SHANGHAI, Nov. 19, 2019 /PRNewswire/ -- JinkoSolar Holding
Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), one of the
largest and most innovative solar module manufacturers in the
world, today announced its unaudited financial results for the
third quarter ended September 30,
2019.
Strategic Business Updates
- Technology transformation largely complete, expected to reach
18GW mono wafer capacity by the second quarter of 2020.
- Mono based high efficiency products expected to account
for close to 100% of solar module shipments in
2020.
- Record high gross profit and income from operations
in the third quarter of 2019, despite push-out of China demand.
- Gross margin reset driven by increasing shift towards upgraded
mono capacity, industry leading integrated production cost, new
premium products and global footprint.
- Signed agreements to sell two solar power plants
in Mexico with a combined capacity of 155MW. The final closing
of the transaction is subject to customary approvals.
Third Quarter 2019 Operational and
Financial Highlights
- Total solar module shipments were 3,326 megawatts ("MW"),
a decrease of 1.8% from 3,386 MW in the second quarter of 2019 and
an increase of 12.6% from 2,953 MW in the third quarter of
2018.
- Total revenues were RMB7.48 billion (US$1.05 billion), an increase of 8.2% from
the second quarter of 2019 and an increase of 11.8% from the third
quarter of 2018.
- Gross margin was 21.3%, compared with 16.5% in the second
quarter of 2019, and 14.9% in the third quarter of 2018. Excluding
the Countervailing Duty ("CVD") and Anti-dumping Duty ("ADD")
reversal benefit, gross margin was 18.5% in the third quarter of
2019.
- Income from operations was RMB638.8 million (US$89.4 million), compared with RMB260.3 million in the second quarter of 2019
and RMB188.0 million in the third
quarter of 2018.
- Net income attributable to the Company's ordinary shareholders
was RMB363.6 million (US$50.9 million) in the third quarter of 2019,
compared with RMB125.4 million in the
second quarter of 2019 and RMB189.1
million in the third quarter of 2018.
- Diluted earnings per American depositary share ("ADS") were
RMB4.664 (US$0.652) in the third
quarter of 2019.
- Non-GAAP net income attributable to the Company's ordinary
shareholders in the third quarter of 2019 was RMB301.2 million (US$42.1
million), compared with RMB202.9
million in the second quarter of 2019 and RMB206.3 million in the third quarter of
2018.
- Non-GAAP basic and diluted earnings per ADS were RMB6.832
(US$0.956) and RMB6.128 (US$0.856), respectively, in the third
quarter of 2019, compared with both RMB4.872 in the second quarter of 2019 and both
RMB5.280 in the third quarter of
2018.
Mr. Kangping Chen, JinkoSolar's
Chief Executive Officer commented, "I'm pleased to report strong
operational and financial results for the third quarter which I
believe marks a turning point for our business, as we begin to
increasingly benefit from our technology transformation,
industry-leading cost structure and expanding mono capacity. Module
shipments during the quarter were 3,326 megawatts, an increase of
12.6% year-over-year and a slight decrease sequentially. Our
integrated production costs continued to decrease, which, combined
with our high-quality products and global distribution footprint,
allowed us to initiate a reset of our gross margin, expanding it to
21.3% during the quarter, a significant 6 percentage point increase
year-over-year. We are very optimistic about our growth prospects
next quarter and throughout 2020 where we expect to see our overall
profitability strengthen and margins expand."
"Our technological transformation began in 2016 when we started
producing mono wafers, and have since then accumulated three years
of operational and technical expertise which we applied in our mono
production facility in Leshan, Sichuan
Province. This technological transformation is now largely
complete, with Phase I of the production facility having begun
operations and ramped up to full 5GW capacity during the second
quarter of 2019. I believe this reflects our strategic foresight
and strong execution capabilities. We are now at a strategic
turning point in our corporate history with mono-based
high-efficiency products accounting for nearly 75% of the total
solar module shipments during the quarter, which is expected to
increase to 99% in 2020."
"The late announcement of the government subsidy policy for PV
projects in China earlier this
year delayed a large number of projects which we believe will
restart during the fourth quarter and the first quarter of 2020.
This delay is expected to drive strong domestic demand over the
next six months, especially since China's national renewable energy information
management center recently announced that it is accelerating the
formulation of subsidy policies for PV projects in 2020. With the
cost of solar energy now falling below that of conventional energy
sources in many markets across the globe and more aggressive clean
energy targets being set by governments, we are also very confident
and optimistic that global demand will significantly increase next
year. We currently estimate that global installations next year
will be approximately 20% higher than this year."
"We continue to invest in product development to meet growing
market demand for high-quality and efficient products. We expanded
our production capacity of N-type cells to 800MW during the
quarter, and are currently ramping up to full production which is
expected to begin next quarter. Our N-type cells reached a record
high efficiency of 24.58% in June
2019. We also recently unveiled a new Tiger module which,
with its 20.78% efficiency and peak power output of 460W, offers
our clients significantly improved efficiency, lower production
costs and a better internal rate of return."
