,313,

comprehensive 1,227,313,062.34
062.34

income
b. Owners’

contribution 3,718,881,4 -60,997,133.3

27,979,134.00 3,807,857,717.71
50.41 0

and reduction
1. Owners’

3,592,820,6

contribution in 27,979,134.00 3,620,799,740.46
06.46

ordinary share
2. Contribution
from other
equity

instruments
3. Amount of
share-based

payments 126,060,843 -60,997,133.3

.95 0 187,057,977.25
recognized in
equity
4. Others

c. Profit 122,731,306 -326,702,8

distribution .23 15.23 -203,971,509.00

1. Transfer to 122,731,306 -122,731,3

surplus reserve .23 06.23

2. Distribution

to owner (or -203,971,5

-203,971,509.00
09.00

shareholder)
3. Others
d. Transfer
within equity
1. Capital
reserves
converted to
share capital
2. Surplus
reserves
converted to
share capital
3. Loss made
up by surplus

reserves
4. Changes in
the defined
benefit plan
transferred to
retained
earnings
5. Other
comprehensive
income
transferred to
retained
earnings
6. Others
e. Special
reserve
1. Additions
2. Utilization
f. Others
IV. Balance at

1,485,215,984. 7,074,553,2 15,133,520.0 716,612,746 5,654,051,

the end of the 14,915,300,044.12
00 05.11 0 .04 628.97

period