阳光电源：2023年年度报告（英文简版）

SungrowPowerSupplyCo.,Ltd. 2023AnnualReport April2024 2023AnnualReport SectionIImportantNotes,ContentsandDefinitions TheBoardofDirectors,theBoardofSupervisors,directors,supervisorsandexecutivesoftheCompanyherebyguaranteethattheinformationpresentedinthisannualreportistruthful,accurateandintegrate,freeofanyfalserecords,misleadingstatementsormaterialomissions,andassumeindividualandjointlegalliabilitiesthereof. CaoRenxianasthePresidentoftheCompany,TianShuaiastheChiefAccountant,andLiPanastheheadofaccountingdepartment(accountingsupervisor)herebyguaranteethetruthfulness,integrity,andaccuracyoffinancialstatementsinthisannualreport. Alldirectorshaveattendedtheboardmeetingtoreviewthisreport. Contentsinthisreportconcerningfutureplans,performanceforecasts,andetc.,donotconstituteanycommitmentmadebytheCompanytoanyinvestororrelatedparty.Investorsandrelatedpartiesshouldmaintainadequateriskawarenessandunderstandthepossibledifferencebetweenplans,forecasts,andcommitments.Investorsarekindlyadvisedtopayattentiontoinvestmentrisks. (1)Policy-relatedrisks Althoughtechnologiesrelatedtorenewableenergypowergenerationarestillevolvingandgridparityhasbeenachievedinmostregionsaroundtheworld,therearestillafewregionswherethepowergenerationcostortheon-gridelectricitypriceishigherthanthatoffossilenergy,andtheunitelectricitycostperkilowatt-hourfromwind-solar-storageintegratedapplicationsremainsrelativelyhigh.Inaddition,consideringthevariousconstraintsincludinggridconsumption,intermittentfluctuationsinnewenergyavailability,aswellaslandandtaxation,policysupportandencouragementfromgovernmentsarestillnecessary.Sincethesupportivepoliciesareformulatedbythegovernmentsofvariouscountries,despiteoftheconstantglobaltrendofenergyconservationandemissionreduction,majorchangesinthemacroeconomiesofmajormarketsorrelevantsupportivepolicieswillaffectthegrowthpaceoftheindustryandtheCompany’sprofitabilitytoacertainextent.Tothisend,theCompanyactivelymakesglobalpresence,andcontinuallydelvesintotheglobalmarkettominimizetheimpactofpolicyfluctuationswithinasinglecountry. (2)Riskofgrossmarginreductionduetointensifiedcompetition Astheworld'slargestPVinvertermanufacturer,theCompany'scoreproduct,PVinverters,enjoysanobviousmarketadvantage.However,thehugepotentialofChineseandforeignmarketshasalsoattractedfiercemarketcompetition.IftheCompanyfailstomaintaintheleadingedgeintechnologicalinnovation,newproductdevelopment,andcostcontrol,theproductswillfacetheriskofgrossmargindeclination.Assuch,theCompanyneedstofurtheracceleratenewproductupgradeanditerationthroughR&DinnovationandincreasingR&Dinvestment,speeduptheresearchandapplicationofAItechnologies,soastocontinuallyprovidecustomerswithvalue-addedservices,deliverbettercustomerexperience,andconsolidateproductadvantagesinthemarket. (3)Riskofcollectingaccountsreceivables AstheChinesemarketgrowsrapidly,theCompanyputsmoreeffortsinproductsales.OnperusalofthehugeprojectinvestmentandlongpaymenttermprevailinginChina’sPVindustry,fastbusinessgrowthoftheCompanywillleadtoaquickincreaseofreceivablesandcertainrisksinpaymentcollection.Topreventcreditrisksandacceleratecapitalturnover,theCompanyhasformulatedstrictcreditmanagementsystemsandsale-on-creditpolicies,andactivelyreducetheriskofnon-performingloansandbadaccountsthroughlegalactions. (4)Riskofinternationaltradefrictions Currently,somecountriesrestrictPV-relatedimportsandexports,raisetariffs,orsetothertradebarriersinordertogrowtheirnativePVindustry,posingforeigntraderisksonthePVindustrywheretheCompanyoperatesin.TheCompanyhasdevelopedaseriesofdefensivemeasuresandleanproductionplanstoactivelyrespondtothecomplicatedglobalsituationandexpandtheglobalmarket.Bystrengtheningtheglobalmanufacturingandsupplychainlayout,improvingsupplychainmanagement,theCompanystrivestoreducetradefrictionsandotheradverseimpacts,ensuringthattheannualtasksarecompletedontime. (5)Riskofexchangeratefluctuation USD,AUDandEURarethethreemajorcurrenciesusedfortheCompany'soverseasrevenuesettlement.Theimpactofexchangeratefluctuationsismainlyreflectedinthefollowingtwoaspects:a.BecauseoftheCNYexchangeratefluctuation,changesinoperatingincomemeasuredinlocalcurrencyposeadirectimpactonthegrossmarginofmainproducts;b.Fromthemomentsalesrevenueisconfirmedandaccountsreceivableisgeneratedtothemomentofforeigncurrencycollection,theCompanyissubjecttoexchangegains/lossesfromthefluctuationsintheCNYexchangerate,hencetheCompany'sperformanceisalsoaffected.Onthefoundationofnormaloperationandrelyingonspecificbusinesses,theCompanytakesvariousmeans,includinghedging,continuousmonitoring,andtimelysettlingforeigncurrencysalestoreduceexchange-relatedlossandcontroloperatingrisks. (6)Risksinconstructionmanagementofnewenergyinvestmentanddevelopmentprojects Newenergyprojectsfeaturelargeamountofinvestmentandshortprojectleadtime.Suchprojectsinvolvenotonlygroundresourcesbutalsocommercialandresidentialroofs.Forsuchprojects,theinvestmentdecision-makingisquitechallenging,andalotofuncertaintiesexistinprojectengineeringandimplementation,whichmayleadtoprojectdelaysandjeop