"With domestic demand rebounding strongly and overseas demand
driven by aggressive new clean energy targets, we expect the fourth
quarter and full year 2020 to generate strong growth in shipments
and strengthen our overall profitability and margin profile. With
the demand growing rapidly both domestically and overseas for our
mono products, we have strategically decided to convey our
confidence in next year's strong growth with total solar module
shipments expected to be in the range of 18.0 GW to 20.0 GW for the
full year 2020, an approximately 35% year-over-year increase. As
one of the largest and most innovative solar module manufacturers
in the world, we will continue to drive growth in this new era of
grid parity and deliver long-term sustainable value to our
shareholders."
Third Quarter 2019 Financial Results
Total Revenues
Total revenues in the third quarter of 2019 were RMB7.48 billion (US$1.05 billion), an increase of 8.2% from
RMB6.91 billion in the second quarter
of 2019 and an increase of 11.8% from RMB6.69 billion in the third quarter of 2018. The
sequential increase was mainly attributable to an increase in the
average selling price of solar modules and increase of
multi-crystalline silicon wafers sales in the third quarter of
2019. The year-over-year increase was mainly attributable to an
increase in the shipment of solar modules in the third quarter
of 2019.
Gross Profit and Gross Margin
Gross profit in the third quarter of 2019 was RMB1.59 billion (US$223.0 million), compared with
RMB1.14 billion in the second quarter
of 2019 and RMB997.6 million in the
third quarter of 2018. The sequential increase was mainly
attributable to (i) an increase in self-produced production volume
by increasing shift toward integrated mono-based high-efficiency
products capacity, (ii) continued reduction of integrated
production cost, which maintains its industry-leading cost
structure, and (iii) an increase in the average selling price
of solar modules, and (iv) the reversal benefit of
CVD and ADD of RMB 212.0
million (US$29.7 million),
based on the final results of the fifth administrative review of
the CVD and ADD order published by the U.S. Department of
Commerce.
Gross margin was 21.3% in the third quarter of 2019, compared
with 16.5% in the second quarter of 2019 and 14.9% in the third
quarter of 2018. Excluding the CVD and ADD reversal benefit,
gross margin was 18.5% in the third quarter of 2019, compared with
16.5% in the second quarter of 2019 and 12.8% in the third quarter
of 2018. The sequential increase was attributable to (i) an
increase in self-produced volume by increasing shift toward
integrated mono-based high-efficiency products capacity, (ii)
continued reduction of integrated production cost, which maintains
its industry-leading cost structure, and (iii) an increase in
the average selling price of solar modules.
Income from Operations and Operating Margin
Income from operations in the third quarter of 2019 was
RMB638.8 million (US$89.4 million), compared with RMB260.3 million in the second quarter of 2019
and RMB188.0 million in the third
quarter of 2018. Operating margin in the third quarter of 2019 was
8.5%, compared with 3.8% in the second quarter of 2019 and 2.8% in
the third quarter of 2018. Excluding the CVD and ADD reversal
benefit, operating margin in the third quarter of 2019 was
5.7%.
Total operating expenses in the third quarter of 2019 were
RMB955.0 million (US$133.6 million), an increase of 8.1% from
RMB883.6 million in the second
quarter of 2019 and an increase of 18.0% from RMB809.6 million in the third quarter of 2018.
The sequential increase was mainly due to an increase in shipping
cost and loss on disposal of property, plant and equipment of
RMB 42.1 million. The year-over-year
increase was primarily due to an increase in shipping costs in the
third quarter of 2019.
Total operating expenses accounted for 12.8% of total revenues
in the third quarter of 2019, compared to 12.8% in the second
quarter of 2019 and 12.1% in the third quarter of 2018. The
year-over-year increase of operating expenses as a percentage
of total revenue was primarily due to the increase
in shipping costs as a percentage of total revenue
associated with a higher percentage of shipments to
overseas markets in the third quarter of 2019.
Interest Expense, Net
Net interest expense in the third quarter of 2019 was
RMB94.9 million (US$13.3 million), a decrease of 18.7% from
RMB116.8 million in the second
quarter of 2019 and an increase of 70.7% from RMB55.6 million in the third quarter of 2018. The
sequential decrease was mainly due to a decrease in interest
expense associated with discounted notes receivables in the third
quarter of 2019. The year-over-year increase was mainly due to (i)
an increase in borrowings, (ii) the cessation of interest
capitalization on certain completed solar projects, and (iii)
issuance of additional convertible senior notes in May 2019.
Exchange (Loss)/Gain and Change in Fair Value
of Foreign Exchange Derivatives
The Company recorded a net exchange loss (including Change
in fair value of foreign exchange derivatives) of RMB130.7 million (US$18.3 million) in the third quarter of
2019, compared to a net exchange gain of RMB45.9 million in the second quarter of 2019 and
a net exchange gain of RMB85.0
million in the third quarter of 2018. Given the rapid
increase of overseas orders, the Company increased the foreign
currency hedge ratio to hedge the next six months' anticipated cash
flow denominated in U.S. dollars. The Company recorded a
loss arising from foreign exchange forward contracts with the
appreciation of the U.S. dollars against the RMB in the third
quarter of 2019.
Change in Fair Value of Interest Rate Swap
The Company entered into Interest Rate Swap agreements with
several banks for the purpose of reducing interest rate risk
exposure associated with the Company's overseas solar power
projects. The Company recorded a loss arising from change in
fair value of interest rate swap of RMB18.1 million (US$2.5 million) in the third quarter of
2019, compared to a loss of RMB46.1
million in the second quarter of 2019. The loss arising
from change in fair value of interest swap was primarily
due to a continuous decrease in long-term interest
rates. The Company did not elect to use hedge accounting for
any of its derivatives.
Change in Fair Value of Convertible Senior Notes and Call
Option
The Company issued US$85.0 million of 4.5% convertible senior
notes due 2024 (the "Notes") in May
2019 and has elected to measure the Notes at fair value. The
Company recognized gain from a change in fair value of the Notes of
RMB157.1 million (US$22.0million) in the third quarter of 2019,
compared to a loss of RMB118.6
million in the second quarter of 2019. The change
was primarily due to a decrease in the stock price of the
Company in the third quarter of 2019.
Concurrent with the issuance of the Notes in May 2019, the Company entered into a call option
transaction with an affiliate of Credit Suisse Securities
(USA) LLC. The Company accounted
for the call option transactions as freestanding derivative assets
in its consolidated balance sheets, which is marked to market
at each reporting period. The Company recorded a loss from a change
in fair value of the call option of RMB74.2
million (US$10.4 million) in
the third quarter of 2019, compared to a gain of RMB73.5 million in the second quarter of 2019.
The change was primarily due to a decrease in the stock
price of the Company in the third quarter of 2019.
Equity in (Loss)/Income of
Affiliated Companies
The Company indirectly holds a 20% equity interest in Sweihan PV
Power Company P.J.S.C, a developer and operator of solar power
projects in Dubai, and accounts
for its investment using the equity method. The Company also holds
a 30% equity interest in Jiangsu Jinko-Tiansheng Co., Ltd, which
processes and assembles PV modules as an OEM
manufacturer, and accounts for its investments using the equity
method. The Company recorded equity in loss of affiliated
companies of RMB28.3 million
(US$4.0 million) in the third
quarter of 2019, compared with a loss of RMB28.6 million in the second quarter of
2019 and an income of RMB4.9 million
in the third quarter of 2018. The loss primarily arose from
change in fair value of interest rate swap agreements purchased by
Sweihan PV Power Company P.J.S.C. due to a continuous decrease in
long-term interest rates. Hedge accounting was not
applied for the derivative.
Income Tax Benefit / (Expense), Net
The Company recorded an income tax expense of RMB117.2 million (US$16.4 million) in the third quarter of 2019,
compared with an income tax benefit of RMB55.9 million in the second quarter of
2019 and an income tax expense of RMB61.2
million in the third quarter of 2018.
The sequential change was mainly due to additional 2018 income
tax deduction for R&D costs approved by the local tax bureau in
the second quarter of 2019.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders
was RMB363.6 million
(US$50.9 million) in the third
quarter of 2019, compared with RMB125.4 million in the second quarter of
2019 and RMB189.1 million in the
third quarter of 2018.
Basic and diluted earnings per ordinary share were RMB2.062
(US$0.288) and RMB1.166 (US$0.163), respectively, during
the third quarter of 2019. This translates into basic and diluted
earnings per ADS of RMB8.248 (US$1.152) and RMB4.664 (US$0.652), respectively.
Non-GAAP net income attributable to the Company's ordinary
shareholders in the third quarter of 2019 was RMB301.2 million (US$42.1 million), compared with RMB202.9 million in the second quarter of
2019 and RMB206.3 million in the
third quarter of 2018.
Non-GAAP basic and diluted earnings per ordinary share
were RMB1.708 (US$0.239) and RMB1.532 (US$0.214),
respectively, during the third quarter of 2019. This translates
into non-GAAP basic and diluted earnings per ADS of
RMB6.832 (US$0.956) and RMB6.128 (US$0.856), respectively.
Financial Position
As of September 30, 2019, the
Company had RMB4.14 billion
(US$579.8 million) in cash and
cash equivalents and restricted cash, compared with RMB4.81 billion as of June 30, 2019.
As of September 30, 2019, the
Company's accounts receivables due from third parties were
RMB4.44 billion (US$621.3million), compared with RMB4.94 billion as of June 30, 2019.
As of September 30, 2019, the
Company's inventories were RMB6.07 billion (US$849.6 million), compared with
RMB6.63 billion as of
June 30, 2019.
Receivables related to CVD and ADD reversal benefits with the
amount of RMB 427.1 million
(US$59.7 million) were record as
non-current assets under the line item "Other assets - third
parties" on the Company's balance sheet as of September 30, 2019 based on the Company's latest
best estimate of related cash collection.
As of September 30, 2019, the
Company's total interest-bearing debts were RMB12.22 billion (US$1.71 billion), of which RMB2.21 billion (US$309.2
million) was related to the Company's overseas downstream
solar projects, compared with RMB13.34
billion, of which RMB2.16
billion was related to the Company's overseas downstream
solar projects, as of June 30, 2019. The decrease of
interest-bearing debts was mainly due to a decrease in
borrowings.
In November, the Company entered into an agreement to sell two
solar power plants in Mexico with
a combined capacity of 155 MW to White River Renewables, a Mexican
renewable energy company. White River Renewables is jointly
sponsored by Riverstone Holdings, an energy and power-focused
private investment firm, and White Summit Capital, a Switzerland-based infrastructure investments
and asset management firm. The final closing of the transaction is
subjected to customary approvals. The sale of overseas power plants
is consistent with the Company's growth strategy to focus on its
solar manufacturing business.
Assets and liabilities related to these two solar power plants
were reclassified as assets/liabilities held for sale as of
September 30, 2019. The Company will
further strengthen its balance sheet by reducing RMB950.2 million (US$132.9
million) of interest-bearing debts once the transaction is
completed.
Third Quarter 2019 Operational Highlights
Solar Module Shipments
Total solar module shipments in the third quarter of 2019 were
3,326 MW.
Solar Products Production Capacity
As of September 30, 2019, the
Company's in-house annual silicon wafer, solar cell and solar
module production capacity was 14.5 GW (including 11.0 GW of mono
wafers), 9.2 GW (all for PERC cells) and 15.0 GW, respectively.
JinkoSolar expects its annual silicon wafer, solar cell and
solar module production capacity to reach 15.0 GW (including
11.5 GW of mono wafers), 10.6 GW (including 9.8 GW of
PERC cells) and 16.0 GW, respectively, by the end of 2019.
Operations and Business Outlook
Fourth Quarter and Full Year 2019 Guidance
The Company's business outlook is based on management's current
views and estimates with respect to market conditions, production
capacity, the Company's order book and the global economic
environment. This outlook is subject to uncertainty on final
customer demand and sale schedules. Management's views and
estimates are subject to change without notice.
For the fourth quarter of 2019, the Company does not expect the
benefit of Anti-dumping ("ADD") and Countervailing Duty ("CVD") and
expects total solar module shipments to be in the range of
4.2 GW to 4.4 GW. Total revenue for the fourth quarter is
expected to be in the range of US$11.7 billion to US$12.3 billion. Gross margin for the fourth
quarter is expected to be between 18.5% and 20.5%.
For the full year 2019, the Company estimates total solar module
shipments to be in the range of 14.0 GW to 14.2 GW.
Full Year 2020 Guidance
Solar Module Shipments
Total solar module shipments for the full year of 2020 would be
in the range of 18.0 GW to 20.0 GW
Solar Products Production Capacity
JinkoSolar expects its annual silicon wafer, solar cell and
solar module production capacity to reach 20.0 GW (including
18.0 GW of mono wafers), 10.6 GW (including 800 MW N-type
cells) and 22.0 GW, respectively, by the end of 2020.
Recent Business Developments
- In September, JinkoSolar was invited to the UN Climate Action
Summit 2019 which was held at the UN headquarters in New York on September
23, 2019.
- In September, JinkoSolar signed a module supply contract with
METKA EGN, a world-class EPC contractor, for 300 MW of JinkoSolar's
ultra-high efficiency Cheetah modules to be installed at a
large-scale solar power plant in the municipality of Talaván,
Cáceres, Spain.
- In September, JinkoSolar committed to the RE100 and EP100
initiatives. These global campaigns are led by The Climate Group,
an international non-profit organization working closely with
powerful business networks and governments to bring innovative
solutions to scale.
- In October, SelectUSA presented JinkoSolar with a Certificate
of Appreciation in recognition of its module assembly facility in
Jacksonville, Florida and the
positive investment in the United
States leading to job creation and economic growth.
- In October, JinkoSolar launched a new high efficiency Tiger
module using 9-busbar Mono PERC and Tiling Ribbon (TR) technology
at All-Energy Australia 2019, Australia's largest national showcase of clean
and renewable energy.
- In November, JinkoSolar expanded its high-efficiency mono wafer
production capacity at its production facility in Leshan,
Sichuan Province, with an
additional 5GW.
- In November, JinkoSolar joined the board of directors at the
Solar Energy Industries Association (SEIA), the national trade
association representing the U.S. solar energy industry.
- In November, JinkoSolar recognized as a China National
Manufacturing Champion in the latest published list by the MIIT and
the CFIE for its excellence in the manufacturing of its major
product, solar modules.
Conference Call Information
JinkoSolar's management will host an earnings conference call on
Tuesday, November 19, 2019 at
7:30 a.m. U.S. Eastern Time
(8:30 p.m. Beijing / Hong
Kong the same day).
Dial-in details for the earnings conference call are as
follows:
Hong Kong /
International:
|
+852 3027
6500
|
U.S. Toll
Free:
|
+1
855-824-5644
|
Passcode:
|
22225201#
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A telephone replay of the call will be available 2 hours after
the conclusion of the conference call through 23:59 U.S. Eastern
Time, November 26, 2019. The dial-in
details for the replay are as follows:
International:
|
+61 2 8325
2405
|
U.S.:
|
+1 646 982
0473
|
Passcode:
|
319324284#
|
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of JinkoSolar's
website at www.jinkosolar.com.
About JinkoSolar Holding Co., Ltd.
JinkoSolar (NYSE: JKS) is one of the largest and most innovative
solar module manufacturers in the world. JinkoSolar distributes its
solar products and sells its solutions and services to a
diversified international utility, commercial and residential
customer base in China,
the United States, Japan, Germany, the United
Kingdom, Chile,
South Africa, India, Mexico, Brazil, the United
Arab Emirates, Italy,
Spain, France, Belgium, and other countries and regions.
JinkoSolar has built a vertically integrated solar product value
chain, with an integrated annual capacity of 14.5 GW for silicon
wafers, 9.2 GW for solar cells, and 15 GW for solar modules, as of
September 30, 2019.
JinkoSolar has over 15,000 employees across its 7 productions
facilities globally, 15 oversea subsidiaries in Japan, Korea, Singapore, India, Turkey, Germany, Italy, Switzerland, United
States, Canada,
Mexico, Brazil, Chile, Australia and United
Arab Emirates, and global sales teams in China, United
Kingdom, France,
Netherlands, Spain, Bulgaria, Greece, Romania, Ukraine, Jordan, Saudi
Arabia, Tunisia, Egypt, Morocco, Nigeria, Kenya, South
Africa, Costa Rica,
Colombia, Panama and Argentina.
To find out more, please see: www.jinkosolar.com
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in
accordance with United States Generally Accepted Accounting
Principles ("GAAP"), JinkoSolar uses certain non-GAAP financial
measures including, non-GAAP net income, non-GAAP earnings per
Share, and non-GAAP earnings per ADS, which are adjusted from the
comparable GAAP results to exclude certain expenses or incremental
ordinary shares relating to share-based compensation and,
convertible senior notes:
- Non-GAAP net income is adjusted to exclude the expenses
relating to issuance cost of convertible senior notes, change in
fair value of convertible senior notes and call option, interest
expenses of convertible senior notes, exchange gain on the
convertible senior notes, and stock-based compensation; given these
Non-GAAP net income adjustments above are either related to the
Company or its subsidiaries incorporated in Cayman Islands, which are not subject to tax
exposures, or related to those subsidiaries with tax loss positions
which result in no tax impacts, therefore no tax adjustment is
needed in conjunction with these Non-GAAP net income
adjustments; and
- Non-GAAP earnings per Share and non-GAAP earnings per ADS are
adjusted to exclude the expenses relating to issuance cost of
convertible senior notes, change in fair value of convertible
senior notes and call option, interest expenses of convertible
senior notes, exchange gain on the convertible senior notes, and
stock-based compensation.
The Company believes that the use of non-GAAP information is
useful for analysts and investors to evaluate JinkoSolar's current
and future performances based on a more meaningful comparison of
net income and diluted net income per ADS when compared with its
peers and historical results from prior periods. These measures are
not intended to represent or substitute numbers as measured under
GAAP. The submission of non-GAAP numbers is voluntary and should be
reviewed together with GAAP results.
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars in this release,
made solely for the convenience of the readers, is based on the
noon buying rate in the city of New
York for cable transfers of Renminbi as certified for
customs purposes by the Federal Reserve Bank of New York as of September 30, 2019, which was RMB7.1477 to US$1.00. No representation is intended to imply
that the Renminbi amounts could have been, or could be, converted,
realized, or settled into U.S. dollars at that rate or any other
rate. The percentages stated in this press release are calculated
based on Renminbi.
Safe-Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends, "plans," "believes," "estimates" and similar statements.
Among other things, the quotations from management in this press
release and the Company's operations and business outlook, contain
forward-looking statements. Such statements involve certain risks
and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Further
information regarding these and other risks is included in
JinkoSolar's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F. Except as
required by law, the Company does not undertake any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
For investor and media inquiries, please contact:
In China:
Ripple
Zhang
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5183-3105
Email: ir@jinkosolar.com
Christian Arnell
Christensen
Tel: +86-10-5900-2940
Email: carnell@christensenir.com
In the U.S.:
Ms. Linda
Bergkamp
Christensen
Tel: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
JINKOSOLAR HOLDING
CO., LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except ADS and Share data)
|
|
For the quarter
ended
|
|
For the nine months
ended
|
|
|
September 30,
2018
|
|
June 30,
2019
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
Revenues from
third parties
|
6,601,414
|
|
6,912,301
|
|
7,473,562
|
|
1,045,590
|
|
15,891,621
|
|
20,063,090
|
|
2,806,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
related parties
|
93,401
|
|
725
|
|
8,194
|
|
1,146
|
|
1,430,661
|
|
153,740
|
|
21,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
6,694,815
|
|
6,913,026
|
|
7,481,756
|
|
1,046,736
|
|
17,322,282
|
|
20,216,830
|
|
2,828,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(5,697,186)
|
|
(5,769,143)
|
|
(5,888,015)
|
|
(823,764)
|
|
(14,940,962)
|
|
(16,514,869)
|
|
(2,310,515)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
997,629
|
|
1,143,883
|
|
1,593,741
|
|
222,972
|
|
2,381,320
|
|
3,701,961
|
|
517,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
and marketing
|
(476,640)
|
|
(561,959)
|
|
(596,192)
|
|
(83,410)
|
|
(1,156,613)
|
|
(1,617,465)
|
|
(226,292)
|
|
General
and administrative
|
(228,862)
|
|
(248,376)
|
|
(276,699)
|
|
(38,712)
|
|
(530,201)
|
|
(716,977)
|
|
(100,309)
|
|
Research
and development
|
(104,105)
|
|
(73,258)
|
|
(82,059)
|
|
(11,480)
|
|
(272,394)
|
|
(232,695)
|
|
(32,555)
|
|
Impairment of long-lived assets
|
-
|
|
-
|
|
-
|
|
-
|
|
(14,548)
|
|
-
|
|
-
|
|
Total operating
expenses
|
(809,607)
|
|
(883,593)
|
|
(954,950)
|
|
(133,602)
|
|
(1,973,756)
|
|
(2,567,137)
|
|
(359,156)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
188,022
|
|
260,290
|
|
638,791
|
|
89,370
|
|
407,564
|
|
1,134,824
|
|
158,768
|
|
Interest
expenses, net
|
(55,600)
|
|
(116,754)
|
|
(94,892)
|
|
(13,276)
|
|
(221,645)
|
|
(307,756)
|
|
(43,057)
|
|
Subsidy
income
|
4,742
|
|
10,517
|
|
33,394
|
|
4,673
|
|
43,942
|
|
48,651
|
|
6,808
|
|
Exchange
gain
|
118,712
|
|
87,487
|
|
16,304
|
|
2,281
|
|
69,687
|
|
22,811
|
|
3,191
|
|
Change in fair
value of interest rate swap
|
12,781
|
|
(46,118)
|
|
(18,123)
|
|
(2,536)
|
|
39,646
|
|
(94,440)
|
|
(13,213)
|
|
Change in fair
value of foreign exchange derivatives
|
(33,726)
|
|
(41,619)
|
|
(146,998)
|
|
(20,566)
|
|
(46,238)
|
|
(170,503)
|
|
(23,854)
|
|
Convertible
senior notes issuance costs
|
-
|
|
(18,646)
|
|
-
|
|
-
|
|
-
|
|
(18,646)
|
|
(2,609)
|
|
Change in fair
value of convertible senior notes and call option
|
-
|
|
(45,070)
|
|
82,932
|
|
11,603
|
|
-
|
|
37,862
|
|
5,297
|
|
Other income,
net
|
9,983
|
|
7,302
|
|
1,742
|
|
244
|
|
28,105
|
|
16,442
|
|
2,300
|
|
Loss from
disposal of subsidiaries
|
-
|
|
-
|
|
-
|
|
-
|
|
(9,425)
|
|
-
|
|
-
|
|
Income before
income taxes
|
244,914
|
|
97,389
|
|
513,150
|
|
71,793
|
|
311,636
|
|
669,245
|
|
93,631
|
|
Income tax
(expense)/benefit
|
(61,157)
|
|
55,917
|
|
(117,152)
|
|
(16,390)
|
|
(47,860)
|
|
(56,986)
|
|
(7,973)
|
|
Equity in
(loss)/gain of affiliated companies
|
4,916
|
|
(28,621)
|
|
(28,305)
|
|
(3,960)
|
|
27,699
|
|
(80,635)
|
|
(11,281)
|
|
Net
income
|
188,673
|
|
124,685
|
|
367,693
|
|
51,443
|
|
291,475
|
|
531,624
|
|
74,377
|
|
Less: Net
income/(loss) attributable to non-controlling
interests
|
(415)
|
|
(725)
|
|
4,129
|
|
578
|
|
(191)
|
|
2,465
|
|
345
|
|
Net income
attributable to JinkoSolar
Holding Co., Ltd.'s ordinary shareholders
|
189,088
|
|
125,410
|
|
363,564
|
|
50,865
|
|
291,666
|
|
529,159
|
|
74,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.210
|
|
0.753
|
|
2.062
|
|
0.288
|
|
1.910
|
|
3.176
|
|
0.444
|
|
Diluted
|
1.210
|
|
0.315
|
|
1.166
|
|
0.163
|
|
1.900
|
|
3.007
|
|
0.421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
4.840
|
|
3.012
|
|
8.248
|
|
1.152
|
|
7.640
|
|
12.704
|
|
1.776
|
|
Diluted
|
4.840
|
|
1.260
|
|
4.664
|
|
0.652
|
|
7.600
|
|
12.028
|
|
1.684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average ordinary shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
156,485,510
|
|
166,605,808
|
|
176,336,307
|
|
176,336,307
|
|
152,777,860
|
|
166,612,951
|
|
166,612,951
|
|
Diluted
|
156,703,443
|
|
165,385,410
|
|
196,544,769
|
|
196,544,769
|
|
153,445,140
|
|
177,583,926
|
|
177,583,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average ADS outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
39,121,378
|
|
41,651,452
|
|
44,084,077
|
|
44,084,077
|
|
38,194,465
|
|
41,653,238
|
|
41,653,238
|
|
Diluted
|
39,175,861
|
|
41,346,352
|
|
49,136,192
|
|
49,136,192
|
|
38,361,285
|
|
44,395,981
|
|
44,395,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
188,673
|
|
124,685
|
|
367,693
|
|
51,443
|
|
291,475
|
|
531,624
|
|
74,377
|
|
Other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Foreign
currency translation adjustments
|
28,720
|
|
48,233
|
|
(666)
|
|
(122)
|
|
43,335
|
|
41,144
|
|
5,756
|
|
-Change
in the instrument-specific credit risk
|
-
|
|
5,546
|
|
5,546
|
|
805
|
|
-
|
|
57
|
|
8
|
|
Comprehensive
income
|
217,393
|
|
178,464
|
|
372,573
|
|
52,126
|
|
334,810
|
|
572,825
|
|
80,141
|
|
Less:
Comprehensive income/(loss) attributable to non-controlling
interests
|
(415)
|
|
(725)
|
|
4,129
|
|
578
|
|
(191)
|
|
2,465
|
|
345
|
|
Comprehensive
income attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders
|
217,808
|
|
179,189
|
|
368,444
|
|
51,548
|
|
335,001
|
|
570,360
|
|
79,796
|
|
|
Reconciliation
of GAAP and non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Non-GAAP
earnings per share and non-GAAP earnings per ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to ordinary shareholders
|
189,088
|
|
125,410
|
|
363,564
|
|
50,865
|
|
291,666
|
|
529,159
|
|
74,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible
senior notes issuance costs
|
-
|
|
18,646
|
|
-
|
|
-
|
|
-
|
|
18,646
|
|
2,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair
value of convertible senior notes and call option
|
-
|
|
45,070
|
|
(82,932)
|
|
(11,603)
|
|
-
|
|
(37,862)
|
|
(5,297)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
expenses of convertible senior notes and call
option
|
1
|
|
2,914
|
|
6,190
|
|
866
|
|
2
|
|
9,103
|
|
1,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
loss/(gain) on convertible senior notes and call
option
|
3
|
|
(721)
|
|
7,834
|
|
1,096
|
|
3
|
|
7,114
|
|
995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
17,255
|
|
11,587
|
|
6,546
|
|
916
|
|
32,331
|
|
11,208
|
|
1,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to ordinary shareholders
|
206,347
|
|
202,906
|
|
301,202
|
|
42,140
|
|
324,002
|
|
537,368
|
|
75,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per share attributable to ordinary shareholders
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.320
|
|
1.218
|
|
1.708
|
|
0.239
|
|
2.120
|
|
3.225
|
|
0.451
|
|
Diluted
|
1.320
|
|
1.218
|
|
1.532
|
|
0.214
|
|
2.110
|
|
3.026
|
|
0.423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per ADS attributable to ordinary shareholders
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
5.280
|
|
4.872
|
|
6.832
|
|
0.956
|
|
8.480
|
|
12.900
|
|
1.804
|
|
Diluted
|
5.280
|
|
4.872
|
|
6.128
|
|
0.856
|
|
8.440
|
|
12.104
|
|
1.692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
156,485,510
|
|
166,605,808
|
|
176,336,307
|
|
176,336,307
|
|
152,777,860
|
|
166,612,951
|
|
166,612,951
|
|
Diluted
|
156,703,443
|
|
166,605,808
|
|
196,544,769
|
|
196,544,769
|
|
153,445,140
|
|
177,583,926
|
|
177,583,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ADS outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
39,121,378
|
|
41,651,452
|
|
44,084,077
|
|
44,084,077
|
|
38,194,465
|
|
41,653,238
|
|
41,653,238
|
|
Diluted
|
39,175,861
|
|
41,651,452
|
|
49,136,192
|
|
49,136,192
|
|
38,361,285
|
|
44,395,982
|
|
44,395,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JINKOSOLAR HOLDING
CO., LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
December 31,
2018
|
|
Sep 30,
2019
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
3,104,917
|
|
3,705,424
|
|
518,408
|
Restricted
cash
|
377,111
|
|
439,052
|
|
61,426
|
Restricted
short-term investments
|
4,058,419
|
|
6,457,776
|
|
903,476
|
Accounts
receivable, net - related parties
|
675,768
|
|
518,402
|
|
72,527
|
Accounts
receivable, net - third parties
|
5,436,371
|
|
4,440,765
|
|
621,286
|
Notes
receivable, net - third parties
|
1,010,469
|
|
1,926,626
|
|
269,545
|
Advances to
suppliers, net - third parties
|
665,221
|
|
1,877,763
|
|
262,709
|
Inventories,
net
|
5,743,328
|
|
6,072,596
|
|
849,587
|
Forward
contract receivables
|
1,192
|
|
741
|
|
104
|
Prepayments
and other current assets - related
parties
|
67,730
|
|
57,407
|
|
8,032
|
Derviatvie
assets
|
847
|
|
-
|
|
-
|
Prepayments
and other current assets
|
1,712,889
|
|
1,797,770
|
|
251,516
|
Held-for-sale
assets*
|
-
|
|
1,235,274
|
|
172,821
|
Total current
assets
|
22,854,262
|
|
28,529,596
|
|
3,991,437
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash
|
921,300
|
|
641,137
|
|
89,698
|
Project
Assets
|
1,770,621
|
|
1,572,070
|
|
219,941
|
Long-term
investments
|
25,531
|
|
247,757
|
|
34,662
|
Property,
plant and equipment, net
|
8,275,900
|
|
8,704,097
|
|
1,217,748
|
Land use
rights, net
|
574,945
|
|
600,989
|
|
84,081
|
Intangible
assets, net
|
35,361
|
|
34,850
|
|
4,876
|
Financing
lease right-of-use assets, net
|
-
|
|
971,484
|
|
135,916
|
Operating
lease right-of-use assets, net
|
-
|
|
259,763
|
|
36,342
|
Deferred tax
assets
|
338,069
|
|
331,508
|
|
46,380
|
Call
Option-concurrent with issuance of convertible
senior notes
|
-
|
|
211,524
|
|
29,593
|
Other assets -
related parties
|
144,984
|
|
113,705
|
|
15,908
|
Other assets -
third parties
|
912,210
|
|
2,808,288
|
|
392,894
|
Total non-current
assets
|
12,998,921
|
|
16,497,172
|
|
2,308,039
|
|
|
|
|
|
|
Total
assets
|
35,853,183
|
|
45,026,768
|
|
6,299,476
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable - related parties
|
698
|
|
7,018
|
|
982
|
Accounts
payable - third parties
|
5,327,094
|
|
4,791,342
|
|
670,333
|
Notes payable
- related parties
|
35,000
|
|
-
|
|
-
|
Notes payable
- third parties
|
6,036,577
|
|
8,076,603
|
|
1,129,958
|
Accrued
payroll and welfare expenses
|
810,921
|
|
792,067
|
|
110,814
|
Advances from
related parties
|
910
|
|
915
|
|
128
|
Advances
from third parties
|
2,395,229
|
|
3,987,764
|
|
557,909
|
Income tax
payable
|
70,240
|
|
111,382
|
|
15,583
|
Other payables
and accruals
|
2,281,025
|
|
2,873,540
|
|
402,023
|
Other payables
due to related parties
|
20,819
|
|
15,582
|
|
2,180
|
Forward
contract payables
|
9,464
|
|
112,133
|
|
15,688
|
Convertible
senior notes - current
|
69
|
|
-
|
|
-
|
Financing
lease liabilities - current
|
-
|
|
252,899
|
|
35,382
|
Operating
lease liabilities - current
|
-
|
|
31,076
|
|
4,348
|
Derivative
liability - current
|
12,786
|
|
-
|
|
-
|
Bond payable
and accrued interests
|
10,318
|
|
-
|
|
-
|
Short-term
borrowings from third parties,
including current portion of long-term
bank
borrowings
|
7,103,399
|
|
7,880,570
|
|
1,102,532
|
Guarantee
liabilities to related parties
|
26,639
|
|
24,867
|
|
3,479
|
Held-for-sale
liabilities*
|
-
|
|
1,075,166
|
|
150,421
|
Total current
liabilities
|
24,141,188
|
|
30,032,924
|
|
4,201,760
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
borrowings
|
1,954,831
|
|
2,023,159
|
|
283,050
|
Convertible
senior notes
|
-
|
|
557,182
|
|
77,953
|
Long-term
payables
|
338,412
|
|
-
|
|
-
|
Bond
payables
|
299,475
|
|
-
|
|
-
|
Accrued
warranty costs - non current
|
573,641
|
|
605,940
|
|
84,774
|
Financing
lease liabilities*
|
-
|
|
294,194
|
|
41,159
|
Operating
lease liabilities*
|
-
|
|
229,902
|
|
32,165
|
Deferred tax
liability
|
25,893
|
|
25,893
|
|
3,623
|
Guarantee
liabilities to related parties
- non current
|
65,765
|
|
46,492
|
|
6,504
|
Total non-current
liabilities
|
3,258,017
|
|
3,782,762
|
|
529,228
|
|
|
|
|
|
|
Total
liabilities
|
27,399,205
|
|
33,815,686
|
|
4,730,988
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Ordinary shares
(US$0.00002 par value, 500,000,000
shares authorized, 156,864,737 and 177,185,237
shares issued and outstanding as of December 31,
2018 and September 30, 2019, respectively)
|
22
|
|
25
|
|
3
|
Additional paid-in
capital
|
4,010,740
|
|
4,549,236
|
|
636,462
|
Statutory
reserves
|
570,176
|
|
570,176
|
|
79,771
|
Accumulated other
comprehensive income
|
70,301
|
|
111,502
|
|
15,599
|
Treasury stock, at
cost; 1,723,200 ordinary shares
as of December 31, 2018 and September 30, 2019
|
(13,876)
|
|
(13,876)
|
|
(1,941)
|
Accumulated retained
earnings
|
3,202,528
|
|
3,731,687
|
|
522,082
|
|
|
|
|
|
|
Total JinkoSolar
Holding Co., Ltd. shareholders' equity
|
7,839,891
|
|
8,948,750
|
|
1,251,976
|
|
|
|
|
|
|
Non-controlling
interests
|
614,087
|
|
2,262,332
|
|
316,512
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
35,853,183
|
|
45,026,768
|
|
6,299,476
|
|
|
|
|
|
|
Note: *In November,
the Company entered into an agreement to sell two solar power
plants in Mexico
with a combined capacity of 155 MW to White River Renewables, a
Mexican renewable energy
company. Assets and liabilities related to these two solar power
plants were reclassified as
assets/liabilities held for sale as of September 30,
2019.
|
View original
content:http://www.prnewswire.com/news-releases/jinkosolar-announces-third-quarter-2019-financial-results-300960741.html
SOURCE JinkoSolar Holding Co., Ltd.